Items - Reorder Point

This field applies only to purchased items that are neither MPS items nor Phantom items.

Reorder point items are usually inexpensive, high-volume items (such as nails, bolts, etc.) that you want to track and maintain differently than normal items.

If the Use Reorder Point field is selected, specify the inventory level that controls the point at which the system generates a planned order to replenish this item's on-hand inventory. When the on-hand level + the on-order quantity (total quantity from POs) drops to this reorder point level or below it, the system generates a planned order for the quantity specified in the Fixed Order Qty field. If that planned order quantity is not greater than the reorder point, the system uses the Order Multiple value to increase the planned order quantity until it is greater than the reorder point. If the Order Multiple value is zero, the Fixed Order Qty is used as the multiple to increase the planned order quantity. The system creates the reorder point planned order to be due at the current date + the item's lead time.

EXAMPLE: Consider the values below.

• Beginning On Hand: 28
• Order Multiple: 5
• Fixed Order Qty: 10
• Reorder Point: 30
• When you run the APS Planning activity, the system generates a planned order for 10.
• When the system calculates the on-hand level, it does not include quantity in any warehouses specified as Dedicated Inventory warehouses.
• During a given planning run, the system creates a single planned order for each reorder point item, due at the current date + lead time.
• The system does not consider any demands for the reorder point item when calculating the planned order quantity for reorder point replenishment.
• The system does not generate planned orders to replenish safety stock for reorder point items; however, "On Hand Below Safety Stock" exception messages are still generated.
• The reorder point planned order appears with a reference of "Reorder Point" on the planning output analysis forms such as Planning Detail and Demand Summary APS.
• The system does not apply the Purchased Supply Switching function to reorder point items.