Infoplus utilizes usage values for activity for projecting how long current on hand supply will last and also issuing Lowstock notices (These can be used to facilitate acquisition of product from a supplier). An important part of these projections is Average Daily Usage.
The Average Daily Usage represents the amount of an item that is used on an average day. As Orders are fulfilled usage is noted based on the Order’s date (as opposed to the date the Order was fulfilled).
This is of primary importance when projecting how long a remaining inventory is likely to last and in placing an order to a vendor to resupply the warehouse. It is a critical consideration in the generation of Lowstock notices that are based on an item's lead time.
Once the Average Daily Usage is calculated for an Item, the number of days can be projected how long the current On Hand amount will last. An Item can be setup to create Lowstock notices by filling in a value in the Lead Time on the Item definition.
Calculation of Average Daily Usage
Average daily usage is calculated looking back at activity for the last 12 months and dividing that value by 365. For any periods (months) that do not have any usage data, if provided estimated usage will be utilized (Estimated Annual Usage if provided can be viewed in the “Purchasing” tab when viewing an Item).
Infoplus re-calculates an Item’s Average Daily Usage and Overall Days On Hand each evening during off peak hours.
Orders have an attribute “Alternate Usage” (in the Details tab) that defaults to No. If an Order has an "Alternate Usage" value of Yes, that usage will not be considered in the calculation of Average Daily Usage.