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The total cost required to get a product to the distributor's warehouse, which includes the vendor cost, duty charges, freight charges, and miscellaneous additional charges.
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The cost on the most recent order.
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An accounting and costing method used in maintaining your inventory. The unit cost of the latest material received is used to value all sales of a stock item until that on-hand stock is exhausted. If the latest stock received is exhausted before a new order is placed, the next oldest stock's cost is used. Therefore, a company sells its newest inventory first.
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The number of most recent purchase orders to use to extract a lead time. Usually, the system uses an odd number to produce a median value. The system uses a default factor to estimate freight charges when the actual amount is not known at the time of purchase order creation. For more information, see Defining Freight Factor Defaults for Products in Buy Lines.
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The number of days it takes for you to prepare and process the purchase order, the vendor to ship the material, and your warehouse to receive the material. Lead time is essential in system calculations. The system provides defaults for lead time and the number of purchase orders to review for deriving a mean lead time, at the system, buy line, and product level. For more information, see Lead Time Overview.
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The amount of stock kept to compensate for waiting on product to arrive. Lead time stock = Demand per day X the number of days in the lead time. For example, if the demand/day was five and the lead time was ten days, the lead time stock would be 5 x 10 or 50 items. This parameter is used when determining your purchasing parameters.
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A purchase order placed with a vendor that meets the vendor's minimum requirements for competitive discount or prepaid freight.
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line buy days (LBD) |
The number of days needed as of the last run of the Suggested PO Queue to meet vendor target. For more information, see Displaying and Sorting the Suggested P/O Queue.
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line buy order cycle |
See order cycle.
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When creating a purchase order from a suggested purchase order, the quantity you must purchase to bring items in a buy line back to their line points.
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The upper limit to the amount of stock you want to have on the shelf for a given item so a warehouse can meet demand during the order cycle of the product. When a product's amount falls below this limit, the system adds the buy line to the Suggested Purchase Order Queue indicating it is time to order. Line Point = ((Lead Time Days + Order Cycle Days + Line Point Safety Days) * Demand Per Day) + Manual Safety Stock
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An amount in cubic feet or "points" used by a vendor as a target for filling a truck.
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The names of the numeric points of reference defined on a price line and specific to that price line. For more information, see Assigning a Basis Name for Rebates.
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Obtaining a product through local or retail means rather than through the vendor you usually use for the product. Local procurement saves time, such as when the product is on backorder with a vendor, but you need to deliver it to your customer before the vendor can deliver it to you. Local procurement can also be achieved by transferring stock from another branch.
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A sale that could have occurred but did not because the item was out of stock at the time it was requested. The system takes lost sales into consideration when calculating demand. The system uses counts the number of days the item was out of stock during the forecast period and then applies it to various calculations.
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A process for managing orders when your customer is working on a large project that takes several months or even several years to complete. The customer wants to simplify the billing process by paying you, the distributor, for all of the materials instead of paying multiple vendors, and they know that you can often get better discounts from vendors. For more information, see Lot Billing Overview.
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The tracking of specific products by their lot numbers. Lot numbers are used to track quantity for products that you receive as a whole, but sell in varying quantities, such as wire. In addition, lot control remnant material and material that you need to track the quality or type and quantity, such as wallpaper. For more information, see Working with Lot Control Items and Working with Lot Control Items in RF.
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