Setting Minimum and Maximum Stocking Levels for New Products

Until a new product accrues enough demand history for the system to begin forecasting demand, you can enter estimated minimum and maximum stocking levels for the product. You can also set an expiration date, after which the system stops using estimated stocking levels for suggested purchasing. On this date, the system begins forecasting demand using the accumulated demand history and established order points and line points.

Note: You can set a minimum-only order point for a product to make sure the system uses the largest line point available. If you use a minimum-only order point, ensure that the Calculate Demand field is deselected.

The following procedure is a manual process for a single product. Use the Mass Load program to enter minimum and maximum levels for all the products in a buy line.

To set minimum and maximum levels for suggested purchasing of a new product:

From the Maintenance menu, select Product to display the Product Maintenance window.
Display a product record needing minimum and maximum stocking levels.
From the Inventory menu, select Primary Inventory Maintenance to display the Primary Inventory Maintenance dialog box.
From the Edit menu, select User Controls to display the Product User Control Parameters dialog box.
From the File menu, select Hierarchy to display the Product User Control Parameters dialog box.
In the Enter hierarchy branch field, enter the branch or territory ID.
Click OK to display user control parameters for the selected branch in the Product User Control Parameters dialog box.
Complete the following fields:

Field	Description
Min	Enter the estimated minimum quantity to stock. Enter 0 (zero) if the branch does not stock the item. Purchasing branches use this quantity in place of a calculated order point until the expiration date. When the Respect Item Min/Max For Suggested Transferscontrol maintenance record is set to "Y" child branches use this quantity in place of a calculated transfer point until the expiration date. Enter the actual quantity that should ever be stored at the child branch when using this field with the Calc Dmnd field.
Min	If a product has a minimum setting but no max setting, the order point and the line point quantity are equal to the value in the Min field unless the system calculated line point quantity is greater than the min. In this case, the system uses the calculated line point quantity. Any child branches inherit the minimum only setting.
Max	Enter the estimated maximum quantity to stock. Enter 0 (zero) if the branch does not stock the item. Purchasing branches use this quantity in place of a calculated line point until the expiration date. When the Respect Item Min/Max For Suggested Transferscontrol maintenance record is set to "Y" child branches use this quantity in place of a calculated surplus point until the expiration date. Enter the actual quantity that should ever be stored at the child branch when using this field with the Calc Dmnd field.
Max	If a product has a minimum setting but no max setting, the order point and the line point quantity are equal to the value in the Min field unless the system calculated line point quantity is greater than the min. In this case, the system uses the calculated line point quantity. Any child branches inherit the minimum only setting.
Expiration Date	The date after which the system no longer uses the values in the Min and Max fields. We recommend using six months.
Calculate Demand	Indicates whether to calculate demand for dependent selling branches. If you use a minimum-only order point, ensure that the Calculate Demand field is deselected.

Changes take effect when you exit Product Maintenance.