use of a BLANKET ORDER

shilpa_nandu · 2006-02-10

Dear Experts
Can anone explain me the use of a BLANKET ORDER??? How do we make use of this feature????

Also is there a feature that supports EOQ (Economic Order Quantity)???This is mainly to have a check on the inventory for the items & raise an automated PO for the non avail items.....

Shilpa

DenSter · 2006-02-10

You use a blanket order as an agreement with your customers, that they will buy so much of your product over a certain period. Let's say you agree to sell them 1200 gadgets over the next year, in chunks of 100 per month. Then you create a blanket order for 1200 gadgets, and from the blanket order you can create sales orders periodically. It's more complicated than this, but that's what it comes down to.

Oliver_Williams · 2006-02-10

We're using 3.7 and the blanket order facilty as you describe it DenSter is what I expect it should do. However it only allows a 1:1 relationship between the B/O and Sales Order. Seems a bit pointless really, discussed it with our reseller and they tell us thats the way it works.

DenSter · 2006-02-11

No you can create as many sales orders per blanket order as you need. You need to know how to do it (I'd have to figure out, don't know off hand, I think it has something to do with scheduled dates), but of course you can have one blanket order and multiple sales orders, it wouldn't mean much if you couldn't.

Back orders is a different story though. Navision doesn't create new "back orders", instead remaining quantities just stay on the original order until it's completely processed.

ZhiXiang · 2006-02-11

Then may i know how about return order?

Is there any relationship between return order with the blanket order? Or maybe, how's the relationship between it with Blanket Order?

ara3n · 2006-02-11

No there is no relationship between blanket order and return order.

johnson_alonso · 2006-02-13

Dear Shilpa,
This following explanation about EOQ would be helpful:
most economical under a given set of conditions assumptions of basic EOQ:
- Lead time is constant and known
- demand occurs at relatively constant and known rate; thus there are no stockouts
- preparation costsand total carrying costs are constant and known
- replenishment is instantenous; items arrive at an infinite rate at a given time

In navision, there is no formula related to EOQ, because EOQ Formula is used to determine batch sizes that is the same as in MRP.

you must concern also about those formulas don't consider how many different parts are produced at work station and do not consider the flow to the customer. I think EOQ is too simple in reordering policies. I think lot for lot doesn't consider inventory when generating MRP/PO although you checked the include inventory field.

Also, blanket sales order (BSO) is a form sales but for long time project with a fixed total qty and different delivery date / qty and it's useful rahter that you make multiple sales order. You can use it instead of sales forecasting but you can also use both. It's impossible to use BSO in M-T-S environment. Planning worksheet also will not take it in its calculation.

rgds,
Johnson Alonso

"Past, present, future, is just an illussion"

shilpa_nandu · 2006-02-13

dear Johnson

the main reason I asked for is to have a check on the inventory for the items & raise an automated PO for the non avail items.....

Think I got confused further..
I've been trying to buy these self study manuals.. can you help me with the details as to where I can the details of the same.
I've been searching for this like crazy

Shilpa

johnson_alonso · 2006-02-14

Hi Shilpa,
I think Navision exclude EOQ in its system. The checking of inventory and raise a PO depends on one of the reorder policies selected except "order" and lot for lot type, include inventory is optional. I think all the reorder policies in navision is close to EOQ in some certain aspects. Your inventory and PO generation is depend on your reorder policy. Manufacturing policy in navision is make to order and make to stock, so reorder policies for them are lot for lot and order for MTO and maximum inventory and fixed reorder qty for MTS.
You may read Donald W. Fogarty's book, entitles "Production and Inventory Management Book". You could also try to get Certified Production and Inventory Management.

rgds,
Johnson Alonso

"Destroy the Shahab maker"

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