This module provides a forecasting tool that
assists in the maintenance of appropriate warehouse stock levels. The user is
allowed to create draft purchase orders using calculated and entered criteria
that can be produced on a ‘What-if’ basis.
Reorder
Quantities
The predicted
demand is calculated using the following rules:
·
Base on previous years history.
·
Defaulted to 7-week period of current
history analysis (default held on control table).
·
·
Seasonal and trend adjusted, over selected
period.
·
Daily demand is derived from weekly figures.
The longer the period that the average is
calculated over, then the ‘smoother’ the figures calculated. The shorter the
period used, then the figures calculated are more reactive to current trends.
If no previous years history exists, then a
straight line moving average will be used, based on the number of periods
selected.
Dynamic
Supplier Lead Time
The Dynamic Supplier Lead Time is based on
the analysis of when Purchase Orders were received, against when they were
expected.
The Purchase Order Receipt entry will record
details of delivery days against scheduled days when the order line is
completed or remaining quantity set to zero.
The last 7 purchase orders for the supplier
will be analysed and the overall supplier performance rating will be derived.
The number of purchase orders to be analysed will be held as an adjustable
parameter.
The performance rating is calculated as a
percentage of Schedules days against Actual delivery days.
Scheduled
Purchase Orders
A supplier record will hold ‘start date’ and
‘cycle days’ information. This will be used to report on when a scheduled order
is to be manually raised against the supplier.
Promotion
Mapping
In order to assist the buyers in predicting
demand not only based on previous history, but in conjunction with previous
promotions, an option will be provided to highlight when promotions were
applicable. A full history of promotion prices and dates is held within the
Choise system.
It may be possible to look at previous
history and determine what the effect of a promotion has had on the sales on a
product. This would employ trending techniques immediately prior to and
following the promotion, where the deviation from the expected can be
quantified.
Drop
Criteria
The Supplier/Product table allows for up to
5 pricing criteria. Each criterion holds a quantity range and cost price applicable.
The cost price held on the Product table will always be the ‘Full Load’ price.
When Purchase Orders are placed, the cost
price on each order line will be the price associated with the loaded quantity.
On multiple product loads, the quantity is the total case quantity, and the
cost prices are then re-calculated against the total quantity and not the
specific item quantity.
Full
Load Uplift
The main criteria for generating a product
order is based on the analysis of warehouse issues history, stock on hand,
stock on order and lead-time. Where an order is generated that does not
complete a ‘Full Load’ (lorry load), the system will provide an option to
‘uplift’ the order, so as to fill a lorry. ‘Full Loads’ are necessary so as to
attract the best price, as per the ‘Drop Criteria’.
In generating a ‘Full Load’ order, the
system will re-calculate quantities required across all supplier products, not
just those already on order.
Where Layers and Pallets are used for
product items, the quantities will be further adjusted according to the number
of cases per Layer or Pallet.
The ‘uplifted’ order may be more than a ‘Full Load’, and therefore, at this point the buyers will use their knowledge to fine tune the final order.