The “Suggest Quantity to Order” function in the Simple IP planning worksheet calculates how much you should order for each item. You run it after you have calculated Simple IP and found the lines you want to work with.
You choose what to calculate from and what to calculate to. You can calculate from zero, lowest inventory, end inventory, or lowest inventory according to forecast. You can calculate up to either zero, end inventory, or the reorder point.
The function always uses the stock keeping unit card if one exists for the item. If no SKU card exists, it falls back to the item card.
You can apply order modifiers such as auto multiple, safety stock quantity, and maximum quantity. These round your suggested order quantity up or down to the values you have defined.
You can edit the item card and the stock keeping unit card directly from the worksheet, which makes it fast for a planner to adjust parameters and update the suggestions.
Running Suggest Quantity to Order in the Simple IP Planning Worksheet
When you work in the Simple IP planning worksheet, you start by calculating Simple IP using a template. If you are not using the auto-run option, you simply find the lines in the worksheet and leave the suggested order quantity empty for now.
At this point the “Suggest Quantity to Order” column is not filled in. You fill it in by running the “Suggest Quantity to Order” action. You can also enter the quantity manually directly on the line if you prefer.
How Item Cards and Stock Keeping Unit Cards Are Used
When you look up a line, the worksheet checks whether the item has a stock keeping unit card. If there is no SKU card, the parameters come from the item card. That includes values such as reordering quantity and safety stock.
You can edit these values directly from the worksheet view and update the item card without leaving the worksheet. The same applies to items that do have a stock keeping unit card. In one example, only one out of five items has a SKU card. For that item, the type shows as Stock Keeping Unit, and you can edit values such as the auto multiple directly in the worksheet.
If you change the auto multiple from 5 to 10, the system asks whether you want to update your values and writes the change back to the stock keeping unit card. This makes it easy for a planner to maintain parameters on the fly.
Choosing What to Calculate From and To
The calculation is based on your inventory and sales. It looks at what you have in inventory right now, what your end inventory is, and what the lowest inventory was when you ran the report.
When you run “Suggest Quantity to Order”, you choose the starting point for the calculation. You can calculate from zero, from the lowest inventory, from the end inventory, or from the lowest inventory according to forecast if you are using forecasting.
You also choose what to calculate up to. For example, you can calculate from zero to end inventory. If your end inventory goes negative, the system finds the difference between zero and that negative end inventory, and that difference becomes the suggested quantity.
In one example, calculating from zero to end inventory produces suggested quantities of 10, 18, 4, 29, and 14, which match the inventory shortfall needed to fill back up to zero. Instead of filling up to zero, you can choose to fill up to the reorder point. If you have a reorder point defined, that produces a different set of suggested quantities.
Applying Order Modifiers
When you suggest quantity to order, you can apply order modifiers. The system uses the modifiers from the stock keeping unit card if one exists, otherwise from the item card. Modifiers include the auto multiple and the maximum quantity, and you can define whether to round up or down.
With order modifiers applied, the suggested quantities round to cleaner figures. In the example, the quantities become 10, 10, 34, 34, and 20. The 34 reflects an auto multiple of 13 combined with the safety stock quantity. The 26 in another case comes from an auto multiple of 13. The last line shows 20 because the stock keeping unit card has an auto multiple of 10, the requirement was 14, and rounding up brings the order to at least 20.
Limiting Modifiers to the Stock Keeping Unit Card
If you select “Only use SKU”, the system applies order modifier parameters only when it finds them on a stock keeping unit card. If there is no SKU card, it ignores the modifiers.
When you run it with “Only use SKU” selected, the quantities return to 10, 18, 4, and 29, the same as before applying modifiers, except for the last line. That line had a stock keeping unit card, so it takes 20 instead of 14. In short, when a stock keeping unit card exists, its parameters take priority.
Order Dates and Due Dates When Carrying Out Lines
There is also a date template that determines the order date from a due date. If you do not enter an order date or supply date when you carry out the lines, the lines are carried out according to your safety stock breach. The first date below safety stock becomes the due date when you carry the lines out to the reverse planning worksheet.
Q&A
What does Suggest Quantity to Order do in the Simple IP planning worksheet?
It calculates how much you should order for each item, based on your inventory and sales, and fills in the suggested order quantity column. You run it as an action after calculating Simple IP.
What can I calculate the order quantity from and to?
You can calculate from zero, the lowest inventory, the end inventory, or the lowest inventory according to forecast. You can calculate up to zero, the end inventory, or the reorder point.
Does it use the item card or the stock keeping unit card?
It always uses the stock keeping unit card if one exists for the item. If there is no SKU card, it uses the parameters from the item card.
What are order modifiers and how do they affect the suggested quantity?
Order modifiers are parameters such as auto multiple, safety stock quantity, and maximum quantity. They round the suggested order quantity up or down to defined values, so the suggested quantities come out in cleaner figures.
What does the “Only use SKU” option do?
It applies order modifier parameters only when they are found on a stock keeping unit card. If no SKU card exists for the item, the modifiers are ignored.
Can I edit item and SKU card parameters from the worksheet?
Yes. You can edit values such as reordering quantity, safety stock, and auto multiple directly from the worksheet view, and the system writes the changes back to the item card or stock keeping unit card after asking you to confirm.
What happens to the due date if I don’t enter an order or supply date?
The lines are carried out according to your safety stock breach. The first date below safety stock becomes the due date when you carry the lines out to the reverse planning worksheet.