The Delay is based on a calculation between the expected stock out fields and the specified stock out of all the active Items/SKUs in the Vendor/Source. For each active item, the system will calculate:
The Specified Stock Out (ISSO):
(100 - Service Goal) * 0.1 * Greater of (Effective Order Cycle /buying multiple/minimum quantity) but not gretaer than yearly forecast * Purchase Price
The Expected Stock Out (IESOx):
(Greater (Safety Stock or Presentation stock) + Lead Time) – Balance)* Purchase Price
The system will calculate 6 Expected Stock Out fields. The first represents the IOP, the second is the IOP + 1 day and so on...
For each vendor/source order, you end up with a Specified Stock Out (RSSO)and 6 Expected Stock Outs (RESOx) based on the sum of the item values. How Does It Work?
- First ESO is greater than the SSO then the order delay will be 0.
- Second ESO is greater than the SSO then the order delay will be 0.
- Third ESO is greater than the SSO then the order delay will be 1.
- Fourth ESO is greater than the SSO then the order delay will be 2.
- Fifth ESO is greater than the SSO then the order delay will be 3.
- Sixth ESO is greater than the SSO then the order delay will be 4.
- Otherwise the order delay will be 5.