Reorder policies

Material Requirements Planning and the Master Production Schedule calculations refer to a specific set of reorder parameters when planning current and future material requirements for a product-site record. The reorder parameters include loss percentages, splitting, and whether safety stock should be included in the calculation run. You use this function to define different sets of parameters as individual reorder policies. Once defined, you assign the appropriate reorder policy to the individual product-site record.

Prerequisites

See also Refer to documentation Implementation

Screen management

The Reorder policies function contains a single screen in which you assign a set of reordering parameters to a reorder policy.

Entry screen

You use this screen to define the parameters that provide information to the Material Requirements Planning (MRP) or Master Production Schedule (MPS) processing run for a product.

MRP generates 3 types of information:

Compared to a request, an order suggestion is generated for a BOM parent product. This suggestion, along with existing component resources (planned or firm orders), triggers a requirement that is in turn triggered from a component requirement. This is called a trace requirement. The order type will be MSS, MSP, MWS, MWP or MWF, depending on the status of the parent product resource.

Parent product

Generation of the parent product for the component

Suggestion for the component

Requests => Order suggestions

MWS, MSS

Order suggestions

                      Planned resources

MWP, MSP

                      Firm resources

MWF, MSF

The trace requirement has the same document number as the order at the origin of the requirement.

You can choose to split generated suggestions into quantities equal to the technical lot. This is demonstrated in the following example.

Example

Product A1: Economic lot = 500 pieces, Technical lot  = 100 pieces.

Starting stock = 0

Reorder policy Splitting If requirement = 450 < minimum quantity If requirement = 650 < minimum quantity
Net quantity None 1 suggestion = 450 1 suggestion = 650
Split by lot 4 suggestions for 100 + 1 suggestion for 50 6 suggestions for 100 + 1 suggestion for 50
Minimum quantity without rounding None 1 suggestion for 500 1 suggestion for 650
Split by lot 5 suggestions for 100 6 suggestions for 100 + 1 suggestion for 50
Minimum quantity with rounding None 1 suggestion for 500 1 suggestion for 700
Split by lot 5 suggestions for 100 7 suggestions for 100

MRP handles supply and demand information for phantom products in the same way as for standard BOM components. To control whether material requirement demand for phantom products is displayed in the MRP results set the Suggestion type field (SUGTYP) as follows:

You can view and print material requirements generated by the MRP processing run for phantom products and phantom product components.

Field descriptions

Block number 1

Use this field to define a code for this reorder policy.

Use this field to identify this record.

This long description is used as a title in screens and reports. This title can be translated and is recorded in the user's connection language.
You can add your translation in another language using the Translation function.

  • Click Translation from the Actions icon in the field concerned.
  • In the Translation window, add a new language code with the translation in this language.
Reorder policy (field REOPOL)
Description (field TRPAXX)

Block number 2

Short title used in the screens and reports. This title is recorded in your connection language.

By default the short title, the long title or the column header of a data are recorded (on creation/update) in the connection language of the user.
You can add your translation in another language using the Translation function:

  • Click Translation from the Actions icon in the corresponding field.
  • In the Translation window, add a new language code with the translation in this language.

A user who logs on with this language will view the short description, long description or column header in their connection language if a translation exists. Otherwise, these descriptions will be available in the folder language.

The connection language must be defined as a default language for thefolder.

Use this field to define the type of information that should be generated by the MRP or MPS processing run.

Select from the following values:

MRP handles supply and demand information for phantom products in the same way as for standard BOM components. Note the differences between the With MRP pegging and MRP pegging only values.

  • No processing: Do not process the components and associated parent products.
  • With MRP pegging: Generate suggestions from the parent products, a nd generate trace requirements and resources, and suggestions for the components.
    • Phantom products: When the quantity in stock of the phantom product is:
      • Zero, do not display material req uirement demand for phantom products in the MRP results.
      • Greater than zero, display material requirement demand for the quantity in stock of the phantom product in the MRP results.
    • Phantom BOM components: Display material requirement demand in the MRP results. When the quantity in stock of the phantom product is:
      • Zero, the suggested component quantity is the quantity required to meet the generated order suggestion.
      • Greater than zero, the suggested component quantity is the quantity required to meet the generated order suggestion minus the quantity in stock of the phantom product.
  • Without MRP pegging : Generate suggestions from the parent products without generating trace requirements and resources for the components, that is, there will be no suggestions arising from the trace requirements and resources.
  • MRP pegging only: Only generate requirements for the parent product. Do not generate suggestions.
    Display material requirement demand for the phantom product and the phantom BOM components in the MRP results.
    • Phantom products: T he suggested quantity is the quantity required to meet the generated order suggestion.
    • Phantom BOM components: When the quantity in stock of the phantom product is:
      • Zero, the suggested component quantity is the quantity required t o meet the generated order suggestion.
      • Greater than zero, the suggested component quantity is the quantity required to meet the generated order suggestion minus the quantity in stock of the phantom product.

Use this field to define what the MRP or MPS processing run should generate as the proposed reorder quantity with respect to the requirement for the product.

Select from the following values:

  • Net quantity: The proposed reorder quantity should match the exact quantity of the requirement.
  • Minimum quantity without rounding: The proposed reorder quantity is the minimum suggestio n equal to the economic order quantity.
  • Minimum quantity with rounding: The proposed reorder quantity should represents a suggestion equal to one technical lot. The quantity will be an integer. It can b e more than the figure calculated for the requirement to the technical lot.

Use this field to set up quantity suggestions equal to the technical lot. These suggestions can run in parallel or sequentially.

Select from the following values:

  • None: The su ggestion will not be split.
  • Parallel: The requirement will be expressed as an amount of the technical lot with the same end date.
  • Successive: The requirem ent will be expressed successively as an amount of the technical lot, scheduled over time.

Short description (field TRPSHOAXX)
Suggestion type (field SUGTYP)
Reorder quantity (field REOQTYCOD)
Splitting (field SPLCOD)

Block number 3

Select this checkbox if safety stock must be added to the requirement. If safety stock must not be included, leave this checkbox clear.

Select this checkbox if the analysis for planning the current and future material requirements must extend beyond the firm horizon defined for the product. Otherwise, leave clear.

Select this checkbox if production suggestions must be increased by the loss (shrinkage) percentage for the product-site and if quantities remaining from work orders in progress must be decreased by this same percentage.

Loss percentage corresponds to production or storage loss.

Production loss corresponds to the total losses generated by each routing operation.

Safety stock (field SAFSTOCOD)
Replanning analysis (field PLNANYCOD)
Apply shrinkage % (field SHRFLG)

Reports

By default, the following reports are associated with this function :

Bullet point  TABREOPOL : Reorder policy listing

This can be changed using a different setup.

Error messages

The only error messages are the generic ones.

Tables used

See also Refer to documentation Implementation