Suggested Reorder Quantity Screen - PUR 20

Purchasing managers can choose between our report-based inventory replenishment systems and our real time entry mode. The real-time mode includes the following features:

Access to the new suggested reorder calculator from within the P.O. Entry program, or in stand-alone mode from the Purchasing Menu.
Suggested Reorder Calculator which includes all of the key parameters used in the reorder reports system, but performs the calculations in real-time with results displaying on the screen.
Access to the new Suggested Reorder Calculator from within the P.O. Entry program, or in stand-alone mode from the Purchasing Menu.
Ability to step through the items for a supplier, by item number or description, and build a P.O. on the fly as the system suggests reorder quantities.

The real time suggested reorder calculator is accessed via option PUR 20. On the screen that appears, enter an item number and press Enter.

The B between the warehouse (RAL) and the UM (SF), near the top of the screen, is the ABC code for the item. You can use ABC codes to categorize and rate items. ABC codes are created in the ABC Code File (FIL 34) and are assigned to items via the Rating/ABC Code field in the Item File (FIL 2).

Term	Description
Average Mth Activity	Activity equals the quantity sold plus the change in open order quantity for the month. This figure is the average monthly activity for the date span entered.
Avg Mth Sales	The total usage divided by the number of months in the selected date span.
Qty onhand	The amount physically in stock.
Stock allocated	The portion of the allocated figure that has been assigned to stock. (Allocated - Back Orders = Stock Allocated)
QTY B/O	The portion of the allocated figure that has not been assigned to stock. (Qty Back Ordered = Allocated - Stock Allocated)
QTY Available	The amount onhand less the amount allocated.
QTY Scheduled	The amount currently on open purchase orders (on order) from suppliers.
NET Available	The amount available plus the amount scheduled, It is the total available including what is on purchase orders.
Reorder Point	The quantity to reorder based on the average usage and the reorder parameters in the Product Line, ABC, Purchasing Rules, and SKU Files.
Lead Time	The number of days between placing a purchase order for the item and receiving it.
net available after lead time	Net available after lead time is the amount you will have net available after a time frame equal to your lead time. If this figure is negative, you will probably be out of stock even if immediate action is taken. Net Available After Lead Time equals Net Available less lead time in weeks multiplied by average weekly usage.
suggested quantity to reorder	The quantity to reorder which will cause net available to equal the amount to stock within the lead time (amount needed in order to achieve the amount to stock based upon usage and the reorder parameters).
quantity sold by month	The total quantity sold for each of the last six months.
Growth Factor %	This field enables you to apply a simple global growth factor to your usage figures. For example, if you expect 10% growth over the historical usage averages, then enter 10.00 in this field. If you expect a 10% decline, enter 10.00- . The average usage figure (and average activity figure) will be adjusted by this percentage, up or down. It is recommended that this field be used to adjust for upcoming promotions, seasonality, and other instances where you expect a change the system cannot predict. You can also use this concept after a promotion. For example, if you are basing the forecast on the past three months usage, and there was a promotion during those months, you may want to apply a negative growth factor when the promotion ends.
Stocking Matrix?	The Stocking Matrix File provides powerful features you can use to control purchasing and back orders in a multi-warehouse environment. You should enter data into the Stocking Matrix File if you have multiple stocking warehouses and need the features described in this chapter. A stocking matrix is a set of rules that govern where stock is carried to meet the demands of each geographic grouping of customers. If you do not use the Stocking Matrix File, the system assumes that stock should be replenished to the warehouse where it was stocked. For example, if the stock was picked from warehouse NYC, then without a stocking matrix, the system assumes that stock in NYC should be replenished. If this replenishment method is satisfactory for your operation, or if you have a single stocking warehouse, you do not need to use this file. With a single central stocking warehouse, you should run the reorder reports for all warehouses combined.
Omit Rems?	You can include or omit remnants from the availability calculations. Remnants are available quantities of a single serial number or lot number that are less than or equal to the remnant quantity/size as entered individually for each item in the Item Master File. This concept only applies to material that usually must be sold from the same or matching serial numbers, lots, or rolls. This parameter is ignored for items that are not stocked by serial or lot number. If you choose to omit remnants, the reorder report ignores the available quantity of any serial or lot number that is less than the remnant quantity in the item master record. For example, let's say the total quantity available = 1000, consisting of three serial numbers of 900, 25, and 75. If the remnant size is 80, then the Reorder Report only considers that you have 900 available.
Omit Back Orders required after	Enter a date that beyond which back orders are not included in the suggested reorder calculations.
Only Fill Back Orders?	This option only covers open back orders, as opposed to ordering for stock replenishment. An example of how this option can be helpful, is if you need to order on an emergency basis, and don't have time to fill your next truck. You are filling on an LTL (less than truckload) basis, and just want what is absolutely needed to fill the back orders in house.
Use Sales or Activity?	Allows you to base the report on sales or activity. Sales information is based on items that have invoiced. Activity is defined as sales plus the change in open order quantities for the selected date span.

