PeopleSoft Inventory Policy Planning 9.1 PeopleBook

Reviewing Inventory Policies

This chapter provides an overview of inventory policy inquiries, lists common elements, and discusses how to:

Set up inventory policy inquiry templates.
Review inventory policy items.
Review cost summary data.

Understanding Inventory Policy Inquiries

PeopleSoft Inventory Policy Planning's review feature consolidates time-phased policy information for the current policy item into a single page where you can use tabs to review policy data. You cannot change data that is contained in inquiries.

The purpose of an inquiry is to show the inventory pattern over time, based on the forecast demand and the selected inventory policy methods and associated parameters. Policy inquiries don't take into account on-hand inventory or current order positions for sales, purchasing, or manufacturing.

To set up and use policy item inquiries:

Ensure that items that you want to work with are included as part of the policy set and that you associate items with cost summary groups.
Ensure that you have access to policy items by using the Authorize Roles feature.
Generate the inventory policy to produce policy quantities.
Define data elements for the inquiry using display template selection criteria.
Review policy item values, parameters, and static and other data using the Policy Items Inquiry feature.
Review annual cost and investment totals for items using the Cost Summary Group Inquiry feature.

Common Elements Used in This Chapter

Average Inventory	Defines the average inventory levels for the period, calculated using the current inventory policy. This field is available in inquiries. You select to include the field using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Base Unit	Displays the unit of measure (UOM) in which the system stores inventory policy quantities. This is also the UOM that is associated with all quantities, prices, and costs. You can change the UOM for inquiry quantities using the Grid Unit field.
Forecast	Indicates the forecasted demand quantity for a policy item during a given period. You select to include the field using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Go to Item Simulation	Click to go to the Order Quantity page where you can simulate policies for this item.
Grid Unit	Defines the conversion factor that the system uses if the grid unit has been changed from the base UOM.
Maximum	Represents the maximum stock level if you have defined a maximum level. The default value is 0. You select to include the field in inquiries using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Minimum	Defines the minimum stock level as 0 when you don't define a minimum. You select to include the field in inquiries using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Order Quantity	Defines the recommended order quantity for any inventory replenishments that are necessary during the period. You select to include the field in inquiries using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Period Per Year	Displays the number of periods that are defined for a year. Assign the value using the Periods page when you create the calendar structure. You then assign the calendar to the policy set.
Policy Set	Defines the policy set on which the system bases the inquiry of a specific inventory policy item. Information such as period codes, control groups, and user data codes are associated with the policy set and determine how the system processes inventory policies for items.
Reorder Point	Defines the inventory level that triggers a reorder request during a planning period. You select to include the field in inquiries using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Safety Stock	Displays the amount of safety stock that is required for a policy item during a planning period, given the current policy parameters. You select to include the field using the inventory policy display template and review the data using the Policy Items Inquiry feature.
Service Fill	Displays the service level that should occur during this period, given the current inventory policy. You select to include the field using the inventory policy displays template and review the data using the Policy Items Inquiry feature.
Start Period/Year	Determines the starting period and year for inventory policy development. The policy set maintains the period number and year. This value controls the periods that are available for review.
Turn Rate	Defines the number of times that the inventory will be turned over (replaced) in the calendar year, given the current inventory policy. You select to include the field in inquiries using the inventory policy display template and review the data using the Policy Items Inquiry feature.

Setting Up Inventory Policy Inquiry Templates

To set up inquiry templates, use the IP Inquiry Formats component.

An inquiry template is a grouping of inventory policy fields that the system uses to retrieve data for inventory policy items. These templates determine what fields of data appear during inquiries. You create and reuse the template to review item policies, and you assign an inquiry template to a specific policy set when you create the template.

When you perform inquiries for policy items, you can select which display template to use for analysis. For example, you can create several templates, each with a different emphasis on data. Then, when you perform a policy item inquiry, you can change from one template to another to analyze and compare data.

This section discusses how to define policy inquiry templates.

Page Used to Set Up Inventory Policy Inquiry Templates

Page Name	Definition Name	Navigation	Usage
Inquiry Templates	DP_IPINQFORMATS	Inventory Policy Planning, Review Policy Information, Inquiry Templates	Define policy inquiry templates.

Defining Policy Inquiry Templates

Access the Inquiry Templates page (Inventory Policy Planning, Review Policy Information, Inquiry Templates).

Select the data fields that you want to include in policy item inquiries using this inquiry template. Available fields are those that are assigned to the user data code for the policy set. At least one field is required for the inquiry template.

Note. Do not select the same field twice. The system prevents duplication of fields for a template.

When you perform an inquiry, the system uses the fields you select in the inquiry template as data fields for items in the inquiry. After creating a display template, use the User Preferences page to make the template the default template when performing policy item inquiries.

Reviewing Inventory Policy Items

You can review a variety of information, including order quantities, turn rates, and service fills, using the policy item review feature.

This section discusses how to:

View policy item values.
Use charts to view policy item data.
View policy item parameters.
View policy item static data.
View other data for policy items.

