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--- reports:purchasing [2020/03/16 10:59] – Gary Willetts
+++ reports:purchasing [2024/05/16 02:05] (current) – Craig Drown
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-====== 12.04. Purchasing reports ======
+====== 13.04. Purchasing reports ======
 Purchasing reports (focused on what you have ordered and what you have received and what you want to order) are available at //Report// > //Purchasing//. The following report types are available:
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 ===== Suggested order quantities =====
 Use this report for mSupply to analyse your current stock and, based upon a required number of months of stock cover which you enter, suggest how much of each stock item you should consider ordering.
-<WRAP center round important 60%>
-The logic behind the calculations involved in this report is described in detail in [[purchasing:ordering_from_suppliers#logic_used_for_calculating_purchase_order_quantities|Logic used for calculating purchase order quantities]]
-</WRAP>
-<WRAP info center round 90%>
 There are currently 2 options for the suggested order quantities report:  **Suggested ordering report** and **Suggested ordering [Excel] report**. They both have the same options as defined below but the second Excel only report will run much more quickly than the first one, even if the first one is exported to Excel. This is a temporary situation: the first option will be removed in a later version of mSupply and the Excel option will be the only option available.
-</WRAP>
+==== Quantification ====
+Some logic behind the calculations involved in this report is described in detail on the [[purchasing:ordering_from_suppliers#logic_used_for_calculating_purchase_order_quantities|6.01. Ordering stock from suppliers]] page.
+As of version 7.15, mSupply supports a wide array of options for calculating AMC (Average Monthly Consumption), which is then used to forecast needs and then to calculate a requested order quantity.
+The options are:
+=== Don't Adjust AMC ===
+This has been the default in mSupply up until this point.
+The consumption (or distribution if not a service delivery point- we're using _consumption_ interchangeably here) is summed up for the number of months specified in the lookback field, and divided by the number of months.
+This works well if the item was fully stocked for the whole time. It gives too low a number if stock was low or zero.
+=== Adjust by % of days out of stock ===
+This method takes each month's consumption, and adjusts it for the number of days in the month the item was out of stock.
+We multiply the consumption for the month by (Days in month divided by Days in stock) to get adjusted AMC
+Take this example:
+  * Item B was in stock for 10 days in the month
+  * Its consumption was 500
+  * The adjusted AMC is 500 x 31 / 10 = 1,550
+=== Only consider fully stocked months ===
+Here, we are attempting to address months with low stock by excluding them from our calculations, rather than adjusting their consumption.
+There is a field shown "% of days in stock to be considered fully stocked" that defaults to "90%"
+=== mSupply's better algorithm ===
+We've tried to come up with a better algorithm here by:
+  * ignoring months that are in stock for < 33% of days. That is, if the item was in stock for less than 10 days in the month, the consumption on those days is too erratic to draw conclusions about what the consumption for the whole month would have been.
+  * For months with stock >= 33% of days, Multiply the consumption for the month by Square Root(Days in month/Days in stock) to get adjusted AMC. This adjusts the consumption up due to being out of stock, but by a factor up to 1.7 - so not as big an adjustment as the "Adjust by % of days out of stock" method.
+  * We also ignore months where the mean stock on hand is less than "% of typical AMC that stock level is considered compromised:" value you enter. This is a bit complicated, but here's an example:
+    * Consider Item A - we have set the "when we calculate consumption there are 3 months that were "fully stocked" - those three months give us an AMC of 1500 per month.
+    * Now, there's another month that was fully stocked (as in, on all 31 days in the month, there was _some_ stock on hand.
+    * But it turns out that the average stock on hand was only 50 - clearly they could never have had "normal" consumption, although they did have stock - if the cutoff is set to 100%, we're saying "ignore this month unless the average stock on hand was 1500 - in this case it's 50, so this month isn't used in the AMC calculations
+We then sum the adjusted consumption for all the eligible months & divide by the number eligible months to get the best AMC eva ;-)
+==== Report options ====
 You'll see this window:
-{{ :reports:reports2-11.png }}
+{{ :reports:pasted:20240509-052350.png?600 |}}
 If you want to report on all items, leave the item name field blank, otherwise enter an item name or code. For example, to report on amoxycillin stocks, you could enter "amox" into the field.
