New features added, version 7.5.1, 7.5.2, 7.5.3, 8.1, 8.6R1
Program IMRC, Re-Order Point Calculation Management, is used to set up and calculate re-order point requirements.
The calculation results are displayed at the bottom of the screen.
You can create planned orders from the calculation results. The number of planned orders created is displayed at the bottom of the screen.
To create planned work orders or productions schedules for an item, the Make or Buy pop-list for the item in item planning should be set to Manufactured. Item planning settings are defined in program ICPM, Inventory Planning Data Maintenance.
To create planned purchase requisitions for an item, the Make or Buy pop-list for the item in item planning should be set to Purchased. Item planning settings are defined in program ICPM, Inventory Planning Data Maintenance.
To create Open or Approved requisitions for an item instead of using the planned order features, use the Create New Approved Requisitions feature.
The Include Non-Nettable flag in program SPMM, System Parameters/Default Maintenance, does not affect reorder point calculations. The inclusion of non-nettable locations, quarantine locations, and consigned locations in reorder point calculations is determined by the check flags in the available includes section of the screen.
The reorder point calculation can bypass the sales allocation amount calculation and use the allocation amounts from the item plant quantity record in program ICSS, Stock Status Inquiry, instead. This allows better performance if the complex rules for calculating the allocation are not important for the reorder point calculation.
When the parameter is set to N, the allocations are calculated from the order detail records during reorder point calculation.
When the parameter is set to Y, the quantity available from the item plant quantity record is used.
Note: when set to Y, the demand horizon feature cannot be used because all allocations are considered. Use of this feature reduced reorder point runtime dramatically for larger databases.
Including Forecasting in the Re-Order Point Calculation
How Re-Order Point is Calculated
Program IMRC, Re-Order Point Calculation Management, can also include forecasting information that has been transferred to program MSFM, Independent Forecast Maintenance, as a variant.
To include forecasting information in your calculation of reorder point, set the Include Forecast flag to on.
The forecast date entered must be later than the reorder point calculation date.
Enter the forecasting variant from program MSFM, Independent Forecast Maintenance.
In the reorder point calculation logic, when forecasts are included the program does the following:
The applicable forecast is calculated, including items in the selected product group.
If the forecast date plus the coverage days in the forecast record occurs entirely within the range of the re-order point date through the entered Forecast To Date, then all of the forecast is used.
If the forecast date plus the coverage days in the forecast record overlaps the re-order point range, the forecast is pro-rated, and a fraction is used.
First, the number of days that the coverage period overlaps the re-order point period is calculated.
The fraction of the forecast that applies to the period is calculated.
The pro-rated quantity that results is rounded according to the rounding rules specified for the item in program ICPM, Inventory Planning Data Maintenance.
The unconsumed forecast is calculated as the calculated forecast minus the quantity allocated to sales. If this results in a negative quantity, the unconsumed quantity will be 0.
The quantity available is then reduced by the unconsumed forecast quantity.
On the Calculation Results screen, the calculated forecast is displayed in the Forecast Qty field, and the quantity available less the unconsumed forecast quantity is displayed in the Available field.
Plan to quantity: the quantity that triggers the reorder of the item.
Available quantity: the quantity of the item considered as available supply quantity within the lead time.
Allocated quantity: the quantity required by sales orders, work orders, and forecast projections.
Forecast quantity: the quantity of the current forecast that falls within the item lead time.
For each item with an order code of R - Reorder point that matches the user-selectable criteria, the following occurs:
Obtain the item planning parameters.
Obtain the item's current quantity on hand.
Set the available quantity to this value.
If the Available Includes On Order flag is set to on, the available quantity is set to the item's quantity on order in the plant, which includes work orders and purchase orders for that item.
If the Available Includes Non-Nettable Inventory, is set to 'N', then the total quantity of the item in non-nettable locations is determined and subtracted from the available quantity.
If the Available Includes Quarantine, is set to N, then the total quantity of the item in quarantine locations is determined and subtracted from the available quantity.
