Policy

Policy

Manage the policies available in Inventory.






Add New Policy

Click the Add New button to create a new policy. There are three categories from which to choose when creating a new policy: MTS, MTO, and Coverage. 




  1. When selecting MTS (Make-To-Stock), you can then select the Service Level percentage and Evaluation Frequency (None, Quarterly, Annually).




  1. Select MTO (Make-to-Order) to create a Make-to-Order policy for inventory items.





  1. Select Coverage to launch additionally options for the inventory policy. Coverage is safety stock that covers the demand for the selected number of days.

Traditionally, Safety Stock isn't for demand, but for fluctuations (safety). Cycle Stock covers traditional demand while you're making more (or buying more, or transferring more), and covers replacing what was consumed during "the cycle".  An example for why  you would opt for coverage could be if you were going to make or buy, or transfer anything (your cycle is going to cease), therefore Safety Stock would cover EVERYTHING, rather than the unexpected. Coverage is giving you the necessary coverage so that you can satisfy demand without cycle stock.

  1. Select Use Shipment History or Use Demand Plan from the Coverage Evaluation Modes dropdown.
  1. In this instance, selecting an Evaluation Frequency will have the system reevaluate your safety stock in the future quarterly or yearly. This feature is useful if you have a product which demand increases or decreases drastically seasonally. You can also leave this option as 'None'.





  1. Click Edit to change aspects of the Policy. Click Delete to remove the Policy.




Settings Inventory Policy

Expanded Inventory Policy Columns

When working in the Inventory Policy environment, it is important to know that there are columns that need to be expanded to reveal additional columns when you make any changes to the data. The unexpanded columns only show the official values for Safety Stock and Re-order Quantity. To view your changes, you will need to expand these columns to view the Calculated (unofficial value) columns.

Inventory Policy

Inventory policy is created in the Inventory tab of the Settings section. From here a policy's Name, Category, Service Level %, Days, and Evaluation Frequency Days are set by a user. 

  1. Click Add New to launch the Add Policy Item drawer. Type in a name and select a Category from the dropdown. 
  2. Selecting MTS will show the Service Level % and Evaluation Frequency settings. Selectable options for Evaluation Frequency are None, Quarterly, and Annually. 
  3. Selecting MTO will not show settings for Service Level % and Evaluation Frequency.
  4. Selecting Coverage will show settings for Days and Evaluation Frequency.




Add Policy Item

Clicking Add New will launch Add Policy Item drawer. Options will be dependent on the Category you select for the new policy. 
An example of Policy Categories are as follows:
  1. MEI
    1. Propriety
    2. Etc.
  2. Non-MEI
    1. MTS
      1. MTS-80
      2. MTS-95
      3. Etc.
  3. Coverage
    1. Coverage using average shipments
    2. Coverage using forecast




  1. Selecting MTS will give you the options to select a Service Level % and a Evaluation Frequency.





  1. Selecting MTO will allow you to create an MTO policy.





  1. Selecting Coverage will give you the option to select Days, Evaluation Frequency, and Coverage Evaluation Modes. Selecting a Use Demand Plan Coverage will also allow you to select the Forecast Months. 





Settings

Click the Settings button to access the Inventory Policy drawer.




When selecting a Filter and a new Policy, there are rules that must be followed:







  1. Clicking +Add under the Select items section will launch the Filter drawer. 




  1. The Policy dropdown allows you to select a policy created in the Global Inventory Policy Settings. Click Update after selecting a filter and a policy. The Inventory Policy Chart and Grid will be updated. 




  1. You can also select to Calculate Safety Stock with Shelf Life Data, Calculate Safety Stock for Intermediate Items, Calculate Safety Stock for Raw Items, Calculate with Production History, and select a Reorder Frequency under the General Settings. 
  2. Click Apply after any changes. 



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