You use this program to generate a report of suggested stock item minimum/maximum levels through time by applying the policy saved against the stock items.
The report models the effect of the policy and generates a report which allows you to diagnose potential problems.
| Field | Description |
|---|---|
| Selection | |
| Use selection set | Select this to use a pre-defined set of parameters that
were created using the IO Selection Sets program. When you use a selection set, no other Report Options, Selections or Include options can be indicated, because they will already have been indicated against the selection set (see IO Selection Sets. |
| Selection set | Indicate the name of the pre-defined set of forecast options you want to use for the report. |
| General | |
| Run date | This is the date when the model must be run. It can be
in the future, past or current. The run date serves as the starting point for the calendar in action. It defaults to the company date, but may be changed. |
| Forecast base | |
| Live | Select this to use the live forecast that exists within requirements planning to calculate the projected demand for a stock code/warehouse. |
| Draft | Select this to use the forecast currently being prepared to be the next live forecast to calculate the projected demand for a stock code/warehouse. |
| Last snapshot | Select this to use the last snapshot taken in requirements planning to calculate the projected demand for a stock code/warehouse. |
| Apply gross requirements rule | Select this to apply the gross requirements rule set up
against the stock item when calculating the demand for a stock
code/warehouse. The demand is the basis for the calculation to determine the minimum level required for each period. If you choose not to apply the gross requirements rule then forecasts are always used as the demand. |
| Include dependant demand | Select this to include dependant demand in the demand
used. Dependant demand is demand raised by existing job allocations. |
| Apply batching rule | Select this to apply the batching rule (or order
policy) against a stock code when calculating the maximum
level required for an item. In stock modeling, the maximum level for an item is initially calculated on a lot-for-lot basis. However, your batching rule may mean that this maximum is not feasible due to factors such as the order minimum. For example, the maximum is calculated as 700, but your minimum order quantity is 1000. This means that a suggested order will never be raised in MRP as it would exceed the maximum. |
| Period days to use | |
| Total | Select this to use the total days in a period as part of the modeling calculation. |
| Working | Select this to use the working days in a period as part of the modeling calculation. |
| Forecast accuracy | The selections in this section default to the selections made in the Inventory Optimization Modeling Setup program. |
| Months to compare | Indicate the default number of months to compare for forecast accuracy (1-12). The more months selected the more accurate will be the standard deviation used in the calculation using normal distribution. Although the entry here is in months, the actual number of periods is dependent on the calendar used (e.g. if you choose 6 months to compare and you are using a weekly calendar then this equates to comparing 26 periods). |
| Comparison type | |
| Period on period | Select this to calculate forecast accuracy by comparing each period's sales and forecasts to get the absolute deviation. |
| Moving average | Select this to calculate forecast accuracy by averaging the sales and forecasts over a number of periods. |
| Moving average months | If you set the comparison type to Moving
average, then you need to enter the number of
months to use for the moving average calculation of sales
history. As with Months to compare, this is converted to periods depending on the calendar in use. |
| Forecast to use | |
| Last | Select this to use the last forecast taken for the period to compare against sales for each period. |
| Last outside lead time |
Select this to use the last forecast taken for the period outside of the lead time and dock-to-stock (i.e. planning time fence) to compare against sales for each period. Forecasts generated within the lead time should not be used as it is too late to affect changes based on them. |
| Average | Select this to use the average calculated for snapshots taken for this period to compare against sales for each period. |
| Average outside lead | This uses the average, but only uses snapshots taken outside of the lead time. |
| Snapshot months | If the forecast to use is Average
or Average outside lead, then the number
of months entered here determines how many forecast snapshots
to use when calculating the average. For example: You have a weekly calendar and, historically, you created a live forecast for an item for each week. If you select 2 months here then the snapshot quantities are added for the period taken over the last 8 weeks and averaged out for comparison. |
| Levels | Indicate the level at which to generate the
report. This defaults to stock code/warehouse level, but can be changed. For example, if you select Return Buyer level, then the values are returned per buyer. |
| Selection | Description |
|---|---|
| Warehouse selection |
Indicate the warehouse(s) for which to generate the report. Only stock codes stocked in the selected warehouse(s) are included. |
| Stock code selection | Indicate the stock code(s) for which to generate the report. |
| Supplier selection |
Indicate the supplier(s) for whom to generate the report. Only stock items supplied by the selected supplier(s) are included (Stock Codes). |
