Using this function you can simulate purchase review cycles and determine the optimum review cycle for an item line. This simulation allows you to define vendor minimum order values, gross order weights, etc, and any discounts for the item. The resulting net costs will be shown.
The calculations are simulated and do not result in an update of the DC1 Inventory Control system. However, the optimum review cycle information can be used to schedule purchase reviews via Work with periodic purchase & order targets.
- Select the Simulate purchase review time menu item.
- You access the first Purchase review time simulation panel. The following field is mandatory:
- Supplier
- Enter the supplier to be used in the simulation. A review time simulation model must exist for this supplier.
- You access the second simulation panel where you select the models and establish the parameters that you want to use when calculating the purchase review time. Note: This panel may display data before the simulation if records exist in the Supplier/line discount table. Complete the following fields:
- Target values 1-4
- Enter a target value for at least one of the four review cycle models. The Target based on field defines what the target value is based on. If there is a supplier/line discount for this supplier/line combination, then the target values will be retrieved from that discount. Tip: Click Display discount to access the Supplier/line discount enquiry where the discount for the selected supplier/line is displayed.
- Target based on
- Enter the model type code to be used to define the target values. If there is a supplier/line discount for this supplier/line combination, this code will be retrieved from that discount. Valid codes are:
- You return to Purchase review time simulation where the retrieved values are displayed. Once you have set up a model type, replenishment code, and at least one model value, you can click Perform simulation.
- You return to the Purchase review time simulation panel where the simulated values are displayed. The system highlights the model that has the optimum purchase review cycle. See the Panel help for detailed information about the displayed values.
Click OK.
| 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 |
Before you can perform the simulation, you must click Select replenishment code to select a code from Work with replenishment control codes. Click OK.
When you select a record, the system retrieves the values for the Stock % and Order cost fields. These values are retrieved from the Order cost and Stock interest fields in Work with replenishment control codes. Note: See About working with inventory control codes for more information about the replenishment control codes.
You can use this information to manually schedule purchase reviews through Work with periodic purchase & order targets. The update is not automatic. For more information on setting up purchase review cycles, see Set up records in Work with periodic purch & order targets (DC1 Inventory Control).