If both the Non-Nettable Inventory parameter and the Quarantine flags are set to N, then find the total quantity of the item in locations that are both non-nettable and quarantine and it to the available quantity. (This prevents quantities from being subtracted twice.)
Add the total quantity of open interplant move tickets that are moving to the current plant to the available quantity.
Subtract the total quantity of open interplant move tickets that are moving from the current plant from the available quantity.
If the Simple Allocations flag is set to on, then obtain the allocated quantity for the item in this plant. Otherwise, obtain the allocation using only sales orders within the lead time, applying rules to filter out cases in which the item is to be ordered with program POSE, Create Purchase Orders from Sales.
If the Include Forecast flag is set to on, then obtain the current item forecast, divide the forecast quantity by the forecast days, and multiply by the item's lead time to obtain the forecast quantity. Call procuser in case there is a custom modification for forecasts. If the Include Forecast flag is set to off, consider the forecast quantity to be zero.
Subtract the greater quantity of the forecast quantity or allocated quantity from the available quantity.
Add the manufacturing allocations to the allocated quantity.
If the Available Includes Approved Requisitions flag is set to on, find the total open approved requisitions for the item and add the quantity to the available quantity.
Add the quantity in receiving to the available quantity.
If the Available Includes Transfers flag is set to on, then subtract the transfer orders that are transferring quantities out of the plant from the available quantity and add the transfer orders that are transferring into the plant to the available quantity. (This is not the same as move tickets.)
If the available quantity is greater than the plant to quantity, the item does not need to be reordered. Proceed to the next item.
If the Stock Level to Plan for pop-list is set to Re-Order Point + Safety Stock, then set the reorder quantity equal to the safety stock minus the available quantity.
If the Stock Level to Plan for pop-list is set to ICEM Target Stock Qty, then set the reorder quantity equal to (the greater of the target stock quantity or the plan to quantity) minus the available quantity.
If the Stock Level to Plan for pop-list is set to any other value, then set the reorder quantity equal to the plan to quantity minus the available quantity.
Apply lot sizing to the reorder quantity if the item's order policy was set to M - Lot Multiples or Q - Minimum Order Quantity.
Call procuser for possibly bypass of the reorder based on a comparison of the plan to quantity and the available quantity + forecast quantity.
Write the calculation result to the reorder point table.
1. In the Single Item field, if you need to calculate the reorder point for a single item only, enter the item number in this field.
2. In the Calculation Date field, enter the calculation date.
3. Set the Stock Level to Plan for pop-list to the desired setting. The choices are Re-Order Point, Safety Stock, Re-Order Point + Safety Stock or ICEM Target Stock Quantity.
The pop-list indicates which stock parameters the program will use to determine if an item will be re-ordered.
If Re-Order Point is chosen, then the available quantity for the item must be below the item's re-order point for the program to recommend that the item be reordered.
If Safety Stock is chosen, then the available quantity for the item must be below the item's safety stock quantity for the program to recommend that the item be reordered.
If Re-Order Point + Safety Stock is chosen, then the available quantity for the item must be below the item's re-order point for the program to recommend that the item be reordered, and the program will plan to have the safety stock on hand.
If ICEM Target Stock Quantity is chosen, then the available quantity for the item must be below the item's reorder point quantity for the program to recommend that the item be reordered. The recommended order quantity will be calculated so that the inventory level will be either the reorder point or the item's target stock quantity in program ICEM, Item Plant Maintenance, whichever is higher.
4. In the Demand Horizon Date field, enter the date after which the demand is ignored, if desired.
When calculating the sales allocations for the item, the program will only include sales allocations before the date entered here. If you leave this field blank, all sales allocations for the item will be included.
The Available Includes Allocations flag must be set to on for this feature to be used.
Line item lead times are taken into consideration for this calculation.
The line item due date used to determine whether the allocation will be included or not.
