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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 – an SKU that is forecasted or planned.
  • Item category – item's category such as product group.
  • Item description – a description for the item code.
  • Location – a store or a warehouse from where items are sold.
  • Distribution center (DC) – a big warehouse that supply a set of locations or other DCs. DC can also sell items in addition to distribution. In Streamline, only DC-to-location replenishment relations are allowed.
  • Channel – represents a channel by which an item is distributed or sold. For example, e-commerce, direct sales, distributors, or a single customer.
  • Planning item – represents a unique item-location or item-DC, or item-channel pair and is the lowest level of the planning hierarchy. The number of planning items equals the number of (locations + DCs) multiplied by the number of items.
  • 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 amount of inventory that is 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.
  • Order cycle – how often the item is ordered from your supplier.
  • In transition – the item amount currently in transition. This quantity includes item amount on the open purchase and transfer orders.
  • Purchase order – a purchase order that is sent from a location or DC to a supplier.
  • Transfer order – a relocation order between two locations or DCs.
  • Replenishment order – a replenishment order that is sent from a location to a DC.
  • Work order – an in-house manufacturing order.
  • Purchase plan –- a plan showing which items should be ordered from your suppliers currently and in the future. It also shows the items’ order quantity and the locations where they should be delivered to (if locations are imported).
  • Replenishment plan – a plan showing which items should be replenished from DC(s) to locations currently and in the future.
  • Projected inventory levels – the expected future inventory levels calculated based on the On hand quantity, generated forecasts and the Purchase/Replenishment plan.

Next: Forecast Approval System

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definitions-and-concepts.txt · Last modified: 2018/12/17 12:06 by admin