Connect Item to Warehouse

This document explains how you connect an item to one or several selected warehouses. This connection must be performed before you can handle the item in production and inventory.

The connected item per warehouse is used in the material planning process and in different order processes.

Outcome

Before you start

Follow these steps

  1. Start 'Item. Connect Warehouse' (MMS002) and set the panel sequence to E, F, G, and I. The H panel displays information only and is therefore not necessary when specifying data.

  2. The I panel is only specified if you have lot or serialized items with expiration date information. VAT information for purchased items is specified here.

    Note: You can start 'Item. Connect Warehouse' (MMS002) automatically when you have created an item in 'Item. Open' (MMS001).
  3. On the B panel, set the sorting order to 1 or 2.

    Select the item and warehouse to connect.

  4. Populate the necessary data on the E, F, and G panels. See the Parameters to set section for detailed parameter descriptions.

  5. Repeat all steps to connect the item to additional warehouses.

Parameters to set - (MMS002/E)

E panel in 'Item. Connect Warehouse' (MMS002)

Program ID/Panel

Field

The field indicates...

(MMS002/E)

Planner

...the person responsible for the acquisition of items for each warehouse. Order proposals and shortage analysis are sorted and handled per planner.

The default planner is the person that is indicated as responsible for the item on 'Item. Open' (MMS001/E).

(MMS002/E)

Acquisition code

...how acquisition is to be performed for each item/warehouse in case of a requirement (immediate or planned). This is required information.

The valid alternatives are:

1 = Manufactured

2 = Purchased

3 = Distributed

6 = Maintenance.

Note:  The acquisition code can be overridden, and you can have both purchasing and manufacturing existing simultaneously.

(MMS002/E)

Period frame template

…a period frame template which is used to group days in appropriate periods. Each template ID is user-defined and can include up to 50 periods/columns with varying lengths. The period frame template specified per planning unit is also used for forecast distribution, if appropriate.

Each period template is defined by specifying this information in four intervals:

  • Number of periods/columns
  • Unit multiplier, that is the number of units that will form the period/column
  • Unit, expressed in one of these alternatives:

    1 = Days 2 = Weeks 3 = System periods

In addition, you can control the way in which changes from one unit to another should be processed, by specifying whether overlapping should be used.

(MMS002/E)

Planning method

... material planning method to be applied when creating an acquisition order for the item/warehouse. In principle, these basic methods are available to plan and create acquisition orders.

  • Reorder Point (ROP): the inventory level set that triggers an acquisition order. If the total on-hand balance plus stock on order falls to or below the reorder point, action is taken (the acquisition order) to replenish the stock.
  • Material requirements planning (MRP): a set of techniques that use bills of material, inventory data and the master production schedule to calculate requirements for materials.
Note:  The planning method is a key parameter and it affects the entire material planning process in M3 BE.

Order-initiated (alternative 3) means that the order is created and released only in direct relation to the controlling order.

These are the valid alternatives for this field:

0 = Manually planned

1 = Material requirement planned (MRP)

2 = Reorder point (ROP) planned per item/warehouse

3 = Order driven: acquisition orders are only triggered, created and released by a requiring order

4 = Reorder point (ROP) planned per item and facility

5 = Reorder point (ROP) planned per item and global facility.

(MMS002/E)

Planning policy

...the planning policy that determines how generation of planned orders, action messages, and warning messages are to be applied. Each planning policy is user-defined in 'Planning Policy. Open' (MMS037).

(MMS002/E)

Master scheduled

Number of periods/columns, whether the item is part of the master schedule. The master schedule represents what the company plans to produce expressed in specific configurations, quantities, and dates. The master schedule considers the forecast, the production plan and other important considerations, such as backlog availability of material and capacity, management policies and goals.

The valid alternatives are:

0 = Not a master scheduled item

1 = Master scheduled item - may be used for manufactured, purchased, or distributed items. By selecting this option, planned orders will not automatically be scheduled inside the planning time fence. The system will instead apply an A3 action message to the planned order and place it on the planning time fence with an alternative date.

2 = Master scheduled item which always contains a customer order-unique configuration - may be used for scheduling of products which display a relatively low item volume, are very specialized to customer needs, and generate high inventory costs.

3 = Planning entity - used for forecasting on a more aggregated level. For instance, pasta could be an appropriate item to forecast when selling macaroni and spaghetti. If pasta is the planning entity, the forecast on pasta will be consumed when macaroni or spaghetti is sold. The planning entity should have inventory accounting = 2. The connection between the items that you sell and the planning entity is defined in 'Planning Entity. Open' (RPS045).