Example of Purchase Order Entry

Begin entering a purchase order.

Proceed to the Detail Screen and enter a ? in the L# field.

The System Table Code Search Window appears.

Select code K - Display the Suggested Reorder Calculator option. The Order Detail screen reappears with the code inserted.

Press Enter to display the Suggested Reorder Calculator for item being purchased.

The Suggested Reorder Calculator screen displays statistics for the item, and shows a suggested quantity to order if, based on your formulas and file setup, the system determines that a purchase should be made.

Press F1 to move to the next item. Continue to use F1 or F2 to step through the items until you find an item that either the system or you want to purchase.

F1 displays the next item based upon the item number, and F2 displays the next item alphabetically based upon item descriptions. Use F11 or F12 to step backwards through the item file.

Press F3 to add the item and suggested quantity to the Items to Order List.

Press F1 to proceed to another item.

Press F3 to include the item and its suggested reorder quantity in the Items to Order List.
Press F1 again to move through the items. Even if an item does not have a suggested reorder quantity....

... items can be added to the Items to Order List by pressing F3. You may then enter the quantity.

Press F7 to exit the Suggested Reorder Calculator screen. The program displays the Items to Order List. In this example, there are three items that were added to the list.

The quantities can be changed as needed. In the screen below, a quantity is added to the item that had zero as the suggested reorder quantity.

From the Items to Order list, you can use the following options:

X = order this item
Q = Display the Quick Quoter screen for this item. The Quick Quoter enables you to check prices, availability, and convert between units of measure, quickly and easily. The Quick Quoter is designed for use by salespeople that are quoting prices and availability, but do not key orders. The inventory display shows a summary of current and future inventory available by warehouse. Each category (current and future) is shown in two units of measure (U/M). One is the native U/M and the second is either: the U/M keyed on the Quick Quoter screen, the pick U/M, the sales U/M, SF or CT. For the second U/M shown, the system picks the first alternate U/M, from the above mentioned list, that does not match the native U/M. The first three lines of the Packaging File are displayed under Packaging.
I = Display the inventory for this item

Press F7 to add the items and respective quantities to the purchase order. The purchase order review screen automatically displays.

Additional Options

F9 - POs and BOs

F10 Activity Screen

F18 - 18 Month Activity Screen

F9 - POs and BOs

This function allows you to check purchase orders and back orders for specific items. Pressing F9 displays the Purchase Orders and Back Orders screen for the item.

F10 Activity Screen

This screen gives you a month-by-month breakdown of activity for a selected item.

Field	Description
Open Orders	The quantity, in native unit of measure, of open customer orders that are allocated against stock. Each figure represents the quantity open at the end of each month.
Open B/O	The quantity, in native unit of measure, of back orders. Back orders are customer orders that are not allocated against stock. Each figure represents the quantity open at the end of each month.
Qty Invoiced	The quantity, in native unit of measure, sold or invoiced in the respective months.
Mth Activity	The monthly order activity derived by performing the following calculations: Open orders plus open back order equals total open orders. Subtract the total open orders from the previous month from the total open orders of a month to determine the change in open order position. Add the change in the open order position to the quantity invoiced to calculate the month's order activity.
Header Warehouse	Order activity uses the header warehouse as its statistical anchor. The header warehouse is the warehouse that ultimately services the customer, regardless of where the stock was originally picked and transferred from. You can specify any header warehouse to display activity for that header warehouse. You can also enter up to six header warehouse codes to retrieve sub-totals of a group of warehouses. Enter ALL to include all warehouses. Direct ships are bypassed unless warehouse DIR is specified.

F18 - 18 Month Activity Screen

Shows 18 months of activity for the item.

Field	Description
Received	The quantity received each month
Shipped	The quantity shipped each month
Ord Now Open	The quantity still on open orders, which includes back orders. This 18-month display reveals the age of your current open orders, based on the order entry date.
# of Orders	The number of orders entered for this item for each month
Current Stock Available	The quantity of current stock available for sale. Current Stock Available = Onhand less allocations against stock.
Turns (past 12 months)	Turns for an Item = Annual Quantity Sold divided by the Average Quantity Onhand Per Month. Note: Only active months are included in the formula. Therefore, any months with no purchases, no sales, and nothing on hand are not included in the turns calculation. However, the turns figure is always annualized. This means that the turns figure is accurate and consistent, even for new items that may only have been in stock for a few months.
Future Stock Available	The quantity on purchase orders not yet received, less open back orders
GMROI (past 12 months)	Gross margin return on investment. GMROI = Annual gross profit divided by average on-hand value of inventory.
I/O Stocking Warehouse	Warehouse for which you want to see an 18-month history. Enter ALL to see a combined view including all warehouses. Enter DIR to see just Direct Ships. Enter up to six warehouses to see a combined view of those warehouses. The I/O (Include/Omit) lets you include or omit warehouses. If a user goes from item to item, the same warehouses are included or omitted. This allows for the same parameters to apply as the user goes from item to item.