Scheme Name

The name of the planning scheme.

Scheme Description

The description of the planning scheme.

Comments

Comments or notes about the planning parameter scheme.

Procurement Order Period

Repair Order Period

Replenishment Order Period

The minimum number of days between orders for the procurement, repair, or replenishment pipeline.

An entry of "0" means not to use an order period.

Effects of Changing this Parameter: Raising the number of days between Order Periods can significantly increase the ROP and inventory levels.

Demand Accommodation

Determines the Authorized Stocking List (ASL) for a location. For example, a Demand Accommodation (DA) of 90% means that the list of parts that comprise 90% of the demand at a given location will be on that location's ASL.

Effects of Changing this Parameter: Raising DA results in a larger ASL at any given location. For example, a 100% DA level will mean that every part with a forecast greater than 0 at a given location will be on the ASL for that location. But if you set DA at a slightly lower value, you get the parts with the most "bang for the buck." Raising DA for the SKUs covered by the planning scheme also raises inventory levels, as now more parts need to be at those stocking locations.

Demand Satisfaction

Determines the optimal stocking levels for each part on the ASL of a given location. It is the percentage of time that Safety Stock for an ASL part should be adequate to insure that the part is in stock when it is demanded. Demand Satisfaction (DS) determines management's willingness to take the risk of stocking out.

A general DS value is 95%. Example: (1135 ASL orders - 56 Not On Hand / 1135) * 100 = 95.1% Demand Satisfaction rate.

DS is a direct factor in determining Safety Stock quantities, and therefore an indirect factor in the remaining Optimal Stocking Levels.

Effects of Changing this Parameter: Raising DS raises inventory levels by raising theSafety Stock, as the risk of not having the part at that location is reduced.

Measure of Effectiveness Type

The measure of effectiveness used to calculate the optimal levels for the SKU.

Use Lot Sized EOQ for Fill Rate Safety Stock calculation

[Only appears when Measure of Effectiveness Type is set to Type II.]

Order size affects Safety Stock when Type II MOE is used. Lot Sizes and minimum order quantities result in order quantities that are different from standard EOQs. When checked, actual lot sized order quantities rather than the standard EOQ will be used to calculate Fill Rate Safety Stock.

ASL Stock Zero Forecast

This setting is only applicable when Demand Accommodation (DA) = 100%. When Yes, parts with a zero forecast will be included on the ASL. When No, parts with a zero forecast will NOT be included on the ASL when DA = 100%.

Safety Stock Override (qty)

Safety Stock Override (days)

Overrides the Safety Stock for the SKUs governed by the planning scheme. Can be stated in terms of actual quantity or days of supply. If both values are provided, Servigistics gives the quantity override a higher priority.

Only integer values are accepted for these fields.

Minimum Safety Stock (qty)

The minimum limit for the Safety Stock in quantity. Safety Stock quantity cannot be set below this amount. The value you enter for this parameter will be assigned to the Minimum Safety Stock (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme. It is also assigned to the Minimum Safety Stock (qty) field on the Planner Worksheet page.

Minimum Safety Stock (days)

The minimum limit for the Safety Stock in days. Safety Stock days (on the Optimal Levels page) cannot be set below this amount. The value you enter for this parameter will be assigned to the Minimum Safety Stock (Days) field on the Optimal Levels page for all SKUs governed by the planning scheme. It is also assigned to the Minimum Safety Stock (days) field on the Planner Worksheet page.

Maximum Safety Stock (qty)

The maximum limit for the Safety Stock in quantity. Safety Stock quantity cannot be set above this amount. The value you enter for this parameter will be assigned to the Maximum Safety Stock (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme. It is also assigned to the Maximum Safety Stock (qty) field on the Planner Worksheet page.

Maximum Safety Stock (days)

The maximum limit for the Safety Stock in days. Safety Stock days cannot be set above this amount. The value you enter for this parameter will be assigned to the Maximum Safety Stock (Days) field on the Optimal Levels page for all SKUs governed by the planning scheme. It is also assigned to the Maximum Safety Stock (days) field on the Planner Worksheet page.

Minimum ROP (qty)

The minimum limit for the ROP in quantity. ROP quantity cannot be set below this amount. The value you enter for this parameter will be assigned to the Minimum ROP (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Minimum ROP (days)

The minimum limit for the ROP in days. ROP days cannot be set below this amount. The value you enter for this parameter will be assigned to the Minimum ROP (days) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Maximum ROP (qty)

The maximum limit for the ROP in quantity. ROP quantity cannot be set above this amount. The value you enter for this parameter will be assigned to the Maximum ROP (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Maximum ROP (days)

The maximum limit for the ROP in days. ROP days cannot be set above this amount. The value you enter for this parameter will be assigned to the Maximum ROP (days) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Minimum Repair ROP (qty)