The program will calculate the adjusted due date for the line item first as the line item due date minus the item's lead time. The adjusted due date is basically the date on which an action may be required for the item, and is calculated to help prevent stock outs. Once the adjusted due date is calculated, it is compared to the entered demand date. If the adjusted date is before the date entered here, the allocation will be used. If the date is after the date entered here, it will not be.
For example, suppose the item's lead time is 2, the line item due date is 09-04-01, and the date entered here is 09-03-01. The quantity entered for the line item will be used because 09-04-01 minus 2 is 09-02-01. This date is before the entered demand date.
If the entered demand date was 09-01-01, the demand would not be included, because the item's adjusted due date of 09-02-01 falls after the entered demand date.
5. In the Forecast To Date field, the forecast date entered must be later than the reorder point calculation date, if you are including forecasts in the re-order point calculation.
6. In the Variant pop-list, select the forecasting variant from program MSFM, Independent Forecast Maintenance, if you are including forecasts in the re-order point calculation.
The default is the variant assigned to the plant in program FCPM, Forecast Parameter Maintenance.
7. Set the Include Other Zero/Negative Items flag to the desired setting.
If this flag is set to on, the program will include items with no re-order point that have a zero or negative on hand quantity.
8. Set the Quicklook process flag to the desired setting.
When this flag is set to on, the program will select only items with actual demand.
9. Set the Trust POSE flag to the desired setting.
If this flag is set to on, drop ships should only be included if IMRC trusts POSE and program, POSE includes drop ships and non-moh should only be included if IMRC trusts POSE and POSE includes non-moh.
10. Set the Available Includes flags for: On Order, Allocations, Use Simple Allocation, Quarantine, Transfers, Consigned Locs, Approved Requisitions, Non-Nettable Inventory and Forecast to the desired settings.
The program calculates which items should be re-ordered according to the available stock in the plant for the item compared to the parameters set in the stock level to plan for pop-list.
Available stock is calculated as the on hand quantity, if you have all flags set to off.
If you set the Available Includes On Order flag to on, the available stock is calculated as the on hand quantity + the on order quantity.
If the Available Includes Allocations flag is set to on, the available stock is calculated as the on hand quantity - manufacturing order allocations and sales order allocations.
If the Available Includes Use Simple Allocations is set to off, , the allocations are calculated from the order detail records during reorder point calculation. When the parameter is set to on, the quantity available from the item plant quantity record is used. Note: when set to on, the demand horizon feature cannot be used because all allocations are considered. Use of this feature reduced reorder point runtime dramatically for larger databases.
If the Available Includes Quarantine, is set to on, quantity is quarantine locations will be considered when calculating reorder point. When set to NO, quantities in quarantine locations will be excluded when calculating reorder point. Quarantine locations have the Quarantine flag set to on in program ILMM, Location Master Maintenance
If the Available Includes Consigned Locations is set to on, quantity in consigned locations will be considered when calculating reorder point. When set to NO, quantities in consigned locations will be excluded when calculating reorder point. Consigned locations have the Consigned flag set to on in program ILMM, Location Master Maintenance.
If the Available Includes Approved Requisitions flag is set to on, the available stock is calculated as the on hand quantity + approved requisition quantity for the item.
If the Available Includes Transfers flag is set to on, the available stock is calculated as the on hand quantity + the plant transfer quantity for the item.
If both the Available Includes On Order flag and the Available Includes Allocations flag are set to on, the available stock is calculated as the on hand quantity + the on order quantity - manufacturing allocations and sales allocations.
If the Available Includes On Order flag, Available Includes Allocations flag, and Available Includes Approved Requisitions flag are set to on, the available stock is calculated as the on hand quantity + the on order quantity +approved requisition quantity - manufacturing allocations and sales allocations.
When all four flags are set to on, the available stock is calculated as the on hand quantity + the on order quantity +approved requisition quantity + plant transfer quantity - manufacturing allocations and sales allocations
If the Available Includes Non-Nettable Inventory flag, is set to on, quantities in non-nettable locations will be considered when calculating reorder point. Non-nettable locations have the Nettable flag set to off in program ILMM, Location Master Maintenance.
