How to calculate replenishment parameters

The Data -> Enterprise Purchasing -> Replenishment -> Calculate Replenishment Parameters screen enables you to automatically calculate replenishment parameters such as MIN-MAX and EOQ.

• EOQ values are calculated using specific formulas.

• MIN-MAX values are calculated based on the last 12 months of historical lead time and usage data. This function will calculate min-max parameters for replenishment purposes.

• Formula and values (Note: Only completed months are included. For example, if it is May 19th the period analyzed will be  April):

• Tables used: PLO_Lead - PARTS/LOCATIONS: LEAD TIME INFORMATION and PLO_COUNT - PARTS/LOCATIONS: INVENTORY MOVEMENT BY MONTH

• Security Period = Number of days specified by the location

• MonthlyLeadTime = Sum of Lead Time from PLO_LEAD over 12 months divided by 12. The average of lead time by month.

• LeadTime = Sum of Lead Time from PLO_LEAD over 12 months divided by number of entries in PLO_LEAD. The average of lead time per lead events. If this is 0, then MonthlyLeadTime is set to 1.

• MonthlyQtyIssues = Sum of Qty issue from PLO_COUNT over 12 months divided by 12. The average quantity issued by month.

• MinQty = (MonthlyQtyIssued / MonthlyLeadTime) * (LeadTime + SecuityPeriod)

• MaxQty = (Monthly QtyIssued / Monthly LeadTime) * ((LeadTime * 2) + Security Period)

• Notes:

• "SecurityPeriod" = LOC_MAIN.minmax_security_days – for the location of the part.

"Past 12 FULL months" is the total lead time which is pulled from this sql query:
SELECT SUM(lead_days) FROM PLO_LEAD
WHERE PART_part_no = '[Part_part_no]' AND PART_suffix = [Part_Suffix]
AND LOC_loc_code = '[Loc_loc_code]'
AND post_datetime > ‘02/01/2015 00:00’ AND post_datetime < ‘02/01/2016 00:00’

• This translates to the sum of the lead days in PLO_LEAD for the part for a date range between the first day of the current month going back 12 months.

"# of PLO_LEAD rows" is pulled from this sql query:
SELECT count(*) FROM PLO_LEAD
WHERE PART_part_no = '[Part_part_no]' AND PART_suffix = [Part_Suffix]
AND LOC_loc_code = '[Loc_loc_code]' AND post_datetime > ‘02/01/2015 00:00’
AND post_datetime < ‘02/01/2016 00:00’

• This translates to count of records in PLO_LEAD for the part for a date range between the first day of the current month going back 12 months.

• The dates used are based on the first of the month when the function is being called. EX: If today is 02/11/2016, the first of the month is 02/01/2016 00:

To calculate replenishment parameters:

Step 1.  Verify the following settings on the Replenishment tab of the Data -> Parts Items -> Location Information screen:

• Either EOQ or MIN-MAX displays in the Replenishment method field

Note: If you manage inventory BY LOCATION, EOQ must be selected.

• YES displays in the Perform EOQ or MIN-MAX calculation field

Step 2.  If you manage inventory BY ENTERPRISE, on the Inventory - Enterprise tab of the Data -> Setup -> Organization Structure -> Locations -> Primary Information screen, verify that there is a value in the Security days for MIN-MAX calculation field.

Step 3.  On the Data -> Enterprise Purchasing -> Replenishment -> Calculate Replenishment Parameters screen, click Prepare for Insert .

Step 4.  Specify the location and parts for which you want to perform this calculation. The system calculates values for one location at a time.

Note:  If location security is in effect, it applies to this screen. To learn more about location-level security, go to location level access control.

Step 5.  In the Calculate item field, specify whether the system should calculate EOQ or MIN-MAX values. If you manage inventory BY LOCATION, you must select EOQ.

Step 6.  Click Process .

For more information about the calculation that FASuite performs, see Replenishment calculation.

Once the calculation is complete, FASuite records the following information on the Replenishment tab of the Data -> Parts Items -> Location Information screen: the items that were calculated, when they were calculated, and what the values were previously. To undo a calculated value, update it manually to the previous value.