# ASSORTMENT MANAGEMENT RULES

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- - Assortment management
  - Assortment determinable/changeable
  - Assortment control module (control of CAT groups)
  - Items (SKU) states
  - Weekly fluctuations management
  - Items (SKU) marks A, C, OUT, NEW
  - Item (SKU) export from assortment
  - Exported item (SKU) returning to assortment
  - Combining alternative items
  - After setting assortment, these actions are next
  - Additional informational columns
  - Module of perishable items (PER2)

## Assortment management

Includes state of DTO / DTA / ND / CD / CD2 / NM / NA / ALT setting, items movement describing marks A, C, OUT, NEW setting and merging of alternative items.

## Assortment determinable/changeable

Assortment is changeable:

1. By starting to manage storage place by DBM.

2. According system suggestions:

1) 602-603 reports „NON movers reports“: DTA -> DTO (OUT) or ALT.

2) 605 report „DTO transfer DTA“: DTO -> DTA.

3) 630i report „Assortment evaluation/rating“ DTA -> DTO in all sales network or DTO -> in separate sales points.

(look: STOCK-M reports description).

3. By management decision:

1) Entered new item/product into the system (look: Item SKU settings);

2) An item/product removed from the system OUT;

3) Other reasons.

## Assortment control module (control of CAT groups)

Assortment control module is for controlling assortment width (number of items having DTA status)

1. Creating a new CAT goup

CAT group can be created: StockM -> „OTHERS“ -> „CAT GROUPS“ -> „New“

Specify parameters when creating the group:

- Name – name of the assortment group (mandatory parameter);
- Min SKU per WH/Shop – minimum number of SKU in group;
- Max SKU per WH/Shop – maximum number of SKU in group;
- Max Inventory – the maximum amount of inventory (in cash) of all SKU of that CAT group;
- Trial days – is the period to trade in the item without doing assessment/decision, i.e. trial period shows after how many days the program will propose to decide whether to continue to maintain the product on DTA status in the group or to transfer it to DTO (mandatory parameter). Trial period is always calculated from the last change of SKU status or rejection of the proposal. The change of status is recorded only according to a schedule at the end of each day. Rejection of a proposal is recorded by rejecting a proposal to change the status;
- Manager – responsible manager (mandatory parameter).
- Min SKU per WH/Shop, Max SKU per WH/Shop, Max inventory – these fields can be filled either all or only those that are necessary for the user.

2. Assigning the item to a CAT group

You can assign an item to a group in the Inventory window: "Assortment"-> "inventory". The same item code can belong to different CAT groups in different warehouses. However, in one warehouse item can only belong to one group.

The CAT Group column is visible in the Inventory window and on the item card.

The group can include items of various statuses, but only DTA items are actively involved in the group (the number of them is tracked according to the specified parameters). Items in the group having other statuses are not tracked.

Only after the specified trial period, the newly added items in the group begin to participate in the assessment/decision if to continue them as DTA items in the group further on.

3. Product removal from the assortment

For DTA items, the ROI rating is counted during the data exchange. The column is visible in the Inventory window. The items proposed to be removed from the assortment are selected based on this indicator and on specified CAT group parameters. The items are selected according to the lowest ROI rating indicator.

The window of product removal from the assortment is accessed via the dashboard taskbar or via the menu item: StockM-> Assortment-> "DTA-> DTO".

It is proposed to change the status from DTA to DTO in the window or to postpone this offer:

• Press "DTA-> DTO" to change the status;

• Click "Postpone" if you don't change status now. The proposal to change the status will be postponed to the number of days specified in the CAT group description as the trial period (the trial period counts from the current day).

The window of the CAT group in the warehouse can be accessed by pressing the icon . Here are all the items belonging to one group of the selected warehouse.

## Items (SKU) states

1. Concepts:

DTA – item, which must always be in storage place and regulary supplement regional storage/branch (shop) with it. !!! In reports: Lost sales are calculated when there is no DTA item balance in the storage place. Overstock - is the quantity of an item above the specified item buffer.

