INVM Forecast Parameters

The following control maintenance records belong to the INVM (Inventory Management) category and apply to forecasting.

Advanced Demand Forecast Parameters

Enter the forecasting and seasonality levels you want to apply for advanced forecasting. For more information about this control maintenance record, see About Advanced Demand Forecasting Calculations .

Assign Demand Forecast To Price/Ship Branch Or By Zip Code

Select the branch to receive credit for a sale and all associated hits information when a product is sold at one branch, but ships from another. More:

Options	S - Ship Branch - The system credits the demand for the product to the shipping branch. P - Price Branch - The system credits the demand for the product to the pricing branch. Z - Zip Code - The system credits the demand for the product to the branch that is closest to the customer's zip code, rather than the pricing or shipping branch. The system checks the zip code of the ship-to customer and compares it to the zip codes or ranges of zip codes assigned to each branch in Branch Zip Code Maintenance. For the zip code option to work correctly, assign a zip code or range of zip codes to each branch.
Outcome of setting this control record	Defines from which branch forecasted demand is determined when a product does not ship from the same branch from which it was sold.
Default Value(s)	Ship Branch
Dependencies	If set Zip Code, ensure that zip codes are assigned to branches in Branch Zip Code Maintenance. If the branch does not have a zip code assigned, the system uses the Ship Branch option to determine demand.
Action if set to Null	Same as if set to Ship Branch.
Additional Information	If you change the setting in this record from Ship or Price to Zip Code, or if the information in Branch Zip Code Maintenance changes, you need to rebuild the PSUB file. Please contact Support for assistance.
Additional Information	For more information about how this control maintenance record is used, see Managing How the System Applies Demand in the Forecasting online help documentation.

Customer Product By Demand Sort File Size

By default, the size of the temporary sort file the system uses to calculate product demand is 517K. If your company needs to use a larger file, enter the following parameters for a new uniVerse file size: More:

Options	Sort File Modulo - Enter the number of groups in the file. This should be a prime number. Sort File Separation - Enter the group buffer size in 512-byte blocks. Sort File Type - Enter the uniVerse file type.
Outcome of setting this control record	If customer demand is running slowly, consider setting this control record. Contact Support for assistance prior to making changes.
Default Value(s)	None
Action if set to Null	The temporary sort file the system uses does not exceed 517K.
Additional Information	The time it takes for uniVerse to do a clearfile or a select on the sort file is dependent on the file size, not how many records are actually in it.

Demand Hit Definition

Select how the system calculates hits based on sales order entries and recalculate hits for credits and returns. After set, the system does not further adjust the demand hit definition. Select the most appropriate variable, depending on how your company runs its business. More:

Options	1-Order Level - The system calculates hits on a per sales order basis, regardless of how or when the items are shipped, or how the material is separated on the order. 2-Generation Level - The system calculates hits on a per sales order generation basis. Each scheduled shipment or generation produces a separate hit occurrence. Credits and returns apply to specific sales order generations. 3-Line Item Level - The system calculates hits on a per line item basis. Each line item produces a separate hit occurrence.
Outcome of setting this control record	The demand hit definition affects how the system calculates exceptional sales and usage for items split among multiple orders. More exceptional sales are possible when calculating hits on a per sales order basis, than when calculating hits on a generation or line item level.
Default Value(s)	Order Level
Action if set to Null	Same as if set to Order Level.
Additional Information	For more information, see Defining Hits in the Forecasting documentation.

Enable Exclusion of Matrix Cells From Demand Calculations

Indicate whether users authorized for Sell Matrix Maintenance can set matrix cells for exclusion from the demand calculation. More:

Options	Yes - The system does not include items using the matrix cell set for exclusion in the demand calculation. No - The system displays the following prompt when a user sets a matrix cell to be excluded: Exclusion of Matrix Cells from Demand Calculations is not enabled! Enable it (Y/N)? If the user enters Yes, the system changes the control maintenance record setting to Yes. If the user enters No, the system changes the Exclude Items Using This Matrix Cell From Demand Calc (Y/N) field setting back to No.
Outcome of setting this control record	The setting in this control maintenance record determines how the system responds when an authorized user sets the Exclude Items Using This Matrix Cell From Demand Calc (Y/N) field on the Sell Matrix / Matrix Maint Additional window to Yes.
Default Value(s)	No
Action if set to Null	Same as if set to No.
Additional Information	Complete this record if your company handles many contract jobs and uses product-specific and customer-specific matrix cells to handle pricing on those jobs.
Additional Information	For more information about demand calculations, see How the System Filters Demand for Forecasting .