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 **Include items with no usage in the last 12 months:** If this box is checked, items which have not been used over the last year will be included. This check box will have no effect if the previous "days cover" field is filled in, as an item with no usage will have "infinite" cover- any stock you do have is going to last you forever
-**Order quantity for X months stock cover:** In this field, enter the number of days stock cover you want to have available. The report will automatically take into account any stock you already have, so all you need to do is enter how many days cover you want, starting from right now, in this box.
+**Months stock required:** In this field, enter the number of months stock cover you want to have available. The report will automatically take into account any stock you already have, so all you need to do is enter how many months cover you want.
+**AMC Adjustment for Out of Stock:** See the "Quantification" discussion above on the different options available.
+**Exclude stock that will expire within 3 months of projected consumption date** is a new/updated checkbox to accurately predict amount of stock that is likely to be wasted due to expiry and current consumption rate. In this current example, mSupply will only aim to distribute stock if the expiry is more than 3 months away. This updated feature is only available in mSupply v7.12 or later.
+This topic is huge so it may be worth reading this topic [[faq:wastage_prediction_due_to_expiry_v7-12|Stock wastage prediction for ordering]]
 **Open report in Excel:** Checking this box opens Excel (or any other installed spreadsheet application) and displays the report as a spreadsheet. If you want to save the report, choose File > Save as... in your spreadsheet application.
 ==== Report output ====
-**Cover column: ** if the column prints ">>>>" this means you have no usage of that item, so you have "infinite" cover (i.e. if you don't have any usage your current stock with last forever, from a usage point of view, if not from an expiry date point of view!)
+A typical `Suggested Order` report will look something like below.
+{{ :reports:suggested_report_typical_2024-02-16-t17-09.png?800 |}}
+Important Columns and their meaning :
+  * Stock on hand : This is your stock including expired or potentially un-usable stock.
+  * Expiring stock : mSupply looks into the future and predicts the quantity of stock that is likely to be wasted.
+  * Effective SOH : This is the Effective stock on hand. i.e  `Stock on hand`  - `Expiring stock`
+  * Effective Months of Stock : This is the months cover calculated using the `Effective SOH` value.
+  * Suggested order : This is the suggested order and will depend on `Effective SOH`  and `Effective Months of Stock`
+For a more detail guide click on this topic : [[faq:wastage_prediction_due_to_expiry_v7-12|Stock wastage prediction for ordering]].
 ===== Suggest order quantities with prices and price extension =====
-This report is an extension of the previous one, allowing you to see what the suggested order will cost. The filter choices you have are the same as for the suggested order quantities report.
+This report is an extension of the previous one, allowing you to see what the suggested order will cost. The filter choices you have are the same as for the suggested order quantities report. You get an option to price your suggested order.
+{{ :reports:suggested_order_quant_with_price-2024-02-16-t16-58.png?600 |}}
+Key Column headers :
+  * Unit Price : Calculated via the latest price or by supplier quotes or using average prices received during the look back period. The `look back period` is the same setting that is used to calculate average monthly stock usages.
+  * Price extension (Suggested) : This is the predicted cost of a future order based on Unit Price.
+  * Annual consumption (quantity) : This is the predicted stock usage over a year based on the latest average monthly consumption.
+  * Annual consumption (cost) : Potential annual cost based on unit price.
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-|  //  Previous:  **[[reports:transactions |12.03. Transaction reports]]** | | Next: **[[reports:requisitions |12.05. Requisition reports]]** //  |
+|  //  Previous:  **[[reports:transactions]]** | | Next: **[[reports:requisitions]]** //  |
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