IBS Enterprise Help Centre 8.0Business Suite 2014/2015

Setting up IBS Inventory Control

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The following lists the activities to go through to prepare IBS Inventory Control for usage after it has been installed.

Prerequisites
IBS Inventory Control (INV) is an add-on module to IBS Distribution (DIS) and cannot be run without DIS. You should therefore have installed and set up the DIS application first. See Installing and setting up IBS Distribution for instructions.

Mandatory entries for the different files and tables are described, as well as the order in which the tables and files should be completed. For a more thorough explanation of code usage and the operation of the different maintenance programs, see the Panel help.

What this document contains:

Installation

For a description on how to install the system on the iSeries, see the IBS Enterprise Technical Implementation Guide available on the IBS Intranet.

Installation of a new company

For a description on how to generate a new company or how to copy one, see Company generation and the Panel help.

Installation of INV

The setup for an installation of the INV module only is divided into four major phases. They are:

  1. Activate the INV application in Work with companies.
  2. Establish mandatory data in DIS and INV tables and files. (See Loading data in the IBS Distribution base system for a description of the DIS-related tables and files.)
  3. Run IC initialisation program for system files & Job schedule batch.
  4. Run IC initialisation program for application data files.

Activation

To perform the activation of the INV application (and possibly the IBS Supply Plan - ISP - application including IBS Distribution Requirement Planning) as a separate task is only done if the IBS Enterprise software already is installed and a company (or several companies) is already generated.

Note: When generating a company in IBS Enterprise for the first time, the applications to be used in the company are also activated. For more information, see Company generation.

Activating IBS Inventory Control

To activate the INV application in a company that is already installed, do as follows:

  1. Select the Work with companies menu item.
  2. Select the company in which INV should be activated and click OK until the Application defn/company maintenance panel is shown.
  3. On that panel, select the INV application and click OK twice.
  4. Continue to click OK until you return to the initial panel and then exit the routine.

IBS Inventory Control is now activated, but you have to restart the company (via the Select company to work with menu item) to be able to continue with the next step.

Activating IBS Supply Plan

To activate the ISP application in a company that is already installed, do as follows:

Note: The INV application has to be activated.

  1. Select the Work with companies menu item.
  2. Select the company in which IBS Supply Plan should be activated and click OK until the Application defn/company maintenance panel is shown.
  3. On that panel, select the ISP application and click OK twice.
  4. Continue to click OK until you return to the initial panel and then exit the routine.

IBS Supply Plan is now activated, but you have to restart the company (select the Change company to work with menu item) to be able to continue with manually loading data in tables and files. See the applicable related topics.

Tables and files

There are a number of tables and files in INV that need to be initialised before the system can be released for transaction handling in a live environment. Note: For DIS-related fields, see Installing and setting up IBS Distribution for instructions.

Perform this procedure in the order outlined below.

Basic data

During this phase you manually enter the data required for file initialisation in the INV system. At this point, it is required that you work in the company environment for which you are setting up INV. You must have the correct library list, including the correct file libraries. See the IBS Enterprise Implementation Guide available on the IBS Intranet for more details.

Table/File To do
IC control file The information in the IC control file creates the foundation for the INV system. You tailor the system to meet your company's needs by establishing the system values in this file.

As a rule, information in this file should not be changed once you begin generating forecast and demand data. It is therefore important that you define the parameters to be used before completing the fields. Several fields will become protected once data has been generated in the Forecast file.

The IC control file consists of the following fields:

