The inventory segmentation is used to segment a selection of item/warehouse combinations according to volume value and movability classes, and to automatically update the volume value and movability codes in the Item file. The basis for this segmentation is the information in the Forecast file, demand quantity and number of movements, along with price information to calculate volume value. Note: These codes can also be manually updated, but it is recommended that you let the system update them through this routine. The segmentation process performs the following:
- The volume value for the selected item/warehouse records is calculated.
Quantity * Price, where Quantity = Total demand + Demand adjustment for the item/warehouse record. - The selected item/warehouse records are sorted in descending volume value order. By accumulating the total volume value percentage/number of item/warehouse records percentage from the top, the system assigns a volume value code to each item/warehouse record.
- The number of movements/quantity from the Forecast file is used to retrieve a movability code from Work with movability codes.
The segmentation can also be done for dependent items, i.e. items that are part of other items. This is only applicable for manufactured items. The IC segmentation calculation can consider dependent demand in relation to volume value codes and movability.
- Select the Start inventory segmentation menu item.
- You access Inventory segmentation. Use the selection fields to narrow down the number of item/warehouse combinations to be included in the inventory segmentation. The following fields are mandatory:
- Update segm codes
- Indicate if you want to update the segmentation codes in the Item file. If YES, then the existing segmentation codes in the Item file will be overwritten. Note: This field must be set to YES if Print report only is set to NO.
- Print report only
- Indicate if you only want a segmentation report to be printed. This report prints all item/warehouse records in descending volume value order. If NO, a report will be printed and the Item file will be updated. Note: This field must be set to YES if Update segm codes is set to NO.
- Historical sales prc
- If you set this flag to YES, and the Segmentation price field in the Work with IC control file is set to 2 (= Sales price) or 3 (= Margin), then the average sales price is calculated from the Invoice/sales statistics file. Note that only invoiced lines are included in the average sales price calculation.
- Details
- Indicate if the segmentation report should contain detailed level information for each item/warehouse. If NO, the report will only display one line per volume value class instead of one line per item/warehouse.
- Volume value code
- Indicate if dependent items should be segmented according to volume value codes.
- Movability
- Indicate if dependent items should be segmented according to movability codes.
- You access Inventory segmentation where you define the printing parameters. Click OK to start the segmentation. Exit the routine.
Use production demand
Only applicable for items used as material in manufacturing orders. The following fields control if production demand should be used in the segmentation calculation.
Click OK.