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Questions About the Floating Point Replenishment Method (Doc ID 819673.1)

Last updated on DECEMBER 05, 2019

Applies to:

Oracle Retail Merchandising System - Version 12.0 to 12.0.10 [Release 12.0]
Information in this document applies to any platform.
Checked for relevance 13-Jan-2011
Checked for relevance on 24-Oct-2014

Purpose

This captures some questions and answers about the Oracle Retail Merchandising System Replenishment Process.  It is more specifically about the Floating Point replenishment method.

These questions are the result of some issues where a system was changed to have all of items to run on floating point replenishment method.  On a weekly basis it was anticipated that there would be replenishment between 3000 - 4000 units.  However, the system was generating only about 1000 units (only 25% of what is expected). 

Questions and Answers

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In this Document
Purpose
Questions and Answers
 Use of location delivery schedule: It is flagged in system options, but how does it affect the calculation?
 What determines the number of weeks floating point uses when obtaining the average daily sales for its floating point algorithm?
 Are the 12 weeks constant, or can it be changed?
 Regular sales: By only taking regular sales, does it average across the 12 weeks or only the weeks that had sales?
 What are some reference notes that are published for the Floating Point replenishment method:
 For the floating point algorithm in which the item history is taken into account for last year and this year,  is there any way to just look at the history of this year and not to look at last year history (placing items on floating point that do not have 15 months of history)?
 
The documentation mentions that promotional sales are not taken into account.  Is there any way for this to be overwritten?
 
Please provide an explanation of simple sales.
 
Based on the explanation, if the simple sales value is 50%, then the service level factor is .50. Please clarify the same for standard sales. Standard sales has 2 values, 98% or 85%. We read that 98% translates to a factor of 2 and 85% translates to a factor if 1. Is this correct or do they represent other values/factors? For example, using the same example mentioned above:  Service level 98% (based on standard sales), presume 0 on hand.  For Order 1 the sales forecast is 12 (Wednesday through Friday).  The safety stock for this example will be 6.  12 units * ???? (what is this value) service level = XX units.
 
What happens to the items that do not have the year of history when placed in floating point?  Eighty percent of our items have less than 1 year history, we need a method similar to floating point, is there any?  What is recommended?
 Is there an option for substitute items to be used in floating point and or a sister store?
 
Scenario 1: Let's say that I want to place something on floating point but it does not have the 1 year of history, can I use the history of another item?  If so, how does this work?
 
Scenario 2: Let's say that I want to place something on floating point in a brand new store, the item itself does have 1 year history, but at other stores. Can I use a sister store's history for the calculations? If so, how does this work?
 
Scenario 3: Let's say I have a combination of a brand new item in a brand new store, can I use a substitute item and a sister store's history combined? If so, how does this work?
References

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