    Forecast period type
    Enter a code indicating the forecast period type to be used. You specify the time unit to be used for forecast periods. It can be based on a week or a month. Valid codes are:
    Code Description
    1 Week
    2 Month
    Note: This field becomes protected once the system generates data in the Forecast file.
    Time units/period
    Enter a code indicating the number forecast periods to be used per year. Forecast period type controls what time units you can select:
    For forecast period type 1 (weeks per period), you can enter:
    Code Weeks per period Forecast periods per year
    1 1 52
    2 2 26
    4 4 13
    For forecast period type 2 (months per period), you can enter:
    Code Months per period Forecast periods per year
    1 1 12
    2 2 6
    3 3 4
    6 6 2
    12 12 1
    Note: There are 52 weeks per year. Monday is the beginning of the week. Since the calendar year may end midweek, week 52 and week 1 can have more or less than 7 days, depending on what day of the week the year ends. For example, if the last day of the year falls on a Thursday in week 52, then week 52 will have less than 7 days, and week 1 of the next year will have more than 7 days.
    Note: This field becomes protected once the system generates data in the Forecast file.
    History years
    Enter a number indicating during how many years the forecast information and demand statistics should be saved in the Forecast file. Valid numbers are 1-9.
    Note: This field becomes protected once the system generates data in the Forecast file.
    Workdays/week
    Enter the normal number of working days per week. Valid numbers are 1-7.
    Note: This field becomes protected once the system generates data in the Forecast file.
    Workdays/month
    Enter the normal number of working days per month. Valid numbers are 1-31.
    Note: This field becomes protected once the system generates data in the Forecast file.
    Workdays/period
    This field is automatically calculated from the Forecast period type, Time units/period, Workdays/week and Workdays/month fields. The result of the calculation is the average number of working days per period. The actual number of days per period is displayed in the active Forecast file.
    SP period type
    Only shown if IBS Supply Plan is installed and activated. Enter a code to specify the time unit to be used for SP periods. It can be based on a week or a month. Valid codes are:
    Code Description
    1 Week
    2 Month
    Supply plan horizon
    Only shown if IBS Supply Plan is installed and activated. Enter a number indicating how many years ahead periods should be created in the supply plan.
    Active periods gen
    Displays the forecast period in which the active forecast periods were last generated.
    Period calculated
    Displays the last period for which the purchase control values were calculated and updated in the system.
    The purchase control values consist of forecast, economic order quantity (EOQ), safety stock (SST), and reorder point (ROP). These values are calculated and updated in the system in the inventory calculations for each item/warehouse combination.
    Note: The purchase control values must be calculated once every forecast period.
    Period purch sugg 3
    Displays the last period for which a purchase suggestion was run for purchase type 3. This is accomplished through purchase suggestion creation.
    Note: For purchase type 3, a purchase suggestion creation should be run once every forecast period.
    Period stock level
    Displays the last forecast period for which average stock level was calculated.
    Note: Average stock level should be calculated at least once every forecast period.
    Date SP calculation
    Only shown if IBS Supply Plan is installed and activated. Displays the date when the supply plan was last calculated. The date is updated from the Start SP calculation program.
    Segmentation code
    Enter a code indicating how segment items should be handled. Segmentation is used in volume value classification and movability classification for each item/warehouse combination in the system. Valid codes are:
    Code Description
    1 Segment items within each warehouse of the company
    2 Segment item/warehouse combinations at the company level for all warehouses
    Segmentation price
    Enter the code for the segmentation price to be used. Valid codes are:
    Code Description
    1 Item cost price
    2 Item sales price
    3 Item mark-up
    This price is used to calculate the value part of the volume value classification.
    Movability code
    Enter a code indicating if number of movements or demand quantity should be used when determining movability for a specific item/warehouse combination. Demand quantity or number of movements is used in the inventory segmentation for assigning a movability code to each item/warehouse combination. Valid codes are:
    Code Description
    1 Use number of movements when determining movability for an item/warehouse combination.
    2 Use demand quantity when determining movability for an item/warehouse combination.
    Volume perc code
    Enter a code indicating if the percentage in Work with volume value codes should be based on the total volume value percentage to be in each class, or on the total number of item/warehouse combinations percentage to be included in each class. Valid codes are:
    Code Description
    1 The percentage used in Work with volume value codes will be the percentage of total volume value to be included in each class.
    2 The percentage used in Work with volume value codes will be the percentage of the total number of item/warehouse records to be included in each class
    Example:
    A volume value code A with the percentage of 10 is defined in Work with volume value codes. If you enter 1 in this field, the system will check all total volume values for all items; let's say this is 500,000. 10 % of 500,000 is 50,000. Now the system checks the volume value of all items and accumulates the volume value of the "best items" until 50,000 is reached. These items will be A items.
