Related topics
This program allows you to change economic order quantity (EOQ), reorder point (ROP), and safety stock (SST) under simulated conditions to see what effect these changes have on stock value. You can also change cost price and planning time for the item/warehouse combinations in this selection to see what effect that has on stock value.
This program is useful in helping you understand how certain conditions affect stock value. You can perform as many simulations as you want before changing data in the actual system.
Note: The calculations you make here do not result in an update of DC1 Inventory Control. These calculations are simulated.
Sequence
- Item
- Warehouse
Selection
- Item
- Item group
- Supplier
- Volume value code
- Movability code
- Warehouse
- Planner
- Item class
- Item type
Only displayed if DC1 Manufacturing is installed.
Stock value simulation list printout (INVD3482)
On this panel, you define the parameters to be used in this selection. This is only a simulation. The parameters you define here have no effect on the actual data in the DC1 Inventory Control system.
Function keys
Select replenishment codes | Use this function key to search for information on the replenishment control code key classes defined in Work with replenishment control codes. You can also use it to select a code from the program. If so, then the method and parameters connected to the code are defaulted in the Replenishment method/parameters fields on this panel. |
Select service codes | Use this function key to search for information on the service control code key classes defined in Work with service control codes. You can also use it to select a code from the program. If so, then the method and parameters connected to the code are defaulted in the Service method/parameters fields on this panel. |
Replenishment methods/parameters
- Use production codes
- Indicate if the system should use the replenishment (EOQ) method that you established through the corresponding control code programs, including manual values, for each item/warehouse combination in the selection. That is, the system uses the methods it would use for an actual inventory calculation. If YES, you cannot enter data in the Replenishment method/parameters fields.
If you set this field to NO, then you must specify your own methods for determining EOQ for this selection. In this case, the methods you choose will be used for all item/warehouse combinations in the selection.
In the following three fields, you select the method you will use to calculate EOQ for this simulation. Depending on which method you choose, you must also complete certain parameters below. To choose a method and parameters from Work with replenishment control codes, click Select replenishment codes.
- Wilson
- Indicate if you want to use the Wilson method to calculate EOQ for this simulation.
- Period dependent
- Indicate if you want to use the Period dependent method to calculate EOQ for this simulation.
- Demand control
- Indicate if you want to use the Demand control method to calculate EOQ for this simulation.
- Order cost
- This field is required if the Wilson method or Period dependent method is selected. Enter the amount in system currency of the order handling costs associated with placing an order.
- Stock interest
- This field is required if the Wilson method or Period dependent method is selected. Enter the stock interest amount reflecting the return on investment the company would receive if their capital was not tied up in inventory.
- No of months demand
- This field is required if the Demand control method is selected. Enter the number of future months demand that you want to cover with one purchase. The calculated EOQ is checked against this value.
- Minimum months
- This field is not required, but can be used for the Wilson method and the Period dependent method. Enter the minimum number of future months demand that you want to cover with one purchase. The calculated EOQ is checked against this value.
- Maximum months
- This field is not required, but can be used for the Wilson method and the Period dependent method. Enter the maximum number of future months demand that you want to cover with one purchase. The amount you enter must be greater than the amount in the Minimum months field.
Service method/parameters
- Use production codes
- Indicate if the system should use the service (ROP/SST) method that you established through the corresponding control code programs, including manual values, for each item/warehouse combination in the selection. That is, the system uses the methods it would use for an actual inventory calculation. If YES, you cannot enter data in the Service method/parameters fields.
If you set this field to NO, then you must specify your own methods for determining ROP/SST for this selection. In this case, the methods you choose will be used for all item/warehouse combinations in the selection.
In the following two fields, you select the method you will use to calculate ROP/SST for this simulation. Depending on which method you choose, you must also complete certain parameters below. To choose a method and parameters from Work with service control codes, click Select service codes.
- Service based
- Indicate if you want to use the Service based method to calculate ROP/SST for this simulation.
- Demand based
- Indicate if you want to use the Demand based method to calculate ROP/SST for this simulation.
- Service level %
- Mandatory entry if the Service based method is selected. Enter the service level you want maintain. It must be less than 100%.
- Demand fraction %
- Mandatory entry if the Demand based method is selected. Enter a percentage value for demand fraction.
- 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.
- Cost price change %
- Optional entry. Enter a change in cost price for the item/warehouse combinations in this simulation. The value you enter is a percentage (+ or -) representing the percentage change in cost that you want to simulate.
- Planning time change %
- Optional entry. Enter a change in planning time for the item/warehouse combinations in this simulation. The value you enter is a percentage (+ or -) representing the percentage change in planning time that you want to simulate. If you enter a percentage here, you cannot enter a value in the Added planning time field.
- Added planning time
- Optional entry. Enter the change in planning time (+ or – in days) for the item/warehouse combinations in this simulation. The value you enter represents the change in the number of planning days that you want to simulate. If you enter a value here, you cannot enter a value in the Planning time change % field.
Stock value simulation list printout (INVD3483)
On this panel, you choose whether you want a detail or summary level report. From here, you can print the report.
- Details
- Set to YES if you want to print all the item/warehouse records in this selection plus the stock value totals for this simulation. Set to NO if you want a summary report with the stock value totals only.