Reviewing Product Order Points and Line Points

Use the Product Order Points/Line Points screen to view or adjust information related to the product's order point and line point.

The screen is divided into two sections:

The upper portion of the screen enables you to change the safety factor and the projected gross margin for the product at an individual branch.
The lower portion of the screen displays the components of the product's order point and line point calculation.

When the product's status is NonStock, you can view this screen, but the order point and line point are not calculated.

To review a product's order point and line point:

From the Files menu, select Product to display the Product Maintenance screen.
Select a product.
Use the Inven hot key to display the Primary Inventory Maintenance screen.
Position the cursor on a branch and use the Order Points hot key to display the Product Order Points/Line Points screen.
If you select an individual branch, change either of the following fields, as needed, to adjust the order point and line point:

Note: If you select a summary branch, all fields are view-only.

Field

Description

Safety Factor

A value that adjusts the hits related safety coefficient (HRSC) applied to a product at an individual branch. For example, if the value in the Hits Adjusted Safety Factor field is 0.85, entering 0.8 in the Safety Factor field reduces the HRSC by 80 percent, or a value of 0.68.

The HRSC affects the order point safety days and line point safety days, resulting in the system suggesting either more or less safety stock for the product.

The default value is 1.

Projected Gross Margin

Used to change the adjusted gross margin for a product at an individual branch.

Changing the projected gross margin updates the adjusted gross margin.

Review the adjusted amounts and other information in the following fields, as needed:

Field	Description
Projected Service Level	The estimated service level (SL), based on the value in the Safety Factor field. For example, if the Safety Factor (SF) is: < or = 0.5, SL = 60% + 40 x SF > 0.49 but < 1.00, SL = 68% + 24 x SF. > 0.99 but < 1.50, SL = 82% + 10 x SF. > 1.49 but < 2.00, SL = 91% + 4 x SF. > or = 2.00, SL = 99%.
Hits Adjusted Safety Factor	The hits related safety coefficient (HRSC) for the product at the branch multiplied by the value in the Safety Factor (SF) field. The hits adjusted safety factor affects the adjusted gross margin, projected service level, projected turns, order point safety days and line point safety days.
Adjusted Gross Margin	The estimated gross margin, using the value in the Projected Gross Margin field, and the estimated turns calculated in this field, and the carrying cost percentage on file. The system calculates it as follows: ADJ. GM = GROSS MARGIN - (CARRY COST% / TURNS)
Projected Turns	The estimated number of turns, based on the current demand per day annualized. It is calculated as: TURNS = (365 x annualized demand / day) / average onhand

Review the components used in the calculation of order points and line points for parent branches, and for transfer points and transfer surplus points in child branches:

For the order point or transfer point:

In a Parent Branch:	In a Child Branch:
Lead time days	Transfer cycle days
Order point safety days	Transfer cycle days safety
Order point days	Transfer point days
Average daily demand	Average daily demand
Service stock or manual safety stock	Service stock or manual safety stock
Order point	Transfer point

For the line point or transfer surplus point:

In a Parent Branch:	In a Child Branch:
Lead time days	Transfer point days
Order cycle	Transfer grace days
Line point safety days	Transfer surplus days
Line point days	Average daily demand
Average daily demand	EOQ
Service stock or manual safety stock	Service stock or manual safety stock
Line point	Transfer surplus point

Note: If a minimum or maximum amount of quantity to stock is set on the User Inventory Controls screen and the setting has not expired, then the minimum amount setting overrides the order point calculation and the maximum amount setting overrides the line point calculation.

Press Esc to exit the screen.