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Documentation for Streamline 4.x

User Guide

1. General Information

2. Starting Up

3. Connecting data

4. Demand and Sales Forecasting

5. Inventory Planning

6. Reference

definitions-and-concepts

6.1. Definitions and Concepts

Here is a list of the most frequently used terms in this documentation:

  • Item or Item code – an SKU.
  • Item category –- item's category such as product group.
  • Item description –- a description for the item.
  • Location – a store or a warehouse.
  • Distribution center (DC) – a warehouse that supplies a set of locations. A DC can also sell items in addition to distribution.
  • Channel – represents a channel of sales. For example, e-commerce, direct sales, sales person, or a customer.
  • Planning item – a unit of planning that depends on the context of planning. Since Streamline allows performing different kinds of planning, planning item should be understood accordingly. Consequently, the number of planning items also depends on the context. In the case of demand planning, this number is limited by:

N = nlocations * nitems * nchannels,

where:

  • nlocations – the locations number;
  • nitems – the number of items.
  • nchannels – the number of channels.

In the case of inventory planning, the upper bound is:

N = nlocations * nitems,

where:

  • nlocations – the locations number;
  • nitems – the number of items.

If locations and channels are not imported, nlocations = 1 and nchannels = 1.

  • Model – a mathematical formula that generates forecasts for a demand planning item. It is built based on the channel's sales history of each item-location pair.
  • Material – an SKU at the lowest level of a BOM tree. It is used to build intermediate items and finished items.
  • Intermediate item – an SKU that is produced during the manufacturing process and is used to create finished or another intermediate item.
  • Finished item – an SKU that is produced from materials or intermediate items. This is the highest level of a BOM tree.
  • Data aggregation period –- the time interval your sales history data is aggregated in when you import them into Streamline.
  • On hand –- the quantity of planning item that is physically currently in stock.
  • Safety stock – a stock buffer used to protect against the random fluctuations in demand. It makes up inventory held to protect against forecast errors, changes in customer's orders, quality defects, or late shipments from the supplier of an inventory item.
  • Service level -– the percentage of the time (in the long run) that the item is in stock. It reflects the ability to sell the product to a customer.
  • Lead time -– the interval of time between replenishment order placement and its receipt. It refers to either the supplier lead time or the lead time from the DC to the location, depending on the echelon the planning item resides at.
  • Order cycle -– how often a replenishment order is placed.
  • Purchase order – a purchase order that is sent from a store/DC to a supplier.
  • Transfer order – a stock relocation order between your locations or from DC to a location.
  • Manufacturing order – an in-house manufacturing order.
  • Purchase plan –- a plan showing which planning items should be ordered from your suppliers currently and in the future. It also shows ordering quantities.
  • Transfer plan – a plan showing which items should be replenished from DCs or locations with overstocks currently and in the future.
  • Material requirements plan – a Purchase plan containing Materials.
  • Production plan – an ordering plan containing Finished and Intermediate items that should be manufactured.
  • Projected inventory levels –- the expected future inventory levels calculated based on the On hand quantity, generated forecasts and the Purchase/Replenishment plan.
  • Project's archive – a set of archived periods where the forecasts were generated.

The current period does not belong to the project's archive. Each archived period stores the following data:

  • statistical forecasts;
  • forecast overrides;
  • orders to receive;
  • on-hand.

Streamline updates this data for the current period each time you change them and save the project. As soon as a new period appears in the project, Streamline archives the previous period and adds a new option into the Period drop-down of the Reports tab.

For archived periods you can only view the statistical forecasts, forecast overrides, and the data derived from that, like forecast error/accuracy and projected revenue.

Next: Forecast Approval System

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definitions-and-concepts.txt · Last modified: 2019/09/05 11:30 by admin