HELP WITH SOURCE BY MOVEMENT

[THOOK]

Chuck Hartle has some convincing arguements regarding source by movement, especially with a GM inventory with access to high year information. One area that I need help understanding is; when you set up a separate source for the new year-model parts that you are somewhat speculating on, when do these move to the normal stocking ABC sources? Should this be determined by age or movement? Let's say that you bring in a new part and 6 months later you are selling 5 a month. Would you move it to the regular ABC source group or leave it where it is? The way I see it there would be no reason left for separating it. Now it would do better in the regular source for 60 hits a year. Is my logic correct and if so what is the best way/time to move them? Would I just run a movement report and move these to the new source?
Thanks in Advance
THOOK

[David S]

Thook:

Sounds right to me.

Here is the way I would look at it. In inventory control I ask two questions about every part. Should I stock it? (Will there be ROI?) If so, how many should I stock?

If you are going to speculate, and I am not condoning the practice of speculation, I would set up a separate source. Once these parts met my phase in criteria, I would then their source moving them to the general parts population using source by movement. At the point if my parameters are set correctly my system will make sure that I have the correct quantity on hand.

David S.

[kpratt]

I set my source by movement into four sources with a fifth source which is the default source for special orders, new parts, lost sales...etc.
When the part pops up on the phase in report I make a decision as to wether or not to move it to a stocking item. Once the decision is made, I look at the individual sales history and move it to the source that fits that history. The rest is automatic at end of month.

[cwalden]

I move mine out of a new part source when they go over the number of sales that make
them move to AP status and let the system
tell me when to not stock them anymore.
My phase in and phase out window is strictly
open or closed.

[This message has been edited by cwalden (edited 08-23-2001).]