Order Methodology
The AGR system is designed to create optimal order proposals based on upcoming demand through advanced forecasting techniques. The Ordering method is in terms of a time period, covering one replenishment cycle at a time.
The Replenishment cycle is specified in days instead of units. It automatically converts to units by looking at the forecast. This means that sunglasses with a replenishment cycle of 30 days will convert to more units over the summer months than during the winter months.
The order formula:
Demand for the Order Period + Safety Stock + Min visual stock – Stock on hand – Undelivered orders = Calculated quantity
Round up to minimum order quantity and respect order multiples = Qty in the Order Proposal
How are orders created in AGR?
The order proposals can be manually created through orders, items or reports. The order creation can be automated through scheduled orders.
Once reviewed and confirmed the orders are transferred to the ERP system.
Depending on the setup, AGR handles both
Purchase orders - from suppliers to warehouses/stores.
Transfer orders - from warehouse to stores, or store to store.
The following data influences the order proposal:
Lead time: The time it takes from the point of sending a purchase order until it is received in the warehouse/store.
Order Coverage Days: The replenishment cycle or the order quantity in terms of days. – when you order this is for how long you would like the stock to cover.
Order schedule: The days between creating order proposals - how often you check on replenishment needs.
Demand period: Lead time + Order coverage days, or a manually selected period.
Demand for order period: Statistical forecast + open sales orders + if applied: sales orders; upcoming promotions; user adjustments to demand plan.
Safety stock: uncertainty in sales during Lead time + Order frequency.
Stock on hand: Subtracted from the replenishment need.
Undelivered orders: Subtracted from the replenishment need.
MOQ: Order quantity must meet or surpass the minimum order quantity.
Order Multiple: Order quantity must meet the requirement, i.e. 10 pcs pr. box.
Min visual stock: Sets the minimum stock value.
Min/Max: If both are used, the sales forecast is disabled and when stock goes below the reorder point (min) the order proposal will order up to the max level
Manual vs Scheduled orders
Manual orders can be created manually by users in Items or Reports.
Scheduled orders are created automatically in the daily job from Scheduled Orders
Order Status
Orders may be in one of three statuses.
In Progress - newly created orders ready for review
Confirmed - In Process orders, confirmed by a user after review and/or amendment and ready to be moved to the ERP
Transferred - Confirmed orders that have been automatically transferred and received into the ERP
Your orders will only be saved in AGR for 8 days after creation.