Related topics
There are three types of inventory control codes and three corresponding programs used in the DC1 Inventory Control System. They are:
- Forecast control codes
- Replenishment control codes
- Service control codes
In this program you define the inventory control codes for calculating reorder point (ROP), and safety stock level (SST). The purpose is to give you the flexibility to define several different methods for calculating ROP/SST, for different segments of stock, according to the different classes below, and the different keys within those classes. In addition, you can assign methods on warehouse level or company level.
Options
| Select | Select this option to work with key values in order to define methods for calculating ROP and SST for the control key class. |
- Control key class
- This column lists the existing control key classes for which you can define ROP/SST methods. You can only select one at a time.
The Nickname class allows you to define EOQ methods which do not have to be assigned to a specific key within the system. The nickname is an arbitrary name. When you installed DC1 Inventory Control, a common EOQ method and its’ corresponding values were automatically set for the default class. However, you can maintain these values. Select the Default class if you want to maintain the EOQ method for the default class.
- Short code
- This column lists the short codes of the existing control key classes.
Work with service control codes (INVD01204)
Note: This panel can be accessed in either Maintenance or Enquiry mode. In Enquiry mode, you are only able to view the information. The panel heading differs accordingly.
If you accessed this panel via the Display option, then you will only be able to view the information. To create or update a record, return to the previous panel and select either the Add or Change option (if available).
On this panel you define the inventory control codes for calculating reorder point (ROP), and safety stock level (SST). The purpose is to give you the flexibility to define several different methods for calculating ROP/SST, for different segments of stock, according to the different classes below, and the different keys within those classes. In addition, you can assign methods on warehouse level or company level.
Options
Selection fields
- Control key class
- Displays the selected control key class for which you want to define ROP/SST methods.
- Whs
- This column lists the warehouses for which an ROP/SST method has been defined at warehouse level. If a warehouse code is not entered, then the ROP/SST method is used at company level.
- Key value
- This column lists the key values entered for the selected control key class. For example, if the control key class is *ITM (item), then valid item codes are listed.
- Service based
- Indicates if the Service Based method should be used to calculate ROP/SST for this control key class, warehouse and key value.
- Demand based
- Indicates if the Demand Based method should be used to calculate ROP/SST for this control key class, warehouse and key value.
- Service level %
- If the Service Based method is selected, then the service level that should be maintained is shown, less than 100%.
- Demand fraction %
- For the Demand based method, the value (if one was entered), to be used to calculate SST as the percentage of forecasted demand during replenishment time is shown.
- Minimum fraction %
- For the Service based method, the value to be used to calculate the lower limit for SST is displayed if one was entered. This value is used to calculate SST as a percentage of forecasted demand during replenishment time.
- Maximum fraction %
- For the Service based method, the value to be used to calculate the upper limit for SST is displayed if one was entered. This value is used to calculate SST as a percentage of forecasted demand during replenishment time.
- Maximum ROP dev %
- Displays a percentage value for the allowed maximum ROP deviation between the present period ROP value and the previous period ROP value. This value is used to determine if an error in ROP has occurred during calculation. If a value is not entered, then the system cannot alert the user to deviations in ROP.
- Maximum SST dev %
- Displays a percentage value for the allowed maximum SST deviation between the present period SST value and the previous period SST value. This value is used to determine if an error in SST has occurred during calculation. If a value is not entered, then the system cannot alert the user to deviations in SST.
- Zero safety stock
- Indicates if you want to use the Zero safety stock method to calculate safety stock. If this is set to YES, SST will always be zero, and reorder point will be calculated as demand during replenishment time.
- Zero reorder point
- Indicates if you want to use the Zero reorder point method to calculate safety stock and reorder point. If this is set to YES, safety stock and reorder point will always be zero.
- Safety stock days
- For the Demand based method, the value (if one was entered) to be used to calculate SST as the forecasted demand for this number of days into the future starting today is shown.
- Minimum SST quantity
- Used to adjust the Service based method and Demand based method (both by Fraction and Safety stock days). Indicates the lower limit for the safety stock. If it is calculated to a value that is lower than this value, then the minimum SST quantity will be used as SST. Note that the quantity shown here might be used for different items with different stock units. This value will represent the stock unit for each item. E.g., a number of 5 shown here might be 5 PCS or 5 BOX10 when applied as safety stock.
- Maximum SST quantity
- Used to adjust the Service based method and Demand based method (both by Fraction and Safety stock days). Indicates the upper limit for the safety stock. If it is calculated to a value that is higher than this value, then the maximum SST quantity will be used as SST. Note that the quantity shown here might be used for different items with different stock units. This value will represent the stock unit for each item. E.g., a number of 5 shown here might be 5 PCS or 5 BOX10 when applied as safety stock.
Service control code maintenance (INVD01207)
Note: This panel can be accessed in either Maintenance or Enquiry mode. In Enquiry mode, you are only able to view the information. The panel heading differs accordingly.
If you accessed this panel via the Display option, then you will only be able to view the information. To create or update a record, return to the previous panel and select either the Add or Change option (if available).
