Appendix C
34. Minimum 1. Enter the minimum allowable stock level (reorder
point) in whole numbers that should be
maintained (up to 8 digits).
2. After you have been on the system a few months,
you can calculate what the minimum should be
using Calculate & Print Min/Max/ EOQ in
Inventory Management. The calculation is as
follows:
(Projected Monthly Sales x Lead Time)
+ (Projected Monthly Sales x Safety Factor)
-------------------------------------------------------------
Minimum Quantity
35. Maximum
1. Enter the maximum allowable stock level in
whole numbers that should be maintained, up to 8
digits.
2. After you have been on the system a few months,
you can calculate what the maximum should be
using Calculate & Print Min/Max/ EOQ in
Inventory Management. The calculation is as
follows:
Minimum
+ (Projected Monthly Sales x % Projected Monthly Use for Max)
---------------------------------------------------------------------------------
Maximum Quantity
The % Projected Monthly Use for Maximum is a user-
defined value that is entered at the time of
calculating min/max/EOQ. By changing this
value, the maximum values can be made larger or
smaller.
36. Ave/Lst Cost 1. Enter the average unit cost for this item (up to 7.2
digits). The cost is controlled the same way as the
price. If the price is per thousand board feet, cost
would be the same.
2. This figure will also be used for the last cost until
you start receiving inventory which will
automatically maintain the last cost field.
3. Once the receiving system is implemented, the
values for average and last cost diverge.
Average Cost - becomes a weighted average cost
Qty Ave Cost Ext. Cost
Beginning Balance 10 $10.00 $100.00
Inventory Receipt 10 $12.00 $120.00
---- --------- -----------
20 $11.00* $220.00
* New average cost
Last Cost - updated every time inventory is
received. If there are two inventory receipts on
the same day for an item, the cost on the last one
posted appears as the last cost.
4. It is especially important to have a correct
average cost for your inventory items. The
average cost not only affects your inventory
Dimensions 14 425
To Next Page
Loading...