Establish Service Level Targets by Buy Group or Product Group

Description:  Establish Service Level Targets by Buy Group or Product Group

You will need to establish service level targets for your company. These can be created by buy group or product group. 
Both types of service
level targets are described below.  
 

1)  Service Level Targets by Buy group


The service level target records by buy group are on screen K3S_4030. 

To access these records, choose 8. Management controls from the main
menu and then select option 4. Buy group service level
targets


Press F6=Add to add a service level target.
This will cause the K3S_4030 screen to appear, as shown below.
The fields required are described below the picture of the K3S_4030 screen.




    Buy group  
                the buy group the service level target is for. 

    Location
                the location the service level target is for. 

        Memo  
                a description for the service level target.

    Base service
                the minimum service level desired for this buy group. 

    Exclude type
                0=No (default), 1=Yes 
                This flag controls whether or not a product’s service level is updated at period end. 

    Service level used as minimum for service level point checks    
                Products set with this service level will be counted as ‘SV’ checks on the totem pole of the K3S_1020 screen when the ‘On hand’
                quantity has fallen below the order point.                             

    Cumulative percent type  
                1=Percent of total products; 2=Percent of total sales (default)
                This setting controls whether the levels are created based on percent of total products or percent of total sales, where total sales
                can be dollars and/or units. 

The Sales value $ and Unit sales columns allow you to create and assign product service level targets based on how well a product performs
with respect to sales $ and/or sales units. 

The service level record for Buyer 01 shown below has split products into 3 tiers based upon ranking with respect to Sales value $ and Unit
sales: 
      
         
-The top 33.33% of products are called Level 1 and will be given a target service level of 99.0%.
       
        
-The middle third of products, or products that are in the top 66.6%, are called Level 2 and will be given a service level of 98.0%. 
        
        -All other products default to the Base service level of 95.0%. 

Note: When both the Sales value $ and Unit sales column are populated, a product will be ranked in both categories but take the higher of
the two service level targets should that product fall into different levels. 

        Example: If a product falls into Level 1 with respect to Sales $ but Level 2 with respect to unit sales, then the product will be given
        the target service of Level 1. 

 


                                                                                          


2)  Service Level Targets by Product group

Before you can enter service level target records by product group, you must first create table code records of each product group
code that will be used in the service level target records. 

To enter the table code records, start at the main menu and choose option 9. Operations, option 3. Table codes, and then use
option 1=Select on table code type P12 – Product group 1 and group 2.   

Now press F6=Add to add the appropriate product group codes.  This will take you to the screen below. 


 

The Table code value is made up of two 10 character fields. Enter the product group 1 code, typically a major class code, into the
first 10 character field. If necessary, enter the product group 2 code, typically a minor class code, into the second 10 character field. 

Next, type a description of what class of products this group code refers to in Description 1. Press ENTER to add the record. 

The example below shows we are adding a record for group '40' which refers to the Frozen Foods category.



Continue pressing F6=Add to add records for each product group code needed. 

If you want to enter service level targets using a minor class code, or the product group 2 code, then you would need to populate both
10 character fields of the Table code value.

The example below shows a table code record entered for major class 40 and minor class 01.  This combination refers to the major
class of Frozen foods, and the minor class of meat products.




When you are done entering product group 1 and/or product group 2 codes you will have a list of all table code records entered.  See
example below: 


                                                 
                                                                                
Now it is time to create the service level target records using the table code records we just created. 

From the K3S main menu choose 8. Management controls and then option 9. Product group service level targets.  Press F6=Add
to add a service level target. 

This will cause the K3S_4031 screen to appear, as shown below. The required fields are described in detail below the screen. 
A description of the fields you will need to fill out are listed below the picture of the K3S_4031 screen.

  
                   
                                                  
    Product group
            Enter the product group 1 and/or product group 2 code that the service level target is for. 
                Example: group 50 for Candy 

    Location 
            The location the service level target is for. 

    Memo  
            A description for the service level target. 

    Base service
            The minimum service level desired for this product group. 

    Exclude type
            0=No (default), 1=Yes 
            This flag controls whether or not a product’s service level is updated at period end. 
 
    Service level used as minimum for service level point checks
            Products set with this service level will be counted as ‘SV’ checks on the totem pole of the K3S_1020 screen when the ‘On hand’
            quantity has fallen below the order point quantity. 

    Cumulative percent type  
            1=Percent of total products; 2=Percent of total sales (default)
            This setting controls whether the levels are created based on percent of total products or percent of total sales, where total sales
            can be dollars and/or units. 

The Sales value $ and Unit sales columns allow you to create and assign product service level targets based on how well a product performs
with respect to sales $ and/or sales units. 

The service level record for Product group 40 shown below has split products into 3 tiers based upon ranking with respect to Sales value $
and Unit sales. 
       
        
-The top 33.33% of products are called Level 1 and will be given a target service level of 99.0%.

        -The middle third of products, or products that are in the top 66.6%, are called Level 2 and will be given a service level of 98.0%. 

        -All other products default to the Base service level of 97.0%.  

Note: When both the Sales value $ and Unit sales columns are populated, a product will be ranked in both categories but take the higher of
the two service level targets should that product fall into different tiers.
 
    Example: If a product falls into Level 1 with respect to Sales $ but Level 2 with respect to unit sales, then the product will be given the
    target service of Level 1. 



                           
                                                
 
  

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