Assuming that the field Max/min version is set to 1 on the Main detail tab of the SM system parameters, the system will calculate the maximum and minimum based on a weighting of the current demand and the previous average demand, as per the following process.
When the option to Generate the max/min levels is run, the system also calculates the Average Monthly Demand of the part. In order to set the new average demand, the system needs to take certain information into account:
The system looks at the date the Generate Max/Min Levels program was last run and calculates the number of days between now and then.
If the part is too new to have had a previous max/min run, the system calculates the number of days between now and the date of creation of the part.
If the previous AMD is greater than 1, the system applies a factor of 2, and if the previous average demand is less than or equal to 1, the system applies a factor of 6.
The calculation applied is:
AMD * Factor + Current demand
Factor + (number of current days/30)
The calculation is rounded to two places of decimals.
Updating the Maximum/Minimum stock quantities held against the stock record is an option which is normally run on a monthly basis. The system recalculates the recommended stocking levels against the parts, based on the following information:
Period between orders: This value is held on three different records on the Autoline system. In order of preference, following is a list of the defaults used by the program:
The days between orders on the re-order category (if used) unless set to zero
The days between order on the product group unless set to zero or the part carries an invalid product group
The period between orders on the Main detail tab of the SM parameters
Lead time: Lead times are held on four different records on the Autoline system. In order of preference, following is a list of the defaults used by the program:
The lead time on the Prices tab of the part record unless set to zero
The default lead time on the re-order category (if used) unless set to zero
The default lead time on the product group unless set to zero or the part carries an invalid product group
The default lead time on the Main detail tab of the SM parameters
Safety coefficient: This value is held on two different records on the Autoline system. In order of preference, following is a list of the defaults used by the program:
The safety coefficient on the re-order category (if used) unless set to zero
The coefficient on the product group
Minimum Stock Calculation: The minimum stock level is calculated in the following way:
- a = 1 + 0.3 / log (AMD+2)
- b = Safety Coefficient + 1
- c = (AMD / 30) * Lead Time
- Minimum Stock = (a*b*c)+1
Maximum Stock Calculation: The maximum stock level is calculated in the following way:
Min stock+ ((AMD/30)*Period Between Orders)
Note: If parts do not have a valid re-order category that is present in the product group file with a safety coefficient greater than 0 (zero), the system will not calculate a recommended Max/Min level. However, the system will still zero the Demand since field on the Demand tab of the part record, and recalculate the Average Monthly Demand.
If the Stock balance item flag on the Description tab of part records is set to N, they are ignored.
If the Non-stock item flag on the Description tab of part records is set to Y, they are ignored.
The purchase factor is the number of units of issue contained in a unit of purchase from the supplier, i.e.
50 litres in a drum
25 metres in a roll
4 plugs in a pack
Unit Buy: This is the number of issues that can be made from a single purchase from the supplier, i.e. 150 litres in a minimum 3 drum purchase.
Looking at a stock record for Antifreeze:
Unit Issue |
Litre |
Stock Quantity |
200 Litres |
Unit Buy |
Drum |
Minimum Stock |
250 Litres |
Maximum Stock |
350 Litres |
||
Unit Buy |
150 Litres |
||
P/Factor |
50 Litres |
In this case, there is the stock of 200 and the max is set to 350,a purchase of 150 is required to top the stock back up to maximum.
Using the Unit Buy figure, the system knows that it must order in multiples of 150.
Using the Purchase Factor prevents the system placing an order for 50 drums.
The Purchase Factor is used to correct the situation by dividing the quantity ordered by the Purchase Factor, i.e.:
Quantity Ordered = 150 Litres |
|
= 3 Drums |
|
Purchase Factor = 50 Litres |
The purchase quantity is displayed as 150, but will print on the supplier's order as 3 Drums. The price is the Unit price * the Purchase Factor. Thus the price of the ordered item will be the price per Drum.
When the stock is received and processed through Purchase Control, 150 litres will be added to the stock quantity.
Activity |
Debit |
Credit |
De-card from stock |
Work in Progress |
Parts Stock |
" " " |
Work in Progress |
Surch.Stock |
Raise POS Invoice |
Cost of Sales |
Work in Prog |
" " " |
Debtor Control |
Sale Parts |
" " " |
Discounts |
Debtor Control |
" " " |
Debtor Control |
Surch.W.I.P. |
" " " |
Debtor Control |
VAT Output |
Cash Received at POS |
Till Account |
Debtor Control |
Deposit Taken at POS |
Till Account |
POS Deposit |
Deposit Refund at POS |
POS Deposits |
Till Control |
Activity |
Debit |
Credit |
Receive Goods into Stk |
Parts Stock |
Goods in Susp |
" " " |
Surch.Stock |
Goods in Susp |
Verify Supplier's Invoice |
Gds in Susp. |
Unallocated Purchase Invoices |
" " " |
Carriage |
Unallocated Purchase Invoices |
" " " |
Roundings |
Unallocated Purchase Invoices |
" " " |
Purch. Var. |
Unallocated Purchase Invoices |
" " " |
VAT input |
Unallocated Purchase Invoices |
The following check list is intended as an aide-memoir only. Each dealership may wish to add to this. The check list covers Stock Management, Purchase Control and Point-of-Sale. Many of the weekly and monthly routines may be run more frequently. This depends on the demands of your business.
All Modules: Certain routines, which include the ageing and consolidating of various files, will be run automatically by the Timed Operations schedule.
Stock Management: The Backorder Clearance report.
Purchase Control: Print Purchase Orders when complete.
Purchase Control: Print Backorders received.
Purchase Control: Check Unordered lines for items ordered through Point-of-Sale that have not been processed. It may be necessary to run this option several times per day.
Purchase Control: There may be daily Dealer Communications Systems (DCS) requirements. This varies from franchise-to-franchise.
Purchase Control: Verification of suppliers' invoices.
Purchase Control: Print Goods Received Notes (GRNs).
Purchase Control: Report on Purchases awaiting invoice and compare with the Goods in Suspense Nominal Ledger value.
Stock Management: Print a negative stock report. (Use Ad-Hoc Enquiry or Report Generator.)
Stock Management: Execute new supersession information.
Point of Sale: Print the outstanding WIP reports.
Stock Management: Print a Bin List. This should also be run after a price update in order to reflect the most current prices.
Stock Management: Advance Sales History. This may be set to run automatically as part of the End-of-Day routine.
Stock Management: Generate Max/Min Levels.
Stock Management: Update Re-order Categories. This option must be set up by support personnel after consultation with the individual dealerships. The option is run using Report Generator.
Stock Management: Print a Stock Valuation by Franchise.
Stock Management: Print an Aged Valuation.
Stock Management: Print outstanding Purchase Orders and compare with supplier's backorder listing.
Purchase Control: Re-price purchase orders after a price update.
