The reordering policies are set for a given product to specify certain details during the requirement calculations (MRP & MPS) to identify the suggestion type, the reorder quantity, the splitting, the safety stock, the use of the loss percentage and the replanning analysis. This blog will look at the basics of the Reordering setup.
Setup on the (GESITM) Common data, Products, Product-site, Planning tab, a Reorder Policy can be created for the MRP calculation.
Sage X3 system comes with a few pre-configured Reorder Policies.
To configure these reorder policies or to create new ones go to (GESTRP) Common data, Product,Reorder Policy.
Suggestion type: In the case of a manufactured product, this setting determines if the system should produce a suggestion for the finished product and material for the product. There are 4 choices.
- No Processing: The system will not produce any suggestions
- With MRP pegging: The system will produce suggestions for both the Finished Product and the Materials
- Without MRP pegging: The system will only produce suggestions for the Finished Product
- MRP pegging only: The system will only produce suggestions for the materials needed for the product
Reorder quantity: This parameter is used to fix the quantity proposed for the reordering with respect to the requirement. There are 3 choices.
- Net quantity: Only suggests replenishment based on the net requirement, and ignore any EOQ and Technical Lot setting. This setting is more for a Make to Order/Buy to Order environment
- Minimum Quantity without Rounding: The system follows the EOQ logic, but will ignore the technical lot setting
- Minimum Quantity with Rounding: The system follows both EOQ and Technical lot logic. This setting is more for a Make to Stock/Buy to Stock environment.
Safety Stock: If this checkbox is checked, the system will consider Safety Stock in it's MRP calculation.