Liquidity Setting

RxOne will normally suggest orders with quantities which it calculates have the greatest probability of producing the greatest economic benefit to the pharmacy. However, if the business is unusually short of working capital, or unusually well capitalised, the user can instruct the computer to take this into account by altering the 'Liquidity' setting.

To alter 'Liquidity' setting

Open Orders > Settings > Order Settings > Choose Liquidity

Effect of Liquidity setting

A higher liquidity setting will mean bigger orders. This is essentially telling the ordering system that cashflow is good and you want to use bigger orders for more efficient use of staff time. A lower liquidity setting will result in smaller orders.

This is more effective than manually altering the orders as it instructs the machine to change its habits to suit the user but leaves it free to order efficiently within those constraints.

Liquidity 50 - Default Setting

This tells the system that sufficient, but not excessive, funds are available for the business and that the management want the program to aim for the calculated ideal balance between profit/cash flow and labour/cash flow. The program will deliberately over-order slightly on the really profitable fast movers early in the month as this is a profitable strategy to boost sales on those items.

Frugal Settings

Liquidity = 45

Instructs it to exercise tighter control for greater cashflow, at the cost of more labour usage and slightly less profit.

Liquidity = 35

Instructs it to be quite tight to suit a business which prefers to give up some profit and spend time unpacking more smaller orders in favour of immediate cash flow.

Liquidity = 30.

Instructs it that the business is having a severe cash flow problem, and which wants to sacrifice significant amounts of long-term profit and do considerably more work in favour of immediate cash flow.

Generous Settings

Liquidity = 60

Instructs it that this user has surplus funds and wants more generous ordering. This will result in fewer but larger orders with many items being ordered in packs where it is economic to do so. Labour is also saved by having fewer orders.

Liquidity = 70

Instructs it that this user has considerable surplus funds, and so cash flow is of no concern. The program is to order considering only long term profit and maximum efficiency of labour usage.

Notes on changing liquidity

Any value between 30 and 70 is acceptable and even a change of 1 unit makes a small but definite difference.

Increase or decrease the value by five units a time, then use for a few days, until you get the desired effect. This will be when there are as many items which are ordered lower than you want as there are ordered higher than you want.

Be aware that even at the ideal stock level there will still be an occasional item out of stock as an o/s level of around 1% of requests is usually the most profitable.