We have a packed agenda with hands-on tutorials, customer spotlights, product roadmaps and peer-to-peer sessions for like-minded system users. We are also covering industry best practices that impact long-term success in today’s business environment, including retail execution, business intelligence, mobility and data synchronization.

1. The In(put)s and Out(put)s of
Suggested Purchasing
2017 AFS USER CONFERENCE
“Practical Analytics for Everyday Decision Making”

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Speaker Introduction
Scott Weiner, ERP Implementation Manager
6+ years professional experience implementing
and sustaining Supply Chain system solutions in
Food & Beverage industry; Certified Public
Accountant

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Agenda
• What is it?
• Methods
• Parameters
• Calculation
• Now What?

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What is Suggested Purchasing?
(And why should I care?)
• Leverages your historical transactional data to aid in purchasing
decisions
• Provides insights into your purchasing & sales activity
• Helps you maintain optimal inventory levels & keep costs in check

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3 Distinct Methods
• User Defined Re-order
• The most common method used
• Calculations & variables galore
• Open Order Demand
• “Just-in-Time” Purchasing
• All Open Order Demand
• “Keep me covered!”

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Inputs
• Vendor Lead Times
• Historical Demand (Average Daily Usage)
• Inventory On Hand
• Open Sales Orders
• Incoming Pos
• Ship Days per week, Scheduled Buy days, Scheduled buy weeks, Future Weeks, Purchase increments, On-Hand Minimums & Maximums (Quantities or Days), Buyout Percentages, Vendor
Minimums & Maximums, seasonality, linked products, safety stock %, shelf life.

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Garbage In Garbage Out
Suggested
Purchasing

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Calculation
Product: 201010 – Salmon
Filets 8-10 FRZ
Vendor: 10019 – Gilbert
Foods
Min/Max Definition: Day’s
Usage
Min Days: 3
Max Days: 7
Lead Time: 8 Days
Purchase Increment: Layer
(6 CS per layer)
ADU: 4.36

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Calculation
Step 1 – Calculate Forecast Demand
Forecast Demand = ADU * Vend. Lead Time
= 4.36 * 8
= 34.88
Step 2 – Calculate Minimum QOH
Minimum QOH = ADU * Min Days
= 4.36 * 3
= 13.08

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Calculation
Step 3 – Calculate “Net” Forecast Demand
= Fore. Dem+ minQOH – On Hand + Open Orders* – Open Pos
= 34.88 + 13.08 - 22.00 + 4.00 - 0.00
= 29.96
Step 4: Calculate Maximum Order Quantity
= MaxQOH – “Net” Forecast Demand
= [ADU * Max/Shelf Life*] – “Net” Forecast Demand
= [4.36 * 13] – 29.96
= 26.72

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Calculation
Comparison Values (in CS quantity):
Minimum = 13.08
Net Demand = 29.96
Maximum = 26.72

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Result
In the event of purchasing
increment requirements, the
Suggested Quantity will be rounded
up to the next valid value
Suggested Quantity = 26.72
Purchasing Increment = 6
SOQ = 30.00

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Result

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Calculation

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THANK YOU!
Q & A
Next Session: Lunch and Enjoy Your Stay, Travel Safe!