DTO – item, which is carried according to special order, such item is in assortment, however the balance of it is not supported in company‘s storage space!!! If DTO item placed into regular order by reservation, quantity of ordered item is rounded by pack (USQ) to a larger size. In reports: Lost sales are not calculated, because DTO item balance shouldn't be in storage place. Overstock - is the total quantity of DTO goods in the storage place.

NM – item, which is not managed by system (for example, inventory in the shop, stand, service and so on). The balance of this item and sales are included into whole company inventory and sales.

NA – not active item, which is not in assortment, data is not updating for this item. The system automatically assigns NA state to items, which are taken out from assortment (OUT mover), when the balance becomes 0 in the storage place. NA goods are not included into reports.

ND – new item, i.e. such item, which was updated first time in StockM, „recovered“ from NA state, because item got „movement“, was disassembled „group of Alternatives“ or „Alternative item“ removed from „group of Alternatives“.

ALT – alternative item, which is not managed by system, but all item data, received during data exchange are recorded for the main item in the group. Such items are not included into orders.

CD – an item managed by Cross docking principle, only regional ordered items are ordered from the supplier. The state is assigned only for item in the Central Warehouse (in all other related warehouses states are in the same condition as specified above). More: Cross Docking Function.

CD2 – an item managed by Cross docking principle, necessary quantity of items to supplement the regions are ordered from the supplier. The state is assigned only for item in the Central Warehouse (in all other related warehouses states are in the same condition as specified above). More: Cross Docking Function.

2. Connection: DTA and DTO in the system, when items are delivered to the further chain

| Central warehouse | Regional warehouses
Items, sold regularly | DTA | DTA
Expensive, slow-selling items | DTA | DTO, In different storage places DTA (BUFF=1)
Items, taken out from assortment (OUT) | DTO | DTA
Items, which buyer agree to wait for (DTA sales are not bigger) | DTO | DTO

1) !!! For DTA items only, the system automatically generates regular orders (exception: when a pre-order is made for DTO item in the customer's accounting program (which is bigger than the item balance in storage place), then the DTO items are included in the regular system-generated order. P.S. this condition must be agreed at the start of the system start).

2) !!! For DTO items, the employee forms a special order (see: Special Order Formation).

3) !!! CD and CD2 orders are formed regularly according to the described rules (see: Cross Docking function).

3. Assignment of status to the item in STOCK-M:

STOCK-M -> „Assortment“ -> „Inventory“ -> Filter: specific item, supplier, storage place and etc. -> in the column state, select the required state from the list -> save changes.

- !!! For primary window opening customized filter *DT, if you need to filter out other state items – specify it in the filter.

- !!! It is possible to change the status for big number of items (mark the required lines → click select the required state -> save changes). Selected state will be assigned for all marked items.

You can also change states in New items window. New Items window is reached via the taskbar or menu item "Buffers" → "New Items"

If you want to enter an item to the assortment, which was taken from assortment before, you need to do these actions: STOCK-M → "Assortment" → "Inventory" → Filter: specific item → change product status from NA to DTO / DTA in the window that opens (remember to take off the check mark from the OUT mark in the "SKU List" window).

## Weekly fluctuations management

Peak coefficients for DTA goods/items.

If DTA item sales have weekly fluctuations (eg. sales increase on weekends), there is an option to specify Peak coefficients for each day of the week.

By default, this coefficient is equal to 1. Peak coefficients can be entered manually or uploaded via Table L11.

Peak coefficients are entered to that day, when items have to arrive. If sales increase on weekends and items arrive on Fridays and there are no deliveries in weekends, then the Peak coefficient is entered to Friday (for other days left 1).

Peak coefficient can only be applied if the supply is > = 2 times a week.

When forming the order, Peak coefficient is selected based on the day of the week, when the order will arrive and the buffer is multiplied with coefficient (more items are ordered in peak days).