4 = Process planning item - used for items to be defined as process planned and whose inventory accounting code in (MMS001) must equal 2. For end items connected to a planning process, the master schedule code should be 0 or 1.

The parameter also defines if the product should be included in the rough-cut capacity planning calculation ‘Resource Reqmnt. Create’ (RCS050). Only products with master schedule code 1-4 are selected. An item is qualified to be included in the master schedule for one of these reasons:

  • Significant effect on capacity
  • Significant effect on material
  • Manual evaluation of change requirement
  • Manual evaluation of change capability.

(MMS002/E)

Continuous net change

...how often M3 BE checks the material planning situation for the item/warehouse. M3 Material Planning creates planned orders (MO, DO, PO, or WO) and suggests activities to the user by displaying action messages.

Action messages are created in 'Action Message. Change' (RPS001) and set by the selected planning policy. These are the valid alternatives:

0 = In batches, usually at the end of the day

1 = Immediately, so requirements planning is performed through a queue system that is processed in real time.

(MMS002/E)

Planning horizon

...how many days are covered by the requirements planning from the current system date. There may well be requirements beyond the date fixed by the planning horizon, but these do not generate planned orders. There is no reason to use a longer horizon in requirement planning than what is necessary to plan the item with the longest lead-time.

(MMS002/E)

Safety time

...how many days before the actual requirement date a planned order should be available in stock. The purpose is to protect the scheduling from any fluctuations in the item's delivery time.

This information is only used when planning method is set to 1=material required planning.

(MMS002/E)

Supply lead time

...the supply lead time in days. That is the number of days from an order or a requirement to an actual delivery of an item.

For manufactured items (acquisition method 1) and distribution items (acquisition method 3) the lead-time is always expressed in workdays.

For manufactured items, the supply lead-time is updated automatically (from the product header). It always includes direct ordered acquisition of included material regardless of whether the acquisition occurs through manufacture or purchase.

For purchased items, (acquisition method 2) you can set the supply lead-time to either five or seven days per week using parameter 33 in 'Settings- Purchase' (CRS780).

For purchased items, this field is updated manually in (MMS002) or for the main supplier in 'Supplier. Connect Item' (PPS040). When one program is updated, the other one is updated automatically if the main supplier is the same. This field is also updated when a new purchase agreement becomes valid (order date) during a separate user-initiated run.

(MMS002/E)

Demand time fence

…the number of days from the point an order is registered to the point the item is shipped. Items with a defined demand time fence are generally included in the master production schedule (MPS).

In the MPS, the demand time fence is set between the current date and the planning time fence to establish two regions.

The first region between the current date and the demand time fence establishes the area where orders are frozen, that is, no unanalyzed and unapproved changes are made to the MPS.

The second region, between the demand time fence and the planning fence, is the area where the actual orders may consume the forecast. The field also controls the time for automatic allocation. If the field is blank, the value in 'Settings – Warehouse Planning Control' (CRS701) is used.

(MMS002/E)

Planning time fence

...the planning time fence which is a time in the planning horizon of the master scheduling process that marks a limit. Inside of this planning time fence, the planner responsible should review changes to the material plan. Planned orders beyond the planning time fence can be changed using system-planning logic.

(MMS002/E)

Forecast method

...the ID of a forecast method, which defines how the item is processed during forecasting. The forecast method ID is created in 'Forecast Method. Open' (FCS300).

(MMS002/E)

Forecast logic

...how the forecast should be managed when transferred to material requirements planning. The parameters defined for each forecast logic mainly determine how reservations should be matched against forecasts. Forecast calculation methods are defined in 'Forecast Logic. Open' (FCS305).

(MMS002/E)

Order type

…the order type that is planned to be in connection with procurement. The acquisition method defines which acquisition process (purchase, manufacturing or distribution) that is used by the order type.

The order type is a group ID for a number of rules that determine how the order is processed in the order flow.

(MMS002/E)

Supplier number

…the supplier considered as the main supplier for an item.

(MMS002/E)

Supplying warehouse

...the warehouse that is planned to supply the current warehouse, if necessary. This field should be specified only when acquisition code 3 (see above) is used.

(MMS002/E)

Multiple supply

...from where to acquire items in a purchase or distribution order. These are the valid alternatives:

1 = Single supply only from the supplier or warehouse set for the item - no override

2 = Multiple supply, the supplier or warehouse set for the item is defaulted, but can be overridden

3 = Different warehouses according to a percentage set in the distribution relationship table for distribution orders

4 = Multiple supply, the required quantity supplied according to different supply methods - valid supply methods and percentages are set in (RPS090).

