Adding Demand from Dependent Selling Branches to Purchasing Branches

A dependent selling branch is a branch that does not warehouse the stock that it sells. Instead, it relies on a separate purchasing or warehousing branch to ship items that the selling branch has sold to customers. For example, your selling branch is a showroom branch without a warehouse. When you sell items, your purchasing branch or warehousing branch is responsible for shipping or transferring those items "as needed."

To add demand from a selling branch to a purchasing branch:

  1. From the Maintenance menu, select Product to display the Product Maintenance window.

  2. Display a product record.

  3. From the Inventory menu, select Primary Inventory Maintenance to display the Primary Inventory Maintenance dialog box

  4. From the Edit menu, select User Controls to display the Product User Control Parameters dialog box.

  5. From the File menu, select Hierarchy to display the Product User Control Parameters dialog box.

  6. In the Enter hierarchy branch field, enter the branch or territory ID.

  7. Click OK to display user control parameters for the selected branch in the Product User Control Parameters dialog box.

  8. Complete the following fields:

Field

Setting

Min

Enter the actual quantity that should ever be stored at the child branch when using this field with the Calc Dmnd field. In this case, the minimum value must equal the maximum value.

Max

Enter the actual quantity that should ever be stored at the child branch when using this field with the Calc Dmnd field. In this case, the maximum value must equal the minimum value.

Expiration Date

Leave blank.

Calculate Demand

To include sales of the item at the selling branch in the calculation of demand at the purchasing branch, select the check box; otherwise, leave it blank. Use this option for situations wherein a selling branch does not normally stock an item, but transfers the item in as-needed from another location.

For example, if the Min/Max settings are less than the actual demand in the baby branch, select the check box so the purchasing / parent branch buys and keeps in reserve sufficient inventory based on demand and transfers it to the child branch according to Min/Max.

If you use a minimum-only order point for your newer products, ensure that the Calculate Demand field is deselected.

  1. Save the information and exit the dialog box.

Changes take effect when you exit Product Maintenance.

See Also:

Forecasting Overview

Setting Minimum and Maximum Stocking Levels for New Products

Using the Add Demand Window

Using the User Inventory Controls Window