Average Monthly Usage and Reorder Point Calculations dialog box

On the ROP Model screen of the Purchasing tab, if you right-click an ROP rule and then select Change Calculation Data on the shortcut menu, the Average Monthly Usage and Reorder Point Calculations dialog box appears. (For details on the ROP Model screen, please refer to Field and button descriptions of the ROP Model screen.)

Descriptions of the fields and buttons on the Average Monthly Usage and Reorder Point Calculations dialog box are provided in the following table.

Note: To access the Average Monthly Usage and Reorder Point Calculations dialog box, you must have the proper security privileges. The ROP Maintenance job function needs to be assigned to one of your roles. Roles are assigned to users in the User Maintenance on the Security Maintenance screen of the Vision Configuration tab. For more information, refer to About roles and job functions.

Field or button

Description

ROP Model

This is the name of the ROP model.

Last Classification Date

This is the last date that the replenishment information was calculated.

ROP Factors

Manufacturer

This is the manufacturer selected for this ROP rule.

Product Class

This is the product class selected for this ROP rule.

Product Type

This is the product type selected for this ROP rule.

ABC Code

This is the ABC code selected for this ROP rule. ABC codes are assigned to products based on how fast they sell.

Average Monthly Usage Calculation

Calculation Type

Gordon Graham

If the system should calculate the average usage based on Gordon Graham's calculation, select this option. This is the default option.

The Gordon Graham average monthly usage calculation is based on the usage quantity during the last three non-exempt months. If usage for a month is overridden, the override quantity is included in the calculation instead of the actual usage for that month.

To calculate the average monthly usage, the most recent month's usage quantity is multiplied by 2. Then it is added to the usage quantities of the previous 2 months. The sum is then divided by 4.

Straight Average

If the system should calculate the average monthly usage based on the usage during a selected number of previous month, select this option. The Straight Average Calculation Parameters area appears in the Average Monthly Usage Calculation area.

In the Number of Months field, specify how many of the previous months should be used in the average monthly usage calculation. The maximum number is 24.

To calculate the average monthly usage, the system adds the monthly usage for the selected number of previous months and then divides the sum by the number of months.

Weighted Rolling Average

If the system should calculate the average monthly usage based on weighted rolling months' usage, select this option. The Weighted Rolling Average Calculation Parameters area appears in the Average Monthly Usage Calculation area.

In the Number of Months field, specify how many of the previous months should be used in the average monthly usage calculation. The maximum number is 24.

Then type a number (weight) in the appropriate month fields.

To calculate the average monthly usage, the system multiplies each weight by that month's usage. Then the system adds each of the weighted usage quantities and divides by the number of months.

Selected Months

If the system should calculate the average monthly usage based on the usage during selected months of the past 24 months, select this option. The Selected Months Calculation Parameters area appears in the Average Monthly Usage Calculation area.

In the Selected Months Calculation Parameters list, select the month(s) that should be used to calculate the average monthly usage.

To calculate the average monthly usage, the system adds the monthly usage for the selected month(s) and then divides the sum by the number of months.

Gordon Graham's Calculation Parameters

Straight Average Calculation Parameters

Number of Months

Specify how many of the previous months should be used in the straight average monthly usage calculation. The maximum number is 24.

To calculate the average monthly usage, the system adds the monthly usage for the selected number of previous months and then divides the sum by the number of months.

Note: This field, as well as the Straight Average Calculation Parameters area, is displayed only if the Straight Average option is selected in the Calculation Type area.

Weighted Rolling Average Calculation Parameters

Number of Months

Specify how many of the previous months should be used in the weighted rolling average monthly usage calculation. The maximum number is 24.

Note: This field, as well as the Weighted Rolling Average Calculation Parameters area, is displayed only if the Weighted Rolling Average option is selected in the Calculation Type area.

Last Mo. through Last Mo.-23

Type a number (weight) in the appropriate month fields.

To calculate the average monthly usage, the system multiplies each weight by that month's usage. Then the system adds each of the weighted usage quantities and divides by the number of months.

Note: These fields, as well as the Weighted Rolling Average Calculation Parameters area, are displayed only if the Weighted Rolling Average option is selected in the Calculation Type area.

Selected Months Calculation Parameters

January (Current Year) through December (Last Year)

Select the month(s) that should be used to calculate the average monthly usage.

To calculate the average monthly usage, the system adds the monthly usage for the selected month(s) and then divides the sum by the number of months.

Note: These fields, as well as the Selected Months Calculation Parameters area, are displayed only if the Selected Months option is selected in the Calculation Type area.

Reorder Points Calculation

Calculation Type

Gordon Graham

If the system should calculate the new reorder points using Gordon Graham's calculations, select this option. The Gordon Graham area appears in the Reorder Points Calculation area.

No Reorder Point Calculation

If the system should not calculate new reorder points, select this option.

Based on Weighted Average Monthly Usage

If the system should calculate the new reorder points by multiplying the average monthly usage by a number you specify, select this option. The Based on Weighted Average Monthly Usage area appears in the Reorder Points Calculation area.

Gordon Graham

Calculate EOQ

If the system should calculate the economic order quantity (EOQ), select this check box. If the system should not calculate the EOQ, clear this check box.

Note: This check box, as well as the Gordon Graham area, is displayed only if the Gordon Graham option is selected in the Calculation Type area.

No Reorder Points

Based on Weighted Average Monthly Usage

Safety Stock = Avg monthly usage X

To specify the low point for the reorder point calculations, type in this field the number that should be multiplied by the average monthly usage to determine the safety stock quantity.

Note: This field, as well as the Based on Weighted Average Monthly Usage area, is displayed only if the Based on Weighted Average Monthly Usage option is selected in the Calculation Type area.

Reorder Point = Avg monthly usage X

To specify the mid-level point for the reorder point calculations, type in this field the number that should be multiplied by the average monthly usage to determine the reorder point.

Note: This field, as well as the Based on Weighted Average Monthly Usage area, is displayed only if the Based on Weighted Average Monthly Usage option is selected in the Calculation Type area.

Linepoint = Avg monthly usage X

To specify the high point for the reorder point calculations, type in this field the number that should be multiplied by the average monthly usage to determine the linepoint.

Note: This field, as well as the Based on Weighted Average Monthly Usage area, is displayed only if the Based on Weighted Average Monthly Usage option is selected in the Calculation Type area.

Calculate EOQ

If the system should calculate the economic order quantity (EOQ), select this check box. If the system should not calculate the EOQ, clear this check box.

Note: This field, as well as the Based on Weighted Average Monthly Usage area, is displayed only if the Based on Weighted Average Monthly Usage option is selected in the Calculation Type area.

Average Monthly Usage Minimum

Minimum factor to stock 1 unit

If you would like to set up an average monthly usage minimum factor, type a decimal number between 0 and 1 in this field. Then if the calculated safety stock quantity, the reorder point, or the linepoint is less than 1, the system checks the minimum factor to stock one unit and compares it with the average monthly usage.

For example, if the calculated linepoint is less than 1, the system checks the average monthly usage. If the average monthly usage is less than the minimum factor, then the linepoint is set to 0. If the average monthly usage is greater than the minimum factor, then the linepoint is set to 1.

Accept

Click this button to save any changes that you have made.

Cancel

Click this button if you do not wish to save the changes that you made, and you wish to revert to your previous information.

 

Related Topics

Sample screen shot: Average Monthly Usage and Reorder Point Calculations dialog box

Field and button descriptions of the ROP Model screen

Working with the Purchasing tab