This process consists of the following steps:
- Setting up data in the IC control file
- Setting up classes in Work with volume value codes
- Setting up classes in Work with movability codes
When these steps are completed, you can update the item/warehouse records in the Item file with the volume value codes and movability codes.
Set up data in the IC control file
- Select the Work with IC control file menu item.
- You access IC control file maintenance. Complete the following fields:
- Segmentation code
- Enter a code indicating the segmentation level to be used. This code is used in the volume value classification and movability classification for each item/warehouse combination in the system. Valid codes are:
- Segmentation price
- Enter a code indicating the method to be used when calculating the volume value. The segmentation price code is used in Work with volume value codes. Valid codes are:
- Movability code
- Enter a code from Work with movability codes indicating how the item movability should be defined at the item/warehouse level. Valid codes are:
- Volume perc code
- Enter a code indicating what the percentage value in Work with volume value codes stands for. Valid codes are:
| Code | Description |
|---|---|
| 1 | Segment items within each warehouse of the company |
| 2 | Segment item/warehouse combinations at the company level for all warehouses |
| Code | Description |
|---|---|
| 1 | Base value on item cost price |
| 2 | Base value on item sales price |
| 3 | Base value of item mark-up |
| Code | Description |
|---|---|
| 1 | To use number of movements when determining movability for an item/warehouse combination |
| 2 | To use demand quantity when determining movability for an item/warehouse combination |
| Code | Description |
|---|---|
| 1 | The percentage used will be the percentage of total volume value to be included in one volume value class. |
| 2 | The percentage used will be the percentage of total number of items to be included in one volume value class. |
Click OK. The system updates the control file information. Exit the routine.
Set up volume value classes
The volume value classes are used to group items according to volume value. By classifying items in this manner, you can define the methods for calculating forecast, EOQ, ROP, and SST according to volume value classification, in the Inventory control code tables.
Each item/warehouse combination must be assigned a volume value code in the Item file. The items will be segmented into the defined classes when the inventory segmentation is executed.
- Select the Work with volume value codes menu item.
- You access the main panel. Note: The volume value percentage that is displayed in the header is retrieved from the IC control file. Click Add.
- You access the detail panel. Note: The segmentation price and code that are displayed in the header are retrieved from the IC control file. Complete the following fields:
- Code
- Enter an alphabetic code to be used for this volume value class. Valid codes are the letters A to Z.
- Description
- Enter a description of the code.
- Percentage
- Enter the percentage value for this volume value class. This value cannot exceed 100. Note: Depending on the code defined for the Volume perc code field in the IC control file, this value represents either the percentage of total volume value or the percentage of total number of item/warehouse combinations.
Click OK. Repeat steps 2-3 if you want to add more classes. When you have created all classes the total percentage, which is displayed in the header, should equal 100%. This ensures that all item/warehouse combinations are accounted for in the volume value classification. Exit the routine.
Set up movability code classes
These classes are used to group items according to the number of movements or demand quantity an item has had in a given period of time. By classifying items in this manner, you can define the methods for calculating forecast, EOQ, ROP, and SST according to movability classification, in the Inventory control code tables.
Each item/warehouse combination must be assigned a movability code in the Item file. The items will be segmented into the defined movability classes when the inventory segmentation is executed.
- Select the Work with movability codes menu item.
- On the main panel, click Add.
- You access the detail panel. Complete the following fields:
- Code
- Enter a numeric code to be used for this movability classification. Valid movability codes are 1 through 98.
- The code 99 is reserved for items with number of movements less than the lowest entered class. If this code does not exist, the automatically creates a record with code 99 and limit value zero.
- Description
- Enter a description of the movability code.
- No of movements/Quantity
- Enter a value indicating the lower limit for the number of movements or the quantity for this class.
- Note: The Movability code field in the IC control file defines if the movability segmentation should be based on number of movements or demand quantity. Number of movements indicates how many times an item appears on sales order lines.
- For each movability code entry, the number of movements/quantity must be less than or equal to the previous entry’s number of movements/quantity, and greater than the following entry’s (if any) movements/quantity. For example, entries can look like this:
| Code | Description | Number of movements/Qty |
|---|---|---|
| 1 | Highest no of movements/quantity | > = 50000 |
| 2 | Second highest | > = 45000 |
| 3 | Third highest | > = 30000 |
| 99 | Lowest | > = 0 |
Click OK.
Result
The limit values will be used to assign a movability code to each item/warehouse combination in the Item file. A movability class is defined for all item/warehouse combinations with a higher number of movements/quantity than the limit value for the class (but lower than the limit value for the next higher movability class). Exit the routine.
What to do next?
Movability classes are assigned to the item/warehouse combinations when the inventory segmentation routine is run. See Run the inventory segmentation.