The parameter tables are used in conjunction with the Max/Min Mapping Table by Volvo dealers in the UK, in order to comply with the Volvo Stock Management Plan. They refer to the movement pattern of a part when using a certain method of calculating Max/Min levels, and would not normally be used by any other franchise. Standard functionality exists that allows you to create and maintain records. However, these tables should be set up by or under the guidance of support personnel, and only changed if advised to do so by Volvo UK.
Note: If you are running the Dealer Stocking Package (DSP) module, you do not need to maintain these tables. They are only provided for dealers who DO NOT use DSP.
By taking into account the maximum and minimum category, in conjunction with the forecast category, the system calculates the best max and min stock levels applicable to each core part.
The Core part indicator is held on the Description tab of the stock record. Normally this field has one of three values:
The Volvo definition of a corepart is a part that is included in the Volvo National List (VNL) which is based on the dealer demand for parts supplied throughout the National Distribution Centre. These details are updated and sent by Volvo direct to the dealer on floppy disk, which, in the Manufacturer Systems module, can be used to update the dealer's stock file.
To access the max/min parameter tables:
The STOCK MANAGEMENT menu is displayed.
Select the System maintenance option and click OK.
The SM SYSTEM MAINTENANCE menu is displayed.
Select the Max/min parameters option.
The Max/Min Parameters form is displayed.
The Max/Min Parameters form is displayed when you select the Max/min parameters option from the SM SYSTEM MAINTENANCE menu. From this form you can view existing parameter tables.
Table number: Enter the table number, in the range 1-99.
Max/Min parameters:
The Max/Min Parameters table for the part contains a series of demand breaks against the category letters that should be given. The parameter table to be used is identified by accessing the Max/Min Mapping table for the discount code on the stock card.
Cat: The single-character alpha Max/Min code on the Demand tab of the stock record is an integral part of the Volvo Stock Management Program (SMP). The category letter is assigned by the Generate Max/Min Levels report (K13) used by all Volvo dealers.
Rolling annual demand: The quantity sold in the previous 12 months. The system calculates the Rolling Annual Demand (RAD) for a part by adding all 12 sales history slots together on the Demand tab of the stock record, excluding the current period. This determines the maximum category applicable to a part.
Note: The SM system control Number of history periods must be set to 13 for this to operate correctly.
Mode: The mode or method of max/min calculation that should be used:
Q: Quantity. The maximum and minimum levels are held as actual values in the parameter table.
W: Weeks. Maximum and minimum figures are calculated from the Average Weekly Sales of the part. In order to calculate this average, the report weights each month's sales history according to a series of percentages contained in the Weighting percentages table. These percentages are based on the Forecast category on the Demand tab of the part record. Average Monthly Sales are calculated by totalling the weighted sales history figures for the part. Average Weekly Sales are then calculated by multiplying Monthly Sales by 12 and dividing by 52. The Maximum and Minimum values can then be assigned by multiplying average weekly sales by the figures held in the parameter table.
Max: The maximum quantity to be held in stock.
Min: The minimum quantity to be held in stock.
Weighting percentages:
Note: This table is normally set up by an Autoline consultant when the system is installed (and is updated automatically by the system) it should only be change if advised to do so by Volvo.
Forecast: The Forecast category (1-5) is a single numeric code held on the Demand page of the stock record. It is defined by Volvo to provide the forecast to be used by the max/min calculation. The weighting percentages table holds up to five forecast categories. The forecast category is an important part of the Volvo SMP. It is assigned by the Generate Max/Min Levels report (K13) based on some standard rules defined by Volvo:
- 1: 3 months or less sales history available
- 2: 4 to 6 months sales history
- 3: 7 to 9 months sales history
- 4: 10-12 months sales history
- 5: 10-12 months sales history which can be assigned by the user to impose a different set of weighting percentages when calculating max/min levels.
