VENDIG SOFTWARE SERVICES, INC

AUTO TRANSFERS

purpose:

• provide automatic transfers between branches for the purpose of keeping stock at optimal levels while giving priority to filling open sales orders.
• allow maintenance of "auto-transfer" minimums and maximums separate from the regular inventory minimums and maximums.
• allow a maximum number of lines per branch to be transferred.
• provide emailed reports of items that were needed at a particular branch but could not be shipped because stock was unavailable.
• where possible and practical, transfer product in round lots.
• allow programs for easily maintaining the "auto transfers masters"
• allow setting of priorities in terms of the shipping branches and receiving branches.
• automatically include the SO#: notation on transfers that are automatically created

initial setup:

product will be transferred for any item that either has an "auto transfer master" or is on an open sales order with a required date within the next 5 days.

The following screen shows the "auto transfer master" for item 253479. It shows that branch 1 will transfers to branches 3,5,2,4,6,7,8 (in that order of priority).

The following screen shows the maximum number of line items that should be transferred from each branch each night when the auto-transfer program runs. The "maximum percent" shown below is one of the factors that will be considered when determining what should be transferred (explained later in this document)

several programs are available to help maintain the auto-transfer masters:

logic used in determining products/quantities that need to be transferred:

The first priority in transferring product is to send it to branches that need the product to fill current open sales orders.

The second priority is to send it to branches that need it because they have zero available (and have an auto-transfer master with an auto-transfer minimum or an auto-transfer maximum)

the third and fourth priorities are to send to branches that need it because they are below their "auto-transfer minimum"

In calculating the quantity pending shipments, we are looking only at those with required dates in the next 5 days.

• The products included in this program will be those that have an "auto transfer master" or that are on an open current sales order.
• Stock transfers produced thru this system are preceded with "AT" (ie AT053101). The written by is coded as "auto". Back ordered stock transfers have a ".b" (ie AT053101.B)
• On Wednesdays open transfers created by this program on Monday & Tuesday are deleted. On Friday, open transfers created on Monday thru Thursday are deleted. The logic here is that since they were not filled, that information is obsolete and will be regenerated during this calculation.
  
  
• In the first phase we determine what's needed at the receiving branches and what's available at the shipping branches. The formula used in this phase is different than that used in the later phases because in phase one, we're thinking in terms of filling open sales orders.
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  1. the "quantity needed" at the receiving branch is the QOH - QPS - QPST + QPR + QPRT
  2. the "quantity available" at the shipping branch is QOH - QPS - QPST
  3. to be more specific the QOH is computed as the QOH - QUANTITY SHIP ACKNOWLEDGED and the QPS in the QPS - QUANTITY SHIP ACKNOWLEDGED. In any case where this yields a negative QOH then the QOH is considered to be 0.

• in the second phase we determine what is still needed at the receiving branches and what is available at the shipping branches. In this phase, we're looking for items where the receiving branches have a quantity available of zero or less after considering product allocated in phase 1 and in the process of transferring we protect a certain amount of stock at the shipping branches to assure that they don't get below their own best stocking level. In this phase (and in later phases) we ignore any item that does not have either an "auto transfer minimum" or an "auto transfer maximum".

1. if it's determined in this phase that the receiving branch has a QAV of zero (or less) then the quantity that is required is AUTO-TRANSFER MINIMUM - QAV - QUANTITY ALLOCATED IN PHASE 1.
2. The quantity available at the shipping branch is computed as:
   
   
   • compute the "minimum quantity" as follows: If there is an "auto-transfer minimum" for this product/branch then use that. otherwise, use the inventory minimum. If there is a "line percentage" for this branch in the lines setup then use this percentage, otherwise, use the "percentage" setup in the "auto transfer master" for this item. Multiply the minimum quantity x percentage.
   • the quantity available that can be shipped out in this phase is: QOH - QPS - QPST - MINIMUM calculated above.
   • If the number of round lots is fractional, then it is rounded up or down based on the cost of a lot. However, if product has been allocated in phase 1, but in subsequent phases the product cannot be rounded to a whole lot, then the entire quantity needed (as much as can be spared at the shipping branch) is shipped.

• in the third phase we determine what is still needed at the receiving branches and what is available at the shipping branches. In this phase, we're looking for items where the receiving branches have a quantity available that is less than their "auto transfer minimum".

1. If it's determined in this phase that the receiving branch has a QAV (which now includes product allocated in previous phases) that is less than the "auto transfer minimum" then the quantity to be transferred is: AUTO-TRANSFER MINIMUM - QAV (QAV now includes product allocated in previous phases)
2. The quantity available at the shipping branch is computed in the same was as in phase 2.

• in the fourth phase we determine what is still needed at the receiving branch using the same logic as in phase three except that the quantity needed is AUTO-TRANSFER MAX - QAV (which now includes product allocated in previous phases). The quantity available at the shipping branches is also calculated in the same was as in phases two and three.
  