    If you instead enter 2 in this field, the system will check how many items exist in the system; let's say 500 items. 10 % of 500 is 50. The 50 "best" items, i.e. the items with the highest volume value, will be A items.
    Auto adjust demand
    Indicate if the system should adjust demand automatically. The system makes an adjustment at calculation time if the demand has increased or decreased (compared to the corresponding forecast) by a percentage greater than or less than the percentage entered in Adjust percentage.
    If NO, you will have to manually adjust the demand in the Forecast file or through the Demand variation list/update selection.
    Adjust percentage
    Mandatory entry if Auto adjust demand is set to YES. Enter a percentage value. When the demand in a certain forecast period deviates from the corresponding forecast by a percentage greater than the percentage in this field, the system automatically adjusts the demand value used in calculating the forecast information for the next period.
    Inventory calc text
    Enter the text that you want to use to describe the inventory calculation batch job in the Job schedule file for job schedule type 1.
    Purch sugg 2 text
    Enter the text that you want to use to describe the purchase type 2 batch job in the Job schedule file for job schedule type 2.
    Purch sugg 3 text
    Enter the text that you want to use to describe the purchase type 3 batch job in the Job schedule file for job schedule type 3.
    Avg stock calc text
    Enter the text that you want to use to describe the average stock calculation batch job in the Job schedule file for job schedule type 4.
    SP calculation text
    Only shown if IBS Supply Plan is installed and activated. Enter the text that you want to use to describe the SP calculation job in the Job schedule file.
    Purch code type 1
    Enter a purchase code, indicating the method you want to use for determining the amount to purchase for an item/warehouse combination of purchase type 1. This code is used in the purchase suggestion function. There are three valid codes that you can enter:
    Code Description
    1 Determine the amount to purchase according to EOQ.
    2 Determine the amount to purchase according to EOQ or reorder point deviation (the quantity below reorder point), depending on which of these two values is greater.
    3 Determine the amount to purchase according to the sum of EOQ + reorder point deviation.
    Purch code type 2
    Enter a purchase code, indicating the method you want to use for determining the amount to purchase for an item/warehouse combination of purchase type 2. This code is used in the purchase suggestion function. Valid codes are:
    Code Description
    1 Determine the amount to purchase according to EOQ.
    2 Determine the amount to purchase according to EOQ or reorder point deviation (the quantity below reorder point), depending on which of these two values is greater.
    3 Determine the amount to purchase according to the sum of EOQ + reorder point deviation.
    Purch code type 3
    Enter a purchase code indicating the method you want to use for determining the amount to purchase for an item/warehouse combination of purchase type 3. This code is used in the purchase suggestion function. Valid codes are:
    Code Description
    1 Determine the amount to purchase according to EOQ.
    2 Determine the amount to purchase according to EOQ or forecast based demand, depending upon which of these two values are greater. Then, purchase an amount that covers the number of periods stated in the next field.
    3 Determine the amount to purchase according to forecast based demand. Purchase an amount that covers the number of periods stated in the next field.
    No of periods type 3
    Mandatory entry if the purchase code for purchase type 3 in the previous field is 2 or 3. Enter the number of periods ahead for which you want to purchase an item for an item/warehouse combination. The minimum amount of periods that you can enter here is 1. If the purchase code for purchase type 3 in the previous field is 1, you are not permitted to enter anything here.
    SP periods to copy
    Only shown if IBS Supply Plan is activated. Enter the default value of the number of SP periods in addition to the past due period that you want to include in the Create purchase suggestions and Create internal replenishment suggestions routines. This will result in more items appearing on the purchase suggestion.
    SP quantity code
    Only shown if IBS Supply Plan is activated. Enter the SP quantity code indicating the lowest level that the stock on hand including the planned orders must reach in the SP calculation when calculating planned orders. The following codes are valid to define the level:
    Code Description
    1 Safety stock level (SST)
    2 Order quantity + Safety stock level (OQ + SST)
    Allow purch sugg cpy
    Indicate whether or not to allow manual conversion of a purchase suggestion to a purchase order if Review code on the purchase suggestion is set to YES.
    Note: YES in the Review code field means that one or more lines on the purchase suggestion should be reviewed.
    Protect frcst fields
    Set this field to YES if you want to protect the following fields in the Forecast file:
    • Level forecast
    • Trend forecast
    • Mean absolute dev
    • Mean relative dev
    • Alpha value
    If YES, you are not permitted to enter or change the values in these fields in the Forecast file.
    Overdue days
    Only shown if IBS Supply Plan is activated. Define the number of days of the past due period.
    Incl inv movements
    Indicate if you want to include inventory movements in the demand statistics used to calculate forecast.
    Max line buy days
    Only shown if IBS Advanced Purchase Control is installed. Enter the maximum number of additional days that can be added to the planning time when using the Interactive Line Buying function.
Forecast period file Access the Forecast period file. The first time you access this file after the installation, no forecast periods exist. To create the forecast periods, click Create forecast periods.