Pages Used to Review Inventory Policy Items

Page Name	Definition Name	Navigation	Usage
Policy Items	DP_IPINQUIRY	Inventory Policy Planning, Review Policy Information, Policy Items	View policy item values for the current inventory policy parameters.
Charts	DP_IPINQUIRY_CHART	Inventory Policy Planning, Review Policy Information, Policy Items, Charts	Use charts to view policy item data or compare demand values with inventory values in a graphical format.
Parameters	DP_IPINQUIRY_3	Inventory Policy Planning, Review Policy Information, Policy Items, Parameters	View policy item parameters that include order quantity, safety stock, reorder quantity, and maximum and minimum policies that the system used to calculate the quantities for policy items and charts.
Static Data	DP_IPINQUIRY_4	Inventory Policy Planning, Review Policy Information, Policy Items, Static Data	View policy item static data that the system calculated according to the static method that is specified for the policy item.
Other Data	DP_IPINQUIRY_5	Inventory Policy Planning, Review Policy Information, Policy Items, Other Data	View other data for policy items. The data includes the policy control group to which the item belongs, the item's standard cost and standard price, and the inventory UOM.

Viewing Policy Item Values

Access the Policy Items page (Inventory Policy Planning, Review Policy Information, Policy Items).

The Policy Items page consists of:

Basic information about the policy set and item at the top of the page.
Two collapsible data areas that relate to certain aspects of the inquiry.
A Period Data grid area that displays the period totals for each field that has been defined for the inquiry.

These fields can include user-defined data fields.

Note. You define grid format preferences that are used as default values on the User Preferences page. You can override the setting by using the Grid Format field on this page to select the other format.

To use the page:

Complete the display parameters that correspond to what you want to review, and then click Refresh to update the selections.

Note. When you perform the initial search, you can also limit policy items that appear on this page by the turn rate or service fill.
Use the Year Averages grid to review annual averages for the field information that can be averaged.

These are the fields that you defined for the inquiry using the Inquiry Templates page. Time-phased information appears according to periods. The maximum number of periods and the start period that are defined for the policy set determine the number of periods that appear in the inquiry for the display areas.

If there are only three periods in a given year within the horizon, then the system calculates the averages for those three periods.
Use the Period Data grid and its tabs to review policy item data that meets the inquiry parameters.

This data includes information for each period and for all fields that you defined for the display template.

Using Charts to Review Policy Item Data

Access the Charts page (Inventory Policy Planning, Review Policy Information, Policy Items, Charts).

Inquiry charts show inventory policy quantities for items within the periods that you select at the bottom of the page. The system graphs all data using the base UOM.

Each type of policy appears in a different color. The total number of historical and future periods on the policy set controls the number of weeks during which you can graph data.

The policies that appear on the Charts page are fixed and include:

Inventory Level	Graphs the estimated inventory quantity for the item for a specific period. It does not include quantity on hand.
Safety Stock	Graphs the quantity of inventory that is needed for safety stock.
Reorder Point	Graphs the inventory level for the replenishment.
Safety Stock + Order Qty (safety stock plus order quantity)	Graphs the safety stock plus order quantity.

In the Weeks to Display field, enter the total number of weeks that will appear in the chart. The system calculates the number of weeks for the policy set's period code and displays the period information on the page. The default is 26 weeks, and you can enter up to 52 weeks.

Select the Display Forecast check box and click Refresh to include the forecast for the item in the graph.

Viewing Policy Item Parameters

Access the Parameters page (Inventory Policy Planning, Review Policy Information, Policy Items, Parameters).

The values on this page represent the stocking policies for a single policy item. They come from the policy master record; you cannot change them on this page. Use the Define Policy Items feature to make changes to items.

Viewing Policy Item Static Data

Access the Static Data page (Inventory Policy Planning, Review Policy Information, Policy Items, Static Data).

While PeopleSoft Inventory Policy Planning calculates time-phased values for parameters such as safety stock and reorder quantity for PeopleSoft Supply Planning, many inventory management systems recognize only a single, fixed value for each parameter. This page displays the static data that is available for use by PeopleSoft Inventory and other systems using static data.

The Static Data grid displays values for policy fields such as order quantity, reorder point, and service fill.

Static Calculation Method	Displays the method for calculating static policy data. Static calculations enable the system to calculate a single value from the time-phased results and export the value to PeopleSoft Inventory. The control has a specified method with an associated argument. The system recalculates static inventory values each time it generates a policy using these arguments. Calculation methods include: Period: The static policy equals the time-phased policy for the dynamic period for the policy set. Average: Calculates the static policy by averaging the time-phased policy values for the number of periods that you specify in the Periods to Average field. The calculation starts with the first period in the policy set.
Static Calc Argument (static calculation argument)	Displays an argument for either the Period or Average method that appears in the Static Calculation Method field. This static calculation value indicates either a dynamic period number if the method is Period or a group of periods if the method is Average. For example, suppose the start period is four and the static calculation argument is two, then the system uses data from period five. You define calculation methods and arguments on the Policy Controls page.
Lead Time	Displays the number of days of lead time, or the time taken to replenish a policy item from its source (vendor, supplying location, or manufacturer). Lead time begins when a replenishment need is identified and ends when the item is available to ship. The time includes order review, vendor transit or manufacturing lead time, quality assurance, and putaway.
Order Cost	Displays the cost of placing and executing an order for the items included in this policy control group. Order costs include all aspects of ordering, handling, and quality-control costs.
Carrying Cost % (carrying cost percentage)	Displays the cost percentage that is associated with holding a dollar of inventory for one year. The system applies this percentage to the standard cost of each item in the group. The system calculates the value by multiplying the average inventory quantity on hand by the standard cost of an item to produce the inventory valuation. The carrying cost is a percentage of the valuation.