Exclude Negative Quantities From Item Demand Calculation

For each branch, indicate whether the system excludes negative transaction quantities from the demand calculation. More:

Options	Yes - Excludes negative transaction quantities from the demand calculation. No - Includes negative transaction quantities in the demand calculation.
Outcome of setting this control record	Includes return items, which have negative quantities, in the demand calculation.
Default Value(s)	No
Action if set to Null	Same as if set to No.
Additional Information	Complete this record if your company allows stock returns from customers who purchased items for a large contract job.

Forecast Parameters For Demand Calculation

For each branch, enter default forecast parameters to apply at the global level for all products and buy lines. The parameters set here apply to all products in your company, unless overridden at the buy line or the product level. More:

Options	Description
Branch	Enter the branch for which you are defining forecast period parameters and press Enter. You can only enter one branch at a time.
Forecast Method	Enter S or M to indicate if the system uses the standard or median forecasting method for this product. Standard for products with larger demand histories. The system identifies and eliminates from demand forecasting any sales exceeding the back order tolerance quantity (BTQ) during the forecast period. Median for products with smaller demand histories. The system identifies and eliminates from demand forecasting, any sales exceeding the BTQ and the exceptional sale percent during the forecast period. For Advanced Forecast Methods, see Advanced Demand Forecast Parameters above.
Lost Sale	Enter the maximum number of days in the forecast period that the system uses to increase an item's raw demand to compensate for lost sales of a product.
Exceptional %	Enter the exceptional sales percentage for the product. The system eliminates from demand forecasting any sale exceeding the percentage difference between the two largest sales in the forecast period.
Trend %	Enter the positive or negative percent to change the calculated demand forecast in anticipation of a trend increasing or decreasing the demand.
EOQ $	Enter the theoretical cost of reordering and restocking a single item, used in calculating the EOQ of the product. We recommend using 1.00 for $1.00.
EOQ %	Enter the carry cost percentage used in calculating the EOQ of the product. We recommend using 28 for 28%. The carry cost is how much it costs your company to keep an item in stock in the warehouse.
Auto Trend	Select the check box if you want to apply an automatic trend for seasonal products. The system calculates and applies a trend based on recent demand compared to the previous year's demand. Selecting Auto-Trend activates the Max Decrease % and Max Increase % fields. Max Decrease % - Enter the maximum negative trend to apply to the demand forecast for the product. This parameter only applies to seasonal products if the Auto-Trend check box is selected. Max Increase % - Enter the maximum positive trend to apply to the demand forecast for the product.This parameter only applies to seasonal products if the Auto-Trend check box is selected.
Include Directs	Select the check box if you want to include direct shipments from the vendor in the demand calculation for the product.
Seasonal	Select the check box if the product sells more at certain times of the year than at other times. For example, you may count furnaces as a seasonal product because you sell more during winter months.
(Regular) Hits	Enter the number of times an item sold within the regular Min Days and Max Days range. The system uses hits to calculate the forecast period for calculating demand for a non-seasonal product. The Demand Hit Definition control maintenance record determines how the system calculates hits based on sales orders. Note: Remember that a hit is the instance of an item being sold, not the quantity. You may have one sale with a quantity of 100 and one sale with a quantity of 50, but that is two hits.
(Regular) Min Days	Enter the minimum days used with regular Hits to determine the forecast period for calculating demand for a non-seasonal product. If the date of the first transaction for a product is less than the defined Max Days, the system uses the date of the first transaction as Max Days. If the date of the first transaction for a product is also less than the defined Min Days, the program uses the date of the first transaction as the Min Days.
(Regular) Max Days	Enter the maximum days used with regular Hits to determine the forecast period for calculating demand for a non-seasonal product. If the date of the first transaction for a product is less than the defined Max Days, the system uses the date of the first transaction as Max Days. If the date of the first transaction for a product is also less than the defined Min Days, the program uses the date of the first transaction as Min Days.
(Seasonal) Hits	Enter the number of times an item sold within the seasonal Min Days and Max Days range. The system uses hits to calculate the forecast period for calculating demand for a seasonal product. Note: Remember that a hit is the instance of an item being sold, not the quantity. You may have one sale with a quantity of 100 and one sale with a quantity of 50, but that is two hits. The Demand Hit Definition control maintenance record determines how the system calculates hits based on sales orders.
(Seasonal) Min Days	Enter the minimum days used with seasonal Hits to determine the forecast period for calculating demand for a seasonal product. If the date of the first transaction for a product is less than the defined Max Days, the system uses the date of the first transaction as Max Days. If the date of the first transaction for a product is also less than the defined Min Days, the program uses the date of the first transaction as Min Days.
(Seasonal) Max Days	Enter the maximum days used with seasonal hits to determine the forecast period for calculating demand for a seasonal product. If the date of the first transaction for a product is less than the defined Max Days, the system uses the date of the first transaction as Max Days. If the date of the first transaction for a product is also less than the defined Min Days, the program uses the date of the first transaction as Min Days.
Days Out Calculation Parameters	Exclude Ship From Different Branch - Select to exclude any orders that were shipped from different branches than the branch in which the order was placed.
Outcome of setting this control record	The parameters set here apply to all products in your company, unless overridden at the buy line or the product level.
Default Value(s)
Action if set to Null
Additional Information	For more information and complete details on each of the parameter settings at the product level, see Entering Forecast Control Parameters.

