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Using the Micro-Management Method for Parts Resupply

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If you want to use the Pearson’ s algorithm for resupply, click Pearson on the Resupply Parameters menu. You must enter setup criteria for each inventory source. 

Step 1. From the Parts Inventory menu, select Resupply & Returns. The Resupply and Returns menu opens. 

Step 2. Under the Resupply column, click Set Supply Parameters. The Resupply Parameters menu opens. 

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Step 3. Click Micro-Management. The Micro-Management Resupply Setup screen appears.

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Step 4. In OEM Source (1/9), type the source number for the inventory. You can enter parameters for up to nine inventories. Parameters for each inventory must be entered separately.

Step 5. In Set Micro-Management as the Default Resupply for this Source, type Y for yes to use the micro-management method.

Step 6. Use the Enable Economic Order Quantities for Stock Orders field to indicate if you want to enable economic order quantities when generating the order list. Type Y for yes or N for no.

Step 7. Use the Should ‘Lost Sales’ Be Counted as Sales for Stock Orders field to indicate if you want to include lost sales when generating the order list. Type Y for yes or N for no.

Step 8. Use the Should ‘Phase In’ Parts Be Pulled to Order field to indicate if you want phase-in parts to be added to the order list. Type Y for yes if you want phase-in parts automatically added to the generated order list. Type N for no if you do not want these parts to appear on the generated order list. If you enter N, the phase-in parts will be listed on the exception report, and it will be your responsibility to manually add these parts to the order list as needed.

Step 9. Use the Phase Out With Days or Hits/Months field to indicate if you want to base the phase out on days or hits. Type D for days or H for hits.

Step 10. Use the Use Basic Sales Level Parameters for All Scans field to indicate if you want to use the basic sales level parameters to scan the inventory. Type Y for yes or N for no.

Step 11. In Days Supply “P” Factor, type the factor you want to use. The number here is used to multiply the Phase Out Begin Days (entered on the next screen). If the previous last sale date is older than the number in this field, and the part was normally going to pull to the order list using the sales criteria for the part, the part will go to the order list with a suggested order quantity of zero. 

Step 12. Click Next. The Micro-Management Criteria screen opens. This screen allows you to enter user-defined criteria that will be used to generate the order list. The resupply parameters on this screen are set by sales level. 

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Tip:  At this point, you can click Fill Defaults to fill this screen with the default settings that are set in the system. The system prompts you to indicate if you want to use all of the defaults or just the Phase Out defaults. Click the button that corresponds to the defaults you want to use. The default information populates the screen.

Step 13. The CD column on the left side of the screen indicates the sales level or promotion code for each line.

Step 14. In the 4 Qtr Sales column, type the minimum number of annual sales for each code.

Step 15. Under Days Supply, type the Low Days (minimum) and High Days (maximum) stocking amounts for each sales level and promotion code.

Step 16. Under Phase In With, specify the criteria you want to use to begin the phase-in of a part.

In the Hits field, type the number of hits that should occur before a part is phased in. 

In the Quarters field, specify within how many quarters the value in the Hits field should occur before a part should be phased in. 

Step 17. Under Phase Out With, specify the criteria you want to use to begin phasing parts out. The fields available in this section are determined by whether you selected to base the phase-out on hits or days.

If the phase-out is based on hits, this section will contain an L/Than Hits and an In Months column. 

  • In L/Than Hits, type the minimum number of hits that need to occur before phase-out begins. A list of parts meeting the criteria will appear on the exception report after you print the generated list. At that time, the stocking status changes to “O.” This status remains until the phase-out is complete.
  • Use the In Months field to specify the cutoff for the minimum hits to occur. If no value is entered in this field, the system will use 12 months as the phase-out value. A part will not be purged if it has an on-hand quantity greater than zero.

If the phase-out is based on days, this section will contain a Begin Days and an End Days column. 

  • In Begin Days, type the number of days that indicates when you want to stop ordering a part. A list of parts meeting the criteria will appear on the exception report after you print the generated list. At that time, the stocking status changes to “O.” This status remains until the phase-out is complete.
  • In End Days, type the number of days that should pass before purging a dormant part. If no value is entered in this field, the system will use 360 days as the phase out value. A part will not be purged if it has an on-hand quantity greater than zero.

Step 18. When you are finished entering the information, click Back to return to the Micro-Management Resupply Setup screen.

Step 19. The OEM source field automatically displays the next source number so you can continue entering parameters.

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