If the Available Includes Forecast flag is set to on, then obtain the current item forecast, divide the forecast quantity by the forecast days, and multiply by the item's lead time to obtain the forecast quantity. If the Include Forecast flag is set to off, consider the forecast quantity to be zero.
11. In the Filter By Drop down, select filter by Planner, Buyer or Both.
If Planner is selected, In the Planner Code field, enter the planner code for which the reorder point requirements will be calculated.
If you enter a planner code in this field, the program will only include items that have been assigned the planner code in program ICPM, Inventory Planning Data Maintenance.
If Buyer is selected, In the Buyer Code field, enter the buyer code for which the reorder point requirements will be calculated.
If you enter a buyer code in this field, the program will only include items that have been assigned the buyer code in program ICPM, Inventory Planning Data Maintenance.
If Both is selected, enter both the Planner and Buyer code in the appropriate fields.
12. In the Order Code field, enter the order code for which the reorder point requirements will be calculated.
If you enter an order code in this field, the program will only include items that have been assigned the order code in program ICPM, Inventory Planning Data Maintenance.
13. In the Product Group field, if you want to calculate re-order point requirements by product group, enter the product group for which you are calculating the re-order point requirements.
14. In the Increase Plan To Qty By ___ Units or ___% field, enter the number of units you want to increase the re-order point calculation to include. Or you can enter a percentage of Increase you want to increase the re-order point calculation to include.
15. Press the [Calculate Re-Order Requirements] button. The program will calculate the re-order information according to the entered parameters.
16. Press the [Modify/Examine Calculation Results] button to view the calculation results for each item.
The program enters the recommended quantity to order in the Qty to Order field.
The Qty to Order field can be modified. When Planned Orders are created, the program will use this field for the quantity on the order.
The Processed flag indicates whether the re-order quantity has been processed or not. If a requisition or planned order has been created for the item and quantity, the flag will be set to on.
Pressing the [Zoom] button will display detailed re-order information about the item.
Press the [Status] button will display stock status information, including on hand, available, and on order quantities for the selected item.
17. Set the Create Planned Orders pop-list to the desired setting. The choices are Replace Existing Planned Orders, Add to Existing Planned Orders, and Create New Approved Requisitions.
If this pop-list is set to Replace Existing Planned Orders, when the [Create Planned Orders] button is pressed, existing planned orders for the items will be deleted and new planned orders will be created for the items. Planned orders are created for both purchased and manufacturing items in program WOPM, Planned Order Entry/Maintenance.
If this pop-list is set to Add to Existing Planned Orders, when the [Create Planned Orders] button is pressed, existing planned orders will not be deleted. New planned orders will be created, in addition to those that already exist. Planned orders are created for both purchased and manufacturing items in program WOPM, Planned Order Entry/Maintenance.
If the pop-list is set to Create New Approved Requisitions, when the [Create Planned Orders] button is pressed, requisitions will be created for purchased items and planned orders will be created for manufacturing items. Planned orders are created in program WOPM, Planned Order Entry/Maintenance.
The status of the requisitions is determined by the Req Release Status pop-list in program ILPM, Plant Code Maintenance. When the pop-list is set to Approved, approved requisitions are created and can be maintained in program PODA, Detailed Requisition Approval.
When the pop-list is set to Open, open requisitions are created and can be maintained in program PORE, Requisition Entry/Maintenance.
One requisition will be created for each vendor.
Press this button to calculate the re-order information according to the entered parameters.
Press this button to create planned orders according to the calculation results and the Create Planned Orders pop-list.
Press this button to examine the calculation results for each item and modify the order quantities before creating planned orders.
Press this button to view stock status information, including on hand, available, and on order quantities for the selected item.
Press this button to view details about the re-order calculations.
Press button to view detailed re-order information about the item.