Once the program has detected the need for replenishment, it uses the reordering policy to calculate the lot size per planning period, which you define in the Reorder Cycle field. Click the AssistButton and select one of the following options:
Fixed Reorder
Qty.
The program uses the quantity specified in the Reorder Quantity field as the standard lot size.
The program may adjust this quantity to meet additional
requirements or the specified inventory level.
If you select this option, the program disables the Maximum
Inventory field, which is used exclusively with the
Maximum Qty. option.
Maximum Qty.
The program uses the quantity specified in the Maximum Inventory
field to determine the maximum lot size. The program may adjust
this quantity to meet additional requirements or the specified
inventory level. (See the note below.)
If you select this option, the program disables the Reorder
Quantity field, which is used exclusively with the
Fixed Reorder Qty.
option.
Order
The program generates an order for each individual requirement, and
does not use the reorder cycle.
When you use this reordering policy, the program creates an
automatic reservation between the requirement and the corresponding
replenishment order proposal. This will preserve the customized
information on the relevant orders and link them for inventory and
costing purposes. (Note that creating a manual reservation is the
standard way for a user to set aside items in inventory and
designate them for use in a particular order.)
If you select this option, the program disables all planning
parameter fields that otherwise would be used to calculate the
order proposal quantity.
Lot-for-Lot
The program generates an order proposal with a quantity that meets
the sum of the requirements that come due within the reorder
cycle.
If you select this option, the program disables the Reorder
Quantity field, which is used exclusively with the
Fixed Reorder Qty.
option,
the Maximum Inventory field, which is used exclusively with
the Maximum Qty.
option,
and the Reorder Point field. Using the
reorder point with Lot-for-Lot could result in additional (surplus)
replenishment order proposals.
Blank
If you select this reordering policy, the program does not
calculate order proposals for this item. The assumption is that you
will plan for this item manually.
The final order proposal quantities may be further adjusted according to the order modifier fields: Minimum Order Quantity, Maximum Order Quantity and Order Multiple.
Note: This also applies when using Maximum Qty. However, if the Maximum Inventory field is used as a restrictive expression of your maximum storage capacity, then these 3 modifiers should not be used.
Changing from one reordering policy option to another may result in the program disabling some planning parameter fields, which were previously active and still contain the most recently used values. Note that the planning calculations will disregard these values.
Planning for Locations without Using SKU
A reordering policy of Lot-for-lot + blank planning parameters will be applied automatically if planning for demand at a location that is different from the Components at Location field and SKU is not used. (Items using reordering policy Order remain using Order). See more under Planning with/without Locations.