RE: Inventory Turnover

Hello Jeff,
I didn't have a chance to work on my inventory turnover report for a week. I'm 
working on it right now. I looked at the ITEMBL file and it has many fields 
which look like the ytd sales and mtd sales. Could you tell me which field I 
need to use?

For instance, QTSMO and QTYYR seem to have the same data!! So what is the 
difference between these two fields? Why do you think MAPICS carries the same 
data in both fields? Am I looking at the wrong field?
QTSMO  Quantity sold this period  
QTSYR  Quantity sold year-to-date  

Assuming that QTSMO is the field I have to use, I can setup a query which will 
return all items for which QTSMO is greater than zero. I can than multiply 
QTSMO with the item's average cost. Essentially, this will give me COS. 

This is what I plan on doing for my average inventory value:
Current total inventory value = total sum of [on-hand for each item * average 
unit cost] for all warehouses put together.

I can then plug the above data into:
Turn (this month) = COS * 12 (annualize) / Current total inventory value

We are primarily a sales and service organization. So I'm wondering if the 
above approach will satisfy the needs of our management needs. Our inventory 
manager said that he wants to have a 'feel' for the inventory turnover reports 
that can be setup in MAPICS. Am I going in the right direction? I look forward 
to your reply.

Thanks,
Nandu

-----Original Message-----
From: Jeff Snyder [mailto:jeffreygsnyder@xxxxxxxxxxx]
Sent: Friday, April 18, 2003 6:48 AM
To: mapics-l@xxxxxxxxxxxx
Subject: Re: Inventory Turnover


Nandu,

the 'apics' definition of inventory turns is 'annual cost of sales' divided 
by 'Average Inventory value'  ie if COS is 20 million and  AVE. Inventory is 
1 million (all production inventories) the turn is '20'.
COS (items sold * std cost will include all lower level matl, labor, and OH 
cost).

mapics tracks the mtd and ytd sales qty in the itembl file.


you could take mtd sales * 12 (annualize) / current inventory value

this would give you a rough idea of turns this month / (ratio of sales to 
inventory) , and allow you to plot a trend, without a lot of data 
manipulation.  See if this is adaquate for mgm objectives.

Let me know what you come up with.


footnote: remember the goal is to carry just the inventory required to 
facilitate customer service. We need to balance the Inv cost with the cost 
of ordering and 'stock outs'.

Hope this helps

Jeff Snyder,   CPIM
Mapics Consultant






From: "Nandagopal Padmanabhan" <npadmanabhan@xxxxxxxxxxxxxx>
Reply-To: MAPICS ERP System Discussion <mapics-l@xxxxxxxxxxxx>
To: "MAPICS ERP System Discussion" <mapics-l@xxxxxxxxxxxx>
Subject: Inventory Turnover
Date: Thu, 17 Apr 2003 15:30:42 -0700

Hello Group,
I need some suggestions for creating inventory turnover reports. I suppose 
I'll have to query the IM Transaction History File for this and you all know 
that this file grows in size exponentially. My guess is this file already 
contains 200,000 records. Here are my questions:

(1) If I were to write a query that is going to pick all 'SA' transactions 
with order type 'CO' and multiply the quantity by the average unit cost for 
each line item to get the total cost of goods sold (this can then be used in 
another query to determine inventory turns), how big a load will this be on 
the AS400? I'm asking this question as I was asked to be careful while 
querying the IMHIST file.

(2) Is the above approach a general practice for creating inventory turnover 
reports? Could you suggest other ways to run an inventory turnover report.

Your suggestions will be appreciated.

Regards,
Nandu

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