The minimum limit for the Repair ROP in quantity. Repair ROP quantity cannot be set below this amount. The value you enter for this parameter will be assigned to the Minimum Repair ROP (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Minimum Repair ROP (days)

The minimum limit for the Repair ROP in days. Repair ROP days cannot be set below this amount. The value you enter for this parameter will be assigned to the Minimum Repair ROP (Days) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Maximum Repair ROP (qty)

The maximum limit for the Repair ROP in quantity. Repair ROP quantity cannot be set above this amount. The value you enter for this parameter will be assigned to the Maximum Repair ROP (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Maximum Repair ROP (days)

The maximum limit for the Repair ROP in days. Repair ROP days cannot be set above this amount. The value you enter for this parameter will be assigned to the Maximum Repair ROP (Units) field on the Optimal Levels page for all SKUs governed by the planning scheme.

Procurement Length

The number of days (1-365) required to get more of the parts governed by this scheme to the gateways of the service organization (called central or source locations in Servigistics). Before making a recommendation to procure additional parts, Servigistic looks at what is in the repair pipeline and what is already on order.

Repair Length

The number of days (1-365) required to repair or scrap a part (once a repair order has been issued) and return it to the central warehouse as repaired.

Replenishment Length

The number of days (1-365) required to ship parts from the central warehouse (or other source location) to the field locations governed by this scheme.

Return Length

The number of days (0-365) to return a service part to a repair depot. Note that while all repairable parts should be returned to the repair depot, not all will be repaired (thus the separate pipelines for return and repair). Some will be stocked as bad parts in cases where demand is decreasing. Some will await a repair order triggered by economic repair order quantity. Some will be discarded as unrepairable.

Procurement Standard Deviation

Repair Standard Deviation

Replenishment Standard Deviation

Return Standard Deviation

The standard deviation (in days) for the pipeline.

Effects of Changing this Parameter: Increasing a pipeline's Standard Deviation raises inventory levels by raising Safety Stock, since variability in the supply chain increases risk.

Low Volume Variance To Mean Ratio Cap

High Volume Variance To Mean Ratio Cap

Establishes a lower and an upper limit on the Variance to Mean Ratio for the SKUs governed by the planning scheme.

Variance to Mean Ratio (VMR): A ratio of the lead time demand variance to its mean, and is a normalized measure of the dispersion of a probability distribution.

This limit range is used to provide better control in determining optimal levels. For example, if you change High Volume Variance to Mean Ratio Cap from 5 to 9, this usually results in more Safety Stock investment.

Setting this field value to -1 will disable the cap applied to Safety Stock.

Look Ahead Days For Demand Rate

The time horizon over which to establish daily demand rate. Used in calculation of standard deviation in the levels calculations.

You can set this value by entering a specific number of days in the Constants box, or you can set this value by entering the multiplier in the Lead Time Multiplier box to use to adjust pipeline length.

If no values are entered in these fields the system uses the default time horizon which is each SKU's lead time (current date through lead time).

This setting can be used for SKUs with short lead times to smooth the daily demand rate by extending the time horizon over which it is calculated. This is most useful for SKUs with short lead times that may have intermittent demand forecasts.

It can also be used for SKUs with very long lead times and non-flat forecasts to make the demand rate more closely reflect the immediate forecast values.

Note that this setting only affects High Volume SKUs for which pipeline variance exists.

Custom Planning (1-5)

These fields store values that can be associated with the SKUs assigned to a planning parameter. They are only used in conjunction with custom code and can be used when it is impractical to assign values by SKU using the Levels or SKU tables.

Enable Rotable Pooling

Set to Yes to allow rotable parts planning.

Click here for more information about rotable parts planning.

Rotable Primary Location

Considered the main point of entry of rotables into the Rotable Bank. This location's procurement/replenishment length is used for the Rotable Bank size calculation.

Rotable Default Repair Location

Considered the main location where the repairs of the rotables happen. This location's repair/return lengths are used for the Rotable Bank level calculations.

Exchange Mode

Exchange Mode determines the Repair Turn Around Time.

There are two kinds of exchange modes: Normal and Advanced.

For Normal Exchange Mode:

Repair Turn Around Time = Return Length + Repair Length + Rotable Hold Length - TAT Length

For Advanced Exchange Mode:

Repair Turn Around Time = Repair Length + Rotable Hold Length - TAT Length

Use Calculated EOQ

When Yes, the calculated EOQ is used in the Order Plan process. When No, Order Plan uses 1 as the EOQ value.

Allot To Pool

If Allot To Pool (a planning parameter) in the planning scheme governing the SKU is set to Yes, then Ideal Bank Size is allotted to the locations in the Rotable Bank in proportion to their individual needs. If Allot to Pool is set to No, then Ideal Bank Size is allotted to the Rotable Primary Location only.

