Supply Planning > Supply Planning Configuration > Balancing Parameters Page > Balancing Parameters Page (Fields)
Balancing Parameters Page (Fields)
The following describes the fields that could appear on the page depending on how it is configured.
Field
Description
Additional Retention Days (1-7)
Provides additional days that are added to the NuNAD calculation at the source SKU to limit the amount of material available for balancing. These additional days are applied in addition to the default lead time calculations for all balance types.
For example, if you want to balance back excess from the field to the warehouse but want an additional 14 day buffer before a replenishment order is created from the field, you can set the Additional Retention Days to 14.
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• When the source is a Time Phased Order SKU, then the need over the additional retention days is calculated like NuNAD:
(need/period) - (incoming supply/period)
• When the source is a Trigger Point SKU, then the need over the additional retention days is calculated as follows:
Additional Retention Days * Demand Rate Per Day
• Sales orders are included as part of the Trigger Point SKU over the defined Additional Retention Days if the OP_INCLUDE_SALES_ORDERS_TO_CALC_TRIGGER_INVENTORY_POSITION global setting is set to true
Allow Partial Replenishment
Yes indicates that Servigistics is allowed to satisfy a multi-unit need for a part from the excess inventories at more than one location. This setting is typically used for more expensive or critical parts where it is likely worth the cost to ship single units from more than one location.
No indicates that the need at a destination location can only be satisfied via balancing if the entire need can be met from the excess inventory of a single source location. If the entire replenishment need cannot be met by a single other location, balancing will not be used. This setting is typically used for inexpensive parts where the cost of shipping can easily exceed the value of the parts themselves and it does not make sense to ship a few parts from many different locations.
Amount (1-7)
The amount of inventory at the source location that will be considered available for use in balancing. The available amount can be calculated differently for each balancing rule. The options are the same as the Primary Amount.
• Safety Stock — The primary location on hand good amount cannot go below (Safety Stock * Primary Threshold)
• Days of Supply: Number of days the current inventory will last. Calculated as:
(On Hand Good - Backorder - Allocated) - Spread Amount - Need Until Threshold
Where Need Until Threshold is similar to Need Until Lead Time, but it specifies a number of days which can be different from lead time. It considers forecasted demand, confirmed outgoing orders, and known incoming supply within the period (threshold) set in the balancing parameter.
• Zero or Safety Stock: If the calculated need is based completely on backorder, then all of the source locations' on hand good is considered available, otherwise use the same comparison as Safety Stock. Zero or Safety Stock provides the ability to have one location take stock from another location down below Safety Stock to zero on hand potentially. The source location will hold no material to satisfy any potential need of its own.
• Safety Stock/Re-Order Point: Can be used when balancing will not be based on excess and when the source segment includes both trigger point and time phased pairs. When selected, Safety Stock is used for time phased pairs to determine stock quantity available for balancing, and Re-Order Point is used for trigger point pairs to determine stock quantity available for balancing.
Balancing Param Description
The description of the balancing scheme.
Balancing Param Name
The name of the balancing scheme.
Comments
Comments or notes about the balancing parameter scheme.
Minimum Order Value Threshold
Reference Minimum Order Value Threshold
Reference Minimum Order Value Currency
Minimum Order Value Threshold acts as a threshold for balancing. It is the least value of the SKU that may be ordered at a time in your local currency. This allows entire segments to have a common Minimum Order Value, rather than assigning Minimum Order Values on a location-by-location basis.
Minimum Order Value Threshold = [(Quantity * Unit Cost) + Order Cost]
Reference Minimum Order Value Threshold is the Minimum Order Value in the reference value/currency.
Click here for more information about reference and local currency.
Primary Amount
A dynamic maximum amount of on hand good that can be made available to another location through balancing. The options are:
• Safety Stock — The primary location on hand good amount cannot go below (Safety Stock * Primary Threshold)
• Days of Supply: Number of days the current inventory will last. Calculated as:
(On Hand Good - Backorder - Allocated) - Spread Amount - Need Until Threshold Where
Need Until Threshold is similar to Need Until Lead Time, but it specifies a number of days which can be different from lead time. It considers forecasted demand, confirmed outgoing orders, and known incoming supply within the period (threshold) set in the balancing parameter.
• Zero or Safety Stock: If the calculated need is based completely on backorder, then all of the source locations' on hand good is considered available, otherwise use the same comparison as Safety Stock. Zero or Safety Stock provides the ability to have one location take stock from another location down below Safety Stock to zero on hand potentially. The source location will hold no material to satisfy any potential need of its own.
• Safety Stock/Re-Order Point: Can be used when balancing will not be based on excess and when the source segment includes both trigger point and time phased pairs. When selected, Safety Stock is used for time phased pairs to determine stock quantity available for balancing, and Re-Order Point is used for trigger point pairs to determine stock quantity available for balancing.
Primary Source First
Yes indicates that excess at the primary replenishment source will be used first to satisfy the need of a given location.
Primary Threshold
A multiplier applied to the calculated stock inventory limit set by the Primary Amount field, above which the inventory is available for balancing when balancing from the primary source. A value of 1.00 equals 100%. For Days of Supply, the Primary Threshold value is an additional number of days to add to the number of Days of Supply, not a multiplier.
Priority Sequence
Indicates the sequence priority of the balancing parameter scheme.
Region (1-7)
When set to:
Same: the replenishing location must be in the same region as the location needing replenishment.
Parent: the replenishing location must be a location covered by the parent region.
Parent or Below: restricts the source locations considered to those in the Parent region or its child regions.
Any: the replenishing location can be any location.
Segment (1-7)
The segment that contains the pairs that can provide excess inventory for balancing movements. These will be the source pairs in any resulting balancing recommendations.
Threshold (1-7)
A multiplier applied to the calculated stock inventory limit set by the Amount (1-7) field, above which the inventory is available for balancing when balancing from a source that is not the primary replenishment source. The value of 1.00 equals 100%. For Days of Supply, the Threshold value is an additional number of days to add to the number of days of supply, not a multiplier.
Type (1-7)
Creates a balancing hierarchy by listing the first location type to be checked for available stock before replenishing from a central stocking location. If available stock is not found at the location type listed as Type 1, Servigistics proceeds to check Type 2, etc., until either:
• Available stock is found, or
• A blank location type ends the balancing hierarchy, or
• All seven location types have been checked.
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