In this video we’re going to talk about the review cycle and how it affects the calculation for your order point in your “Up To” Replenishment Method.
As you can see with this example item, we have a review cycle of zero and a calculated order point of 53. (Now other factors do come into play, but I want to show you specifically how the review cycle affects that.) So if we come to the supplier maintenance screen and go to the purchasing tab, you’ll see Review Cycle is currently set to zero.
Note: Review Cycle is what tells P21 how many days between when you look at a vendor’s items. So if you look at this vendor once a week, you’d put a 7 there, if it’s every two weeks, you’d put 14 and so on. Remember, those are calendar days, not business days.
You can also set up separate view cycles for different locations within the location tab under supplier maintenance.
If all of yours were seven days but one location was 14, all you need to do is enter 14 for the one, and all the rest of them would still default to the number from the purchasing tab. So in this example we’re going to put 14 days in here and save it. I’m going to jump back to my Item Master Inquiry and again see where we’re still at 53 with a review cycle of zero. I’m going to come here, right click, and refresh my data. Now I want to go back to my purchase stock card. That number is going to go from 53 calculated to 109 because I’ve added those 14 days in there.
To learn about inventory forecasting, visit This Article, and get an in-depth look at understanding the Replenishment Cycle.