Advanced Inventory Management
The Advanced Inventory Management (AIM) feature is used to automate demand-based inventory replenishment. The Advanced Inventory Management feature enables you to use item records to track Lead Time, Safety Stock, and Seasonal Demand for inventory. Item records also show the quantity available for each item. These figures are used to continually assess stock needs and modify replenishment orders. These automated calculations enable you to maintain an ideal stock level and minimize excess inventory.
An administrator can enable Advanced Inventory Management using the steps in the following procedure.
To enable Advanced Inventory Management:
- Go to Setup > Company > Enable Features.
- Click the Items & Inventory subtab, and then check the Advanced Inventory Management box.
- Click Save
NetSuite automatically enables the following features:
- Bar Coding and Item Labels
- Lot Tracking
- Matrix Items
- Pick, Pack, and Ship
- Serialized Inventory
- Multiple Units of Measure
Advanced Inventory Management supports inventory and assembly items. Transactions using kits or item groups are used in AIM, but applied only for member items. AIM is not run for kit/group parent items. AIM is run for all items when Reorder Point is the selected Replenishment Method. On each item record, you can select whether to run aim for each variable – Preferred Stock Level, Reorder Point, and Lead Time. Click the Auto-calculate box next to the field. You can also set the item record values for Safety Stock Level Days, Expected Demand Change, and whether to use Seasonal Demand. AIM calculations are typically scheduled to run weekly.
Setting Up Advanced Inventory Management
On the Inventory Management Preferences page, we can set up the defaults and intervals that our account uses to make inventory management calculations. To set up inventory management:
- Go to Setup > Accounting > Inventory Management Preferences.
- Complete the following fields:
- Default Lead Time
- Default Safety Stock
- Default Preferred Stock Level
- Order Analysis Interval
- Seasonal Analysis Interval
- Expected Demand Change
- Transactions to Consider
- Day of Week To Perform Calculation
- Demand Time Fence
- Planning Time Fence
3.Click Save.