## Items (SKU) marks A, C, OUT, NEW

Concepts:

SYSTEMATIC PARAMETERS, set for a single item throughout the system (all storage locations):

1) A mover – system parameter, set automatically (once / month, at the beginning of the month). With thismakrk specified items, that generate 80% of the company's turnover during the last 3 months and which have sold more than 1 pcs. - most IMPORTANT company goods. A mover item is highlighted in green.

- if there is made a decision inside the company other goods (which the system did not count as a A mover) keep as most important (accompanying goods, etc., which will result in lower sales), these items can be manually marked as A mover (but on the first day of the month)

2) C mover – systematic parameter, set automatically (once / month, at the beginning of the month). This mark highlight goods that generate 5 % of the company's total turnover during the last 3 months - slow moving goods. These goods are candidates to be exported from the assortment.

When calculating A / C movers, it is possible to specify the number of months from which the data will be taken for the calculation. The setting is made on a company-wide basis. Contact StockM if necessary.

3) OUT mover type:

1. OUT - mark for the item, which is removed from the range. If the check mark is placed on the OUT Mover mark, the item status automatically changes into DTO, in Central warehouse. After the stock balance ends, item status will become DTO/NM/NA (according to the setting in SM Admin). If we later receive the stock balance or some kind of movement of the NA item into StockM, the status of the item will become ND but mark OUT will remain.

2. CLN - mark for the item to be sold out that may be kept in the range further on or included in the range later again. If the check mark is placed on the CLN mark, the item status automatically changes into DTO, in Central warehouse. After the stock balance ends, the mark CLN will be automatically removed, the final status of the item remains as specified in the SM Admin. If we later receive the stock balance or some kind of movement of the items into StockM, the status of the items will remain DTO.

Until now, the final state of the OUT type (OUT / CLN) could be specified as one that was valid for both OUT and CLN.

These settings are now separated. The final states of the OUT types can be specified separately for the OUT mark and separately for the CLN. By default, the DTO status is assigned to CLN mark.

Contact StockM if necessary to replace.

PARAMETERS, set per item separately for each storage place.

1) NEW mover - new item mark, which is automatically applied to all newly updated items in the system. By default, item is considered as new for 3 months from the date when it was entered into the system. After 3 months, NEW mover mark is automatically removed (period, how long the item will be new, is agreed at the start of the project with project manager).

- this mark, when there is need, you can assign manually and determine till when the item will be marked as NEW. You will pay attention to this item before sending the order.

- NEW mover, which is included into the order the first time, is highlighted in yellow, that you would pay attention when you send order

It is possible to set the method for assigning the New mover mark. In the SM Admin module you can choose:

- how many days after the product card is created in the warehouse it is considered as new (NEW) or
- how many delivery periods (OLT - order lead time) of the item / order it must be considered with the NEW mover mark.

The setting can only be made on a company-wide basis.

OUT type, NEW marks assigning for item in StockM:

1) StockM → „Assortment“ → „SKU list“ → Filter: specific item, group of items and etc. -> in the row of selected item in the column OUT type select type or click after marking the required rows.

2)StockM → „Assortment“ → „Inventory“ → Filter: specific item, specific storage place, group of items and etc. -> in the selected item row in the column NEW put a check mark or click after marking the required rows.

IMPORTANT:

OUT type is placed on one item through all the system. Type shows that the item is being removed from the assortment (OUT) or sold out (CLN).

OUT:

- In the central warehouse – DTO OUT (item is no longer filled into a central warehouse from an external supplier), in the regional warehouses – DTA OUT (the item is filled into warehouses/regional warehouses/shops, to sell the stock/balance of the item);

- when items/goods, which have the mark OUT, are out of stock in the central warehouse (balance = 0), the system will automatically transfer this item to the DTO status in warehouses/regional warehouses/shops (there are no goods/items to fill warehouses/regional warehouses/shops);

- when goods are out of stock in all storage places (stock/balance = 0), system automatically transfers the product to the DTO/NM/NA state. State, to which is transfered the product, exported from the assortment, when its balance in all storage places is 0, is agreed with the customer at the beginning of the project !!!

- if the item is delivered directly from the supplier to the regional storage place, then after placing the mark OUT, system transfers the item to the DTO state in all storage places.

