Inventory Optimization Rules

Here are the inventory optimization rules:

• Display Stock: this rule can be used to define the demo stock and presentation stock.
• Replenishment: this rule can be used to define the replenishment method and the parameters applicable to that method.

Note that Dynamic Replenishment method and the Optimal replenishment method are the two forecast-based methods that can be used to optimize the reorder point and receive upto level. Both require a target service level to be defined. Both the Dynamic and Optimal methods require the forecast at the sku/store/day level. In addition, the Optimal method requires the trade-off curves that can be generated by running the trade-off analysis. The RP/RUTL calculated by these two methods is exported to MFCS GBUCS for any item/loc that is set to the min/max method in MFCS. For MFCS CFS, the optimized_ind is defined in MFCS. If the indicator is set to Y, by default the Dynamic method will be used to calculate RP/RUTL. To override the default and use the Optimal method, the user can create rules for the Optimal method.

• Supply Chain Network: this rule can be used to define the review schedule.

• Life Cycle Calendar: this rule can be used to create life cycle calendar (that is, phases of the life cycle and the logic to determine the start/end of each phase).

• Initial Allocation: this rule can be used to trigger an allocation (push).