Inventory Optimization Preferences
Inventory Optimization preferences control supply analysis, ABC-123 segment assignment, and scheduled segmentation calculations.
These preferences are on the Optimization Preferences subtab of the Inventory Management Preferences page.
Supply Analysis Preferences
The Supply Analysis Interval preference sets the number of months of inbound supply history used for lead-time calculations. NetSuite uses this interval for lead-time mean and standard deviation. Demand calculations continue to use Order Analysis Interval or Seasonal Analysis Interval.
Enter a value from 1 through 60. The default is 6 months. This preference applies to the account, and you can't override it for individual items or locations.
Supply Analysis Interval may already contain a value copied from a valid Order Analysis Interval setting, even if Inventory Optimization hasn't been enabled. Review the current value and change it if needed.
Changing this preference affects subsequent calculations. The change doesn't affect analysis periods stored on existing Inventory Optimization Result records.
Segmentation Calculation Preferences
The Calculate Inventory Segmentation per Location preference determines the unit of analysis used for segmentation.
This box is cleared by default. With the box cleared, NetSuite calculates one segment for each item instead of separate segments for each location.
When you check this box, NetSuite calculates a separate segment for each item-location combination. An item can have different segments at different locations. For example, an item can be A - 1 at a high-volume location and C - 3 at a low-volume location with irregular demand.
This preference affects segmentation and segment assignment only. Inventory planning calculations still run at the item-location level.
Advanced Item Location Configuration must be enabled before you can check this box.
ABC Category Preferences
ABC categories rank items by annual consumption value. Annual consumption value is annual usage multiplied by unit cost.
When Multiple Units of Measure is enabled, annual usage is calculated in the base unit.
For item-level segmentation, NetSuite derives unit cost from item-location Average Cost values, weighted by annual usage. NetSuite converts costs and usage to base units before calculation.
|
Field |
Default |
Description |
|---|---|---|
|
ABC Category Business Metric |
Annual Consumption Value (ACV) |
The metric used for ABC categorization. This metric is fixed. |
|
A Category Cumulative % Threshold |
80.0% |
The cumulative threshold for A category items. |
|
B Category Cumulative % Threshold |
95.0% |
The cumulative threshold for B category items. Items outside the A and B thresholds are assigned to C. |
Enter A and B category thresholds from 0.01 through 99.99. The A category threshold must be lower than the B category threshold.
123 Category Preferences
123 categories group items by demand variability. Demand coefficient of variation is monthly demand standard deviation divided by average monthly demand.
|
Field |
Default |
Description |
|---|---|---|
|
123 Category Business Metric |
Demand Coefficient of Variation (CV) |
The metric used for 123 categorization. This metric is fixed. |
|
1 Category Threshold |
0.3 |
Items at or below this coefficient of variation threshold are category 1. |
|
2 Category Threshold |
0.8 |
Items above the category 1 threshold and at or below this threshold are category 2. Other items are category 3. |
The 1 and 2 category thresholds are coefficient-of-variation values.
Enter threshold values from 0.01 through 10.00. The 1 category threshold must be lower than the 2 category threshold.
Schedule Inventory Segmentation Preferences
Use the scheduling preferences to run inventory segmentation automatically.
|
Field |
Default |
Description |
|---|---|---|
|
Allow Schedule of Calculations |
Cleared |
Check this box to run segmentation calculations on a schedule. |
|
Recurrence (Months) |
1 |
Sets how often NetSuite runs scheduled segmentation. Supported values are 1, 2, 3, 4, and 6 months. |
|
Day of Month |
First |
Sets the day of the month for scheduled segmentation. Supported values are First and days 2 through 28. |
|
Time of Day |
Midnight |
Sets the scheduled run time in the company time zone. |
Scheduled segmentation uses the last 12 full calendar months of history. The first run uses the earliest future matching day and time in the company time zone. If that time has passed, NetSuite uses the next eligible month.
The Schedule link for Calculate Inventory Segmentation opens the Inventory Management Preferences page.