Reorder cycle

hansikahansika Member Posts: 373
Hi experts,


What is the use of Reorder cycle.How can we use this field ?
What is the difference between Safety lead time and lead time.How can we use safety Lead time field ?
I know about Lead time field. When we this field how it effects on sales order and purchase order on the expected receive date and planned shipment date.

So could u explain with practical examples. It is better to me to understand easily.
I am expecting a cool explanation from experts.

Thanks
hansika

Answers

  • AdamRoueAdamRoue Member Posts: 1,283
    The reorder cycle helps aggregate your supply to meet your demand, so if you have 10 required in a week, 20 in two weeks, 30 in three weeks and you run planning it will tell you to buy 10, 20 and 30. If you have a reorder cycle of 1M you will get a suggestion to buy 60 when the requirement for the 10 is.

    The safety lead time is an extra buffer in the calculation of when you need the stock. On a purchase line the expected receipt date is the planned receipt date plus the safety lead time (and any warehouse time you have).
    The art of teaching is clarity and the art of learning is to listen
  • hansikahansika Member Posts: 373
    Thanks Adam,

    I Understand about the Reorder cycle. U had given good example.

    Like that can put good example to understand safety leadtime.
    Please give one eample.................

    thanks and regards
    hansika
  • AdamRoueAdamRoue Member Posts: 1,283
    Your supplier has a leadtime of 10 days, however sometimes it takes them 11, 8, 13, etc. So you set a safety leadtime of 5 days to ensure the stock arrives prior to your requirement, the downside is the expense of purchasing early and holding stock. Not a setting I ever recommend, if you want it combine it in the leadtime.
    The art of teaching is clarity and the art of learning is to listen
  • hansikahansika Member Posts: 373
    Thanks Mr.Adam Roue.
    hansika
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