The periods created are determined by the values you have entered in the following fields in the IC control file:

    Forecast period type
    Time units/periods
    After having created the forecast periods, you assign a long and a short description to each period by completing the following fields:
    Description
    Short description
    These descriptions are used throughout the system to make it easier for you to identify each forecast period.

For more details, see About working with forecast periods.

Establish data in IBS Distribution files

Table/File To do
Work with sales orders The following INV-related field exists:

    Update demand data
    INV receives its demand statistics from sales order processing in DIS. The system provides a way to indicate, per sales order type, if sales orders should transfer demand statistics to INV or not. However, you must decide which sales order types should transfer demand statistics by setting this field to YES or NO.

System files

Run IC initialisation & Job schedule batch

After having manually entered data in the files mentioned above, two different jobs need to be run. These jobs initialise various system files. They are:

  • IC initialisation for system files
    The initialisation of system files is performed through the Start IC initialisation routine menu item.
  • Start job schedule batch

To initialise the relevant system files and tables, set System files and Inv control codes both to YES. Set the remaining fields to NO. These fields are described in section Run IC initialisation program (application files).

System files in IBS Inventory Control

The following tables will be calculated and updated when the initialisation of the system files is performed.

  • Work with inventory control codes
  • Probability function table

The inventory control code programs contain descriptions of how the system should calculate forecast, EOQ, ROP and SST for different segments of the stock. The following programs will be updated with a default record:

  • Work with forecast control codes
  • Work with replenishment control codes
  • Work with service control codes
  • Work with purchase review control codes

The system creates one record in the Default class for each of the four programs above. The record name in each one is *DFT. Initially, these records will control the inventory calculations for all item/warehouse records in the system.

The methods established in these default entries are commonly used. This allows you to start to use the system without creating any new control code records. You can change the values in these records whenever you want, and create new records. See About working with inventory control codes for more details.

Job schedule batch

At this stage you must run the job schedule batch program to initialise the Active forecast period file. See About scheduling periodical jobs for a description of this file.

To start the Job schedule batch program, select the Start job schedule batch menu item and click OK.

This program, in addition to loading the active period file(s), determines which jobs need to be run, and creates records in the Job schedule file. Running the Job schedule batch is an important function in the system. See About scheduling periodical jobs.

At this stage the system is set up for basic usage. However, there are a number of files that should be initialised in most real live installations. These files contain item information and demand history. Section Establish data in IBS Distribution files describes how to initialise these files using information from other DIS files.

Note: If data in the DIS files is being converted from another system, the IC initialisation program can still be used to initialise INV.

Application files

Run IC initialisation program (application files)

In this phase, the system optionally loads some of the application database files used by the INV module from other DIS files. This is accomplished through the IC initialisation program. This program loads user files containing application data. However, it is not mandatory to initialise the user files through this routine. You can initialise them manually or write separate conversion routines from another system.

Initialising the files through this routine allows you to save time by automatically establishing data in files that would otherwise be time consuming to set up manually or convert from another system. The following two application files can be initialised through this routine:

  • Item file/Inventory management file
  • Forecast file

Through the IC initialisation program, you can install INV for all the warehouses in your system, or you can choose to install INV for certain warehouses only. For the warehouses you have not selected, there will be no inventory management data created. That is, you will never get replenishment suggestion information for the items in these warehouses. If you select certain warehouses, the system will load the Item file/Inventory management file and the Forecast file with records only from those warehouses you have selected. To select certain warehouses, complete the Warehouse fields.

Read the following steps for instructions on initialising the files here:

Default value for the Item file

If you use the IC initialisation routine to create records in the Item file/Inventory management file, then the system needs to know what values to assign to the new records. This is achieved by creating a default record for the Item file/Inventory management file defaults in the IBS Distribution item file templates and defaults routines.

