The Transfer program helps you move stock between branches of your company taking into consideration committed sales, minimum and maximum amount required, economic order quantity (EOQ) and package quantity division.
A parent branch transfers stock to a child branch only if there is stock available. Normally, a transfer is not completed if it will cause the parent branch to fall below order point. However, if there is a committed sale at the child branch, then the transfer processes.
For example, a parent branch has a projected inventory level (PIL) of 12 and an order point of 12. All child branches have PILs of zero, but different transfer points. Branch 3 has a committed sale of three items. The Suggested Auto Transfer program transfers three items to branch 3 to cover the committed sale. However, if there is a divisibility flag set, this changes what the parent branch can send. See Package Quantity and Divisibility.
After the Suggested Auto Transfer program has allocated stock from the parent branch to satisfy committed sales in the child branches, the system calculates if the parent branch has sufficient stock to re-stock the child branches back to their transfer minimums. The transfer point is the threshold for that branch that triggers the replenishment. The transfer minimum calculation is the transfer point minus the safety days. Transfer minimums provide each branch with stock based on demand and the current transfer cycle days.
If a child branch has Min/Max values set, the Suggested Auto Transfer program uses the minimum value in place of the transfer minimum of the child branch. However, if the Respect Min/Max For Suggested Transfers control maintenance record is set to Yes, then the child branch must fall to the minimum setting before the transfer is triggered.
For example, a parent branch has a PIL of 26 and an order point of 12. All seven child branches have PILs of zero, but different transfer points. Branch 3 has a committed sale of three items. The Suggested Auto Transfer program transfers three items to branch 3 to cover the committed sale. With the remaining items, the system allocates five items to branch 2, three items to branch 3, and two items to branch 4 to bring them back to the transfer minimums. Branch 5 receives one of its minimum of two because the parent branch has reached its order point of 12. Branches 6 and 8 receive none.
After the Suggested Auto Transfer program has allocated stock from the parent branch to satisfy committed sales and transfer minimums in the child branches, the system calculates if the parent branch has sufficient stock to re-stock the child branches back to their transfer maximums. The transfer maximum is the transfer point. If a child branch has Min/Max values set, the Suggested Auto Transfer program uses the maximum value in place of the transfer maximum of the child branch.
For example, a parent branch has a PIL of 46 and an order point of 12. All seven branches have PILs of zero, but different transfer points. Branch 3 has a committed sale of three. The Suggested Auto Transfer program transfers three items to branch 3 to cover the committed sale leaving the parent branch with 43 items. With the remaining items, the system allocates enough stock to bring the child branches up to transfer minimums. The parent branch now has 22 items left. The system allocates two items to branch 2, three items to branch 3, one item to branch 4, one item to branch 5, and three to branch 6. The parent branch has reached its order point of 12, therefore branch 8 cannot be brought up to its transfer maximum.
After the Suggested Auto Transfer program has allocated stock from the parent branch to satisfy committed sales, transfer minimums, and transfer maximums in the child branches, the system calculates if the parent branch has sufficient stock to re-stock the child branches to the EOQ or low sale quantity, providing that it is greater than the transfer point plus any committed sale.
For example, a parent branch has a PIL of 61 and an order point of 12. All seven branches have PILs of zero, but different transfer points. Branch 3 has a committed sale of three. The Suggested Auto Transfer program transfers three items to branch 3 to cover the committed sale leaving the parent branch with 43 items. With the remaining items, the system allocates enough stock to bring the child branches up to transfer minimums. The parent branch now has 37 items left. The system allocates stock to bring the child branches up to transfer maximums and leaves the parent branch with 27 items. The system then allocates three items to bring branch 2, three items to branch 4, three items to branch 5 and six items to branch six. Since branch 3 had committed sales and branch 8 has a transfer point greater than its EOQ and low sale quantity, no additional stock is transferred to those branches.
After the Suggested Auto Transfer program has allocated stock from the parent branch to satisfy committed sales, transfer minimums, transfer maximums, and EOQ or low sale quantity in the child branches, the system considers the effect of buy package quantities and divisibility requirements of the child branches in a central warehouse scheme.
If the divisibility flag is set to No, the Suggested Auto Transfer program adjusts the stock quantities allocated to the child branch in multiples of the buy package quantity. Setting the flag to No can produce negative results. For example, if a child branch has a committed order of 10 items and the parent branch has 9 items available, and the system cannot break package quantities, then the parent branch does not transfer any items.
If the flag is set to Yes, then the Suggested Auto Transfer program adjusts the stock quantities allocated to the child branch in multiples of the buy package quantities compared with the EOQ of the child branch. If rounding to the buy package results in a transfer quantity that is twice the EOQ or more of the child branch, then the system transfers only what the branch needs up to the EOQ.
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