SA Administrator Options - Products - Replenishment field descriptions

Usage

Dead Stock Amount Level

When the Product Administration Inventory Classification and Rank Report is run, all products are classified into 13 classes. Products are classified according to their annual value movement through inventory. A certain percentage of products are classified into the first 12 classes. Class 13 is reserved for dead stock. The products considered dead stock depend on the amount you specify in this field. For example, if you specify 10.00 in this field, all products with an annual value movement less than $10.00 are put into Class 13.

Low Usage Threshold Amount

When the Product Administration Month End Processing Report is run, all products with unusual sales are disqualified. This requires you to review and approve the usage before updating product usage. Generally, unusual sales are not calculated into the overall standard usage of the product. The rule for disqualifying a product’s usage history occurs when these conditions are met:

• The last month's posted history is equal to the total of the previous five months' figures.
• The number of units sold is equal to or greater than the value entered in the Low Usage Threshold Qty field.
• The product's unit cost is significant.

The unit cost is used as a qualifier to determine if the product's history should be disqualified. You must enter the minimum extended cost in this field. For example, if you specify 500.00, products with a unit cost below this amount for the month are not considered for exceptional usage regardless of the quantity ordered. Ensure that you specify a minimum cost that applies to the type of products you stock. Unit cost is defined as product cost X usage)

Low Usage Threshold Qty

Use this field to define the minimum number of units sold for a product to qualify as exceptional usage. This is used in addition to the amount you specify in the Low Usage Threshold Amount field. The default quantity is 5. When the Product Administration Month End Processing Report is run, the system reviews products for exceptional usage based on the criteria described in the Low Usage Threshold Amount field. If the product qualifies, usage is not updated and the product is frozen.

Class Percentages

Use these fields to set up alternative percentages that the Product Administration Inventory Classification and Rank Report uses to classify products. If the traditional percentages do not coincide with your environment, you can use this function to set up alternative percentages. The Product Administration Inventory Classification and Rank Report checks these fields first, and if the percentages have been changed it uses these percentages instead of the traditional percentages.

You do not have to specify a percentage in each class, but the Total sum of the 12 classes must equal 100 percent.