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
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:
- An order suggestion (WOS, POS, TRS) for a component in the bill of materials (BOM), for instance.
- A requirement triggered from a component requirement, that is from a requirement for the parent product.
- A work order suggestion triggered from a by-product (BWS).
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:
- With MRP pegging:
- Phantom products: When the quantity in stock of the phantom product is:
- Zero, material requirement demand for phantom products is not displayed in the MRP results.
- Greater than zero, material requirement demand for the quantity in stock of the phantom product is displayed in the MRP results.
- Phantom BOM components: Material requirement demand is displayed 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.
- MRP pegging only: Material requirement demand for the phantom product and the phantom BOM components are displayed in the MRP results.
- Phantom products: The 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 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.
You can view and print material requirements generated by the MRP processing run for phantom products and phantom product components.
Block number 1
Reorder policy (field REOPOL) |
Description (field TRPAXX) |
Block number 2
Short description (field TRPSHOAXX) |
Suggestion type (field SUGTYP) |
Reorder quantity (field REOQTYCOD) |
Splitting (field SPLCOD) |
Block number 3
Safety stock (field SAFSTOCOD) |
Replanning analysis (field PLNANYCOD) |
Apply shrinkage % (field SHRFLG) |