Setup Coverage Code

Hi, How can I setup my coverage code to be able to see fulfill demand from a Sales order with minimum quantities?

Ex: I have a sales order for 100 units for Item A. It is an expensive item that is involved in maintenance orders. So I only need to buy that item when needed. However, I want to make sure that when running MRP , the system creates the purchase order that will be used on the work order ) to fulfill the sales order but also the system should create another PO ( or on the same PO) with the same quantities to replace the quantities that will be used on the work order.

So I create a coverage code = demand with minimum but it does not work . any other idea?

Requirement or period with a minimum set would replenish to the minimum and cover the demand, however not sure it will split it, you need to play with the fulfil minimum flag. In essence if you hold 5 and have a sales order for 100 and had 5 in stock it would allocate the 5 to the 100 and tell you to purchase 100 fulfilling the remainder of the order and the minimum - so one order. Requirement with minimum fulfil would alter this, but the minimum is not taken until the sales order is needed, so in essence it is one replenishment. Not sure why you want this split - you get back to the minimum which is what you want.

Thanks Adam. I tested it with Requirement with a minimum set and the system creates 2 PO : 1 for 100 units and 1 for 5 units. This happen when the field " Group by period " on MP Parameters is set to NO. However, when I set that field to YES then I do have only 1 PO with 100 units instead of 105 units.

Maybe I should explain the whole process : A PO is required for every item that is used from the consignment warehouse. Each item used is consumed into a work order for maintenance jobs. When an item is used from consignment inventory two things must happen: 1) PO gets raised for replacement item from vendors. 2) Vendor delivers and invoices for item.

In this case the items are different i.e. we use an item from consignment and acquire a new one. So we are actually paying for the one we used from consignment and not the new one.

So my solution was to setup a minimum with requirement as coverage code but it looks like , it does not work as needed.

That requirement is not the same as the one described above. In this requirement you are creating maintenance works orders, so you are using them - why on earth does a sales order come in? Basically if you have 5 in stock and it is a minimum and you are using them as small increments then likely they will be immediate replenishments back to the minimum, you dont need the 100. Think you might need to describe the requirement in full.

You’re Right. I mixed both requirements. The main requirement is: How to setup the coverage code for an item that will be used in Maintenance WO and at the same time must be replaced as soon as used . So MRP will run to create planned PO. The point here is to be able to replenish the stock to avoid shortage but at the same time propose the right quantity .

Imagine there is a safety stock of 5. You have 5 in stock, Maintenance uses 1 and the next planning run suggests replenishment back to 5. You could have a Requirement code to match the 1 to 1 but period would work as well depending upon usage.