A number of new configurations have been added that relate to ‘Order Creation from History’. These new configuration allow for better control of how the system works out how much stock to order when using the automated ordering systems.
The new configurations that have been added are:
- Add Supplier lead time to No. of Days Stock
When this is selected the system will look at the ‘Lead Periods’ and ‘No. of Periods’ configured under the Order Details button of the supplier that the order will be created for. The lead period configured will be automatically added to the value entered in the ‘No. of Days Stock’ field in Order Creation from History to get a total number of days to order stock for.
As an example a supplier has the Lead Periods set to 10 days. When using Order Creation from History you set the No. of Days Stock to 20.
The system will take the 20 days you have entered, add the lead time of 10 days to arrive at a total stock required being 30 days worth.
- History Filtering
When this is selected it will make the following three configurations available to configure. The system will only use these configurations if this is selected.
- Threshold for minimum number of orders per month
This configuration sets the minimum number of sales that must have been processed for a specific product within the selected period before the “Percentage of Orders to Discard” and “Minimum Level Percentage to Include in Order” configurations will take effect. If a product does not meet the minimum number of sales required the other two configurations will be ignored and ordered as it would have been without the configurations set.
This will calculate the total number of sales processed in the period of time selected when using ‘Order Creation by History” and then average this to a per month average. The per month average is compared to the value set in this configuration.
As an example
15 is set in the configuration as the threshold for orders.
The following months are set :
- Current which has 17 sales completed.
- September which has 20 sales completed.
- August which has 10 sales completed.
The system will calculate the total orders as 47. Divide this by the number of months 3 for an average of 16 orders per month. This is compared to the configured threshold of 15. In this case 16 is greater than 15 so the “Percentage of Orders to Discard” and “Minimum Level Percentage to Include in Order” configurations will be applied.
- Percent of orders to discard
This configuration looks at the percentage of times a specific quantity was purchased of a product. If a specific quantity has not been sold a high enough percentage of the time the sales with that quantity will not count towards the amount of sales to use for ordering. This allows for the removal of extreme order quantities which are not normal.
As an example a product is sold as follows:
- 12 times with a quantity of 1
- 6 times with a quantity of 2
- 8 times with a quantity of 4
- 12 times with a quantity of 5
- 4 times with a quantity of 10
- 1 time with a quantity of 100
This means for this product the percentage of times a quantity was sold is:
- 1 was sold 28 % of the time
- 2 was sold 14 % of the time
- 4 was sold 19 % of the time
- 5 was sold 28 % of the time
- 10 was sold 9 % of the time
- 100 was sold 2 % of the time
If ‘Percentage of Orders to Discard’ was set at 5% then the sales with a quantity of 100 would be ignored. However if ‘Percentage of Orders to Discard’ was set at 10% then all of the sales with a quantity of 10 or 100 would be ignored.
- Minimum Level Percentage to include in order
When configured the value entered will be used to calculate a percentage of the quantity to order. If the calculated value is greater than the SOH the quantity to order value will be added to the order. If the calculated value is less than the SOH than the quantity to order it will not be added to the order.
As an example for a product:
- SOH is 27
- The Minimum Percentage to Include in Order is set to 20 %
- The To Order quantity has been calculated as 55
The system will work out 20% of 55 which is 11. It will then check if 11 is higher or lower than the SOH. As 11 is lower than the SOH of 27 the quantity to order will not be added to the order.