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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

inter-store-optimization

6.10. Inter-store Optimization

There is an alternative way to replenish your stock - through inter-store transfers.

The purpose of Inter-store optimization is to help you release some frozen capital internally and replenish your inventory using your own overstocks before making any more purchase orders (from supplier or DC).

In this article we:

Inter-store transfer generation rule

In this section, we are going to explain how Streamline generates inter-store transfers.

Assume we have a set of planning items that should be replenished from a supplier/DC, i.e. Streamline shows non-zero quantity to order for them. At least one inter-store transfer will be generated if there is an overstock for the required item code at another location (store), and this overstock covers the need completely.

If the overall overstock amount (represented by the quantities in the Overstock column) for an item is less than the overall need of the item (represented by the quantities shown in the Current order section), Streamline uses a special rule to determine which planning items should be replenished via the inter-store transfers.

This rule is the following. Streamline generates transfer orders decreasing the overall overstock. The transfers are generated for the quantities going up from the smallest to the largest. The process continues till the remaining overstock covers the required quantity completely. This rule maximizes the number of fulfilled locations and is the default rule.

In addition to that, there is an ability to add additional constraints to this rule by introducing the regions where the transfers are allowed. It is done by importing a special data type called Transfer region. Using this data type you can set up regions (sets of locations) where the transfers are allowed. Transfers between regions are forbidden.

Region constraints have a higher priority over the default rule. It means that the default rule is applied within the given regions.

Enabling Inter-store Optimization

While replenishment orders are displayed in the Inventory planning tab, the inter-store transfers are on the Inter-store optimization tab. By default, it is hidden. To show it:

  1. Go to the menu File > Settings.
  2. Navigate to the Project tab of the Settings dialog.
  3. Check the option Enable inter-store optimization under the Inventory planning group (see figure below).

Description

Inter-store optimization tab (see figure below) copies the layout of the Inventory planning tab and works just in the same way.

Settings opened using the Settings button of the toolbar are applied to both Inventory planning tab and Inter-store optimization tab. The description of the columns in the All items report and the toolbar buttons is the same as for the Inventory planning tab.

Example

In this section, we demonstrate how the inter-store optimization feature works using a little project based on a database source.

We have only two products here, t-shirt and dress that are sold in three stores, east, north and west (see figure below).

As you see, Streamline shows an overstock for three planning items and generates purchase recommendations for another three. If we enable inter-store optimization feature and go to the Inter-store optimization tab, we will see that all of the required replenishment quantities can be covered from the available overstocks via relocation orders (see figure below).

Applying Transfer Region Constraint

Now, let's see how the region constraint feature works. To demonstrate this, we will configure and import a new column Transfer region. To do this, we:

  1. Go to the menu File > Change connection > Database connection.
  2. Go to the Item info tab, click the Preview button to execute our query. The query returns a table containing descriptive information for each planning item. The last column of the table indicates the transfer region where transfers between locations are allowed (see figure below).

3. Now we match this column to the Transfer region meaning selected from the dropdown (see figure below).

4. To import the column, we click OK.

After application the transfer region constraint, the transfer of 157 units for dress has disappeared (see figure below).

That has happened because the location with the overstock is located in a different region (see figure below).

Transfer Order Arrival Date Calculation

Now, let's show you how Streamline calculates arrival date for transfer orders.

Streamline determines the date in the following way:

  • If the destination location is not tied to any DC, the transfer will arrive on the next day. For example, if the current date is Sep 2, 2018, then Streamline determines the arrival date as Sep 3, 2018.
  • Otherwise, it is calculated as:

Arrival date = Today date + Lead time,

where:

  • Lead time – the interval of time required to deliver a product from the distribution center to the destination location.
  • Today date – the current local date set in your operating system.

Let's demonstrate both situations.

Our example doesn't have a distribution center configured, it contains stores only. The today date is Aug 16, 2019, thus, Streamline determines the arrival date as Aug 17, 2019 and shows it in the Arrival date column (see figure below).

To illustrate the second case, we enabled distribution center and configured it to incorporate the east location. The Lead time is 30 days. Now, the arrival date is Sep 15, 2019 (see figure below).

Arrival date is a Streamline's promised date the item to be received on. It is calculated based on the data you have given Streamline. Of course, it can be modified or reset in your system after the transfer orders have been exported into the system.

Exporting Inter-store Transfer Orders

To export transfer orders between locations:

  1. Go to the Inter-store optimization tab.
  2. Click the Planned orders button found on the toolbar. The Planned orders preview dialog appears (see figure below).

3. Click the Create button.

As soon as orders have been exported, Streamline:

  • сlears the exported lines from the Inter-store optimization tab; and
  • adds the corresponding transactions into the To receive list of the In transition details dialog.

Let's check this. Click the In transition details button found on the toolbar to open the In transition details dialog (see figure below).

Orders exported via Streamline got an Export mark that is shown in the Order number column of the To receive table. As you see on the figure above, three lines that we have exported now have this mark.

Lines with the Export mark have no common with the real orders-to-receive that are in your ERP's database. It's just internal Streamline's transactions that are created in order to keep the workflow correct.
If Streamline is integrated with your system so that clicking the Create button automatically creates the corresponding open orders for the selected lines, the mark Export will disappear for the exported lines in the To receive tab after you click the Update data button. Otherwise, the Update data command will completely remove the exported lines from the To receive tab.

Next: Distribution Center

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inter-store-optimization.txt · Last modified: 2019/08/16 13:03 by admin