RE: Inventory Turnover -- MAPICS-L

sorry, did not see this until this morning, see below.

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: RE: Inventory Turnover
Date: Sun, 27 Apr 2003 18:10:22 -0700

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
---------------------------------------------------
This seems right to me,  i'd run a test and get mgm approval.

QTSMO is the MTD field, id use. If the YTD is = to MTD, then one of two things are happening, either you are not running I/M month end close or you are clearing both MTD and YTD fields each time you run month end. Id check to be sure the MTD field is just for the current month.

when running I/M period/yr end close there are two questions that control clearing fields:

per or yr end?

and is this the last report ? Y- will clear the above fields. A 'N' will Not.

Also, are you sure about using 'ave' cost ? is that what you are tailored for in I/M... is the cost being averaged correctly? If using std cost, check with either the STDUC - itembl or UCDEF - itemas - A ------------------------------------------------------- Good Luck

Jeff

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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