Planning tab options

hansika

Hi Masters,

I am getting confused with planning tab. In Reordering policy field u have 4 options.
1. Fixed Reorder Qty
2.MaximumQty
3.Order
4. Lot-for-Lot
I read about this functions through F1. But I could not understand at what condition we use Fixed reorder Qty, Maximum Qty…………….
For only trading firm or Manufacturing firm………..
For example Item A is purchase item . Then which functions can I select from above all.
If item A is Manufacture item , then which functions can I select from above all.

Could u explain about these functions with some examples ](*,) ](*,)

Thanks in advance.

fl

Fixed Reorder Qty will fit for allmost all the cases.

Maximumqty is only used if the item has a limit on stock that might be in the company (warehouse space, fire precautions,..)

Order: this is really based on every demand order. Every demand is answered with one supply order, even if there would be stock

Lot-for-Lot: this method is allmmost the same as fixed reorder qty, except now it is impossible to use the reorder point as a trigger. You can only use safety stock qty. Lot-for-Lot gives you the supplemental possibility to choose if the calculation should take the inventory into account or not. This inventory is allways taken into account if you use fixed reorder qty.

Be very carefully by using the lot-for-lot method, as this method could cause a to high inventory level. Allways prefer Fixed reorder qty. If you would see then a reason of maximum stock qty or an order based situation, then choose 1 of the other 2.

themave

Here is how we use it,

maximun qty we set this to be the desired level we want to get to when we place an order. it is used in combination with Safety stock or Reorder Point, use one or the other, we use Safety stock.

so if max is set to 10 and safety stock is set to 3, and we have 5 on hand, if a sales order is entered for 4, this will bring our stock to qty 1 which is below our safety stock level, so the requisition worksheet will suggest we order 9 to get us back up to the max qty entered.

if we used fixed reorder qty, then it would suggest we order the fix qty amount when ever we fell below the safety stock level.

hansika

Thank u so much fl & themave,

Could explain what is difference between these fields.
Safety stock quantity, reorder point, reorder quantity, maximum inventory.
I getting confused with above fields. I am understanding , but not totally understanding. Could throw some examples on these fields.

I am entrading to everybody, if u have Planning white paper , then send it to me.
I checked partner source, i could not get.

thanks and regards