Perform Order Proposal
Explanation
The order proposal is used by a purchaser or planner to study the demand
for inventory parts using planning method B - Order Point System, or planning
method C - Refill Level.
It is also possible to create and delete purchase requisitions, shop order
requisitions and create purchase orders and distribution orders. The supply
type on the inventory part determines whether a purchase order or a purchase
requisition will be created by the order proposal. A distribution order will
be created instead of a purchase order if the primary supplier for the part
has Multi-site Planned Part selected. The requisitions that can be deleted must
have been created by the order proposal.
Some of the fields in the planning data that affect the order proposal are:
- Planning Method - For a part to be processed by the order proposal,
the planning method must be B or C.
- Safety Stock - May be zero, but must be less or equal to the order point.
- Order Point - May be zero, but must be less or equal to the lot size.
- Lot Size - Only used for planning method B. Must be greater than zero
(0). If a quantity is proposed by the order proposal it will be a multiple
of the lot size. For example, the lot size equals 10 and the quantity needed
is 12, the quantity proposed will be 20.
- Manufactured/Acquired Split - The order proposal quantity could be split
in accordance to the Manufactured/Acquired Split percentage as defined on
the inventory part. If this split is used, one split quantity will be sent
to manufacturing on a shop order requisition and the other split quantity
will be sent to purchasing on a purchase requisition, purchase order or
distribution order.
The Control section enables you to specify additional selection
criteria for records that will be included in the order proposal. For example,
delete old requisitions, create requisitions/orders, and process manufactured
orders.
The Default feature allows you to use the default settings for this activity.
Default settings are derived from the Database Tasks page set
by the administrator.
Note 1: Order proposal calculations only include standard inventory
(i.e., project inventory balances are excluded).
Note 2: If the available
quantity is below the specified safety stock, the Order Proposal Planning functionality
may still create duplicate supplies / supply proposals (i.e., when converting
the generated requisition to purchase order with the due date falling within
the purchase lead time).
You can either create an order proposal directly, or schedule the task as
a background job.
Prerequisites
- The inventory part must use planning method B - Order Point System,
or C - Refill Level. This can be checked on the
Inventory
Part Planning Data page.
- The part must exist in standard inventory.
- To have a distribution order created, the supply type must be Order,
and Multi-site Planned Part must be selected for the primary supplier of
the part.
System Effects
The system effects vary depending on which settings you have indicated.
- If the Create Requisitions/Orders option is enabled, purchase
requisitions/orders, shop order requisitions, or distribution orders will
be created for the parts that are processed. To decide which orders should
be created, the Lead Time Code in the
Inventory Part/Main/Lead
Times and Supply Dates section is considered. To decide whether
purchase order requisitions, purchase orders or distribution orders should
be created, the Default Supply Type field in the
Inventory
Part Planning Data page is considered.
- If the Delete Old Requisitions/Distribution Orders option is
enabled, the purchase requisitions and shop order requisitions that were
created previously, but have not been converted to orders by the order proposal
feature as yet, and the distribution orders still in the Planned status
will be deleted.
- If the Process Purchased Parts option is enabled, purchase parts
will be included in the calculation of the order proposal.
- If the Only Parts with Inventory Activity option is enabled,
the order proposal will exclude parts that do not have any activity since
the last order proposal review for the parts in question. Reserve, issue,
move, receive, scrap, return parts, change planning data are considered
as activities performed on inventory parts.
- If the Calculate Planning Data Before Creating Order Proposals
option is enabled, planning data will be calculated for selected parts prior
to creating an order proposal.
- If the Process Manufactured Parts option is enabled, the manufactured
parts will be included in the calculation of the order proposal.