Assignment of OUT type to items with ALT status.

For alternative items (ALT) may be specified:

- The type OUT for a product that is taken out of the range.

When the ALT item is out of stock in all warehouses, the item is dropped from the group and the status specified in the SM Admin is assigned.

- The type CLN for product on sale, which may be in the range in the future.

When the ALT product is out of stock in all warehouses, the item is dropped from the group and the status DTO is assigned.

For ALT items, the OUT type can be assigned:

- in the ALT items combination window "Alternative SKU" in the "OUT type" column (if you do not see the column in the window, open it via the column visibility selection);
- by uploading it via SM Admin, via template to merge ALT items: Actions -> Merge ALT groups.

In the column “OUT type” next to the item it is necessary to indicate:

- “1” to assign OUT to the item;
- “2” if CLN
- “0” to remove the assigned type

CLN:

- The distribution and statuses of the items which are marked CLN operate on the same principle as OUT, but the final status remains DTO everywhere.
- After the stock balance ends, the mark CLN will be automatically removed. If we later receive the stock balance or some kind of movement of the items into StockM, the status of the items will remain DTO.

NEW mark is placed for one item separately in every storage place.

## Item (SKU) export from assortment

If there is made a decision to export an item from the assortment, then the mark OUT must be assigned to the item, (look to: Item (SKU) marks TOP, NON, OUT, NEW).

.

## Exported item (SKU) returning to assortment

If there is made a decision to return an item back to assortment, which has already been exported from the assortment, you must change the state for that item, from NA to DTA/DTO/NM/ND and the OUT mark MUST be removed and other required parameters must be set (checked).

1. Item (SKU) you will find: STOCK-M → „Assortment“ → „SKU list“ → Filter: specific item, group of items and etc..

2. In the window that opens put the mark OUT (see: Items (SKU) marks TOP, NON, OUT, NEW). Save changes

3. STOCK-M → „Assortment“ → „Inventory“ manage states of the items and other parameters (see: Items (SKU) states).

## Combining alternative items

When 2 and more goods are analogous "in the eye" of the buyer and it is enough to keep at least one of these items, however there are several similar goods balance, OR a new product replaces an old one and so on. cases - such goods can be combined as alternatives. Then the system will then "see" one main item and the total data (balances, sales, additions) of all alternative items.

Alternative (analogous) goods are combined by a management decision, i.e. alternative items are attached to the main item (for alternative items in StockM is set a single buffer such items balances are summed up. When it is not possible to order the main item, the alternative is ordered):

1. If you want to combine items, the main code and alternative code must be in all StockM active storage places.

2. StockM → „Assortment“ → „SKU list“ → Filter: specific (the main) item or group of items -> After marking the rows you want, click .

You can also access into the ALT group window in the SKU card (without leaving the item card):

3. If you need to add an item to the group – click „Add SKU“ in the window that opens and select items, which you want to combine.

4. Choose which code will be "Main" and which SKU parameters (buffer, minbuf, maxbuf, state and service level) should be uploaded on the main SKU. The main and alternative items codes must be available at all storage locations.

5. A warning has been made in the confirmation window of combining when saving settings that both main and alternative items will be distributed through the warehouses. Distribution takes place through all warehouses containing at least one product involved in the ALT combination. The message after combining of items will show how many new items (SKU) cards have been created through the warehouses.

ALT items cannot be combined if the item whose parameters we are taking has NA status across all warehouses.

6. After saving, the data of the alternative items (excluding the status) will be copied and added to the main item. More specifically, “movement” data (sales, transfers, balance, replenishments, PTO) that you see next to the main item will be summed of the combined items.

7. Mass combining into groups of alternative items (ALT) is available. In SM Admin menu (ADMIN -> ACTIONS -> MERGE ALT GROUPS) window there is a draft of the table for mass combining of the items into ALT groups.

- Main SKU code: SKU code of the main item in the group.
- Parameters SKU code: SKU code of the item, which parameters will be assigned to the main SKU.
- Old Main SKU code: if the existing group of items is changed, indicate the existing (old) code of the main SKU in the group. The Main SKU code field must contain the new main SKU code.