Bank DS

The desired Demand Satisfaction for the total Rotable Pool/Bank.

Hold Length

Time added to the lead time for optimal levels calculations (but not used in Order Plan). Can be a result of paper work, accounting, etc.

Turn Around Time

Most rotable components take long periods of time to repair. However, customers demand a replacement part in a shorter time frame. Turn Around Time (TAT) is the amount of time that a customer is willing to wait for a replacement. This may be contractually specified or it may be a rule of thumb.

Turn Around Time is subtracted from each pipeline length before Safety Stock, ROP and Stock Maximum are calculated.

Do not stock if non-ASL at pooled locations

When set to Yes, if all locations in the pool are non-ASL, then the minimum bank size (which is the equivalent of the pool Stock Max) will equal zero (0) (instead of 1).

Max EOQ

The Maximum EOQ. Expressed in number of time slices worth of Servigistics forecasted demand. Allows a user-imposed upper limit to be placed on the Servigistics-calculated EOQ, as it is used to calculate Stock Max. For example, you might want to set Max EOQ for order recommendations for epoxy to 5 months because it will go bad in that time.

Max REOQ

The Maximum Repair Economic Order Quantity. Expressed in number of time slices worth of Servigistics forecasted demand. Allows a user-imposed upper limit to be placed on the Servigistics-calculated Repair EOQ.

Set EOQ

Lets you override the Servigistics calculated EOQ and force the EOQ to equal some number of slices of Servigistics-forecasted demand. For example, if the Servigistics forecast predicts demand for 20 parts per month for the next two time slices, and Set EOQ is specified as 1.25 slices of forecast, then the EOQ will be 25 units. There may be any number of reasons for overriding an EOQ, such as the material is difficult to store (size, lack of room) or it may have a short shelf life (chemicals). Set EOQ impacts the value of Stock Max by overriding the calculated EOQ value.

Set REOQ

Lets you override the Servigistics calculated Repair Economic Order Quantity and force the Repair EOQ to equal some number of time slices of Servigistics-forecasted demand.

Min EOQ

Lets you override the Servigistics calculated EOQ with a lower limit for EOQ expressed in number of time slices of Servigistics-forecasted demand.

EOQ Override

Overrides the calculated EOQ for the SKUs governed by the planning scheme. Expressed in units - not in number of time slices of Servigistics-forecasted demand.

Procurement Order Cost

Reference Procurement Order Cost

Reference Procurement Order Cost Currency

Procurement Order Cost is the cost to place a procurement order for the parts included in the planning scheme.

Effects of Changing this Parameter: Increasing Order Cost increases the EOQ, thereby increasing the Stock Maximum, as more parts are ordered at a time.

Reference Procurement Order Cost/Currency is the Procurement Order Cost in the reference value/currency.

Click here for more information about reference and local currency.

Repair Order Cost

Reference Repair Order Cost

Reference Repair Order Cost Currency

The cost to process one repair order.

Effects of Changing this Parameter: Increasing Order Cost increases the EOQ, thereby increasing the Stock Maximum, as more parts are ordered at a time.

Reference Repair Order Cost/Currency is the Repair Order Cost in the reference value/currency.

Click here for more information about reference and local currency.

Replenishment Order Cost

Reference Replenishment Order Cost

Reference Replenishment Order Cost Currency

Replenishment Order Cost is the cost to place a replenishment order for the parts included in the planning scheme.

Effects of Changing this Parameter: Increasing Order Cost increases the EOQ, thereby increasing the Stock Maximum, as more parts are ordered at a time.

Reference Replenishment Order Cost/Currency is the Replenishment Order Cost in the reference value/currency.

Click here for more information about reference and local currency.

Carrying Cost

The percentage of part value equaling the annual cost to hold that part in inventory, including the costs of depreciation, insurance, facilities, time value of money, etc. This is normally between 25% and 35% per year, but can be higher for parts in the high-tech industry that are prone to obsolescence and depreciate quickly.

Also known as holding cost.

Effects of Changing this Parameter: Raising Carrying Cost lowers the EOQ (and thus the Stock Maximum), as the number of parts per order decreases.

Return Wash Rate

The percentage of parts that are removed from inoperable equipment, yet never arrive at a repair facility. If a forecasted need persists, both return and repair loss must be compensated for by additional procurement. The Return Wash Rate is used to forecast returns, which are used in time-phased planning to project the On Hand Bad Quantity. Calculated as Forecast * (1 - Return Wash Rate)

Repair Wash Rate

The percentage of units in repair that are not be able to be repaired. For example:

The repair recommended quantity will be 11 units of On Hand Bad, as the calculation will assume that one unit (10%) will wash out during the repair process.

NFF Rate

The percentage of returned material that is determined to not need repair and therefore is available for immediate use as good inventory.