EOQ (Min/Max)

Economic Order Quantity (EOQ) is a popular way to increase labor efficiency and in-stock by ordering more units, less frequently.

  • Uses your Eagle Minimum Order Point and Max Stock fields to decrease Ace delivery put-away trips by ordering more quantity, but less often.
  • Targets 300-800 SKUs (depending on store size).
  • Max quantities are unlikely to cause back stock. 
  • Target SKUs: order multiple=1, low cost, low cube, non-seasonal, non-promo, regular selling SKUs.
  • Examples: watch/calculator batteries, drill bits, PVC fittings, super glue, etc.

  • Order Point - this value is calculated each week (usually) automatically and is based on your monthly sales (via ROP reports set up in your Eagle scheduler). Your RSO/MPO order quantity is derived from Order Point and the SKU's QOH.

    Furthermore, Order Point report (ROP) can use a SKU's Min and/or Max stock level settings to adjust its calculated Order Point: 

    Min Order Point = this is the lowest value Order Point can be calculated. For example, if a slow-moving SKU's order point calculates to 1, but you always want to have 4 on hand, then you can place 4 in the SKU's Min Order Point box. Then the SKU's order point will always be 4 (at a minimum). 

    Max Stock Level = The RSO will order up to this value when a re-order is triggered. For example, if a SKU has an order point of 5 and a Max Stock of 10, then when a reorder is triggered, the RSO will suggest ordering from the SKU's quantity-on-hand to 10. In Mango, Max Stock is used to reduce put-away frequency on good-selling, low OM SKUs. 

    ROP Protect (Codes tab of IMU)

    If a SKU's ROP Protect flag is switched to "Y" then it is excluded from Eagle's order point calculation engine. When this happens, the SKU's order point is manually maintained via the Order Point field in the Stocking tab of Inventory Maintenance. 

    ROP Protect = Y should be used sparingly as the SKU's order point will no longer align with customer demand, and in some cases, will cause a SKU to run out of stock or become incompatible with a Min Order Point or Max Order Point setting.

    Shelf Capacity (Location 3) 

    You can use Location code 3 in Inventory Maintenance to input the number of SKUs that fit on the shelf. This value is used and displayed throughout your Mango experience. Many stores are already using Loc3 for their backstock replenishment system, and SKUs with good shelf capacity data can benefit from better min/max order point suggestions.

  • Before changing Max Stock Levels, make sure you have fulfilled the prerequisites listed below, including Option ID 8859 and making sure all your scheduled ROP reports have Max Stock Level = C saved in the Options screen of ROP.  Most stores have 20 (total) ROP reports in 4 queues (ROP7TH, ROP14TH, etc.) listed in SEQ.

    Update Option ID

    1. Open Eagle Browser
    2. In the launch bar, type OPT and press Enter
    3. In the header, click ID (Ctrl + i)
    4. Search Option ID 8859 and change the Current Value to 2
    5. Press Change (F5)

    Confirm ROP Settings

    1. Open Eagle Browser
    2. In the launch bar, type SEQ and press Enter
    3. Look for a queue named ROP7TH and double click into the queue
    4. Double click again into the first ROP queue (usually New/X items)
    5. In the Options section, set the Max Stock Level = C (Do not change maximum stock level). If the report is already set to 'C' then you can close out and move to the next report.
    6. In the header, press Queue (F7), then 1 (Save your changes back to queue)
    7. Do you wish to exit? Yes
    8. Repeat these steps for each ROP report in ROP7TH and for every report in ROP14TH, 21ST, 28TH. The typical store has 20 ROP reports that will need to be checked.

Steps to execute EOQ (Max Stock) Adds & Adjusts:

  1. Log into Acenet and select Analytics Dashboard from the top menu.
  2. Under the Optimal Shelf Quantity section, find and click the Current % hyperlink for EOQ (Max Stock) Acceptance. 
  3. A new popup will appear, click the acceptance hyperlink for EOQ Adds and Adjusts
  4. A grid will load and populate SKUs which are suggested EOQs for your store. 
  5. A lot of intelligence has gone into the suggested Min OP and Max Stock but if you'd to analyze further consider columns like: Last 12 Months Units, Shelf Capacity, and Expected Annual Put Away. 
  6. You can accept these Min/Max recommendation by clicking the button in the Change Min/Max Order Point column.
  7. Once you have selected the SKUs you'd like to accept, click Submit in the upper right hand corner.
  8. Within 30 minutes, the Max Stock and Minimum Order Point will bet set to the suggested levels.

Steps to execute EOQ (Max Stock) Removes:

  1. Log into Acenet and select Analytics Dashboard.
  2. Under the Optimal Shelf Quantity section, find and click the Current % hyperlink for EOQ (Max Stock) Acceptance. 
  3. A new popup will appear, click the acceptance hyperlink for EOQ Removes.
  4. A grid will load and populate SKUs that currently have an EOQ in your system that should be removed. The reason for the suggested removal can be found in the Action column.
  5. You can accept these EOQ Removals by clicking the button in the Remove Max Stock column.
  6. Once you have selected the SKUs you'd like to accept, click the Submit in the upper right hand corner.
  7. Within 30 minutes, the Max Stock will be cleared from the SKUs.

RAD EOQ