To assign a lost sales percentage to a product:Enable the lost sales calculation by using the Lost Sale field on the Forecast Parameters screen. Increasing demand guards against future lost sales on fast-moving items. Limiting demand prevents over-purchasing and stock surplus.
We recommend setting the parameter according to item demand, using one of the following:
A higher percentage (80) to increase item demand and compensate for lost sales during out of stock periods.
A lower percentage (20) to limit the increase in item demand of slow-moving items during out of stock periods.
Zero (0) where you cannot guarantee inventory accuracy for the product or you have less than six months of product history.
Click here to view how the system adjusts demand per day for lost sales.
Note: The following procedure is a manual process for a single product. Use the Mass Load program to enter inventory parameters to groups of products.
To assign a lost sales percentage to a product:
From the Files menu, select Product to display the Product Maintenance screen.
Use the Inven hot key to display the Primary Inventory Maintenance screen.
Use the Forecast Params hot key to display the Forecast Parameters Maintenance screen.
Use the Hierarchy hot key to select the branch where the lost sale percentage applies for the product.
Note: Use the Find hot key as necessary to locate a branch that is in the list, but not in the viewable area. Use Alt-Insert to add a branch or territory to the list. The new branch or territory inherits the settings of the previous entry. Use Alt-Delete to remove a branch or territory from the list.
In the Lost Sale column, enter a lost sale percentage for the branch or territories.
Press Esc to save changes and return to the previous screen.
Exit Product Maintenance for changes to take effect.
See Also: