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EOQ - Shelf Capacity Check - Office Exceptions
This report shows large cubic inch EOQ (min/max order point) candidates, but these SKUs need a shelf capacity value (Loc 3) before a good min/max recommendation can be made. That is, although these are good EOQ SKUs, their ideal max order point value might cause back stock. Once a shelf capacity is entered into Location 3 in your Eagle system for these SKUs, then Mango will recommend these as EOQ candidates next month in Acenet's RAD, as long as the max value fits on your shelf. By processing this report, your store can take advantage of more EOQ SKUs and the resultant put-away efficiencies, without creating back stock!
A brief refresher: EOQ candidate SKUs (min/max) are SKUs with an order multiple of 1, have frequent purchases, are low cost, low cube (do not take up a lot of shelf space), and have regular sales demand. Once a Min OP and Max Stock are set, the store can benefit from less put-aways. These EOQ suggestions are sent monthly to Acenet's Retail Analytics Dashboard (RAD) for the store to consider and adopt. However, SKUs with a high cubic inch footprint are suppressed unless the EOQ engine can guarantee back stock will not be created. Entering in the SKUs shelf capacity into Location 3 allows Mango's EOQ engine to make this determination.
Steps to process this report
Examples
1392216 - FROG TAPE .94 X 60 YDS.
Annual Sales - 63
Next month Mango's EOQ engine will consider this value so if the calculated ideal Max value is less than or equal to 16 then this SKU will be shown in the RAD to be adopted.
1495035 - ROLLER4.5"JUMBO WD3/8PK2
Upon inspecting the bin, 10 should can fit, which is entered into Loc3.
Next month Mango's EOQ engine calculates a max stock value of 13, however the engine knows only 10 will fit on the shelf and thus would cause back stock if recommended. Therefore, this SKU will not show up to be managed in the RAD via EOQ.