If a new group is being combined, do not specify anything in this field.

- Alt SKU code: SKU code of alternative item

Note: If there is more than one ALT item code for the same main SKU code, they must be listed on separate rows, repeating the main SKU code on each row.

The completed table needs to be imported into StockM.

8. Orders will always be formed for the main item.

9. When items are combined, the history of all items is summed up and uploaded on the main item, and the history of alternative items is REMOVED IRREVERSIBLY.

10. To edit an existing group: StockM → “Assortment” → “SKU List” → Filter: specific (main) item or group of items → Mark the rows you want and click . In the window that opens you will see all items, related with the marked item.

11. If the item needs to be connected to already combined alternative items, then click "Add SKU" and select items, which you want to connect.

12. If the item needs to be removed from the alternative items group, then click "Remove SKU". It is possible to remove an item from combined items group, but that item must be an alternative (to remove the main item, you must first make it an alternative and select another item as the main item, before removing it). Once an item has been separated from the group, its history is NOT returned.

13. The status of the alternative item is automatically transferred to "ALT". You see that the item is an alternative in the "Inventory" window, in the column "State". Alternative item's main item is visible in the window "SKU List" or "Inventory", in the column "Main SKU".

14. When items are merged in the ALT group, if at least one item in the group has TOP movers mark, immediately after the merge the TOP movers mark will be assigned to the main SKU of that group (only the TOP movers mark is checked)

15. After disconnecting the alternative item from the connected items, that item will appear among new incompleted cards with buffer 0 and state ND.

16. When in all storage places state for the main item is changed to NA, then the alternative group of items is "disassembled", i.e. alternative items are disconnected from the main and the state of the alternative items automatically changes to NA.

17. For alternative items (ALT) may be specified:

- The type OUT for a product that is taken out of the range.

When the ALT item is out of stock in all warehouses, the item is dropped from the group and the status specified in the SM Admin is assigned.

- The type CLN for product on sale, which may be in the range in the future.

When the ALT product is out of stock in all warehouses, the item is dropped from the group and the status DTO is assigned.

18. For ALT items, the OUT type can be assigned:

- in the ALT items combination window "Alternative SKU" in the "OUT type" column (if you do not see the column in the window, open it via the column visibility selection);
- by uploading it via SM Admin, via template to merge ALT items: Actions -> Merge ALT groups.

19. In the column “OUT type” next to the item it is necessary to indicate:

- “1” to assign OUT to the item;
- “2” if CLN
- “0” to remove the assigned type

20. Combining of alternative items: assigned parameters includes promotions and periods.

If the item whose parameters are assigned to the main item by combining alternative items, participated, participates or will participate in promotions/period that not started yet, these parameters (including history) of this item are assigned to main the item as well.

## After setting assortment, these actions are next

1. Supplier parameters are defined/set (see: Supplier settings)

2. Primary item‘s buffers are defined/calculated (see: Item (SKU) settings).

## Additional informational columns

1. New indicator "Days since balance change" .

In all windows, where provided SKU information through the warehouse, included new column with information, how many days the balance doesn't change in a storage place.

New indicator helps you to notice items (without waiting for monthly assortment reports) faster, which "don't move" and to make quicker decisions about exporting from assortment or additional actions for stimulating sales.

Counting of days from the last change of balance started from update installing date (18.07.2018) - recounting is not done in retrospective date.

By default, the column is not displayed, you must select their visibility through the Table settings window to see the column.

2. Columns in the Inventory window „In Group“ and „Main SKU“

In the Inventory window there are visible columns "Group" and "Main SKU", which helps to analyze alternative group information easier.

By default columns are not showed, if you want to see new added columns, you have to select it‘s visibility through Table settings window.

3. Display of Warehouse A and C movers.

The Movers mark is assigned as general through the company, however if you want to analyze and observe items, which becasue of the price in one storage place "move" good and in another - not, it is possible to do this in the Inventory window and SKU card. The column "LocABC" - Movers through the warehouse. If the item is new, you will see "New" in the "LocABC" column (if the "New to" date has not passed yet).

