As everyone knows, calculating the correct amount of inventory to have on hand isn’t a simple task. One of the more challenging scenarios is an inventory item that has decent enough sales during part of the year, but has very little sales in the part of the year we’re in now. Obviously we don’t want to be out of the item (or we
could have identified the item as seasonal) and Paladin POS recognizes this.
We have added a user definable control (in setup) that has historically been hard-coded inside Paladin POS. This value helps steer calculation of the inventory stock needs on items like the one mentioned above by
helping us to understand the difference between items that sell frequently versus items with sporadic sales opportunities. The default value is 15% (meaning items that sold in less than 15% of the weeks last year (8 weeks) should be considered a sporadic sales opportunity and will be stocked at a lower level during their off season).
Most stores using this system through the last few decades have found our internal setting of 15% to be the correct number. Should you desire to reduce calculated stock needs (i.e. order less) on these slow moving
semi-seasonal products, set this value to a higher number. 30% would establish the threshold at 16 weeks (52 * 30%). 40% would use 21 weeks or less per year as the threshold.
This setting will have NO effect on product currently “in-season”. If your desire is to lower the suggested order quantities on off season slow movers, try increasing this value.
To access this new value click File – Setup – Company – Inventory and enter your new weekly threshold percent to the right of the label “Forecast Demand Active Weeks Threshold %” and click Save.
If you have questions or suggestions about this information, contact firstname.lastname@example.org.