  
• in the fifth phase we are looking for back-orders. Back-orders can be handled either as an email/report or as actual transfers which are coded with a ".b" (IE TRANSFER# AT12345.B). Backorders will be created for any item where product was needed to fill a current sales order or where there is not enough available for .6 * auto-transfer minimum.

creating the stock transfers/deciding which lines to put on a transfer.

If desired, you can designate, for each branch, a maximum number of line items to be processed each nite. (see set up screen below). In that case, the following logic is used to determine which of the needed product will be included (in other words, we've determined that branch 1 has 100 line items they need to send out, but you've determined that they should never have to transfer more than 30 line items in any one night).

set up screen:

deciding which lines to put on the transfers:

MAKE THE FOLLOWING DETERMINATION FOR EACH ITEM AT EACH SHIPPING BRANCH:

• if there's a current open sales order involved at the receiving branch assign 100 points
• if the QAV is less an zero at the receiving branch assign an additional 75 points
• if the status is S at the receiving branch assign an additional 25 points
• in checking the CLASS at the receiving branch add 2 points for each class A and 1 for each class B
• in selecting which lines to put on the transfer select those with the highest number of points.
• back-orders are not included in this limit.
• These transfers can be printed automatically thru the program or from selecting a menu option.
• The transfers will have the SO#: coding where there are open sales orders

email showing transfers created:

1. CREATE/MAINTAIN AUTO-TRANSFER MASTERS

2. ALLOWS USER TO ENTER CATEGORY AND THEN FOR EACH ITEM THAT HAS AN AT-MASTER IT SHOWS PRODUCT#, DESCRIPTION, AT-MININUM, AT-MAXIMUM, QOH, 12 MONTH SALES

3. ALLOWS YOU TO DETERMINE THE MAXIMUM NUMBER OF LINES TO BE TRANSFER IN ANY SINGLE DAY

4. ALLOWS MASS CHANGES TO THE "receiving branches" FOR A SPECIFIC CATEGORY/SHIPPING BRANCH

5. COPIES AT-MAX & AT-MINIMUM FROM ONE BRANCH TO ANOTHER

6. ALLOWS MASS MAINTENANCE OF AT-MASTER INFORMATION FOR A SPECIFIC CATEGORY. A CATEGORY AND RECEIVING BRANCH ARE ENTERED. INFORMATION IS DISPLAYED FOR EACH PRODUCT SHOWING: PRODUCT#, DESCRIPTION, 12MONTH SALES AT THIS BRANCH, 12MONTH SALES COMPANY WIDE, AVERAGE SALES COMPANY WIDE PER MONTH, CURRENT AT-MINIMUM, CURRENT AT-MAXIMUM, CURRENT INVENTORY MINIMUM, CURRENT INVENTORY MAXIMUM. OPTIONS ARE THEN AVAILABLE ON-LINE TO CHANGE ANY OF MINIMUM/MAXIMUM INFORMATION. THESE CHANGES ARE NOT AUTOMATICALLY WRITTEN INTO THE RECORDS.

INSTEAD, AN EDIT REPORT IS PRINTED AND THEN THE INFORMATION IS UPDATED.

7. ALLOWS MASS CHANGE THE AT-MINIMUMS. PERSON ENTERS A #DAYS. THE PROGRAM CALCULATES THE AVERAGE DAILY USAGE AND MULTIPLIES IT BY THIS NUMBER OF DAYS. THIS BECOMES THE NEW AT-MINIMUM WITH THE FOLLOWING EXCEPTIONS: NO AT-MINIMUM WILL BE CHANGED TO ZERO, NO AT-MINIMUM WILL BE CHANGED TO A QUANTITY HIGHER THAN THE AT-MAXIMUM

8. DELETES AT-MASTERS WITH NO SALES

9. ALLOWS YOU TO TRANSFER INFORMATION FOR EACH AT-MASTER TO YOUR PC, MAKE CHANGES AND THEN TRANSFER IT BACK.

10. LISTS AUT0-TRANSFER ITEMS THAT WOULD HAVE BEEN MADE HAD THE PRODUCT BEEN AVAILABLE AND WHERE EITHER THERE WERE OPEN SALES ORDERS THAT COULD NOT BE FILLED OR THE QUANTITY AVAILABLE IS LESS THAN .6 X THE AT-MINIMUM

11 ALLOWS YOU TO DELETE ALL AT-MASTERS WITHIN THE SPECIFIED CATEGORY

12 DELETES AT-MASTERS FOR ITEMS THAT HAVE BEEN MARKED "DISCONTINUED"

14 MAINTAIN THE RECEIVING BRANCHES THAT ARE TYPICALLY USED FOR EACH SHIPPING BRANCH

15 FIND AT-MASTERS THAT DO NOT HAVE THE COMPLETE SET OF INFORMATION

16 USED TO CHANGE THE PRIORITY OF THE SHIPPING BRANCHES BASED ON THE LARGEST VOLUME OF SALES IN THE LAST 12 MONTHS