Inventory Evaluation

Menu 6.21 Possible Inventory Problems

·      Purpose: Identifies recent inventory issues that could lead to “dead inventory” if not addressed immediately. Identifies all transactions that happened the previous day, including credits, adjustments and cancelled items.

·      Process:

o  1) Look at Cost of the item

o  2) Evaluate if the item can be transferred to another branch

o  3) Return to Vendor

How to Use it:   Possible Inventory Problems report is designed to identify transactions where the inventory has increased for an item that meets one of the following criteria: 

·      Product is Discontinued or a "T"empory Item (NS)

·      ROP is zero

·      The On Hand (BAL AFT) has taken the inventory level from below the ROP factor to over the ROP factor

o  See ROP factor in Menu-27.1.21, field 16. Inventory Problem report - ROP factor

o  If the ROP factor field is blank, the default is 2.0 (2 times the ROP)

·      POR - purchase order receiving will be added to the report, if one of the above 3 criteria is met AND the receiving quantity is greater than the ordered quantity

The difference between Menu 6.21 and the EOD report is that Menu 6.21 is selectable by beginning and ending dates.  Also, today's cancelled orders that result in a possible inventory problem will be on the report "real-time".

Last Updated 02/12/09