In this article, you will learn how to set options that influence forecasted purchase quantities. You will learn about purchasing options, warehouse procurement, and how to link a replacement item to purchase history.
- Go to the Product Master and create or open a product as described in Create and edit products .
- Click the Purchasing tab.
- Click Edit.
- Optionally, in the Based on Purchasing Unit of Measure Each panel, enter a value for any of the following fields:
- Box Quantity Forecasted reorder quantities will round up to the nearest interval. For example, a product has a box quantity of 6. If the suggested reorder quantity is 4, then Inform will round up and suggest a reorder quantity of 6. If the suggested reorder quantity is 7, Inform rounds up to a suggested reorder of 12.
- Min Stock Quantity Minimum Stock Quantity. The lowest quantity to keep stocked at all times. If the available inventory falls below this minimum, then the product is considered Critical and will appear on the Critical Inventory Report. Note: If higher, this value overrides the system generated Reorder Point, based on demand, lead days, and safety stock.
- Max Stock Quantity The highest quantity to keep stocked at all times. If the available inventory falls below this, the product will appear in Projected Purchase Order.
- Min P/O Order Quantity Minimum Purchase Order Quantity. The vendor's requirement of a minimum quantity that must be reached before the product can be purchased. Note that this does not round in intervals of this quantity, and should not be confused with box quantity. For example, a product as a Min P/O Qty of 100. If the suggested reorder quantity is 60, then the system will round up and suggest a reorder quantity of 100. Note that this can be used in conjunction with Box Quantities.
- Carton Quantity The number of items that comprise a carton.
- Pallet Layer Quantity The number of items that comprise a single layer in a palette.
- Pallet Quantity The number of items that comprise a pallet.
- Inner Dimension The size of the inner dimension of the product, such as the opening in a pipe. Numeric values only.
- Outer Dimension The size of the outer dimension of the product. Numeric values only.
-These values are based on the purchasing Unit of Measure
-These values apply to all warehouses, unless overridden by the Warehouse Procurement options
- For products that are sold 3-5 months during the year, select the SeasonalUsed for products that are needed a few months out of the year. When checked, only seasonal forecast formulas will be assigned to the product. These formulas focus more on the upcoming months, based on the previous year. Additionally, Inform determines when a product is Out of Season by evaluating the surrounding months of demand for both the current and the previous year. This analysis prevents unnecessary purchasing during the off season. check box .
-Based on demand, Inform ERP will determine when the item is out of season.
-For example, air conditioning units will not be reordered during the winter months.
- Still on the Product Purchasing page, navigate to the Warehouse Procurement options.
These options allow values to be set per Warehouse.
- For each warehouse, specify a value for any of the following fields:
- Stock? Allows the Status of a product to be overridden by warehouse. You have the choice of Default, Yes, or No. Default means that the Status set on the Product's Main tab will be used. Yes means that the item is Active (stocked) in the selected warehouse. And No means the item is Non-Stock in the selected warehouse.
- Lead Days The number of days it takes to receive a product from the vendor. This helps determine a reorder point for critical inventory. Reorder Point Formula = [(Weekly Demand) x (Lead Days in weeks) + (Safety Stock)] For example: [(10 per week) x (2 weeks) +(20% safety stock)] = 24
- Safety Stock A reserve amount of stock. Used to determine a reorder point for critical inventory. If blank, this value defaults to 20%. Reorder Point Formula = [(Weekly Demand) x (Lead Days in weeks) + (Safety Stock)] (10 per week) x (2 weeks) +(20% safety stock) = 24
Note: Ignore the Forecast Formula for now as it is updated automatically. The Forecast Formula determines the reorder quantity for the Projected Purchase Order. During month end closeout, demand for the previous year is reevaluated on all recurring products. and the best formula (the one closest to actual demand usage) is applied automatically. It is possible to manually override a formula and prevent it from being updated, however, this is not recommended.
Note: By default, a recurring product is defined as stock products that have had demand in eight months out of the past year. This can be modified via the Forecast Parameters.
- Still on the Product Purchasing page, navigate to the Purchase History Link option in the upper right.
This option combines an existing item's demand and availability to a new replacement item. It is commonly used when a product is being discontinued and replaced.
- Type the Product Number of the existing (now discontinued) item into the Purchase History Link box.
- Click Save. The Purchase History Links (discontinued items) will no longer show up in forecasting.
- To view Purchase History Links, click Analysis on the left navigation bar. Look to the Image panel in the top right of the Analysis page; click Purchase History Links.
Linked products must have the same Unit of Measure structure.