The system counts the number of hits the product has to date and compares this number to the Minimum Hits control maintenance record. If the product has less than the value set in the Minimum Hits control maintenance record, the product is considered a nonstock.
The system then checks the Hits Control Maintenance parameters set at the system, buy line or product level and the central warehouse type. These parameters define the minimum number of hits a product needs at a branch or in a multi-branch network to be a stock item.
In a multi-branch network, a product could be a nonstock and a stock item at the same time. A product might have so few hits at any individual branch that the system would consider it a nonstock item. However, a product might have enough hits within the total branch network to qualify it as a stock item. Conversely, an item might have enough hits at an individual branch to be a stock item, but not enough hits within the branch network to be a stock item.
The central warehouse type determines whether the central warehouse dictates stock/nonstock determination from the top down, or the needs of the child branches dictate from the bottom up.
Note: Branch network hits and central warehouse type do not apply to single-branch warehouses.
A top-down central warehouse replenishes products for itself before replenishing the child branches.
To determine whether a product is a stock or nonstock item in a top-down central warehouse scheme, the system checks for activity at the branch level first and then the network level. The activity is measured against the parameters set in the Br Hits and Network Hits fields on the Hits Control Maintenance screen.
If the hits for an item in the branch are greater than or equal to the Br Hits value, the item is considered a stock-keeping item in that branch.
If an item's hits in the branch are less than the Br Hits value, the system checks for activity at the network level:
If an item's total hits for all branches in the network are less than the Network Hits value, the item is considered a nonstock in the network, although it might be a stock item at an individual branch.
If an item's total hits for all branches are greater than or equal to the Network Hits value, and the central warehouse type is top-down, the item's demand in each branch is applied to the demand of the purchasing branch.
The central warehouse -- the purchasing branch -- transfers stock to a child branch -- the selling branch -- whenever the child branch reports a committed sale.
A bottom-up central warehouse replenishes products for the child branches before replenishing itself.
To determine whether a product is a stock or nonstock item in a bottom-up central warehouse scheme, the system checks for activity at the branch level first and then the network level. The activity is measured against the parameters set in the Br Hits and Network Hits fields on the Hits Control Maintenance screen.
If the hits for an item in the branch are greater than or equal to the Br Hits level, the item is considered a stock-keeping item in that branch.
If an item's hits in the branch are less than the Br Hits level, the system checks for activity at the network level:
If an item's total hits for all branches in the network are less than the Network Hits level, the item is considered a nonstock in the network, although it might be a stock item at an individual branch.
If an item's total hits for all branches are greater than or equal to the Network Hits level and the central warehouse type is bottom-up, the item is considered a stock-keeping item for the network and in any branch that had one or more hits.
The branch is replenished according to the greater of its transfer point or its economic order quantity (EOQ), rounded to package quantity.
See Also:
Creating Nonstock Product Templates
Entering Hits Control Maintenance Parameters