Menu item/Panel To do
Work with item templates Create a new template only containing the Warehouse information program. Click Maintain defaults (F8).
Item default maintenance Select Warehouse information and create a new default. (The panels are INVD0351 through INVD0353.) Note: You access several panels before the Inventory management panels. You do not have to define any values on those panels.
Inventory management It is recommended that you assign default values to all required fields. On the first Inventory management panel (INVD0351), these include:

    Purchase type
    Trend code
    Adjust workdays
    On suggestion

On the fourth Inventory management panel (INVD0353), enter the value *DFT in the following fields:

    Forecast ctrl class
    Replenishment ctrl class
    Service ctrl class
    Purch review class

    For a description of these fields, see the Panel help.

Item file/Inventory management file

In INV, inventory management information is kept at the item/warehouse level in the Item file/Inventory management file. You can create the records in this file through the IC initialisation program. It is also possible to create these records manually, using the Item maintenance program in DIS.

If you choose to automatically initialise the Item file/Inventory management file through this routine, the system creates a new record in the Item file/Inventory management file (SROIMI) for each item/warehouse combination in DIS' Warehouse file (SROSRO).

Note: For records in the Warehouse file that have been inactivated, a record is created in the Item file/Inventory management file with inactive status.

To initialise the Item file/Inventory management file, complete the following steps:

  1. Once you have created a default record, you can access the IC initialisation routine, and set the Item file field to YES.
  2. Then, enter the default id of the newly created Item file/Inventory management default in the Default field.
  3. Finally, if there are existing records in the Item file/Inventory management file when you run the IC initialisation routine, you must decide if you want to overwrite them or add to them. Setting Replace existing to YES or NO achieves this.

Forecast file

The Forecast file contains the historical demand and forecast data plus all the future period forecasts. In order to initialise this file, Work with sales orders must already have been initialised. See section Establish data in IBS Distribution files.

To initialise the Forecast file, set Forecast file to YES. The following processing takes place:

  • When the IC initialisation routine is started, the system checks the Forecast file for the existence of records. If records already exist in the Forecast file on selected warehouses (that is, if records have been transferred from the Sales order cycle), you will not be permitted to proceed with the Forecast file initialisation. Contact your System Administrator for help.
  • If the initialisation can proceed, the Forecast file is loaded with period records for each item/warehouse combination in the Warehouse file.
  • Period records for each forecast period are created in the Forecast file for each item/warehouse combination. The file is initialised from the oldest valid forecast period in the Active forecast period file up to and including the present forecast period, but not for any future periods.
  • When the Forecast file is loaded, the Invoice statistics file and the Sales order file in DIS are read. All demand values from those files are updated in Demand in the Forecast file. The values are updated in the correct forecast periods based on the requested dates on the invoice/order lines. Forecast is also updated with demand. Before updating demand, the system checks the sales order types on the Invoice statistic lines and the Open sales order lines against the order types in the Sales order type extension table to see which order types should update demand, and uses only those demand values.
    • Number of movements is also updated when the Forecast file is loaded. Every invoice line/order line is counted as one movement.
    • Credit orders are accounted for, and will decrease the Demand and No of movements fields in the Forecast file.

Production demand

The Production demand selection is only valid if application IBS Manufacturing is active. The purpose of the initialisation of the Production demand file is to be able to consider production demand in relation to volume and movability.

To initialise the Production demand, set Production demand to YES. The following process takes place:

  • When the IC initialisation routine is started, the system checks the Production demand file for the existence of records. If records already exist in the Production demand file on selected warehouses (that is, if records have been transferred from the Sales order cycle), you will not be permitted to proceed with the initialisation of the Forecast file. Contact your technician for help.
  • If the initialisation can proceed, the Production demand file is loaded with period records for each item/warehouse combination in the Warehouse file.
  • Period records for each forecast period are created in the Production demand file for each item/warehouse combination. The file is initialised from the oldest valid forecast period in the Active forecast period file up to and including the present forecast period, but not for any future periods.
  • When the Production demand file is loaded, the Work order structure component file in the data from Manufacturing order Bill of material is read. All demand values from this file are updated in the Demand field in the Production demand file. The values are updated in the correct forecast periods based on the requested dates on the structure component lines. The Number of movements field is also updated when the Production demand file is loaded. Every structure component line/order is counted as one movement.

After completing these phases the INV system is set up and ready for use.

Related topics