4. The column "Next delivery".

This column is visible in the Inventory, Suppliers Schedule windows and on the product card.

If the item is the same time in a several orders, the nearest expected delivery date is displayed.

p.s. if you don't see the column, open it through the column selection.

## Module of perishable items (PER2)

StockM's module for perishable items (hereinafter PER2) is designed to manage goods and raw materials (hereinafter SKU), which overstock quantities have to be written off as loss relatively quickly due to:

- significant but recurring variations of demand during the week;
- due to the influence of similar items sales (cannibalism).

It is an additional optional module and has an extra cost. This module is activated by StockM team only for the entire STOCKM program.

SKUs whose supply is managed by this module must meet the following criteria:

- the number of orders during the SKU validity period does not exceed the set limit;
- SKU is replenished at least twice a week;
- SKU can have similar competing SKUs, whose sales promotion affects its own demand;
- weekly ordering schedule;
- the status of the item must be DTA. If status of item in item group is not DTA, PER2 module will manage only SKUs with status DTA;
- SKU validity must be specified.

Initial settings – grouping.

1. There must be indicated a limit on the number of orders during the SKU's validity period. It can only be entered by the StockM team (SM Admin setting). The setting is company-wide.
2. There must be indicated period of validity for the SKU.
3. A validity time threshold for balance validity evaluation must be specified. It can only be entered by the StockM team (SM Admin setting). The setting is company-wide.

StockM will automatically assign or will not assign the PER2 management method.

4. For related (similar, competing) SKUs, the PER2 group is described: StockM >> Menu >> Other >> SKU groups >> New.

If you want to manage a group immediately, specify an activity at once.

The group type “Perishable goods” is assigned at the company level.

The daily recalculation of estimated week sales (EWS) or item sales share (ISS) should be selected later if necessary.

The demand flexibility coefficient needs to be specified for the group (“Coefficient” column).

The coefficient take part in managment, when there are „items cannibals“ in a group, only during promotion.

We named „Cannibals“ such items, which „takes away“ sales from each other during promotion. The coefficient can also be called the "take away" coefficient (<1), which shows how much the quantity to order of the item, which doesn’t take a part in promotion, will decrease:

- 0 – indicates that there is no “cannibalism”;
- 1 - cannibalism 100%, i.e. if there are 2 items in the group and apply a promotion for one of them, - it takes all the sales of the other item;
- E.g: 0.5. If sales increase by 10 pcs, then by entering a coefficient 0.5 - sales of item, which does not take a part in a promotion, will decrease for 5 pcs (50%).

Select the coefficient of Cannibalism according to the Cannibalism setting procedure.

5. When a group is created, the SKUs belonging to that group must be specified. This can be done by assigning one of the created groups to the SKU in the windows:

a) StockM >> Assortment >> SKU list >> SKU group;

b) StockM >> Assortment >> Inventory >> SKU card >> SKU in the company >> SKU group,

Management

1. In the “Perishable items card” window (StockM >> Other >> SKU groups >> Edit selected group (pencil) >> Perishable goods card), in the list on the left, after selecting the warehouse (below No. [1]), the right side contains the items information of the group of the selected warehouse:

- For each group, in each warehouse must be:

1) Entered or calculated by system:

- Estimated week sales, in quantities (EWS). These are the seven estimated sales of days of a week. Shows the percentage of sales for each day from weekly sales.
- Item sale share, % (ISS) - shows the percentage of item from weekly sales of group.

(e.g. No. 2)

In the field "Estimated week sales" (e.g. No. 3) - the amount, obtained by suming all estimated week day sales. (e.g. No. 5).

2) Chosen method of management:

- Automatically by write-offs and lost sales
- Automatically by sales
- Manually

(e.g. No. 2)

When the management method "Auto by write-offs and lost sales" is selected, the system follows and changes the EWS and ISS depending on the result.

