Hi Guys! I really need some help here: I 'm implementing Nav4 for a retail company ( several stores, using WMS) and we want to create a formula that can help users to get a realistic Min qty and Max qty for warehouses and stores replenishment. To built those min, max , Past sales from stores need also to be take into account. So my question what could be a realistic Min and Max formula to take into account above facts. I’m searching to have a formula but I’m still searching. Thanks.
If you find such a formula, you are going to be a rich man. All the big warehouse chains trying to find such a formula which works perfect. The problem is that you just can guess what your customers will buy in the future.
Anyway, there are some “basic” rules and also basic formulas: Your minimum quantity on stock is dependant on the time it takes to get the items back on stock and what you sell in the same time. You also need to take into account that you might need some security on top. Example (all periods in days): Period = time between order and delivery (actually when you have it ready to sell) QtySold = quantity sold in the period SecurityPeriod = period you want to survive with stock if the vendor does not deliver in the period MinQty := QtySold / Period * (Period + SecurityPeriod); MaxQty := QtySold / Period * (Period * 2 + SecurityPeriod); Again, this is a very simple formula which does not take into account that you have seasonal goods.
And you will get as many answers as there are purchasers in the world. None of them is totally right, none is totally wrong.
Take a look at the Purchase Procurement add-on by Lanham, it may do what you want.
I know that there are many formulas that can exist for min max. But I 'm trying to get is a formula that can take into account espacially past sales so it will be not far from the reality. Anyway thanks for your time. BTW David, do you know what formulas are using by Lanham? I dont need to buy a granule as my customer will built its own formula but a formula that may be built to help them
No sorry, I don’t know. Keep in mind though that in reality, the formulas that Lanham developed, are probably more valuable than the Navision code that they wrote. I would guess that you wouldn’t be able to duplicate what they did cheaper than the cost of the add-on. Of course if it does not do what you want, then its of no use. But if it does it will be the better path. I have done something similar in the past using seasonal templates, and it was a lot of work. But that was a whle ago, long before Lanham ever existed. Keep in mind that you are not going to solve this issue with code. Its an algorithm that you need. Basically it will be user customized profiles.
Shanna, David is right (again) you need the alogorithm for sales prediction. You can sometimes squeeze this information from the expereinced users. For sales the old(er) campaigners will know what sells and when it sells. They can usual group products and tell you about trends. This will be a good time to get that vital ingredient in good systems - user requirements. Good luck…