Call us today for a consultation

What's New @ Achieve IT Solutions

Extending Inventory Replenishment & Forecasting Features in SAP Business One 9.3

Know what to order, when to order and how much to order.

Resolv Inventory Planning for SAP Business One makes reaching that elusive goal possible, by embedding a variety of additional inventory replenishment and forward thinking forecasting features, recommending what to order, when to order and how much to order.

Resolv Inventory Replenishment - The primary assumption in Resolv’s replenishment methodology is that future demand can be predicted by past history. For that reason, the system keeps a monthly usage record of each item in each warehouse and computes an average usage figure for the past six months. It also tracks the lead time on receipts and computes an average lead time. Since history does not repeat itself exactly. The user is alerted of unusual high or low sales, as well as abnormal lead times and is able to ‘qualify’ usage accordingly.

Resolv Inventory Forecasting - This Resolv methodology is designed to offer several different formulas that incorporate various time frames, weightings, and seasonality along with past usage to predict future demand. You may select those formulas that seem relevant to your products and industry. Different formulas may be used at different times, or for different items.

As with the Replenishment methodology, the Forecasting system uses historical data when predicting future behavior of the items. The monthly usage figures are utilized in all of the formulas. However, many of the formulas will also incorporate factors such as seasonality and sales trends.

The following formulas are available in Resolv Inventory Planning:

  • Six Month Rolling Average – Average of the usage recorded in the previous six inventory periods.
  • Six Month Rolling Average w/ Standard Trend – Six month rolling average method with non- Seasonal trend factor.
  • Three Month Rolling Average – Average of the usage recorded in the previous three inventory periods.
  • Three Month Rolling Average w/ Standard Trend – Three month rolling average method with non- Seasonal trend factor.
  • Year Ago Upcoming 3 Months – Average the usage recorded last year in the inventory period being forecast and the following two inventory periods.
  • Weighted 3.0/2.5/2.0/1.5/1.0 – Weighted average of the usage recorded in the previous periods using the listed weights.
  • Weighted 3.0/2.5/2.0/1.5/1.0 w/ Standard Trend – Weighted average of the usage recorded in the previous periods using the listed weights with non-Seasonal trend factor.
  • Weighted 5.0/2.0/1.0 - Weighted average of the usage recorded in the previous periods using the listed weights.
  • Weighted 2.0/1.0 - Average the usage recorded last year in the inventory period being forecast and the following inventory period using the listed weights.
  • Weighted 2.0/1.0 w/ Seasonal Trend - Average the usage recorded last year in the inventory period being forecast and the following inventory period using the listed weights with the Seasonal trend factor.
  • Weighted 1.0/1.0/1.0 w/ Seasonal Trend - Average the usage recorded last year in the inventory period being forecast and the following two inventory periods with the listed weights and a Seasonal trend factor.
  • Weighted 1.0 w/ Seasonal Trend – Usage recorded in the inventory period being forecast last year with a Seasonal trend factor.
  • Weighted 4.0/1.0 w/ Seasonal Trend – Weighted average of the usage recorded last year in the period being forecast and the following period using the listed weights and a Seasonal trend factor.
  • Weighted TY3.0/LYPV2.0/9.0/3.0/1.0 – Weighted average of the usage in the previous period this year, and the upcoming periods last year, using the listed weights.
  • Weighted TY2.0/LYPV1.0/6.0/1.0 – Weighted average of the usage in the previous period this year, and the upcoming periods last year, using the corresponding weights.

Inventory Replenishment Based on SAP B1 Queries

While these additional replenishment and forecasting features often address the planning requirements of most users of SAP Business One, often there are unique planning needs for individual or groups of items, or sometimes based on vendor or customer requirements.   In Resolv Inventory Planning for SAP Business One 9.3, we provide the ability for users to create and a user-defined query as an items default forecasting formula within the procurement process.


The Procurement Process

When all system controls are set and the related replenishment variables have been calculated, Resolv Inventory Planning provides the recommendations for procurement. These recommendations can be provided by any or all of the following filters:

  • Buyer
  • Vendor
  • Warehouse
  •  Item Groups
  • Replenishment Method

It is recommended to run the Demand Action Report daily. It will display only items that are already below their minimum or order point quantity. These are items for which proactive purchasing is no longer possible – they are in need of immediate procurement.

For each item, the screen displays the item code and description, item group, procurement method, available and on order quantities, future demand, restocking method, movement class, order point and line point or minimum and maximum quantities, order quantity, buying targets for the vendor, sales and purchasing blanket orders, and purchasing standard pack. If an additional identification field has been designated in the Inventory Planning Configuration, it will be displayed to the right of the item description.

The suggested quantity is calculated by the normal replenishment formulas, with the addition of the amount below the minimum or order point. If the purchasing standard pack is greater than one, then the suggested quantity will be raised to the next highest multiple of the purchasing standard pack. You may change the suggested order quantity if you wish.

If desired, this screen may also be used to create Purchase Orders, Production Orders, Transfer Requests, and Vendor Quote Requests. Highlight the items to be procured by one of the methods, and click on the “Create PO”, “Create Production”, or “Create Transfer” button. Please note the following:

  • In the case of Purchase Orders, the system will use the preferred vendor for the item, as shown on the screen. If there is no preferred vendor, or if you have selected items with multiple vendors, the system will ask which vendor to use. All of the selected items will be placed on a purchase order for the same vendor.
  • In the case of Production Orders, the system will use the Bill of Materials that is in the system for each item. A separate Production Order will be created for each highlighted item. If no Bill of Materials exists for a selected item, a message will appear indicating that it is not possible to create a Production Order.
  • In the case of Transfer Requests, the system will create a Transfer Request document for a transfer into the warehouse that is displayed. You will be able to specify which warehouse to transfer the items from.

After one set of documents has been created, you may select other items and create additional documents.


Back