ROP/EOQ

In a continuing effort to improve, the DST staff, programmers and both the User Group Committee and the User Group Committee Assistants participate in a weekly conference call.  Our goal during the weekly conference call is to work on specific upgrade request approved by the User Committee. 

One of the first upgrade jobs completed, was determining which stores are currently NOT using the critical programs, such as, ROP, EOQ, BarCode Receiving, Accounts Payable 13.20.1, 13.20.2, 13.20.3 and Warranty Claims.  At this time, we are targeting stores currently not using the ROP/EOQ program.

As a Co-op we are always looking for things to benefit the whole as well as the individual store. The new ROP/EOQ program benefits both. The store will spend less time on  purchasing, receiving, and reconciling Corp orders. Purchasing - less to review since the computer stops the old "sell one buy one" system. The average Corp order is 1/2 the number of line items after you convert to the new ROP/EOQ.  Receiving - less lines to receive and less numbers to put away. Reconcile - again, less lines to check. So ultimately you will reduce labor costs to actually manage your inventory better.
 
Benefit to Corp. - less labor costs ($$)  to pick. When a Corp order from a store goes from 600 lines per week to 300 lines per week, that reduces the time to pick for a DC employee. Now they pick larger quantities of each line item.  With Corp now giving us 2 Corp orders a week the old system of "sell one then buy one from the DC" makes the labor situation even worse since a DC picker could actually be picking the same part numbers for your store twice a week, instead of once a month or longer (what the new ROP/EOQ can do).
 
Please consider getting on this system as soon as possible to benefit not only yourself, but also your other Co-op members.

ROP EOQ Overview

ROP EOQ Procedures - step by step

ROP EOQ Flowchart