Following steps gives details of setting up an Inventory Optimization plan.
For setting up Inventory optimization plan, we first need to have items classified under ABC groups.
Define ABC Classes
ABC classes to identify the value groupings to which your items belong. You can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items. When you use ABC classes in this way, you perform an ABC analysis and assign items to classes based on the results of that analysis.
Navigation: Inventory à ABC Codes à ABC Classes
Define ABC Compile and base it on ‘Current on hand quantity’
You can define and compile an ABC analysis for your entire organization or for a specific subinventory within your organization. You choose the compilation criterion, the scope of your analysis, the cost type to use in determining item values, and any additional information that may be conditionally necessary, based on your compilation criterion. The combination of all these parameters constitutes an ABC compile header, identified by the ABC compile name. You use this name to identify any activity pertaining to this ABC analysis.
Navigation: Inventory à ABC Codes à ABC Compiles
Define ABC Assignment Group for the above ABC Compile
ABC assignment groups associate ABC classes with an ABC compile. You assign items to ABC classes within a particular group. This allows you to assign items to different ABC classes in different groups.
Navigation: Inventory à ABC Codes à ABC Assignment Groups
Associate A,B,C Classes to this Assignment Group
Click on ‘Group Classes’ button in the above screen and associate classes.
Assign ABC Items
Associate % to each class so that the program segregates items into Class A, Class B and Class C
Assign the ABC Group to the Planning Parameters
Navigate to ‘Material Planner’ Responsibility
Setup à Parameters
Launch Collection (either complete refresh or targeted refresh on Items and Planning Parameters)
Define Inventory plan
Responsibility : Inventory Planner
Navigation : Inventory Plan à Names
Launch the plan