Create Reorder Point Request

Explanation

Reorder point requests can be created automatically based on the system's recorded inventory level. This is an alternative to kanban visual signals, the manual method traditionally used for such requests. The system-generated method is suitable for components and subassemblies that are accurately maintained as issues occur, such as through production backflush. Kanban re-order point requests are allowed only for company-owned stock.

You can launch a one-time process that evaluates inventory status for circuits with a replenishment signal type of Automatic (Reorder Point), or you can schedule a process to run periodically, e.g. every thirty minutes. For each circuit, the process compares current on-hand inventory at the kanban location, together with any triggered replenishment requests, with the reorder point. If inventory drops below the reorder point, the system launches a replenishment request to refill the location.

Prerequisites

This activity requires the existence of an active kanban circuit with a signal type of Automatic (Reorder Point). A reorder point level must be defined for the circuit's kanban location. Furthermore, if the replenishment source is Supplier and the supply type is Schedule, an active supplier agreement must exist for the supplier and part on the circuit before replenishments can be generated.

System Effects

As a result of this activity the system generates an electronic kanban replenishment request for each selected circuit that is below its inventory reorder point. The system-generated requests are sent to the appropriate receiving system via this logic:

If the Circuit Replenish Source is... And the Inventory Supply Type for Part is... Then the Signal Type is...
Location, Location Group, External Site N/A Inventory Transport Task
Production Line Requisition Shop Order Proposal
Production Line Order Shop Order
Production Line Schedule Production Schedule
Supplier Requisition Purchase Requisition
Supplier Order Purchase Order
Supplier Schedule JIT Supplier Schedule
External Site N/A Distribution Order