Optimizing Fill Rate
Fill Rate Optimization is available on the Creating Allocation Strategies and Creating Order Allocation Schedules pages. Allocation Optimization calculates maximum possible demand orders for an allocation batch.
Fill Rate can be defined as the number of fully allocated order lines divided by the total number of order lines during a defined period. For example, your organization is receiving supplies at a single location. You have several sales orders all with differing priorities, for multiple customers, and on different dates. Unfortunately, there is an inventory quantity shortage of 10%. This shortage may not cause a significant delay, but it inconveniences most of your customers. These delays also affect your organization’s Fill Rate KPI.
NetSuite enables you to allocate orders using the new Fill Rate Optimization feature.
To optimize order allocation on the Allocate Orders page:
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Go to Transactions > Order Management > Allocate Orders.
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Complete the Allocate Orders form.
For more information, see Allocating Supply to Order Demand.
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In the Orders section, select an Allocation Processing Option:
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Using Sorting Options Only
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Using Fill Rate Optimization – prompts NetSuite’s batch allocation logic to calculate the largest possible number of order lines fully allocated on time.
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Using Revenue Optimization on Sales Order - The system allocates existing supply to produce the maximum sales revenue.
Revenue is defined as the company income on the sales transaction after the product is sold (invoiced). The revenue on the sales order line is stored by the amount field, in the transaction currency.
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Using Gross Profit Optimization on Sales Order - The system allocates the existing supply to maximize sales profits.
Gross Profit is the remaining sales transaction amount after deducting the direct item cost from the revenue. When the Gross Profit feature is enables, gross profit is calculated on the sales order line and stored by the Est. Gross Profit field in the transaction currency.
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In the Orders section, check the box beside the orders that you want to optimize.
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Click Submit.
To optimize order allocation on the Order Allocation Schedule page:
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Go to Transactions > Order Management > Allocate Orders > Schedule.
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Click new Order Allocation Schedule.
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Complete the Order Allocation Schedule form.
For more information, see Creating Order Allocation Schedules.
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In the Order Options section, Allocation Processing Option list, select Using Fill Rate Optimization.
This option prompts NetSuite’s batch allocation logic to calculate the largest possible number of order lines fully allocated on time.
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Select a Sort Order filter.
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Click Save.
After the allocation batch completes its calculations, NetSuite allocates the existing supplies to satisfy as many order lines as possible using the following parameters:
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Allocates the full required quantities.
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Allocate the latest supplies that meet the Supply Requited By Dates.
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Prioritizes smaller quantities over larger quantities.
Beyond the optimization priorities, Supply Allocation follows the allocation preferences and the allocation strategy of each order.
Related Topics
- Applying Allocation Strategies to Order Lines
- Setting Supply Required By Dates on Order Lines
- Supply Allocation Calculations
- Supply Allocation Exceptions
- Supply Allocation Exceptions Management
- Optimizing Fill Rate
- Inbound Shipment in Supply Allocation
- Supply Allocation Order Management
- Supply Allocation Management