R&R SYSTEM IN SCREEN 2323, LINE 9 HAS AN OPTION OF MINIMUM ORDER QTY'S. MY QUESTION IS
HAS ANYONE USED THIS AND HAD ANY PROBLEMS WITH THE SYSTEM ORDERING UNNEEDED PARTS? I JUST CHANGED MY ORDERING PARAMETERS IN SCREEN
2324 FROM THE PRVIOUS MANAGERS SETTING OF 3 MONTHS PERIOD TO 9 MONTHS. ANOTHER QUESTION IS, WOULD THE MINIMUM QTY. BE BEST USED IF PARAMETERS WERE SET FOR A 12 MONTH HISTORY? ANY SUGESTIONS WOULD BE APPRECIATED.
R&R SYSTEM MINIMUM ORDER QTY'S
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R&R SYSTEM MINIMUM ORDER QTY'S
by Chuck Hartle » Mon Jun 25, 2001 6:50 pm
Partsone,
We deal with this all the time. First of all, let's deal with your second issue. In 2324 you have the ability to search for 3,6,9,12 months worth of history. I would highly recommend that, if you can, you isolate the parts that move quickly into a source that uses a 9 or 12 month search pattern. The more consistent the sales, the more consistent the ROP/BSL calculations. Therefore, for parts with erratic or slow patterns, such at the 2-9 subset that Mike Nicholes talks about (also termed the "buy one, sell one parts" pattern) I would use a 3 month search pattern.
As for your first question, the 2323 Option 9 minimum quantity on hand setting....
This works really well for the erratic parts or medium moving parts. A perfect example would be a part that sells once a month or 12 times per year. I love this setting because the setting allows you to set a months sales pattern that is realistic for setting a minimum quantity.
For instance, you can sell some brake pads several times a month and then have a slow down for a month or two, and you can use this 2323 Option 9 setting to maintain a mininum quantity. Here is a good way to look at it. If you can isolate some of the parts that you know are important selling parts, but have somewhat erratic sales periods, you can program in a part and tell it that if it has 6 months sales out of a 12 month period, establish a minimum quantity of two. This means that if you have a slow down and the BSL drops to a low level because of your search pattern in 2324 Option One, it will maintain a minimum quantity regardless of the BSL calculation. Again, I would only recommend this for newer parts or parts that you trust are going to sell, you just want to minimize your stock out situation.
I hope this helps. If you use this properly and don't over-do it with a sales pattern of 2 months sales in 12 months, then establish a mininum of "X"; you will have a great tool to help your inventory levels.
Chuck Hartle'
We deal with this all the time. First of all, let's deal with your second issue. In 2324 you have the ability to search for 3,6,9,12 months worth of history. I would highly recommend that, if you can, you isolate the parts that move quickly into a source that uses a 9 or 12 month search pattern. The more consistent the sales, the more consistent the ROP/BSL calculations. Therefore, for parts with erratic or slow patterns, such at the 2-9 subset that Mike Nicholes talks about (also termed the "buy one, sell one parts" pattern) I would use a 3 month search pattern.
As for your first question, the 2323 Option 9 minimum quantity on hand setting....
This works really well for the erratic parts or medium moving parts. A perfect example would be a part that sells once a month or 12 times per year. I love this setting because the setting allows you to set a months sales pattern that is realistic for setting a minimum quantity.
For instance, you can sell some brake pads several times a month and then have a slow down for a month or two, and you can use this 2323 Option 9 setting to maintain a mininum quantity. Here is a good way to look at it. If you can isolate some of the parts that you know are important selling parts, but have somewhat erratic sales periods, you can program in a part and tell it that if it has 6 months sales out of a 12 month period, establish a minimum quantity of two. This means that if you have a slow down and the BSL drops to a low level because of your search pattern in 2324 Option One, it will maintain a minimum quantity regardless of the BSL calculation. Again, I would only recommend this for newer parts or parts that you trust are going to sell, you just want to minimize your stock out situation.
I hope this helps. If you use this properly and don't over-do it with a sales pattern of 2 months sales in 12 months, then establish a mininum of "X"; you will have a great tool to help your inventory levels.
Chuck Hartle'
- Chuck Hartle
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