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Generating Parts Order Lists Using Pearson's Algorithm

Autosoft -

If you specified to use the built-in Pearson’s algorithm to generate your parts order list, the Generate Parts Order List Using Pearson Algorithm screen appears when you select the Scan Inventory for List option to scan the inventory. The system uses the information you enter on this screen and the information entered on the Source Resupply Setup screen to generate a suggested parts order based on the current inventory. 

Step 1. Click Resupply & Returns on the Parts Inventory menu. The Resupply and Returns menu opens.

Step 2. From the Resupply and Returns menu, select Generate Order List.

Step 3. Click Scan Inventory for List. The Generate Parts Order List Using Pearson Algorithm screen appears.

generate_po_list_pearson_s.jpg

Step 4. In For Order Code, type the order code for the type of order you want to generate. The standard OEM codes are listed at the top of the screen for reference. These codes are entered in the Order Code field on the Master Inventory screen. You can enter custom codes as long as they appear in the Order Code field. Leave this field blank if you want to scan all active parts in your inventory.

In Reorder Factor, type the reorder factor you want to use for the scan. This is a combination of a numeric character (from 1 through 4) and an alpha character (A, B, or D). The Reorder Factor is broken down into Reorder Factor and Reorder Level. 

The Reorder Factor is a numeric value with valid ranges from 1 through 4. The number relates to the month's supply you want the report to suggest. This affects the order in two ways.

First, the Reorder Factor determines if the part will be included in the order based on the number of days that have passed since the previous-to-the-last sale date. Each of the four numeric values represents a different cutoff point:

1 = 120 days

2 = 180 days

3 = 280 days

4 = 365 days.

Second, the Reorder Factor determines how many months of sales the Pearson logic should scan to determine if the part should be included in the order. Each of the four numeric values represents a different scan:

1 = Current Month

2 = Current Month + Previous 1 month

3 = Current Month + Previous 2 months

4 = Current Month + Previous 3 months.

The number of months scanned is adjusted in each case (1 through 4) based on the current day of the month. The Pearson logic scans an additional month until the 10th of the month has passed.

The Reorder Level is an alpha character (A, B, or D). The letter indicates the type of parts that will be considered for the order list. Each letter represents a different type of part.

A excludes emergency parts. 

B includes all eligible parts. 

D generates a daily stock order. This option is used mainly by dealers who participate in special stock order programs. Do not select this factor unless your supplier offers or requires a daily stock order. Also, do not confuse a daily stock order with special or emergency orders that can also be placed on a daily basis.

Step 5. Use the Include Non-Returnable Parts field to indicate if you want the list to include parts that are flagged non-returnable. This is determined by the code in the Return Code field on the Master inventory screen. Type Y for yes or N for no. If your supplier does not flag returnable parts with an R, always enter N for no. Otherwise, the list will be blank.

Remember, parts flagged as * are never considered for reorder. The scan will also ignore all superseded parts and any non-returnable parts that have neither sales history nor minimum and maximum stocking levels.

Step 6. Use the Ignore Negative On-Hand Quantities in Inventory field to indicate if you want the scan to ignore parts that have negative on-hand quantities. Type Y for yes or N for no. Generally, Y is used to compensate for cases that arise when special order parts have been prepaid by the customer on a counter slip. You should use N if you frequently purchase parts on an emergency basis but do not stock them in because you rely on monthly inventory maintenance to set negative on-hand quantities to zero.

Step 7. Click OK when prompted to verify you want to generate the order.

Step 8. The system displays the progress of the scan at the bottom of the screen.

Step 9. The system prompts you when the list is ready. Click OK to acknowledge the message.

Step 10. The system returns you to the Generate Order List menu.

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