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Author Topic: Rounding plan quantities  (Read 1024 times)
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« on: February 23. 2012, 16:35:35 »

When you want to buy a quantity in E3 of an item in addition to your daily replenishment, you can use Plans to achieve this. The challenge can be that the multiple rounding can ruin your SOQ calculation.

For example:
Independent demand = 4

Multiple = 10

Plan order (in addition to) = 10

What should the SOQ be? Our daily shelf replenishment of course suggests the independent demand of four rounded to the multiple of 10. We also have a Plan of 10 pieces, which would suggest an order quantity of 10 for the shelf and 10 for the plan which gives us 20 in total.

Wanted SOQ = 20.

 In E3 the SOQ is rounded to the nearest multiple. We have Plans = 10 and independent demand for shelf replenishment = 4 which gives us a total independent demand of 14. E3 uses half adjust multiple rounding, and we get:

E3 SOQ = 10.

What do you think about this?
« Last Edit: February 24. 2012, 15:00:00 by admin » Logged

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« on: February 23. 2012, 16:35:35 »

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