Use something similar to Analyze "Sales History" as a base, except allow grouping of demand (qty ordered) into periods (years, quarters, months, weeks, days, etc). Then allow for statistics to be run on those results - such as weighted avg, trending (percentage, slope), standard deviation (for any number of the periods – user selected), coefficient of variation, etc. Also calculate sales "rank" and profit "rank" per warehouse (along with "hits", "qty sold", etc rank codes already present). Represent all of these calculated results as variables and allow for their use in a much more complex "Demand Formula". Besides the variables, allow for primitive "IF, THEN, ELSE" logic in the formulas - model after Excel.

Provide for option/method for aggregating/accumulating demand based on source warehousing. (May be a check box - "Add Dependent Demand" (bit)) For example:

If our defined formula produces a demand of x for the "Rialto" warehouse, and the "Rialto" warehouse is the "source" for warehouse "Taco" and "Denv" (each with their own calculated demands of y and z respectively), and we have the "Add Dependent Demand" option selected on the "Rialto" warehouse, then the final/actual "Rialto" demand should be recognized as x+y+z. In this way, Rialto is replenished with enough inventory to not only handle its own needs, but also the inventory to replenish its dependent warehouses.

by: Michael L. | over a year ago | 3 - Sales & Distribution