Reorder Point Planning

Reorder Point Planning Methods

Note:

• It is generally used for costly items
• It is always implemented at organization level
• It depends upon the consumption demand given by our sales (marketing) team for a particular lead time
• Lead time can be anything like a single day, 3 days. a week or a month

Start with defining an item in item master. Navigate to Items > Master Items

Give details as shown below

Assign this item to child inventory organization

Next is to provide Forecast Sets. Navigate to Planning > Forecasts > Sets

When you try to open this form, you’ll get following error message

To remove this error Add ‘Material Planner’ Responsibility to your id & navigate to Material Planner > Setup > Parameters

Change any parameter & save the form. Now change the same parameters back to their previous value & save the record. (Point here is to just open the form & save it. Once we do this, we won’t get the same error message again)

Now open the forecast sets form. Give details as shown below

Click on Forecast Items & give item details as shown below

Now click on Detail & give details as shown below

Close the form & click on Bucketed Tab. Here you can see the detail of items & their cumulative total

Create Safety stock: Safety stock is a stock kept in reserve for any urgent requirement. This is an optional setup. Navigate to Planning > Safety Stocks > New

Give Item Name

& click on Tools > Reload

Give parameters as shown below

Here in Forecast column, we need to give forecast name & not the forecast set name

Once the request completes successfully, run the reorder point planning concurrent program. Navigate to Planning > Reorder Point Planning

Give details as shown below

& submit the concurrent program. Once it completes successfully, check the output file

Requisition Import

Navigate to Purchasing Responsibility & Run the Requisition import program

To check if Requisition is created successfully, Navigate to Requisitions > Requisition Summary.  Search with the item name