On this panel, you can add, change or delete entries for this control key class. For each warehouse and key value you define, you must select the method, and establish the parameters that you want to use to calculate ROP/SST for the selected control key class.
Note: You are not allowed to delete the *DFT key value.
Function keys
- Control key class
- Displays the control key class with which you are working.
- Warehouse
- Key value
- Mandatory entry. Enter a key value. For each warehouse and key value in this control key class, you define a method and the parameters to be used for calculating ROP/SST.
- Description
- Enter a description of the new record. For existing records, if a description has already been entered, it may be changed.
Select method
Select the method you will use to calculate ROP/SST for this control key class, warehouse and key value. The four methods that you can choose from are listed below. You can only choose one method.
- Service based
- Indicate if you want to use the Service Based method to calculate ROP/SST for this control key class, warehouse and key value.
- Demand based
- Indicate if you want to use the Demand Based method to calculate ROP/SST for this control key class, warehouse and key value.
- Zero safety stock
- Indicate if you want to use the Zero safety stock method to calculate safety stock. If this field is set to YES, SST will always be zero, and reorder point will be calculated as demand during replenishment time.
- Zero reorder point
- Indicate if you want to use the Zero reorder point method to calculate safety stock and reorder point. If this is set to YES, safety stock and reorder point will always be zero.
Enter parameters
Enter the parameters needed to calculate ROP/SST according to the method chosen above. You are required to complete certain fields below, depending on which ROP/SST method you selected.
Service based parameters
- Service level %
- Mandatory entry if the Service Based method is selected. Enter the service level you want to maintain. It must be less than 100%.
Demand based parameters
- Demand fraction %
- Mandatory entry if you choose the Demand Based method. Note that either this field or the Safety stock days field below can have a value. If you choose to enter a value in this field, the value you enter is used to calculate SST as the percentage of forecasted demand during replenishment time.
- Safety stock days
- Mandatory entry if you choose the Demand Based method. Note that either this field or the Demand fraction % field above can have a value. If you choose to enter a value in this field, the value you enter is used to calculate SST as the forecasted demand for this number of days into the future starting today.
- Year forecast
- This field can help keep the ROP and SST stable even when the period forecast is fluctuating. If you set this field to YES, the system will calculate ROP and SST based on year forecast. If this field is set to NO (which is the default setting) the system will calculate ROP and SST based on period forecast.
Note: If this field is set to YES, the Select method must be Demand based or Zero safety stock.
Limit parameters
- Minimum fraction %
- This field is applicable if you selected the Service based method to calculate simulated ROP/SST, but it is not a mandatory field. It is an optional “safety net” when you are using the Service based method so that you never get a safety stock lower than the entered minimum fraction % of demand during planning time. Optionally enter a value to be used to calculate the lower limit for SST. The value you enter is used to calculate SST as a percentage of forecasted demand during replenishment time.
- Maximum fraction %
- This field is applicable if you selected the Service based method to calculate simulated ROP/SST, but it is not a mandatory field. It is an optional “safety net” when you are using the Service based method so that you never get a safety stock greater than the entered maximum fraction % of demand during planning time. Optionally enter a value to be used to calculate the upper limit for SST. The value you enter is used to calculate SST as a percentage of forecasted demand during replenishment time.
- Minimum SST quantity
- This field is used to adjust the Service based method and Demand based method (both by Fraction and Safety stock days). Indicate the lower limit for the safety stock. If it is calculated to a value that is lower than this value, then the minimum SST quantity will be used as SST. Note that the quantity entered here might be used for different items with different stock units. This value will represent the stock unit for each item. E.g., a number of 5 entered here might be 5 PCS or 5 BOX10 when applied as safety stock.
- Maximum SST quantity
- This field is used to adjust the Service based method and Demand based method (both by Fraction and Safety stock days). Indicate the upper limit for the safety stock. If it is calculated to a value that is higher than this value, then the maximum SST quantity will be used as SST. Note that the quantity entered here might be used for different items with different stock units. This value will represent the stock unit for each item. E.g., a number of 5 entered here might be 5 PCS or 5 BOX10 when applied as safety stock.
Error tracking parameters
- Maximum ROP dev %
- Enter a percentage value for the allowed maximum ROP deviation between the present period ROP value and the previous period ROP value. This value is used to determine if an error in ROP has occurred during calculation. This field is optional. However, if you do not enter a value, the system has no way to alert you to deviations in ROP.
- Maximum SST dev %
- Enter a percentage value for the allowed maximum SST deviation between the present period SST value and the previous period SST value. This value is used to determine if an error in SST has occurred during calculation. This field is optional. However, if you do not enter a value, the system has no way to alert you to deviations in SST.
Work with service control codes, Copy (INVD01208)
- Control key class
- Displays the selected control key class with which you are working.
- Whs
- Displays the warehouse code(s), if defined for the key value(s) you selected to copy.
- Key value
- Displays the selected key value(s).
- New whs
- Enter a code to identify the new warehouse for which you are entering new key values.
- New key value
- Enter the new key value.