Reviewing Product Order Points and Line Points

Use the Product Order Points/Line Points dialog box to view or adjust information related to the product's order point and line point. You can view this window for nonstock products, but the system does not calculate the order point and line point.

To review a product's order point and line point:

From the Maintenance menu, select Product to display the Product Maintenance window.
Display a product record.
From the Inventory menu, select Primary Inventory Maintenance to display the Primary Inventory Maintenance dialog box.
Select a branch and, from the Edit menu, select Order Points to display the Product Order Points/Line Points dialog box.

If you selected an individual branch, change either of the following fields, as needed, to adjust the order point and line point:

Note: If you selected a summary branch, all fields are view-only.

Field	Description
Safety Factor	A value that adjusts the hits related safety coefficient (HRSC) applied to a product at an individual branch. For example, if the value in the Hits Adjusted Safety Factor field is 0.85, entering 0.8 in the Safety Factor field reduces the HRSC by 80 percent, or a value of 0.68. The default value is 1. Note: The Safety Factor and Projected Service Level fields are mutually dependent. Changing one field changes the other's value, too. If safety factors are uploaded using Mass Load, then the system updates the projected service level regardless if they were previously overridden.
Projected Gross Margin	Used to adjust the adjusted gross margin for a product at an individual branch. Note: Changing the projected gross margin updates the adjusted gross margin.
Projected Service Level	The service level determines the amount of stock you want to guarantee to be in your warehouse. For example, as a hardware store you want AA batteries to be available 99.9% of the time. You make the AA batteries an A Ranked product with a service level of 99.9% and therefore a safety factor of 3.72. The system uses the calculated safety factor to determine demand and how often to replenish your warehouse. Note: If a service level has never been set for a product, the system uses one (1.00). Note: The Safety Factor and Projected Service Level fields are mutually dependent. Changing one field changes the other's value, too. If projected service levels are uploaded using Mass Load, then the system adjusts the safety factors to match.

Review the adjusted amounts and other information in the following fields, as needed:

Field	Description
Hits Adjusted Safety Factor	The hits related safety coefficient (HRSC) for the product at the branch multiplied by the value in the Safety Factor (SF) field. The hits adjusted safety factor affects the adjusted gross margin, projected service level, projected turns, order point safety days and line point safety days.
Adjusted Gross Margin	The estimated gross margin, using the value in the Projected Gross Margin field, and the estimated turns calculated in this field, and the carrying cost percentage on file. The system calculates it as follows: ADJ. GM = GROSS MARGIN - (CARRY COST% / TURNS)
Projected Turns	The estimated number of turns, based on the current demand per day annualized. It is calculated as: TURNS = (365 x annualized demand / day) / average onhand

Review the components used in the calculation of order points and line points for parent branches, and for transfer points and transfer surplus points in child branches:

For the order point or transfer point:

In a Parent Branch:	In a Child Branch:
Lead time days	Transfer cycle days
Order point safety days	Transfer cycle days safety
Order point days	Transfer point days
Average daily demand	Average daily demand
Service stock or manual safety stock	Service stock or manual safety stock
Order point	Transfer point

For the line point or transfer surplus point:

In a Parent Branch:	In a Child Branch:
Lead time days	Transfer point days
Order cycle	Transfer grace days
Line point safety days	Transfer surplus days
Line point days	Average daily demand
Average daily demand	EOQ
Service stock or manual safety stock	Service stock or manual safety stock
Line point	Transfer surplus point

Note: If a minimum or maximum amount of quantity to stock is set on the User Inventory Controls window and the setting has not expired, then the minimum amount setting overrides the order point calculation and the maximum amount setting overrides the line point calculation.

Click OK to exit the window.