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About Usage Calculations


Sales representatives can use Siebel Medical Handheld to analyze usage behavior on consigned inventory. They can compare Average Usage (in the field called Use in the Inventory Detail views) and Historical Average Usage (in the field called Avg in the Inventory Detail views). Average Usage is the quantity used over a predefined number of days based on the last two cycle counts performed. The Historical Average Usage is the quantity used over a predefined number of days based on all cycle counts ever performed for that product. By comparing these two calculations, sales representatives will be able to determine whether there are any significant changes to usage behavior for a certain product. They can use this information to identify cross-sell and up-sell opportunities.

Detailed calculations are as follows:

  • On Count Complete, store Current Usage is based on adjustment and Current Count Date. Current Usage is the difference between what was counted and what the application expects to have.
  • Calculate and store New Daily Usage equals Current Usage divided by (Current Count Date minus Last Count Date).
  • Calculate New Historical Daily Usage equals ((Historical Daily Usage multiplied by Number of Counts) plus New Daily Usage) divided by (Number of Counts plus 1).
  • Calculate and store Historical Average Usage equals New Historical Average Usage multiplied by Use Days.
  • Calculate and store Average Usage equals New Daily Usage multiplied by Use Days.
  • Store Current Count Date as Last Count Date.

NOTE:  The term, Use Days, is defined by the administrator for each inventory location. For information about determining how to define Use Days, see Managing Inventory Locations with Siebel Medical Handheld Applications. If Use Days is not defined for the Inventory Location (for example, the field is blank), a default input of 30 is used to calculate usage. Usage is calculated when sales representatives tap the Count Complete button as they complete a cycle count. It will only be calculated for products that are counted during that cycle count. Also, usage numbers are not calculated during the first time that a cycle count is performed on an inventory location (because usage calculations need a reference cycle count).

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