I created a New Item.
Reordering Policy - Maximum
Maximum INventory - 100
Reorder Point - 50
I purchased this Item - 80 Pcs .
Now i created a sales order against this item - 70.
now i run the Requistion worksheet against this item but system is not creating any line .
please advice me.
Which Location Codes are you using?
Components at Location is set to ? Assuming you are not using SKU’s.
Now i assigned that Components at Location which is my purchase & sales order location.
But it is suggesting the purchase order for 40 Only .
But it is not considering the Maximum order quantity.
Please correct me if i am wrong.
What are the values for the other planning modifiers?
Reordering Policy Field
The Item Table
Once the program has detected the need for replenishment, it uses the reordering policy to calculate the lot size per planning period, which you define in the Reorder Cycle field. Click the AssistButton and select one of the following options:
Fixed Reorder Qty.
The program uses the quantity specified in the Reorder Quantity field as the standard lot size. The program may adjust this quantity to meet additional requirements or the specified inventory level.
If you select this option, the program disables the Maximum Inventory field, which is used exclusively with the Maximum Qty. option.
The program uses the quantity specified in the Maximum Inventory field to determine the maximum lot size. The program may adjust this quantity to meet additional requirements or the specified inventory level. (See the note below.)
If you select this option, the program disables the Reorder Quantity field, which is used exclusively with the Fixed Reorder Qty. option.
The program generates an order for each individual requirement, and does not use the reorder cycle.
When you use this reordering policy, the program creates an automatic reservation between the requirement and the corresponding replenishment order proposal. This will preserve the customized information on the relevant orders and link them for inventory and costing purposes. (Note that creating a manual reservation is the standard way for a user to set aside items in inventory and designate them for use in a particular order.)
If you select this option, the program disables all planning parameter fields that otherwise would be used to calculate the order proposal quantity.
The program generates an order proposal with a quantity that meets the sum of the requirements that come due within the reorder cycle.
If you select this option, the program disables the Reorder Quantity field, which is used exclusively with the Fixed Reorder Qty. option, the Maximum Inventory field, which is used exclusively with the Maximum Qty. option, and the Reorder Point field. Using the reorder point with Lot-for-Lot could result in additional (surplus) replenishment order proposals.
If you select this reordering policy, the program does not calculate order proposals for this item. The assumption is that you will plan for this item manually.
The final order proposal quantities may be further adjusted according to the order modifier fields: Minimum Order Quantity, Maximum Order Quantity and Order Multiple.
Note: This also applies when using Maximum Qty. However, if the Maximum Inventory field is used as a restrictive expression of your maximum storage capacity, then these 3 modifiers should not be used.
Changing from one reordering policy option to another may result in the program disabling some planning parameter fields, which were previously active and still contain the most recently used values. Note that the planning calculations will disregard these values.
Planning for Locations without Using SKU
A reordering policy of Lot-for-lot + blank planning parameters will be applied automatically if planning for demand at a location that is different from the Components at Location field and SKU is not used. (Items using reordering policy Order remain using Order). See more under Planning with/without Locations.
Have you check through all of this information?
It is taking you back to your reorder point. It states that to get the optimal results the safety stock should be less than the reorder point which should be less than the maximum quantity. It then takes the available stock off the maximum to get the reorder quantity. So in your example it should be suggesting 90. What happens if you remove the reorder point?
Why are you using the Maximum Order Quantity with a reorder point in that manner?
Thanks Mr. Adam,
I learning about the Plannin engine so i down loaded the supply planing white paper from partner source .
There it explained the above example ,so i done the same way.
But i did not get the purchase order qty against that one which it explained in white paper.
if i remove the reorder point system is not suggesting any line.
Please thow light about this
You cannot learn from White Papers, they are statements of intent, generally written whilst the software is in production, frequently the end designed software differs in the details from the White Paper.
It shows the way you have it set the policy orders up to the reorder, set it to 80 it will tell you to order 70. Set a 100 multiple a 100, etc.
You do not have to learn what is “should” do. You have to learn what it "does, and this changes on a version by version basis.