When the management method "Auto by sales” is selected, the system does a weekly recalculation. It is possible to turn on daily EWS and ISS recalculation for this method of management by putting a check mark in the appropriate column in the list of SKU group.

If you select manual management, the system does not change the EWS and ISS automatically, but give the recommendations for users, defined in red in example (e.g. No 8)

When you hover the mouse on the defined field (e.g. No. 8), an explanation of the result is displayed.

2. In order for the system to calculate EWS and ISS at the time of the first setting or if they need to be recalculated later, click „Calculate this warehouse“ (e.g. No 4).

In the table that appears, select "All warehouses" (3) to recalculate the values

for all warehouses at once.

For the newly created group it is necessary to calculate both values - EWS and

ISS (1 and 2).

Calculation is based on the average sales for the last 4 weeks of the relevant day of the week: E.g.: the sales of Monday group are calculated based on the average of the last 4 Mondays sales.

3. Below in the same window is a table with the items list of group in the selected warehouse, where shown the share of the item in a group and overstock/lost sales matrix (e.g. No. 6)

You can manually edit Item sales share (ISS). After changing the value, click „Calculate Item sales share % (ISS) (e.g. No.7). Then the system will change the ISS values of other items from the group so, that their sum would be 100 %.

Supportive settings – reaction to variation of demand.

The "Lost Sales and Write-Off Days" columns show the total results for the last 4 weeks on weekdays:

E.g.

• 4 - indicates that there was shortage of items (lost sales) of the items 4 times in 4 weeks on a specific day (black color);

• 0 – thus, the balance (of lost sales and write offs) at the end of the day was 0;

• 1 - indicates that there was an overstock (write offs) 1 time in 4 weeks on a specific day (blue color)

The column „Since last ISS change“ shows the result within the specified number of days – the number in the black shows how many days the item was missing; the number in the blue shows how many cases of write - offs of the item was.

When managing "Auto by sales”, the system weekly automatically recalculate EWS and ISS, unless otherwise specified.

When managing "Auto by write-offs and lost sales", the system automatically change EWS and ISS acording the result.

When managing manually then character of dominance of lost sales and write-offs need to be valued (or recalculated):

1. If colums dominates, the value of EWS whould be reviewed and corrected:

- If dominates black (zero inventory) everywhere – increase the value of EWS;
- If dominates blue (write-offs) – reduce the value of EWS.
- If blue (or black) dominates on certain days of the week - decrease (or increase) the value of that day or recalculate the value;

2. If dominates in rows – correct ISS value:

- If blue (or black) dominates for certain SKU throughout the week, decrease (or increase) the ISS for that SKU.

Managing manually, the system provides recommendations to the user to change the values, taking into account the dominant character of lost sales and write-offs of items, as it is shown in example (e.g. No.8).

If you agree – press the sign of arrow and system will change the value to the one specified.

If you agree with all suggestions – press „Accept Recommended EWS“ (e.g. No.9).

Similarly, the system provides recommendations on ISS changes.

The system shows the last EWS and ISS date of change (e.g. No.10). Hovering a mouse on it, system shows, when will be another change of values.

Promotions

During promotions, the system calculates the promotion quantity for the item, the ISS of such item is frozen, the system does not change it.

While the promotion is running for an item, the date is displayed in the Promotion date field (e.g. No. 10). At the end of the promotion, the end date of the last promotion - the last day of freezing - is displayed in the field.

Orders of items.

- During each order formation the buffer of item is calculated, which consists of estimated sales of item for the period from the day of arrival of the formering order to the day of arrival of the next order, taking in to account the share of the item's sales in group (EWS * ISS = BUF);

- It is allowed buffer to become lower than MOQ. Rounding is based on the accuracy of the unit of measurement;
- For perishable items, the balance is not evaluated in the order, if the items of the last order are no longer valid, when the formed / sent order will arrive;
- Even if the order is not counted, the system orders 1 MOQ;
- Perishable items are included in the order together with the other items, if a general order formation schedule is provided.

Tags:
Created by Administrator on 2019/12/11 14:05
Translated into en by Administrator on 2019/12/12 09:21

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