Question

Inventory parts management

  • 13 October 2021
  • 2 replies
  • 44 views

Userlevel 4
Badge +4

Dear Sirs;

Please advice me  where the calculation method is located at the menu?

 

Regards;
Yasuda


2 replies

Userlevel 4
Badge +5

Hi @CheSusumY,

The page help defines the following.
 

If further information is required please click on “Page Help”.
Hope this helps!


Best Regards,
Bhagya​​​​​​​

Userlevel 7
Badge +12

@CheSusumY, additionally you will find the below info useful. 

Navigator Path to perform frequency Classification: Inventory/Inventory Part Planning/Perform ABC, Lifecycle and Frequency Classification. The classification is launched manually or scheduled to run automatically. Which classification a part has received is shown on the Inventory Part/General tab as seen on your screenshot.

Ideally Analyze Demand Deviation job should be run before the job Perform ABC, Lifecycle and Frequency Classification is run.

 

Frequency Classification is based on historical frequency of movement

The frequency will determine how difficult it is to plan the parts

    • Fast movers – predictable demand and easy to forecast

 

 

    • Very Slow movers – unpredictable demand and low forecast accuracy  (should they even be in inventory?)

 

 

 

Other two in between might look like this:

 

 

 

 

 

 

The frequency limits are defined by site or if applicable on the asset class. Note that in order for the classification by asset class to work you need to indicate this using the field “ABC Classification per Asset Class” on site. The frequency limits are considered an annual value. If a limit of 120 is entered, this corresponds to 10 issues per month.

It is possible to indicate that the demand pattern for an asset class should be considered seasonal. If a part belongs to an asset class indicated as seasonal the system will fetch history from one year back, going forward instead of fetching the most recent history going backward.

The main idea behind the frequency classification is that fast movers are assumed to have a more predictable demand, or in other words a smaller variation in relation to its average demand. This is useful when a differentiated planning strategy is implemented, since different planning models are more or less suitable for different types of demand profiles. This is discussed more in detail in the section covering the different planning models offered below.

 

I found this webinar also useful to learn more:

 

This thread has a useful document shared by my good friend @Anushka Bandara 

 

 

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