Item

reema

Even I read the F1 regarding this fields in Item card , I could not understand.
Please explain about this fields.
1.safety Stock Qty 2. Reorder Point 3. Reorder qty. 4 Order multiple.
Please explain about these fields detail
If it is possible please trow as many as suggestions and examples. At what conditions we use this fields.

Thanks and regards

Fordewind

Read docs for a warehouse!
Briefly:
1. Safety Stock Qty - is a qty which will be on stock for all the time.

2. If f(t) = Qty on stock (time) THEN
Reoder Point is a moment when:
Safety Stock Qty = f(t) - f(t + t2), where
t2 = Purchase Ordering time + Logistic time + etc. (time of the stock replenishment)

3. Reorder Qty is a qty which would be ordered by Nav for purchase in Reoder Point

4. Order multiple is a qty for which would Reorder Qty be rounded.

Example: You have a stock of an Item1. You preffer that this item must be always on your warehouse (min 10 pieces). And now you have 50 of a kind. But you know that near 10 of them are selling every day. And you know that new pieces of your Item1 will arrive in 4 days afteer ordering. Wow! It's time for a Reorder!

fl

Reorder point and safety stock are 2 trigger points.

If you have an item with dependant demand (demand caused by production orders) then normally, you should only use a safety stock. If the projected inventory level will drop somewhere below the safety stock, then a new replenishment order will be proposed. The new order will have a due date on the day the projected inventory level drops below the safety stock.

If you have an item with independant demand (demand caused by sales, and you don't know how the customer will order) then mostly a combination of safety stock and reorder point is used. First safety point, this level must give a "safety" about irregular demand. Reorder point= safety stock + demand during lead time.

If you want to have more info there about please do read some books concerning this issue. Apics is an organisation that educates people concerning this issue, but they also have a bookstore with very good books about this.

Reorder quantity and order multiple are 2 quantity modifiers. There is also min. and max order quantity.

So if calculation sees that you are missing x pieces then following occure (in this order):

If x<reorder quantity then x will be increased to reorder quantity
If x<min. order quantity then x will be increased to min. order quantity
If x>max. order quantity then x will be reduced to max. order quantity (and a supplemental order will be created)
If x is not a multiple of the multiple order quantity then x will be rounded to the next higher order multiple of the order multiple quantity.

Dynamics NAV (nor all the other ERP applications) will detailed describe all these fields, as they should be known. They are the same in all applications. So, implementing Dynamics NAV is not an IT matter. No, an ERP application is covering the full business of a customer. You must understand how a business should work and this will not be founded in any ERP application. Dynamics NAV is only a big calculator, and you have to understand what you are doing. It's the same as excel or any scientific calculator. You must know what "standard deviation" means. That calculator or excel can calculate that for u very quickly, but you have to understand.

Please do look on internet for safety stock and reorder point or buy a book there about.

idiot

fl wrote:

Reorder point and safety stock are 2 trigger points.

If you have an item with dependant demand (demand caused by production orders) then normally, you should only use a safety stock. If the projected inventory level will drop somewhere below the safety stock, then a new replenishment order will be proposed. The new order will have a due date on the day the projected inventory level drops below the safety stock.

If you have an item with independant demand (demand caused by sales, and you don't know how the customer will order) then mostly a combination of safety stock and reorder point is used. First safety point, this level must give a "safety" about irregular demand. Reorder point= safety stock + demand during lead time.

If you want to have more info there about please do read some books concerning this issue. Apics is an organisation that educates people concerning this issue, but they also have a bookstore with very good books about this.

Reorder quantity and order multiple are 2 quantity modifiers. There is also min. and max order quantity.

So if calculation sees that you are missing x pieces then following occure (in this order):

If x<reorder quantity then x will be increased to reorder quantity
If x<min. order quantity then x will be increased to min. order quantity
If x>max. order quantity then x will be reduced to max. order quantity (and a supplemental order will be created)
If x is not a multiple of the multiple order quantity then x will be rounded to the next higher order multiple of the order multiple quantity.

Dynamics NAV (nor all the other ERP applications) will detailed describe all these fields, as they should be known. They are the same in all applications. So, implementing Dynamics NAV is not an IT matter. No, an ERP application is covering the full business of a customer. You must understand how a business should work and this will not be founded in any ERP application. Dynamics NAV is only a big calculator, and you have to understand what you are doing. It's the same as excel or any scientific calculator. You must know what "standard deviation" means. That calculator or excel can calculate that for u very quickly, but you have to understand.

Please do look on internet for safety stock and reorder point or buy a book there about.

I disagree on certain points. The term "safety stock" could taken on another meaning in different countries or cultures or even companies, therefore they may or may not be the same.
The problem with ERPs is that they take on a general business logic in order to cater to all kinds of industries, where a lot of assumptions were made. As ERP implementors it's our duty to explain these assumptions to the end-users...
It is the job of the implementor to explain how "standard deviation" is derived in the spreadsheet, which cells to enter the values, rather than let the end-user figure out where to read the output.
Another problem is the relationships between the fields are not demonstrated. The end-user might expect the system to warn by sounds from the speaker if the level is exceeded but is this the case?

The problem with ERPs is that they assume you know their assumptions...