Hi Masters,
I am getting confused with planning tab. In that u have lot of fields.
1. Safety stock 2. Reorder qty 3. Reorder point.
First of all I would like to know the difference between these fields. Thse fields getting confused me.
Even I read F1 I could not understand about these fields
Just For I created one item “ A “. I done positive adjustment with qty 200.
So now Item A inventory is 200. In planning tab I selected Fixed reorder point .
I filled with these values . 1 Safety Stock Quantity = 20 What is this meaning
I filled Reorder qty = 50 what is this meaning.
I filled reorder point = 100. What is this meaning.
.
I entrading everybody please throw some help to solve this problem.
Please…………………….. ](*,) ](*,) ](*,)
Thanks and regards
0
Comments
this means program will always try to make this item having this quantity. if in any conditions you transact this item, and it's below Safety Stock, at the time you run the planning, program will include this item to be replenished to achive the quantity entered here.
If you select Reordering Policy: Order, this field is NOT APPLICABLE -else- it matters.
2. Reorder qty
this means every time program replenish the item, program will propose this quantity.
This happen only when you select Reordering Policy is Fix Reorder Quantity .or. Maximum Qty., -else- this field is disable.
3. Reorder point
if you have Safety Stock: 20 and Reorder Point: 5, and in some occurence you have this item stock at below 5, when you run the planning, program will propose to replenish untill it achieves the safety stock quantity.
This happen only when you select Reordering Policy is Fix Reorder Quantity, -else- this field is disable.
Reorder point is the point where you want to replenish the item if the quantity of stock fall below the reorder point.
Safety Stock Quantity
Safety Stock Quantity is the quantity of stock that you want to keep in your inventory to prevent the situation of running out of stock. Inventory level will reach Reorder Point before reaching Safety Stock Quantity so that the items can be replenished before it fall below Safety Stock Quantity.
Reorder Quantity
Value in Reorder Quantity field will be used in all replenishement proposal for the item selected. Whenever the item need to be replenished, the item will be replenished with the quantity specified int the Reorder Quantity field.
From your example, you set Safety stock quantity = 20 means you want to have at least 20 units of stock at anytime. If you want to keep 20 units of stock, you cannot wait until the stock reach 20 units then only to do replenishment. Therefore, you set the Reorder Point to 100. This means that, whenever your stock fall below 100 units, Navision will suggest a replenishment. The item will be replenished in 50 units block because you have set the reorder quantity to 50.
Wonderful explanation . =D>
I would like to know one thing that is I have item A = 30 . Fixed reordering plicy. Safety stock qty = 10
Remaining parameters are blank.
Now I got a salesorder for 25 . Sys tem is taking 5 from safety stock qty.
Then what is the use of Safety stock qty.
In my opinion system should not allow that 5 from safety stock qty .
Could u throw some more explanation.
Thanks and regards
As was explained the reorder point should be reached before the safety stock, in your new example you have no reorder point, so your reorder point is 0, until 0 is hit no replenishment will be generated. Whilst you have set a safety stock this is only a suggestion of what the planning shoudl take into consideration, in no way does it restrict you from selling stock, otherwise you would never be able to sell this stock!
Safety stock does not ring fence stock, it is simply used as a modifier in the calcualtions, however the first step is when the reorder point is broken, and the way you have set up your item means the reorder point has not yet been broken.
Safety Stock is not used to prevent sales order creation. It is mostly used in manufacturing planning.
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when your stock level hits either one an order is suggested when you run the replenishment routine,
then the other paramaters direct what is suggested.
if you are using the reordering policy - fixed reorder qty, then that is suggested, based the qty you have in the related fields
if you have a reordering policy - maximum Qty, then what ever is needed to bring it up to the max qty set is what is ordered
if you have a reordering policy - order, then none of the other parameters matter, it will suggest Purchases for each order you have.
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I still disagree
Can you try this for me:
1. An item with fixed reorder quantity
2. Safety Stock set to 10, nothing else is set in planning parameters.
3. Book 15 in
4. Load a sales order for 10.
5. Run Requisition Worksheet - does anything appear? It does not for me.
I will try this in 5.0 Cronus native, but otherwise it could be a localisation added in I suppose? But doubt it!
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in 4 it works but you do have to have other parameters set,
for instance set reorder policy to Maximum Qty
Safety stock to 10
maximun qty to 12
book your 15 into inventory
load a sales order for 10
run req sheet and it will suggest and order of 7
Safety stock has to be used incombination with other parameters, such as maximun qty or Minimun order qty ect.
I think I just started from the original question of reorder point and moved on from there, rather than bringing in other policies. Oh well lets just say it works in some circumstances and not in others, and I should have been more specific with my answer
What I will say is you need to be very careful on the selections and settings based upon your version and configuration. Although I have found on these forums it is the simple understanding that is the biggest issue!
Now i am very happy about these 3 fields in Planning tab from u r valuable suggestions.
Now i have some more doubts on this planning tab.
We have field Reordering policy. that fields contain 4 options
1. Fixed reordering policy.
2.MaximumQty
3.Order
4. Lot-for-Lot
At what conditions and for what type of items we use this methods.
that means when we use Fixed reordering policy. when we use MaximumQty. Like that when we use remaining methods. For what comanies we use these methods. That means for trade or manufactruring firm.Please throw u r valuable suggestions to understand about planning tab fields.
What is the use of Order multiple field. ](*,) ](*,)
thanks and regards
Ultimately it depends upon the business and inventory mix you are implementing Navision into. Your job is to understand the profiles and how they work in the system. Then understand what the business currently uses, why they use it, decide if it is the best approach and then suggest alternatives if necessary. This is harder in a mixed-mode inventory approach, but not impossible.