Inventory Intermittent Record
You use Inventory Intermittent records for items that have no scheduled pattern for ordering; orders are based solely on demand. These records typically set the safety stock a little higher and the underlying calculations differ from EOQ ROL and Inventory Periodic records.
There are several types of strategy records available in CCH Tagetik Supply Chain Planning.
See Strategy Record.
Inventory Intermittent records can contain some or all of the following sections:
- Bill of Materials section
See BOM Part Record in Classic Mode. - Inventory Intermittent section
Inventory Intermittent section
The top block of properties in the Inventory Intermittent section contains overrides; they take precedence over the lower block of properties.
Inventory intermittent Section
While overrides take precedence, you can keep numbers in the lower block of properties for future use (these are ignored if override values are set). Overrides are useful if you do not have some of the information required in the lower block of properties. For example, if you provide a Fill rate override, you would not need values for fields marked with a 1 in the lower properties.
Note: Some fields may already contain values, such as Lead Time. Administrators configure these values for each record. Typically, they do not need to be changed. Power users and administrators may view, add, or edit property values in the Setup screen.
Warning: Edit Strategy records with care since any change you make to a Strategy record affects every record to which it is applied.
Following are details about the override parameters.
Intermittent Strategy Override Properties
| Override Property | Description | Values Allowed |
|---|---|---|
| Fill rate override | To determine a fill rate to target, compare the cost of overage (too much inventory) versus underage (cost of stockout). Start with a safer strategy and make adjustments as you get more historical data. If the Fill rate override is set to 99%, then over the course of time, you will fill 99 orders and backorder 1 out of 100 orders received. For items with sporadic demand, a 95% fill rate might seem reasonable, but your calculations may be off as you have less historical data points. For example, a single spike in sales affects the calculation and may lead to a high safety stock level to cover a potential spike in the future. You can cut a sales spike from the item's history to adjust. This is why it best to begin with a safe strategy and make adjustments along the way. Any contractual requirements you may have should be set as a Fill rate override. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Order quantity override | Place orders that are a percentage of your highest sale in the past. For example, if you type 100, the system places orders that are 100% of your highest sales in the past (your orders cover the maximum of your historical sales). | - Fixed value (14, for example) - Field Property name (pre-populated) |
To optimize profits, you must balance the cost of carried inventory versus the cost of a stockout.
The remaining properties provide auto optimization of your inventory.
Inventory intermittent Optimization
You can use a fixed number or call a record property (such as OnHand) in any of these fields. For example, Order lead time may be LeadTime in a Strategy record, and a fixed number in specific record.
Following are details about the remaining properties.
Intermittent Properties
| Property | Description | Values Allowed |
|---|---|---|
| Item selling price | Net selling price of the item; calculated using item record fields. For example, Unit_$ASP pulls data from the ASP field of records for calculation purposes. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Item purchase cost | Average price paid for the item; calculated using item record fields. For example, Unit_$COGS pulls data from the COGS field of records for calculation purposes. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Inventory carrying cost | Percent of the cost of the item per year (for example, capital, insurance costs, risk of spoilage, and warehouse space). | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Cost to process an order | Includes all costs to process an order (for example, creating a purchase order, sending it to the supplier, fixed shipping costs, and receiving costs). | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Probability of lost sale if stockout | Stockout costs $X. Keep in mind the intangible losses of a stockout, such as loss of good will. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Order lead time | Number of days between placing and receiving an order. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Minimum order quantity | Lowest quantity of a certain product a supplier is willing to sell. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| Ship pack quantity | The smallest package the supplier is willing to ship. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| On hand | Total number of units in possession. | - Fixed value (14, for example) - Field Property name (pre-populated) |
| On order | Number of units on order (not yet on hand). | - Fixed value (14, for example) - Field Property name (pre-populated) |