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.