Global Hits Definition

For each branch and territory, enter the system-level hits-related inventory parameters. More:

Settings	Complete the Central Whse Type field only for multi-branch networks. Select the central warehouse type. Bottom-up - The selling branches dictate branch replenishment and automatic stock/nonstock determination. In a bottom-up central warehouse scheme, the needs of the child branches are analyzed and reported back to the parent branch (central warehouse) so stock can be purchased to bring the child branch back to the greater of its transfer point or its EOQ. Top-down - The central warehouse dictates branch replenishment and automatic stock/nonstock determination.
	In the Branch Hits field, enter the minimum hits a product must have at the branch level to be considered a stock item.
	Complete the Network Hits field only for multi-branch networks. Enter the minimum hits a product must have throughout the network.
	The Max Days field displays the value entered in the Maximum Days Supply control maintenance record. This value is the system-level maximum number of days supply of a product, 0-99999, that can be stocked in the warehouse through adjustments, purchase order entry, sales order entry, or transfer order entry. If you edit this field, the system copies the edit to the other record.
Outcome of setting this control record	The Update Demand Forecast program and the branch replenishment calculation use the setting in this control maintenance record if they cannot find parameters defined at the product or buy line level.
Default Value(s)	None
Action if set to Null	If the central warehouse type is blank, the system uses the Bottom-Up setting.
Additional Information	You can override the system-level settings at the buy line level and the product level. For more information, see Defining Hits Parameters for Buy Lines and Entering Hits Control Maintenance Parameters.
Additional Information	A maintenance log keeps record of changes and by whom.

Minimum Hits

Enter the minimum number of annual hits that an item must have to be a stock-keeping item. More:

Options	Any number of hits between 0 and 99999.
Outcome of setting this control record	When a product has been ordered enough times to reach the value of this record or has been a product in the system long enough to reach the minimum forecast age (MIN.FORECAST.AGE), the system can forecast its demand using hits-related inventory parameters. For more information, see Hits Control Maintenance Overview. This record only applies to those systems that have insufficient demand history to accurately forecast demand. It works with the MIN.FORECAST.AGE and CONVERSION.DATE variables that your installer defines during system installation.
Default Value(s)	None
Action if set to Null	Uses the standard forecast demand.
Additional Information	You can define minimum hits at the product level, the buy line level, or in this control maintenance record. Minimum hits specified at the product level override the minimum hits at the buy line level, which override the value in this record.

Minimum Lead Samples

For each branch, enter the system-level minimum number of lead samples required to determine the lead time for a product. More:

Options	Any number between 0 and 99999.
Outcome of setting this control record	If the Minimum Lead Factor column in Product Forecast Parameters Maintenance contains a number, that number defines the minimum lead samples for the product. If the Minimum Lead Factor column in Product Forecast Parameters Maintenance is blank, the system uses the number entered in this control maintenance record to determine the minimum lead samples for the product. If the product has not been received on the number of purchase orders indicated in this record, the system uses the number entered in the Default Lead Time Days If Product And Buy Line Have None control maintenance record to determine the lead time for the product.
Default Value(s)	Blank
Action if set to Null	Uses the number entered in the Default Lead Time Days If Product And Buy Line Have None control maintenance record.
Additional Information	For more information about lead time calculations, see How the System Calculates Lead Time.

INVM Forecast Parameters Control Maintenance Records