Configuring Maximo Inventory Optimization Essentials

You can configure and add users with different permission in the IBM® Maximo Inventory Optimization Essentials application.

1. Log in to theIBM Maximo Inventory Optimization Essentials.
2. Enter starting month of your Financial year start.

   In Maximo Inventory Optimization Essentials, setting the correct financial year start can ensure that reports, usage trends, and cost calculations align with your organization’s financial calendar. This helps in generating accurate stock recommendations and performance insights over the correct time periods.

3. Select the Corporate currency from the drop-down list.

   The Corporate currency is the default currency that your organization uses for all financial calculations and reporting within the application. It can ensure that all cost-related data such as purchase costs, holding costs and stockout costs are calculated and displayed consistently across the system.

4. Enter the Currency conversion rate.
   The Current conversion rate to USD refers to the exchange rate between your selected corporate currency and USD at the time of setup.

   Note: The conversion rate to USD field is only required if the selected corporate currency is not USD
5. Select Industry type from the drop-down list.
6. Enter the P/Order line cost.

   The P/Order Line Cost represents the cost incurred for each individual order placed. This includes expenses related to order placement, processing, and associated administrative activities.

7. Enter Holding Cost %.

   The Holding Cost % refers to the annual cost of storing and maintaining inventory, expressed as a percentage of the item’s purchase cost. It represents the financial impact of keeping stock on hand over time.

8. Select Stocking strategy.

   The Stocking strategy defines how the system determines how much stock to hold and when to reorder. It is a key part of the configuration process and directly influences the ROM (Reorder Optimization Method) setting for each item.

   There are two main options to choose from during configuration:

   Reorder Quantity

   This strategy focuses on ordering a fixed quantity of an item whenever stock reaches a certain threshold (the reorder point)

   Maximum stocking level

   This strategy aims to replenish stock up to a maximum level whenever it falls below the reorder point.

9. Select Reorder point strategy.

   The Reorder point strategy defines when the system should recommend placing a new order for stock. It works with the stocking strategy (reorder quantity or maximum stocking level) to determine both when and how much to reorder.

   There are two options to choose from during configuration:

   Meet stock on hand

   A reorder triggers when the current stock level equals the reorder point.

   Drop below stock on hand

   A reorder triggers only when the current stock level falls below the reorder point.

10. Click Next.
11. To add user, enter the Full name of the user.
12. Enter your Email address.
13. Select the Role that you want to assign.
14. Click Add.
    Note: You can add more than one user at this stage.
15. When you finish adding users, click Finish to complete the process.