Question: What are the different buying methods used by DRP?
Answer: This is the current list. New standard (and custom) buying methods may be developed to handle the needs of specific situations.
|
Buying Method |
Tab |
Method |
|
Default
|
This is the default buying method for DRP. When this buying method is selected for a product/location, the actual planned receipt quantity is calculated for the product. |
|
|
|
Forecast |
Average |
|
|
Sales Filter |
Mean Avg Deviation |
|
|
Safety Stock |
% - Forecast Periods |
|
|
Reorder Trigger |
Line Point |
|
|
Reorder Quantity |
EOQ |
|
Buying Method |
Tab |
Method |
|
Demand Forecasting
|
This buying method follows the concepts articulated by Charles Bodenstab in his book "A New Era in Inventory Management." This buying method is typically used for short lead time products that are being managed on a reorder trigger basis. |
|
|
|
Forecast |
ExpSmooth |
|
|
Sales Filter |
Mean Avg Deviation |
|
|
Safety Stock |
Mean Avg Deviation |
|
|
Reorder Trigger |
Line Point |
|
|
Reorder Quantity |
EOQ |
|
Buying Method |
Tab |
Method |
|
Min-Max
|
This buying method is similar to the default method, but when this method is selected the system does not calculate the actual planned receipt quantity for the product. |
|
|
|
Forecast |
Average |
|
|
Sales Filter |
Mean Avg Deviation |
|
|
Safety Stock |
% - Forecast Periods |
|
|
Reorder Trigger |
Line Point |
|
|
Reorder Quantity |
EOQ |