Average Monthly Consumption (AMC) and Re-Order levels
determination of re-order levels is one of the challenges for each CMS.
SIGMED serves as a tool in the process of quantification; it is not a
provides statistics on the average monthly consumption (AMC). In SIGMED
the consumption is based on sales data (=quantity issued) as well as
to significant fluctuations in consumption, the AMC is based on past 3, 6
and 12 month’s demand and sales data. Moreover, slower moving items will need to use more demand history to get an
accurate model of the demand.
Table 9.1 Base data for AMC
SIGMED applies the following rule:
The AMC is calculated
as: Number of Units divided by the Number of Months
If there is no demand for a product during one month, this month will not be considered in the calculation of the AMC if the number of out-of-stock days is equal or more than 15 days.
Applying those rules will give the following results for the AMC (6 months):