Replenishment fields on Items (Safety stock/Reorder)

terjekj

Are using Reorder policy : Fixed NAV 5.0 Sp1

According to helptext for each of the three relevant fields; SAFETY STOCK QUANTITY/REORDER /REORDER QUANTITY :

SAFETY STOCK QUANTITY : projected available balance<safety stock quantity<reorder point
REORDER POINT reorder point>projected available balance>safety stock quantity
REORDER QUANTITY reorder quantity>reorder point>safety stock

I cannot see that these three can be set to just 'anything'..: Ie. does these three work together or must be carefully set in correct order?

For example the second one; if Reorder point is less than Safety Stock, the second one does not apply??
For example the last one ; If Reoirder point is less than Safety stock - the last one does not apply??

In real life the following could be the cases :
Safety stock = 10
Reorder point = 8
Reorder Quantity = 5
- or
Safety stock = 15
Reorder point = 20
Reorder Quantity = 10
- or
Safety stock = 5
Reorder point = 10
Reorder Quantity = 1
- or
Safety stock = 4
Reorder point = 3
Reorder Quantity = 5

Any values are allowed to use (any order), but NAV actually consider these values and not all of these parameters are considered if in wrong 'order'.

Any comments / experience similat to this??

gerrykistler

Having your Safety Stock higher than the Reorder Point does not make a whole lot of sense. The system will look at the higher of the two to determine when to order. Normally Safety Stock would be less than reorder point and only comes into play if you have high demand. How much to order then depends on the stock level. If you are above Safety Stock but below the Reorder Point, then it will tell you to reorder the fixed Reorder Qty. If you are also below Safety Stock then it will tell you to order an additional quantity to get you to Safety Stock level. If your Saftey Stock is higher than the Reorder Point, then the Reorder Point is essentially ignored.

Using this example of yours:
Safety stock = 15
Reorder point = 20
Reorder Quantity = 10

If your quantity (projected available) falls to say 19, the system will tell you to order 10 because you are below the Reorder Point.
If your quantity is below Safety Stock it will suggest two orders, 1 to bring your quantity up to Safety Stock and the other for the Reorder Quantity.
The exception to this is if your Reorder Quantity is less than the difference between Reorder Point and Safety Stock, then the two orders will be to bring it to Safety Stock, and the other to Reorder Point.