Item recommendations widget

Understanding the item recommendations widget

The widget presents a small spreadsheet within the spreadsheet of values.

• Recommended are the ROP and Maximum values that are recommended by IBM® Maximo Inventory Optimization.
• Current shows the values for ROP and Maximum that are set in the Host ERP system.
• Change shows the balance between the two.
• Method refers to the method used to calculate the ROP and ROQ.

Reorder controls

Click the widget to open the Reorder controls window.

The Reorder controls window is divided into two sections:

• Editable items
• Comparison

Editable items

The top section of the Reorder Controls window, Editable items, allows users to control how recommended values are calculated.

Users can select different ROP_MTD and ROQ_MTD by selecting them from a drop-down list.

Some reorder method combinations will allow users to enter custom values while others will use values calculated by the system.

The table below shows all valid ROP / ROQ method combinations.

SET_SZE determines if an item is always used as a full set where a partial set is of no use (such as spark plugs, oars or bicycle pedals).

Set size does not apply in instances where the set is included in the unit of measure (such as diskettes issued as boxes).

When users nominate a Set size (i.e. Set size greater than 1):

• The maximum is rounded up to the next multiple of the Set size.
• The ROP is rounded up to a multiple of the Set size, minus 1.
• The ROM or Reorder method code is set based on the reorder process used by the Host system. The purpose of the Reorder method is to transform the control values used by the host into equivalent values based on how IBM Maximo Inventory Optimization models the reorder process.

The main differences between the Reorder method codes are as follows:

• M0 and M1 - Min/Max processing
• R0 and R1 - ROP/ROQ processing
• D0 - Min/Max processing based on a Derived Maximum
• S1 - Reorder Method required for store level managed stock items under planned level management

Comparison

The Comparison section displays a detailed breakdown of the current and recommended reorder settings. Definitions for the fields in the Comparison section follow.

Host reorder levels

• Host safety stock
  • Amount of stock required to avoid a stockout. This can be a negative value depending on certain conditions such as low service levels, short lead times, or large reorder quantities.
• Host ROP
  • Reorder Point indicates the level at which the system reorders stock.
• Host ROQ or MAX
  • Reorder Quantity defines how much to order when the ROP level is reached.
• Expected to last
  • This value shows how many days the calculated recommended safety stock is expected to last. This value is based on the calculated forecast usage.

IBM Maximo Inventory Optimization values

• Current safety units
  • Amount of safety stock specified in units.
• ROP
  • Reorder point currently set in the Host System and recommended levels after using standard calculations.
• AOQ
  • Average order quantity for the specified reorder levels.
• Maximum
  • Maximum stock levels allowed.
• Current ROQ
  • Reorder quantity currently set in the Host System and recommended values after using standard calculations. The Reorder quantity is the difference between the Maximum and the Reorder point.

Interim Values

• Overshoot
  • The average amount of the Stock on hand falls under the Reorder point before an order is raised.
• Lead time usage
  • Quantity of stock issued during the time period between when an order is raised and when the replenishment of stock takes place.
• Lead time sigma
  • Indicates the standard deviation in the Lead Time for an item.