Summary     A way to narrow down the best order cycle taking into account the many different variables involved. This screen is for analysis purposes only, no permanent updates are done here. F20 allows toggling between page 2 and 3 since page 1 is a setup screen. Note: See F5=Update Order Cycle Function Key Description below for an explanation of a new feature for this screen. For definitions of the top portion see screen definitions for Supplier Order Cycle Analysis Screen 1 of 3. The top portion is the same for all 3 pages. (Except for Active and Used which is described here) One way to get to here: 4. Suggested Orders - Selected from the main menu Opt1-Select - From k3S_1010 Orders - Supplier Summary screen F19=Order cycle analysis - Gets you to the first screen Enter - Accepts parameters given and completes analysis F20=Toggle -From screen 2 of 3

User Sub Pages  K3S_2040 Supplier Order Cycle Analysis - Screen 1 of 3  K3S_2040 Supplier Order Cycle Analysis - Screen 2 of 3  Function Key options: F5=Update Order Cycle F9=Notes F11=Product Maintenance F12=Previous F20=Toggle

---

Field Descriptions

For definitions of the top portion, see screen definitions for Supplier Order Cycle Analysis Screen 1 of 3.
The top portion is the same for all 3 pages. (Except for Active and Used which is described here)

Active                  Display only

The number of products currently available to order from.

 Used                   Display only

The number of products actively being ordered. If a product is in delete mode it is not being used and would not be counted here.

 1 – 5 scenarios

The screen displays five different scenarios. The defaults are 7 (weekly) 14 (bi-weekly) 28, 91 and 364 days.

 Order cycle days

A value representing the order cycle in days. Any amount from 1 to 364 is allowed.

---

Display Field Descriptions

Orders per year        

This field is computed based upon what was entered in the Order Cycle days. In our example, under scenario 1, the order cycle days is set to 7 so that calculates to 52 orders per year.

 Total bill

The Total Bill can be thought of as the annual invoiced dollars, and remains constant regardless of the Order Cycle being analyzed. This value represents the total purchases expected for one year, and is developed from each product’s average usage annualized, multiplied by its associated cost.

Header cost

This annual acquisition cost is developed according to the number of orders per year. As the Order Cycle in days increases, the Header Cost will decrease.

Line cost

This annual acquisition cost is developed according to the number of lines received per year. As the Order Cycle in days increases, the Line Cost will decrease.

 Cycle stock cost

This annual inventory carrying cost is developed according to the average inventory level associated with the Order Cycle being analyzed. The average inventory is calculated as one half of the Order Cycle, which is then multiplied by the Replenishment Carry Cost rate in the Locations Maintenance screen (1 of 3). As the Order Cycle in days increases, the average cycle stock inventory will increase.

 Safety stock cost

This annual inventory carrying cost is developed according to the average inventory level associated with the Order Cycle being analyzed. As the Order Cycle in days increases, less safety stock is required to maintain the proper total service level goals, and therefore the safety stock inventory costs will decrease.

Overhead cost

This cost is developed according to the Total Bill calculated above, multiplied by an Overhead cost percentage in the Locations Maintenance screen (2 of 3). It remains constant regardless of the Order Cycle in days being analyzed.

Total cost

The total costs includes the Total Bill (dollars paid for the products), plus the expenses associated with acquiring the products (Header costs and Lines costs), plus the expenses associated with carrying the products (Cycle Stock and Safety Stock Cost), and finally any associated Overhead costs.

 Disc earned by %        (Discount earned by %)       

If a discount can be applied, this will show the discount as a percentage.

 Disc earned by $        (Discount earned by $)       

If a discount can be applied, this will show the discount as a dollar amount.

 Annual net cost        

The total annual net cost associated with the cycle days chosen. To see how this total was computed, toggle to page 3 of this screen display.

 Disc level met          (Discount levels met)  

This shows how many Discount Bracket levels have been met with the associated cycle days chosen. Remember, the bracket levels must be correct in order for this to work properly.

Note       

An area for notes. A note entered here will be saved with the supplier information. See Appendix B “Code for Note Values” for a complete list.

---

 Function Key Descriptions

F5=Update Order Cycle  (New feature)

Will automatically take the lowest Annual Net Cost answer and display it in a pop up window. The buyer is then given the option to use the Order Cycle supplied or insert another.

 F9=Notes

Transfers the user to the Notes Maintenance screen.

Transfers the user to the Product Maintenance screen.

 F12=Previous

To get to the previous screen selected.

 F20=Toggle

Transfer the user back and forth from/to pages 2 and 3.

---