Customer Setting To Not Consider Sales In Demand
Document Version v1
Document Last Updated 4/2/2024
Software Version Documented v10

Customer Setting to Not Consider Sales in Mean Daily Demand

Task/Problem Overview

A setting has been added that makes sales to that customer not be considered in Mean Daily Demand. After this setting is checked, sales will not affect Mean Daily Demand. This may be used for a customer that purchases from you that is seasonal or a “friendly competitor” or various use-case scenarios where you may not want to consider the sales in the mean daily demand permanently or even temporarily for this customer.

Go to Accounts>Manage Accounts>Account Manager>Misc tab. The setting “Demand Not Affected by Sales” can be checked.

If there is sales history or current open, converted orders for that customer already existing, those sales will still be considered in Mean Daily Demand.

Future sales however, will be ignored in the calculation of Mean Daily Demand. If a quote exists and has not been converted until after the setting is turned on, that order will not be considered in Mean Daily Demand.

Mean Daily Demand (MDD)

Mean Daily Demand (MDD) is defined as the average of how many items have been ordered in a set period of time. This period by default is 365 days but can be defined at Admin>Administrator>Sites>Purchasing

Calculate purchasing values for orders/pos within x days. MDD=Quantity Ordered/defined days.

This Mean Daily Demand (MDD) can be seen in a variety of areas in the software.

Item Manager

Critical Purchasing

Go to Purchasing>Create Critical Purchase Orders click on Search, expand the demand under the Manufacturer/Vendor, to see the part numbers that have been placed on sales orders or need to be purchased to stock. There is a column for Mean Daily Demand.

Forecasting

Create a RFQ/PO, right click the part number, Select Forecasting.

In the Forecasting screen, the MDD column can be seen and double click on it to see more statistics.

Create an order for a Customer Account and a part number without setting “Demand Not Affected by Sales”

  1. Create an Order for a Customer for a Part Number without any history.

  2. Create the order for 1000 pieces to show 1000/365 = MDD of 2.7397

  3. Right click that part number, select Edit/Create Part Number in BS

  1. Click on Warehouse Tab

  1. View MDD at bottom left in Inventory Control Definitions

  2. Click on Recalculate Suggested

NOTE: Recalculate Suggested to see current inventory statistics or wait for nightly run.

  1. Order for 1000 pieces to show 1000/365 = MDD of 2.7397

Create an order for the Customer Account and same part number setting “Demand Not Affected by Sales”

  1. Open that Customer Account..Go to Accounts>Manage Accounts>Account Manager>Misc tab. Check “Demand Not Affected by Sales”

  2. Create another order for 1000 pieces of that same part number

  3. Right click that part number, select Edit/Create Part Number in BS

  1. Click on Warehouse Tab

  1. View Mean Daily Demand (MDD) at bottom left in Inventory Control Definitions

  2. Click on Recalculate Suggested. NOTE: Recalculate Suggested to see current inventory statistics or wait for nightly run.

  3. Additional Order for 1000 pieces does NOT calculate to add the additional 1000 pieces for 2000/365=5.4794 would normally show, but does not include this additional 1000 and will not until that setting is turned off.

NOTE: Any future orders of this account will not affect the calculation of the Mean Daily Demand. If the setting is deselected, then Mean Daily Demand (MDD) will start calculating for this account. If there is sales history or current open, converted orders for that customer already existing, those sales will still be considered in Mean Daily Demand.

Future sales will be ignored by Mean Daily Demand. If a quote exists and has not been converted until after the setting is turned on, that order will not be considered in Mean Daily Demand.