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Inventory Optimization Institute FAQs

Through interaction with our Customer Support team, our Professional Services group and from listening to you, we’ve developed a list of questions and answers that seem to pop up across many of our implementations. The list of frequently asked questions below will continue to grow and evolve over time with new entries added regularly.

Do you have a FAQ suggestion? Send it to us and we’ll get it posted!

FAQs: Replenishment for Open Systems

Topic Question Answer
Brackets When building to a bracket with two different UOMs, does Replenishment use "AND" or "OR" logic? "OR" So if you have a single bracket with two different minimums ($1000 or 1000 units), Replenishment builds the order to whatever constraint it meets first. If Replenishment meets the $1000 minimum, but that results in 995 eaches, the order building still stops at $1000. Regarding maximums, if you have a single bracket with two different maximums ($65K or 4000 eaches), Replenishment builds the order to the constraint it meets first. Replenishment stops the order building at $65K, which may only be 3,000 eaches.
Demand Exceptions I'm looking at a Trending Up Demand Exception, and I can't really see the trend. Why did I get an exception? A trending up exception occurs when the SKU's tracking signal exceeds the defined threshold. Typically, a SKU’s tracking signal would exceed this threshold when the demand for a SKU increases over time and the forecast cannot keep up with the increasing demand. However, as the forecast and tracking signal are adjusted at the end of every forecast period, there may be occurrences when the SKU does not appear to be trending up, but the tracking signal has not completely adjusted to recent trending activity. Users should review trending up exceptions to determine if the current forecast is adequate for current expected demand. In most cases, no changes to forecast will be required for the SKU.
Inventory Layering What is the effect of life cycle policy on Inventory Layers? Does Replenishment only perform layering calculations for active SKUs or inactive and discontinued as well? Replenishment does layering for any SKU with On Hand inventory, regardless of life cycle policy. Typically, inventory would be in the cycle stock, safety stock, or overstock categories. For a discontinued SKU - Seasonalized Forecast for Period and Standard Deviation Units values are normally set to 0 by the user. So whatever on hand inventory it has will be shown as Overstock.
Personal Settings Is there a way to increase the number of lines that display on the Lines tab? Yes. You can set your Personal Preferences page to control the default number of lines that display on a Maintenance screen (such as SKU Maintenance) or an embedded list (such as the Lines tab on Edit Order). You can access Personal Preferences by clicking the button in the upper right corner of any page in Replenishment. NOTE: The more lines you display on a page, the longer the page load time and the slower the performance.
Planned Purchases If I have a planned purchase date of 12/20 and I pass that date, but haven't made a purchase yet against the SKU, does the planned purchase persist? Yes, once the planned purchase becomes "active," the planned purchase persists until you make a purchase against the SKU, regardless of what your SOQ is compared to the planned purchase quantity. The planned purchase does not expire when you pass the planned purchase date. So for example, if the Purchase On Date is 12/20, but you don't purchase that SKU until 12/23, the planned purchase will remain in effect on 12/23. However, if the suggested quantity is 1000 units, but you manually change the SOQ to 20, once you make a purchase on that SKU, the planned purchase is considered "satisfied."
Service & Investment Strategies Does SIS use past historical demand to determine the velocity codes during the SKU velocity stratification process? SIS uses the current annual demand forecast to assign velocity codes during the velocity stratification process. The historical demand is not directly used to assign velocity codes. However, since the demand forecast is typically based on historical demand, historical demand can indirectly impact the SIS velocity stratification process.

FAQs: Replenishment for IBM i Series

Topic Question Answer
Brackets When building to a bracket with two different UOMs, does Replenishment use "AND" or "OR" logic? "OR" So if you have a single bracket with two different minimums ($1000 or 1000 units), Replenishment builds the order to whatever constraint it meets first. If Replenishment meets the $1000 minimum, but that results in 995 eaches, the order building still stops at $1000. Regarding maximums, if you have a single bracket with two different maximums ($65K or 4000 eaches), Replenishment builds the order to the constraint it meets first. Replenishment stops the order building at $65K, which may only be 3,000 eaches.
Demand Exceptions I'm looking at a Trending Up Demand Exception, and I can't really see the trend. Why did I get an exception? A trending up exception occurs when the SKU's tracking signal exceeds the defined threshold. Typically, a SKU's tracking signal would exceed this threshold when the demand for a SKU increases over time and the forecast cannot keep up with the increasing demand. However, as the forecast and tracking signal are adjusted at the end of every forecast period, there may be occurrences when the SKU does not appear to be trending up, but the tracking signal has not completely adjusted to recent trending activity. Users should review trending up exceptions to determine if the current forecast is adequate for current expected demand. In most cases, no changes to forecast will be required for the SKU.
Service & Investment Strategies Does SIS use past historical demand to determine the velocity codes during the SKU velocity stratification process? SIS uses the current annual demand forecast to assign velocity codes during the velocity stratification process. The historical demand is not directly used to assign velocity codes. However, since the demand forecast is typically based on historical demand, historical demand can indirectly impact the SIS velocity stratification process.

 

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