Viewing Other Data for Policy Items

Access the Other Data page (Inventory Policy Planning, Review Policy Information, Policy Items, Other Data).

Use this page to review inventory and forecast data that is associated with a policy item.

Policy Control	Defines the control group that determines the default values for reorder and stocking policies for all of the items that are linked to the policy set if no other data is available for the policy item itself. The system also could use the defaults when it creates policy items.
Inventory Unit	Displays the UOM in which the item is stored and tracked in inventory.
Standard Price	Defines the standard price for the item. The system defines the value using the Price/Costs page in the Define Policy Item feature.
Standard Cost	Defines the standard cost for the item. The system defines the value using the Price/Costs page in the Define Policy Item feature.
Forecast Standard Deviation	Displays the estimated average deviation. This is an estimated measurement of how well you are forecasting for items.
Forecast Periods	Displays the number of future periods for which the system is planning. This data appears when you have used published forecasts to update inventory policies.
Start Period	Indicates the period in which the forecast begins.
Last Transfer Date	Indicates the last date on which the current published forecast data was used to update policy items.
Start Year	Indicates the year in which the forecast begins.
Last Publish Name	Indicates the forecast publish name that was used when the policy for this item was generated. This published data is referenced by a publish name in the forecast import specification. The system uses this forecasted data to calculate policies for items.
End Period	Indicates the period in which the forecast ends.
Last Publish Date	Indicates the date on which the forecast was published. You can reuse specifications to publish forecasts, and you can reuse the publish name and date.
End Year	Indicates the year in which the forecast ends.

Reviewing Cost Summary Data

A cost summary group summarizes investment and carrying costs for groups of inventory policy items and is comprised of individual items within a policy set. Selection criteria based on the Inventory Policy Master table determines which items from a policy set are in a particular summary group.

This section discusses how to view cost summaries.

Page Used to Review Cost Summary Data

Page Name	Definition Name	Navigation	Usage
Review Cost Summary Group	DP_CSUMGRP_INQ	Inventory Policy Planning, Review Policy Information, Cost Summary Groups	View cost summaries about groups of items such as annual costs and net changes from their last updates.

Viewing Cost Summaries

Access the Review Cost Summary Group page (Inventory Policy Planning, Review Policy Information, Cost Summary Groups).

Use this page in conjunction with the Define Cost Summary Group page, where you define criteria that determines which items make up the cost summary group. Each time you change criteria, the system automatically updates values on the Review Cost Summary Group page.

Then, you use the Cost Summary Group Inquiry page to review total cost summary details and store those details until you want to update them again. The system automatically adds and removes policy items based on the new selection criteria when you use the Review Cost Summary Group page.

See Establishing Cost Summary Groups.

The Cost Summary Group Inquiry page has two grids. The Summary grid displays the annual cost and investment totals for all items in the cost summary group; the Details grid displays the annual cost and investment for individual items in the group.

After you review calculations for the most recent criteria update, click the Update Cost Summary button to refresh the summary data on the page and store the new summary values. After you update cost data, the button is unavailable.

When you update cost summaries, the system:

Replaces the Last Updated field with values from the Current field and stores the values for both the cost and investment rows.
Sets the Net Change field to 0.
Updates the Last Change Date field to today's date and time and stores the date.

Summary

Last Updated	The Last Updated column contains values that were carried over from the previous update (the last time you used the Update Cost Summary button to store summary data). If you haven't performed an update for this cost summary group, the value is 0. When you update the summary, the system moves the value from the Current field to the Last Updated field.
Current	Displays the current annual cost or investment based on the selection criteria that you enter for the cost summary group and the calculation that the system automatically performed. If, after reviewed, you want to store the value for use with reports and inquiries, click the Update Cost Summary button. The current value does not change when you update cost summary.
Net Change	Indicates the overall cost and investment change for this group of items. The value is set back to 0 when you update the cost summary.
Last Change Date	Indicates the last time the cost summary group was changed. The system changes the date to the current date and time when you click the Update Cost Summary button.

Details

Provides quantities for individual items at specific locations and that meet the selection criteria that you defined for the cost summary group.

Annual Cost	Displays a combination of the annual carrying cost (average quantity multiplied by the carrying cost percentage) and the annual reorder cost (order count multiplied by the order cost).
Annual Investment	Displays the average inventory investment that is required for the year for this item. The system calculates this value by multiplying the average inventory level by the standard cost.