(MMS002/E)

MO consolidation method

...how to consolidate the manufacturing orders for packaged items as a means of optimizing your planning. These are the valid alternatives:

0 = Discrete order, which is the default field value

1 = Process order, the option to consolidate the manufacturing of an item as process orders

2 = Pack order, the option selected if you want the consolidation to occur in the form of pack orders.

(MMS002/E)

Supply chain policy

… the supply chain policy which determines whether to include the item in the supply chain link function.

If you add a supply chain policy to an item, then this item is included in the supply chain function and gets proposals automatically generated according the demand from the level above. The demand and the generated proposal is pre-allocated and assigned a supply chain number. So, it is possible to have full traceability between demand and supply.

Note that a supply chain can only be started via a customer order or a released distribution order, and the generated proposals are always lot sized according to lot-for-lot. You can, however, to manually pre-allocate lot-sized purchase order proposals to one or more supply chains afterwards. You can plan the purchase order proposals separately from the rest of the supply chain, for example, through MRP.

Parameters to set - (MMS002/F)

F panel in 'Item. Connect Warehouse' (MMS002)

Program ID/Panel

Field

The field indicates...

(MMS002/F)

Safety stock

...a buffer quantity for the item at this warehouse which is only used during unexpected circumstances such as unpredicted increase in demand or difficulties in delivery.

The safety stock method that is selected determines how the safety stock is specified.

(MMS002/F)

Safety stock method

... how the safety stock is calculated and updated. These are the valid alternatives:

0 = Manually

1 = Automatically according to the formula: Number of safety stock days * Daily consumption

2 = Automatically according to the formula: Safety stock percentage * lead time * daily consumption

3 = Automatically according to the formula: Safety factor * 1.25 * MAD1 * square root of lead-time in number of periods

MAD is an abbreviation for Mean Absolute Deviation.

4 = Number of safety stock days in accordance with settings done in 'Safety Stock Control Table. Open' (MMS093)

5 = Number of average issues in accordance with the safety stock control table.

6 = 3rd party, Mercia links

7 = Automatically according to Poisson table

8 = Average quantity per issue, optionally multiplied with safety stock factor

Average quantity per issue = Demand last 12 periods / Number of issues last 12 periods.

(MMS002/F)

Safety stock unit

...a value used for calculating the safety stock level.

The value is specified either in days or as a percentage, depending on the safety stock method selected, as follows:

For safety stock method 1, specify safety stock value in days.

For safety stock method 2, specify safety stock value in percentage.

For safety stock method 7, specify safety stock value in days (used as 'safety days' in the formula).

For safety stock method 8, specify a number of average issues.

(MMS002/F)

Service level

…the service level expressed in the form of a percentage and defines what level is planned, per item, with regards to the possibility of immediately meeting demands.

The service level is connected to a table that converts the percentage values to security factors.

(MMS002/F)

Reorder point

...the reorder point (ROP). When the on-hand balance falls below the level displayed in this field, a planned order is automatically created.

The reorder point is calculated either manually or as the safety stock plus usage during the lead-time.

(MMS002/F)

Reorder point method

...the method to determine the reorder point. These are the valid alternatives:

0 = Reorder point (ROP) is set manually

1 = Calculated automatically according to the formula: ROP = Safety stock + (daily usage * lead-time)

The daily usage referred to in alternative 1 can be established in a number of ways, as shown in 'Safety Stock/Reorder Point. Calculate' (MMS615)

2 = Reorder point is 0 (zero)

3 = 3rd party – defined by an external system

4 = Automatically according to Poisson table

5 = Average quantity per issue.

Average quantity per issue = Demand last 12 periods / Number of issues last 12 periods

Note:  If ROP method 1 is selected and the ROP is 0, planned orders will not be generated for this item/warehouse.

(MMS002/F)

Point of time table

…the ID of a time table containing planning points specified in days, hours and minutes. The table type determines how the time table is used.

A time table with table type 10 is used to total the requirements when order policy 15 is used in MRP.

A time table with table type 20 is used as a supplier calendar when purchase orders are created in MRP.

A time table with table type 30 is used to collect deliveries to allow forecast pacing in delivery windows.

A time table with table type 40 is used to collect orders to monitor orders as well as forecast pacing.

A time table with table type 50 is used to calculate the expiry date within a period bucket when expiry date table on (MMS002/I) is filled.

