With this new option, any Warehouse can automatically create the requisition of the items to be purchased necessary to cover the daily demand using the Reorder Point method.
Workflow.
How to use it?
1. Set up data
In Charge Master, in Storage / Replenish fill the new fields:
Safety Stock - quantity to ensure demand = 60
Average Lead Time - Average provisioning time = 7
2. Run Automatic Product Replenish process
Enter on Automatic Product Replenishment option.
Find the warehouse where it was configured
Search for the product and select it.
Click on the menu button.
Select Generate reorder point option
The system display the message Has been created successfully 1 witch means that it was generate the requisition document with product and quantity calculated in Economic Order Qty.
3. Complete the requisition
Enter on Requisition WIndow option
Look and select the requisition.
Go to menu button
Select Document action option (be sure is Complete option selected)
Click on OK button
What you should know?
If there is a purchase order with the same product, the system excludes that quantity from the economic quantity to be ordered for the generation of the requisition.
This is a suggested calculated based on the reorder point, you can modify the requisition quantity since the document is in draft mode.
You can cancel / delete the requisition or modify the product data to process again and update the quantity in the requisition based on the new data.
Reorder Point graph (video).
The data used by the process is reflected in Product Master-> Storage / Replenishment tab.
1. Reorder Point.- quantity that indicates the moment to order the product.
2. Safety Stock.- indispensable minimum quantity of the product to have as stock.
3. Economic order quantity .- quantity to be requested in the requisition.
4. On hand.- amount you have in stock (already existing data).
5. Average lead time.- time (days) that the supplier takes to deliver the product after it has been ordered.
6. Daily Use.- average amount of daily use of the product.
7. Updated date.- date of execution of this new process.
8. Open requisitions.- quantity of the product ordered in requisitions.
9. Open orders.- quantity of the product in purchase orders.
What you must configure manually in Charge Master are:
Safety Stock
Average lead time
When saving this data, Cirrus calculates and fills in the following informational (read-only) fields:
1. Reorder point.- Product quantity to create a new automatic purchase request. = Economic quantity + Safety Stock
3. Economic order quantity = Average Delivery Time * Daily Use
4. On hand = already known.
6. Daily use = Sum the outputs of the product during the current month / 30 days
7. Updated date of the last time it was processed.
8. Open requisitions.- total quantity of the product in requisitions.
9. Open orders.- total quantity of the product in purchase orders.
Cirrus performs two validations
If On hand < Reorder point => Generates requisition with Economic order quantity
If Quantity in orders + Quantity in requisitions > = Economic order quantity => Does not generate requisition.
We hope that with these changes we can improve your experience at Cirrus. Please remember to share this information and request assistance if necessary.
Date: April 19, 2021