| Product class selection |
Indicate the product class(es) to which to generate the report. Only stock items in the selected product class(es) are included (Stock Codes). |
| Planner selection |
Indicate the planner(s) to whom to generate the report. Only stock items for the selected planner(s) are included (Stock Codes). |
| Buyer selection |
Indicate the buyer(s) to whom to generate the report. Only stock items for the selected buyer(s) are included (Stock Codes). |
![[Note]](images/note.png)
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If you selected to use a selection set, then the report is generated using the options defined against the selection set (see IO Selection Sets). |
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| Field | Description |
|---|---|
| Pareto classification | Include/exclude items based on their Pareto
classification. You use the Pareto Analysis program to analyse and
classify inventory items. At least one of these options must be selected. |
| Analysis type |
Indicate what the Pareto classification, for the inclusion of stock items, must be based on. This can be Sales, Current forecasts or Draft forecasts. Once you have selected an analysis type, you can select the Pareto level at which the analysis must be performed. For example, if you select Sales and Stock code, then the Pareto classification of items used for inclusion purposes will be retrieved based on sales at the stock code level. |
| Sales | Select this to perform the analysis based on sales. |
| Current forecasts | Select this to perform the analysis based on current forecasts. |
| Draft forecasts | Select this to perform the analysis based on draft forecasts. |
| Pareto level |
Indicate the level at which the Pareto analysis must be performed. One of the following options can be selected:
|
| Part type | Indicate the part types to include in the
report. Phantom, Planning Bill and Notional Part types have no bearing in the IO modules and are therefore not available for selection. |
| Other | Against each of the following options, you can
select:
|
| Manual forecast items | Indicate how manually forecasted items must be handled by the report. |
| Replenishment items | Indicate how replenishment items must be handled by the batch update. |
| MPS items | Indicate how Master Production Schedule items must be handled by the report. |
| Make to order items | Indicate how make to order items must be handled by the report. |
If you selected a Level other than stock code/warehouse, then an entry of {Unclassified} could be printed on the report. This indicates that the information is not saved in the Inventory Master file/table. For example if you selected Return buyer levels, then all selected stock items that do not have the buyer defined against them are listed in the "unclassified" section of the report.
The following information is included in the report for the level you specified:
| Field | Description |
|---|---|
| Existing supply | This is the total of all Work in Progress jobs, Purchase Orders and Goods in Transit. |
| Existing sales | This is the demand from sales orders and the supply chain transfers for the supplying warehouse. |
| Forecast | This is the demand from the Forecast base selected in the Report Options pane. |
| Dependant demand | This is the demand required to satisfy component requirements in jobs (i.e. all outstanding demand from Work in Progress jobs). |
| Total demand | This is the total demand for the item for the period.
(i.e. Sales +Forecast + Dependant). If the Gross Requirements Rule is not used, then demand is always the forecast quantity for the period. The one exception is for an MPS item with a demand time fence set, in which case within the demand time fence (i.e. up to and including the period in which the demand time fence falls), demand is seen as Sales Orders only. |
| Projected available | Projected available = Opening
stock in the first period. For subsequent periods, this is calculated as: Opening stock + Existing supply - Total demand |
| Suggested minimum | This is calculated based on the policy settings (IO Policies) for the stock code/warehouse, the historical sales demand and the forecast accuracy. |
| Suggested maximum | This is calculated as: Total demand +
Suggested minimum. It takes into account the order frequency and the length of the review period and pro-rates the review period. This is done because the days cover can exceed the period length. |
| Suggested order | This indicates how much is needed to meet the maximum level depending on the Batching rule for the item and the policy settings. It is based on the shortage, where the shortage is the Opening stock + supply - demand. |
| Excess stock | This is calculated as: Projected available - Suggested maximum |
| Shortage stock | This is calculated as: Opening stock + supply - demand. |
| Average stock | This is calculated as: Suggested minimum + (Suggested maximum - Suggested minimum) / 2 |
| Live minimum and Draft maximum | These are the live minimum and maximum levels currently in MRP. |
| Draft minimum and Draft maximum | These are the draft minimum and maximum levels. |
| Target turns | This is calculated as: Annual demand / Average
stock holding. I.e. (Periods (use 12)) * Demand (this is the forecast) / Average stock |
| Actual turns | This is calculated as: (months in year (i.e.
12)) * demand in period (i.e. the forecast in the period) /
Closing stock. Where closing stock is the higher of Projected available or Suggested minimum. |
| Days cover | This is calculated as: Days cover = average stock / (forecast in period / days in the period or month). |