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This program allows you to simulate purchase review cycles and determine the optimum review cycle for an item line. This simulation allows you to define vendor minimums such as minimum order value, gross order weight, etc, and any discounts for the item. The resulting net costs will be shown. Optimum review cycle information can then be used to schedule purchase reviews via Work with periodic purchase and order targets. However, the Work with periodic purchase and order targets program is not updated automatically, it has to be done manually.
Note: The calculations are simulated and do not result in an update of the DC1 Inventory Control system.
- Supplier
- Mandatory entry. Enter the supplier for which you want to run a Review time analysis/simulation. A review time simulation model must exist for the supplier entered.
- Line code
- Optional entry. Enter the line code of the supplier/line code combination for which you want to run a Review time analysis/simulation. A review time simulation model must exist for the supplier/line combination entered. If you leave the field blank, then the simulation, for a line of items, is only performed per supplier (Line code is blank), i.e. it is not accumulated for all lines.
- Warehouse
- Optional entry. Enter the warehouse code of the supplier/warehouse combination for which you want to run the Review time analysis/simulation. A review time simulation model must exist for the supplier/warehouse combination entered. If you leave the field blank, the simulation is done for all warehouse items.
Purchase review time simulation (INVD7732)
On this panel you select the models and establish the parameters that you want to use when calculating the Review time analysis/simulation. The calculation will be for the supplier/line/warehouse combination that is displayed in the header.
When you access this panel, some data may already exist for a Review time analysis/simulation. If there is a supplier/line discount for this supplier/line, then data is retrieved from that Supplier/line discount table. You can change the values displayed on this panel, and click Perform simulation to recalculate a simulated forecast.
Note: The calculations are simulated; they do not update the DC1 Inventory Control system.
Function keys
| Select replenishment code | View all records in Work with replenishment control code. When a record is selected the system retrieves the Stock % and Order cost values to be used by the simulation. It is mandatory to select a replenishment code before performing any simulations. |
| Display discounts | Access the Supplier/line discount enquiry where you can view the table entry for a selected supplier/line. |
| Perform simulation | Perform the Review time analysis/simulation. |
- Supplier
- Displays the supplier selected for this Review time analysis/simulation.
- Sim. crt date
- Displays the date indicating the last time the Update review time simulation models program was run for this particular supplier. This was also the last time that the Review time simulation model was updated (calculated) for this supplier.
- Line code
- Displays the line code selected for this Review time analysis/simulation.
- Stock %
- Displays the stock percentage (carrying cost) established during this simulation the replenishment code (via the Select replenishment code function key).
- Warehouse
- Displays the warehouse selected for this Review time analysis/simulation.
- Order cost
- Displays the order cost (replenishment cost), in system currency, established during this simulation for the replenishment code (via the Select replenishment code function key).
- Orders per year
- Displays the number of orders per year that you would get as a result of using this model.
- Order cycle in days
- Displays the number of days between each purchase review that you would get as a result of using the model.
- Order amount
- Displays the order amount (in system currency, per purchase) that you would get as a result of using the model.
- Annual order amount
- Displays the forecasted annual sales (in system currency) of the selected supplier/line. This amount, which remains constant for each model, is retrieved from the Forecast file for the item(s) in the selected supplier/line/warehouse combination.
- Ordering cost
- Displays the annual ordering cost (in system currency) for each model. Ordering cost is calculated as:
Number of orders per year x order cost
- Carrying cost
- Displays the annual carrying cost (in system currency) for each model. Carrying cost is calculated as:
(Order amount x 0,50) x Stock %
- Discounts
- Displays the annual discounts for each model in the system’s currency. Discounts are calculated as defined in the Supplier/line discount table for this supplier/line. To view this table entry click Display discounts. Note: Discount considerations are given at the Total order level. Item level discounts are not considered.
- Annual net cost
- Displays the annual net cost for each model in system currency. Annual net cost is calculated as:
Annual order amount + Ordering cost + Carrying cost – Discounts
- Target values
- You must enter at least one target value for the simulation; up to four can be entered.
Existing supplier/line discounts are retrieved from the Supplier/line discount table. These values, however, can be changed.
The figures in these fields are defined by the code entered in the Target based on field (below).
For example:
If the code for target is NW and the figure entered in the Target value 1 field is 1000, then the review cycle used to create “model 1” will be based on placing purchase orders that have a net weight of 1000.After you have run the Purchase review time simulation by clicking Perform simulation, the system will highlight one of the models. Out of all the models in this simulation, this is the one with the optimum purchase review cycle.
- Target based on
- Enter the code that will be used to define the values entered in the Target values fields. If there is a supplier/line discount it will be retrieved from the Supplier/line discount table. However, the value can be changed.
Code Description V1 Order value in system currency V2 Order value in suggestion currency GW Gross order weight NW Net order weight GV Gross order volume NV Net order volume D Number of days between review Y Number of reviews per year