Time tables are created in 'Point of Time Table. Open' (RPS080). When defining a time table, you can use facility, warehouse and table type to control the extent of its validity. This means that the same time table ID can be used in different situations and have different settings. To define a time table:

  • for an entire company, leave facility and warehouse blank.
  • for a specific facility, specify the facility ID and leave warehouse blank.
  • for a specific warehouse, specify the warehouse ID and leave facility blank.
  • with different time periods, define the time table ID twice and use different start and end dates.
  • with different table types, define the time table ID twice and use different table types.

(MMS002/F)

Order quantity

…the Economic Order Quantity (EOQ). It is a type of fixed order-quantity that determines the amount of an item to be purchased or manufactured at one time.

The intent is to minimize the combined costs of acquiring and carrying inventory. The value is set manually or updated from a calculation program 'Max Stock/Order Quantity. Calculate' (MMS620). The order quantity is always specified in the basic U/M of the item.

(MMS002/F)

Order policy

…how the order quantity (EOQ) should be calculated. The purpose of an order policy is to define how to convert the expected requirement to one or more replenishment orders.

(MMS002/F)

Order quantity days

...the number of days demand that is to apply when calculating the order quantity in accordance with the rules which apply for each order quantity method.

If nothing has been specified per item/warehouse combination, the number of days is obtained from the ABC sales volume class.

(MMS002/F)

Maximum stock percentage

...the percentage used for calculation of the maximum inventory quantity. The percentage specified in the field is multiplied by the sum of the reorder point and the reorder quantity.

Example:

Order quantity = 500 unit

Reorder point = 100 units

Max. Inventory % = 150

This results in the following maximum inventory quantity: 150/100 * (500 + 100) = 900 units.

(MMS002/F)

Maximum stock

...the maximum quantity that is allowed for each combination of warehouse and item.

If the planned on-hand balance exceeds the maximum stock level, an action message is issued.

If the on-hand balance exceeds the maximum stock level, a planning message is issued to a so-called planning mailbox.

(MMS002/F)

Maximum stock method

...whether the maximum stock should be calculated automatically. These are the valid alternatives:

0 = No

1 = Yes

2 = Yes, max stock 0

Automatic calculation of maximum stock is performed according to the following formula: (Reorder point + order quantity) * Maximum inventory %.

(MMS002/F)

Annual demand

...the annual demand per warehouse/item. This may be specified manually or calculated automatically.

The automatic calculation can either be performed as an integrated part of the forecast calculation (calculated in 'Automatic Forecast. Calculate' (FCS100)) or based on the demand calculation result (calculated in 'Annual Demand & Item Statistics. Update' (RPS620)). The annual demand is used on different occasions, such as calculation of sales value analysis and order quantity.

Update is performed if the 'Update annual dmd' field is activated on (RPS620/F) and the 'Annual demand method' field is activated on (MMS002/H). Calculation is based on the negative transactions (take out from stock) in the material plan ('Material Plan. Open' (MMS080)) for the selected periods and includes forecast and forecast consumption logic. If forecast is used, the condition for update in 'Automatic Forecast. Calculate' (FCS100), is that the F/C method field must be selected with a forecast method ('Forecast Method. Open' (FCS300)) that has the 'Upd annual dmd' field activated.

Quantity calculated is based on the current period and the period ahead for one year. If data for future does not exist, it will be replaced by actual demand from item history according to demand types.

(MMS002/F)

Annual demand method

...the annual demand method per warehouse or item. These are the valid alternatives:

0 = Annual demand is specified manually

1 = The annual demand is calculated and updated automatically - this is either integrated with the forecasting or based on the demand calculation results.

(MMS002/F)

Minimum order quantity

…the minimum order quantity allowed for each combination of item or warehouse. The information is used at calculation of batch size in connection with requirements calculation, but only if it is greater than zero.

(MMS002/F)

Maximum order quantity

...the maximum order quantity allowed for each combination of item or warehouse. The information is used at calculation of batch size in connection with requirement calculation, but only if the batch size is greater than zero.

(MMS002/F)

Order multiple

…the purchase order multiple quantity in the basic unit of measure (U/M). It is used to avoid the need to break up packages, etc.

The order multiple can be specified per item/warehouse, or per item/supplier. Also, you can specify a unique order multiple for each alternate U/M. When alternate U/Ms are used for purchasing, the order multiple is not checked per item/warehouse. When an order is planned or created, a check is made to ensure that the order quantity is divisible by the order multiple without any remainder. A check is also made during lot sizing (calculation of the order quantity).

