| # To perform a slow-moving analysis A slow-moving analysis calculates the turnover rates, which are compared with the slow-moving percentage as specified in the Inventory Analysis Parameters (whina0100m000) session. This calculation results in a classification of items into ten categories in which the best category has the highest ratio of actual issue/inventory on hand. When you run the Perform Slow-Moving Analysis (whina6220m000) session, LN calculates the turnover rate according to the following formula:
    turnover rate = annual issue of goods / inventory on hand
Note 1 LN calculates the annual issue of goods based on the issue periods present in the Item - Issue by Period (whinr1520m000) session or the Warehouse - Item - Issue by Period (whinr1530m000) session if the total time span of the issue periods exceeds a quarter of a year. If the period type is year, at least four periods must be present. If the period type is month, at least 14 periods must be present. If fewer periods are present, LN uses the value of the Expected Annual Issue field of the Item - Warehousing (whwmd4100s000) session. Note 2 The results of the annual issue calculation can differ between issue period month and issue period type year if the total time of the issue periods is less than one year, as shown in the following example:
Current date | 1-14-2009
Current month: | 1
Current week | 3
Period type = Month, total number of periods 12
Issues:
9-26-2008 | Period = 9 - 2008 | Quantity = 500
1-14-2009 | Period = 1 - 2009 | Quantity = 500
The current period is 1 - 2009. The number of periods between the first issue, in period 9, 2008, and the current period, 1, 2009 is 5. Therefore, the annual usage is:
    (Total issue quantity/number of periods) * total number of periods per year =
    (1000/5) * 12 = 2400
Period type = Week, total number of periods 52
Issues:
9-26-2008 | Period = 39 - 2008 | Quantity = 500
1-14-2009 | Period = 3 - 2009 | Quantity = 500
The current period is 3 - 2009. The number of periods between the first issue, in period 39, 2008, and the current period, 3, 2009 is 17. Therefore, the annual usage is:
    (Total issue quantity/number of periods) * total number of periods per year =
    (1000/17) * 52 = 3059
Example Typical values for the To Turnover Rate (Upper Boundary) and the Slow-Moving Percentage fields are:
To Turnover Rate (Upper Boundary) | Slow-Moving Percentage
--- | ---
0.10 | 90
0.25 | 80
0.50 | 70
0.75 | 60
1.00 | 50
2.00 | 40
4.00 | 30
7.00 | 20
10.00 | 10
99.99 | 0
Percentage "0" always corresponds with the turnover rate of 99.99. Related topics Inventory Analysis |