Calculate Estimated Usage - Stock Control

This option calculates a usage figure for each item. You can base this either on the period demand figure or the year-to-date demand figure.You need to know the time period defined as the unit of measure of lead-time and usage, which is a parameter, set in the stock System Profiles. Typically this is a week.

You are prompted for:

Using Which Demand Figure (1-Period, 2-Year)

Reply ‘1’ or ‘2’ for whichever demand figure you want to use. If you use the period figure then this gives you a shorter history to determine usage than the year’s demand figure. You must decide which the better time period to use is.

Divide Demand Figure by How Many

This is the factor that represents the number of usage time periods in the demand time period. If your usage time period was weeks, for example, and you chose the period demand, then the number needed here is four (although there are just over four weeks in a month). If your accounting time periods were based on four and five week periods, then the factor to use here would be four or five as appropriate.

If you chose the year-to-date demand figure on which to base usage, then you need to know how far through the year you are, and use the appropriate factor. For example, if you’ve just ended your fourth month, and the usage time period is weeks, then the factor could be 17.

The program then runs through all the stock records, calculating the usage figure for each one and updating the usage data item.