(MMS002/F)

Issue multiple

...the minimum issue multiple. The value is checked in connection with order entry of the item and warehouse combination.

(MMS002/F) Average issue quantity

…the quantity that is typically requested or issued in a single delivery. It is specified manually and not calculated automatically.

When safety stock is calculated, it will not be set lower than the average issue quantity.

Note:  Calculations such as reorder point methods 4 or 5, and safety stock methods 5, 7, or 8, will use an automatically calculated average issue quantity based on actual historic issues or requests, even if a value is specified in the 'Average issue quantity' field.
(MMS002/F) Minimum safety stock

…the minimum safety stock level. When safety stock is calculated, it will not be set lower than the minimum safety stock.

(MMS002/F)

ABC class - volume

…a code, usually A, B, or C, used to group items according to how they affect the total sales volume (the sales volume is the product of an item's annual usage multiplied by a particular price).

The ABC class is defined in the parameter file. ABC class sales volume can also be used as selection criteria when printing reports, taking inventory, or determining stock control values.

The sales volume is updated per warehouse/item, either automatically or manually depending upon the method you have chosen.

(MMS002/F)

ABC class - frequency

..a code from A to J, used to group historical information on items. The code is based on one of these:

  • Movement frequency (number of transactions/movements)
  • Unit frequency (number of basic U/M)
  • Weight frequency (number of kilograms)
  • Volume frequency (number of cubic meters)

When the ABC frequency is calculated automatically as in 'ABC Classification Frequency. Print' (MMS675), specify the division basis to be used. The ABC frequency is updated for each warehouse/item. Depending on the ABC frequency method, this is done manually or automatically.

(MMS002/F)

ABC class - contribution

…a value used to group items based on their contribution margin for each item/warehouse. This value can be set manually or automatically. The valid values are A to J.

When grouping is performed automatically, the contribution is calculated by multiplying the sales quantity by the contribution margin for each unit. The contribution margin is calculated by subtracting the item file's sales price or a price list price with the specified costing price.

(MMS002/F)

ABC class - manual

…an optional ABC class that is to be used to group item numbers per warehouse according to the definition per installation.

(MMS002/F)

ABC method – volume/frequency/ contribution.

....the ABC method for each ABC class and warehouse or item. This method determines how the ABC class is updated. These are the valid alternatives:

0 = Manual update

1 = Automatic update.

(MMS002/F)

Inventory segment

…a classification of items in a selected warehouse. Inventory segment are defined in 'Inventory Segment. Open' (CRS121).

(MMS002/F) Product line ...the product line for an item which is used to facilitate purchase planning by grouping similar types of items from a supplier. Product lines are defined in (CRS099). These product lines can be specified either for each item record (MMS001/E) or for each item/warehouse record (MMS002/F), depending on the value of the product line level on (CRS780/H).

Safety stock and reorder point based on Poisson table

For reorder point method 4 and safety stock method 7, the Poisson table is defined in 'Poisson Table. Open' (MMS094). The lookup in the table is based on the service level and estimated number of issues during lead time. It is calculated as:

The service level and the estimated number of issues during lead time are key values for a lookup in the Poisson table. If a record is found, safety stock is calculated as:

If no record is found, a fallback formula for the safety stock is used:

The security factor is fetched from the service level as defined in 'Service Level. Open' (FCS320).

Order policy

Regardless of which order policy (OP) you use, its purpose is to convert expected requirements into one or more replenishment orders. The appropriate OP depends on the character of the requirement information, which is the basis of an order placement. For example, only methods 00-04 and 23 can be used when the planning method is based on similar reorder point techniques.

On the other hand, all the methods may be used when material requirements planning (MRP) is used. MRP is a time-phased method, meaning that a time dimension is added to the traditional inventory status information. Since all requirements and inventories always relate to an Order policy specific date, planning can be accomplished with greater precision.

Regardless of the OP used, these pieces of information must be checked. Note that they are all maintained manually:

  1. Order multiple - the order quantity that must always be a multiple of this quantity

  2. The minimum order size - the minimum quantity that can be ordered

  3. The maximum order size - the maximum quantity that can be ordered

For methods based on a fixed-order quantity, the quantity is always increased when the daily requirement is greater than the fixed-order quantity (incl. increases to the order multiple).

The valid alternatives for fixed quantity/variable period are:

02 = Economic order quantity, where according to Wilson's formula:

The valid alternatives for variable quantity/fixed period are:

11 = Discrete order quantity - when using this method, an order is created for each requirement even if there are several requirements for the same day.

