Inventory Segmentation Calculation Process
When you submit a manual calculation, NetSuite starts the segmentation process and opens the Inventory Segmentation Event Log. Each run includes a calculation process and an assignment process. After the calculation completes successfully, NetSuite starts the assignment process. Use the event log to monitor both processes and open their results.
When scheduling is enabled, NetSuite uses the recurrence, day, and time set in the Schedule Inventory Segmentation section to run this process.
Only one inventory segmentation process can run at a time. If another segmentation run is active, NetSuite blocks a manual run and skips a scheduled run.
ABC categorization ranks active Inventory and Assembly items with these replenishment methods:
-
Reorder Point
-
Master Production Scheduling
-
Material Requirements Planning
-
Time Phased
ABC categorization includes these items even when Include in Inventory Optimization is cleared.
123 categorization and segment assignment apply to Reorder Point items that are included in Inventory Optimization.
When segmentation runs, NetSuite updates the Inventory Optimization Segment field for included Reorder Point items. It also updates the Service Level field when Override Service Level is cleared, but if it is checked, NetSuite keeps the overridden service level.
Numeric zero is valid. Zero, missing, or insufficient input values can affect categorization:
-
When annual usage is zero, NetSuite assigns ABC category C and 123 category 3.
-
When unit cost is zero or missing, NetSuite assigns ABC category C and calculates the 123 category from available demand.
-
When monthly demand is identical in at least three usable months, coefficient of variation is zero, and NetSuite assigns 123 category 1.
-
With fewer than three usable monthly demand values, NetSuite assigns 123 category 3 and calculates ABC from available cost and usage.
From the Inventory Segmentation Event Log, open the calculation results to review warnings for these conditions.
To update Safety Stock Level, Reorder Point, and Preferred Stock Level values, run Calculate Inventory Levels after segmentation is current.