The Resupply and Returns menu is divided into two parts. The left side of the menu displays the Resupply options, which are used to generate a list of quantities needed to replenish your stock, and the right side of the menu displays the Returns options, which are used to prepare and process parts returns.
The resupply feature allows you to periodically scan your inventory and generate a suggested list of the quantities needed to replenish your stock. You begin the resupply process by generating a list. The system scans inventory and generates a suggested list of the quantities needed to replenish your stock. Once the list is generated, you edit and add to the list to arrive at the final order. Then, you turn the list into a purchase order by assigning it a P.O. number. The purchase order remains on file until the order is received.
You can have only one generated order list in the system at a time, but you can have any number of purchase orders on file. If you plan to generate more than one order list at a time, you must turn the first list into a purchase order before generating the next list. Each list overwrites the previously generated list.
Once you receive the order, you verify the quantities you received and update the purchase order to the inventory. Parts on back order remain on the purchase order until you receive them or until you delete the purchase order. The on-order and back order quantities are tracked and displayed in the Master Inventory file for each part.
Factors Affecting Resupply
Before you begin using the resupply feature, you need to understand the factors that affect how the resupply list is generated. The system considers several factors when generating the list:
- Reorder At and Stock To quantities (minimum and maximum stocking levels),
- On-Order and Back Order quantities,
- Minimum Sales Quantity (MSQ),
- Stock Status,
- Order Code,
- Return Code, and
- Sales History.
These factors can be viewed and adjusted for any part using the Master Inventory button on the Parts Inventory main menu. Supply parameters that you set also affect the list.
Reorder At and Stock To Quantities
The Reorder At and Stock To fields on the Master Inventory screen refer to the minimum and maximum stocking levels. These factors can be set for each part and always override the supply parameters set and sales history when the system is scanning the inventory to generate the list.
The minimum and maximum levels are typically used when you want to maintain a quantity of at least 1 for a part even if sales history does not warrant it. These levels may be helpful when you first start the system but have little or no reliable history to enter, especially if you have a small, well-managed inventory. Some users go so far as to set these levels for every part to ensure a predictable order each time the list is generated.
On-Order and Back Order Quantities
Any current On-Hand and Back Order quantities (tracked in the Master Inventory file) reduce the suggested order quantity by the quantity on order or back order. For example, if a suggested order quantity is 5 but there is a back order of 3, the reorder quantity is reduced to 2. This may sometimes cause a part to be included on the generated list with a suggested order quantity of zero. The zero quantity is intended to bring attention to the condition. Check the status of the back order to see if it is still valid. Most manufacturers have time limits for back orders. If a back order is no longer valid, you will need to delete it from the purchase order.
Minimum Sales Quantity (MSQ)
Most suppliers set a minimum sales quantity on some parts. (This is also referred to as the minimum order quantity or a package quantity.) If the MSQ for a part is 12 and the system recognizes the need to order 14, the actual order is rounded to 24. Remember, the system always rounds up to the next highest order quantity.
|Tip: Some suppliers, such as Ford, treat the “package quantity” as a single unit for distribution, but this resupply system handles the order quantity in units “as sold.” If this is the case, you must convert the system order quantity to your supplier’s unit “as purchased.”|
The Stock Status field refers to the stocking status. There are eight possible stocking statuses:
- Y for yes to indicate the part is normally stocked,
- N for no to indicate the part is not normally stocked,
- S for special ordered part,
- C for part number has changed,
- R for returned within the last year,
- L for logged only as a lost sale,
- P for parts phasing in, and
- O for parts phasing out.
Only parts flagged with a stocking status of Y or P are considered for reorder. The only way an N will appear in the Stock field is if you manually enter it. Parts flagged with an N are never considered for reorder or phase in.
An Order Code is set when the price tape is updated to the inventory for most OEM parts. This code allows you to establish a batch within an inventory source. The Order Code field automatically defaults to an S for regular stock, but additional codes may be used depending on which manufacturer’s price tape is being used. For example, Ford Motorcraft parts are coded M, while General Motors GSMP parts are coded G, and Chrysler EOS parts are coded E.
Other non-OEM parts can be kept in the same inventory source. These parts are usually aftermarket parts and may be manually coded with any letter that does not conflict with the codes on the manufacturer’s price tape. It is important to be consistent when coding these items and to use a letter that can easily be identified with the vendor. You can generate an order list for these specially coded parts.
The Return Code field refers to the return status of each part. This is obtained from the manufacturer’s price tape. There are three standard return codes (but other codes may be used depending on the manufacturer):
- R for returnable,
- N for not returnable, and
- * for advance notice of suppression.
Parts flagged with an R for returnable are always considered for reorder. However, because manufacturers often list some valid parts such as paint or hazardous materials as non-returnable, you have the option to include these parts at the time the order is generated. This will cause non-returnable parts to show up on the order, but you can edit the list to remove these parts. Parts flagged as *, as well as superseded parts, are never considered for reorder.
Sales history refers to the fields on the bottom part of the Master Inventory screen: Monthly Sales, Quarterly Lost Sales, Last Sale, Previous Sales, Last Stock, and Last Activity. The history is maintained automatically for each part during the normal operation of the program. When a part is sold, either over the counter or on a service repair order, the system records the calendar date of sale and adds the quantity sold to the current month’s sales history. This information is then used to predict future sales and stocking needs.
When the system scans the inventory, it analyzes each stocked part and determines an economical reorder value (if no minimum or maximum stocking levels are set). This is reported as the suggested order quantity. You can accept or modify this quantity during the editing process.