Hi, Can someone help me understand how does the reorder cycle affects the planning worksheet? I can’t seem to get the point how does the system propose when to make a new order and the date of the order. Reorder cycle plus what date? Rgds, Kelvin
From one of the white papers : Here is a situation where you simply want to order the actual required quantity of a particular item, but you also want to keep the number of replenishment orders to a reasonable level. You want to reorder this item when you expect the inventory to pass below zero or the Safety Stock Quantity. When you have to reorder something, you want to include additional demands within the nearest future so as to optimize setup time and order handling. You define the nearest future time period in the Reorder Cycle on the item card. Example: Produced item Safety Stock Quantity = 10 Manufacturing Policy = Make-to-Stock Reordering Policy = Lot-for-Lot Reorder Cycle = 3w Actual inventory on hand = 90 Gross requirements: • 20 units to be delivered 3 days after the planning starting date • 70 units to be delivered 2 weeks after the planning starting date • 25 units to be delivered 3 weeks after the planning starting date The planning system calculates that the first demand can be met by the inventory on hand (70 left including 10 as safety stock). The second demand can be partially covered by inventory, but there is a shortage of 10 units. Now that there is a need to reorder, the planning system investigates the Reorder Cycle for additional requirements and finds the third requirement of 25 units. The order is calculated as 35 units, and it is scheduled backwards from the day of the second demand, when the first 10 units are due.
Hi Bous, Thanks a million. You helped me a lot.[:D]