Calculating Inventory Segmentation

Calculate inventory segmentation to assign Inventory Optimization segments to included Reorder Point items or item-locations. NetSuite also assigns service levels unless overrides exist.

You can run the calculation manually or schedule it from the Optimization Preferences subtab on the Inventory Management Preferences page.

Segmentation uses the last 12 full calendar months of history. It calculates ABC categories from annual consumption value and 123 categories from demand variability.

Segmentation uses actual sales and other consumption transactions. It does not use the Transactions to Consider preference. Qualifying demand can include the following:

• Invoices

• Cash sales

• Transfer order fulfillments

• Assembly build components

• Work order issues

• Backflushed work order completion components

Transfer order fulfillments, including inter-company transfers, are included only in item-location segmentation. In OneWorld accounts, invoices and cash sales for customers representing subsidiaries are also included only in item-location segmentation. Cash sales on payment hold are excluded.

After NetSuite calculates segmentation, you can review the stored results in the Inventory Optimization Segmentation Workbook.

General Notices