About Calculate Min/Max
Updated
by
Cheryl Wallace
Calculate Min/Max is used to generate an XLSX file with suggested Minimum on Hand and Maximum on Hand values for each part number for the selected stocking point(s) using the EOQ (Economic Order Quantity) model based on previous usage data for a selected date range and other variables you supply.
This XLSX file matches the Min Max import template, with some additional columns containing data you can use to vet the suggested values.
This feature does not update the Min Max values automatically. Once you have finished making any changes, the file can be imported as any other Min Max import template provided you have not altered any column headers or the cell data format. It is not necessary to remove the additional columns.
Fields on this
Stocking Point | Select a stocking point for which to calculate the Min/Max. If this is left blank, the Minimum on Hand and Maximum on Hand will be calculated for each part number for all stocking points in your database. |
Usage Date Range | |
Start Date | Defaults to 90 days before today but can be overridden. |
End Date | Defaults to yesterday but can be overridden. |
Exclude Weekends | Not selected by default. Choose this option to include only usage between Monday to Friday of each week. |
Order Cost | Defaults to 0.00. This is the currency amount incurred to process and receive the order. |
Holding Cost (%) | Defaults to 0.00. The holding cost % represents the cost to store & warehouse the inventory over its life expressed as a percentage of the stocking point's Average Cost for the part number. |
Default Lead Time (days) | Defaults to 7 but can be overridden. This value is used if there is no Primary Vendor for stocking point or the primary vendor does not have a Lead Time value > 0. |
Minimum Order Quantity | Defaults to 1 but can be overridden. If the order cost and / or holding cost values are not entered, the EOQ cannot be calculated and the Minimum Order Quantity is used in its place. The Maximum QOH is the Minimum QOH plus the EOQ or Minimum Order Quantity. |
Inventory Type | By default all Inventory types are selected. Inventory types can be excluded by deselecting them. At least one inventory type must be selected. |
Generated file standard Min Max with additional columns for
Description | The description associated with the Part Number |
Avg Daily Issues | The average quantity issued per day during the Usage Date Range. |
Max Daily Issues | The maximum quantity issued per day during the Usage Date Range. |
Total Daily Issues | The sum of quantity issued during the Usage Date Range. |
Avg Daily Returns | The average quantity returned per day during the Usage Date Range. |
Max Daily Returns | The maximum quantity returned per day during the Usage Date Range. |
Total Daily Returns | The sum of quantity returned during the Usage Date Range. |
EOQ | The Economic Order Quantity to meet requirements while minimizing inventory costs as well as costs related to ordering, receiving, and holding inventory. |
Safety Stock | This is the buffer or reserve quantity to keep on hand to prevent stock-outs. |
Peak Usage | The greatest number of items issued at a single point during the Usage Date Range. |
See also:
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