IN THIS ARTICLE 

  • Consumption rate: Overview
  • Components of consumption rate 
  • Different ways of computing consumption rate
  • Configure consumption rate(s)
  • Configure display of consumption rate & stock prediction

Consumption rate: Overview


The basis for consumption rate calculation and predicting of stock for all inventory items in a domain can be specified. 


Consumption rate:

  • can be updated manually or automatically and can be computed at different frequencies (daily, weekly or monthly)
  • can used to display the duration for which current inventory in an entity will last
  • can be used as a basis for prediction of stock outs in the next 7 days


Components of consumption rate calculation


Different components of consumption rate calculation are:

  • Consumption rate computation: Method in which the consumption rate is computed in the system which can be set to none, manual or automatic 
  • Display of the consumption rate which is calculated, in either days/weeks/months of stock
  • Show stock out prediction: Enabling display of stock out prediction for the next 7 days


Different ways of computing consumption rate


Various methods which can be set for calculating consumption rate in the system are as follows:

  • None: If this is selected, the system will not calculate any consumption rate based on the transactions in the domain

  • Manual: If this is selected, then consumption rate can be predefined by the user by manually adding this to the inventory detailsi.e, each material per store uploaded in the system. The unit at which the consumption rate is uploaded can be defined in different frequencies (daily, weekly or monthly)

  • Automatic: If this is selected, the consumption rate is automatically calculated by the system using the issue & discard transactions. Further the basis of this calculation can be customized as below:

    • Frequency of computation: The frequency at which the system is expected to calculate consumption rate can be specified here (daily, weekly or monthly)
    • Minimum transaction period: The minimum period (in days, weeks or months) of transaction data that needs to available to begin the computation can be specified
    • Maximum transaction period: The maximum period (in days, weeks or months) up to which the system will consider historical transactions to compute the consumption rate
    • Transactions to exclude: By default, only issues and discards are considered for computing consumption rate. The following transactions can be excluded:
      • Discard: All discard transactions can be excluded for consumption calculation
      • Issue transactions with specific reason codes: If there are issue transactions with a specific reason code that do not need to be included for consumption calculation. 


Configure consumption rate(s) 

  1. Click on Configuration tab from the main menu
  2. Select Inventory sub-tab from the dropdown
  3. Navigate to Consumption rate(s) section on the page
  4. Select the method of computation under the Consumption rate computation which needs to be used
  5. If Manual consumption rate has been selected, select the frequency of computation from the dropdown
  6. If Automatic consumption rate has been selected, choose the frequency of computation from the dropdown
  7. Type the Minimum transaction period in the field, the units will be based on the frequency of computation selected either
  8. Type the Maximum transaction period in the field, the units will be based on the frequency of computation selected either
  9. Select the checkbox next to Exclude discards if they should be excluded from the computation
  10. Select the checkbox next to Exclude issues with the following reason codes if some transaction reasons should be excluded from the computation
  11. Click on the field below Exclude issues with the following reason codes
  12. Select the transaction reasons that need to be excluded 

 

Configure display of consumption rate & stock prediction

 

  1. Select the checkbox next to Show days/weeks/months of stock to display the duration of stock at an entity will last
  2. Click on the dropdown next to the Select period field
  3. Select the frequency at which the period of stock should be displayed from the dropdown under Select period (daily, weekly or monthly)
  4.  Select the checkbox next to Show stock out prediction, if the consumption rate calculation is used to predict stock out

  5. Click on Save button 

  6. A message confirming that Inventory configuration has been updated successfully