<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000446" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Example: to calculate the optimized order parameters</Title>
		<Keyword><Level1>Optimized order parameters</Level1>
		</Keyword>
		<Keyword><Level1>Parameters</Level1>
		</Keyword>
	</Header>
	<AimSection><Paragraph>Calculating the optimized order parameters is one of the steps that SSA ERP performs in the optimization algorithm for logistic parameters in the <GUIRef href="/baanerp/cp/rao" role="module">Resource Analysis and Optimization</GUIRef> module in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>. The optimized order parameters consist of the optimized <Link href="/baanerp/ti/glossary/glossary#OrderInterv.ti" role="glossary">order interval</Link> (in days) and the optimized lot size.</Paragraph>
	</AimSection>
	<GeneralSection><SectionTitle>Optimized order interval</SectionTitle>
		<Paragraph>The formula that SSA ERP uses to calculate the optimized order interval is the following:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">OI = L/F</Paragraph>
		</Formula>
		<Paragraph>Where:</Paragraph>
		<TABLE border="1"><TBODY><TR><TD>OI</TD>
					<TD>Order interval (days)</TD>
				</TR>
				<TR><TD>L</TD>
					<TD>Optimized time period (days)</TD>
				</TR>
				<TR><TD>F</TD>
					<TD>Number of times an item is produced in the optimized time period</TD>
				</TR>
			</TBODY>
		</TABLE>
	</GeneralSection>
	<ExampleSection><SectionTitle>Example</SectionTitle>
		<Paragraph>Suppose that we have the following data:</Paragraph>
		<TABLE border="1"><TBODY><TR><TD>L:</TD>
					<TD>60 days</TD>
				</TR>
				<TR><TD>F:</TD>
					<TD>20</TD>
				</TR>
			</TBODY>
		</TABLE>
		<Paragraph>The calculation of the optimized order interval is then:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">OI = L/F = 60/20 = 3</Paragraph>
		</Formula>
		<Paragraph>This means that the optimized order interval is 3 days.</Paragraph>
	</ExampleSection>
	<GeneralSection><SectionTitle>Optimized lot size</SectionTitle>
		<Paragraph>The formula that SSA ERP uses to calculate the optimized lot size is the following:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">LS = D/F</Paragraph>
		</Formula>
		<Paragraph>Where:</Paragraph>
		<TABLE border="1"><TBODY><TR><TD>LS</TD>
					<TD>Lot size</TD>
				</TR>
				<TR><TD>D</TD>
					<TD>Total demand in the optimized period</TD>
				</TR>
				<TR><TD>F</TD>
					<TD>Number of times an item is produced in the optimized period</TD>
				</TR>
			</TBODY>
		</TABLE>
	</GeneralSection>
	<ExampleSection><SectionTitle>Example</SectionTitle>
		<Paragraph>Suppose that we have the following data:</Paragraph>
		<TABLE border="1"><TBODY><TR><TD>D:</TD>
					<TD>600 pieces</TD>
				</TR>
				<TR><TD>F:</TD>
					<TD>20</TD>
				</TR>
			</TBODY>
		</TABLE>
		<Paragraph>The calculation of the optimized lot size is then:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">LS = D/F = 600/20 = 30</Paragraph>
		</Formula>
		<Paragraph>This means that the optimized lot size is 30 pieces</Paragraph>
	</ExampleSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000131" role="manual">Optimization algorithm for logistic parameters</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