12 = Manually specified run-out time - the order quantity is calculated dynamically according to the logic used in MRP - as requirements arise, orders are placed that cover the number of days specified manually as the run-out time.

13 = Economic run-out time - the order quantity is calculated dynamically according to the logic used in MRP - as requirements arise, orders are placed that cover the number of days specified manually as the run-out time. This formula applies:

The order quantity is calculated according to Wilson's formula, and then divided by the average usage per calendar day. This average usage is based on the yearly volume or on running yearly usage. The run-out time = EOQ/daily requirement.

The run-out time is calculated in the same function that calculates the fixed quantities.

15 = Requirements are summarized according to the planning points specified in 'Point of Time Table. Open' (RPS080). For example, if the planning points specified are set up as every day at 10:00, then the system will summarize all requirements between day one 10:01 to day two 10:00, then summarize requirements between day two 10:01 to day three 10:00, and so on.

The valid alternatives for variable quantity/variable period are:

21 = Least unit cost - this method estimates different order quantities by accumulating one daily requirement at a time. Afterwards, the order receives the quantity that has the least unit cost. These formulae apply:

Lay days is the number of calendar days that elapse from the order's delivery date up to and including the last requirements date that the order covers

Note:  Interest = Inv. cost of capital according to parameter.

22 = Least unit cost with discount. This method is the same as 21, but is only suitable for purchase items since it is designed to incorporate and value quantity-dependent net purchase prices - a minimum of two discount situations are valued. This method is not activated - it works the same as method 21.

23 = Period-based order quantity without balance check. This method is developed specifically for environments where an Order policy requirements-determined order initialization is desirable, while at the same time production should be balanced and evenly distributed according to the max/min order quantities per day - the method requires that a production calendar is established for the product.

24 = Period-based order quantity with balance check. This method is based on the same principle as method 23, with a few exceptions. The method considers the opening balance for each period and evens out the surplus requirements both backwards and forwards - as with the other cases, neither released nor fixed planned orders may be rescheduled automatically.

25 = Up to maximum on-hand balance - this method is mainly designed for reorder point determined ordering, which means that the order quantity is always calculated so the calculated balance after the transaction is the same as the maximum on-hand balance minus one.

Parameters to set - (MMS002/G)

G panel in 'Item. Connect Warehouse' (MMS002)

Program ID/Panel

Field

The field indicates...

(MMS002/G)

Location

...the default location that is proposed upon receipt, issue etc. If storage method 1 (single location) is used, it is not possible to change this location. Even if storage method 2 or 3 is used, a standard location can be specified.

(MMS002/G)

Storage method

...the storage method for each item/warehouse, which determines how the item is distributed at different locations. These are the valid alternatives:

1 = Single location

2 = Multiple location

3 = Multiple locations where reorder points are used

For alternative 1, the item can only be stored at one approved location (status 2). This must be set for each item/warehouse.

For alternative 2, the item can be stored in an unlimited number of locations.

Alternative 3 is the same as alternative 2, but in addition certain combinations contain a reorder point level which is automatically monitored. If the storage method is changed from 2 to 1, a check is made to ensure that the item does not have multiple balance records with status 2.

(MMS002/G)

Pack location

…the location normally used for packing operations.

(MMS002/G)

Dock location

…the normal docking location used for packaged goods ready to be shipped.

(MMS002/G)

Container management

...the level of container usage desired. Container management is used to account for items in inventory through a container ID, such as a pallet number. These are the valid alternatives:

0 = Containers not used

1 = Containers used. Check is not performed to determine the existence of the container in the container master.

2 = Containers used. Check is performed to determine the existence of the container in the container master.

3 = Containers used. These must be defined as a lot number. An existence check is performed against the lot master file.

4 = Same as method 1, but the container may only be stored in one location at a time.

5 = Same as method 2, but the container may only be stored in one location at a time.

6 = Same as method 3, but the container may only be stored in one location at a time.

7 = The container number indicates a package in stock (MMS470) and can only be stored in one location at a time.

Methods 3 and 6 are to be used in situations where the container is a packaging item that is serial number controlled.

(MMS002/G)

Stock zone

…the ID of a stock zone, which is used to divide a warehouse into different areas. The stock zone is specified in three different programs, depending on the desired purpose:

1. Stock zone per 'Stock Location. Open' (MMS010) is a central search key for making inquiries regarding locations, for example when searching for available locations (using (MMS010) or 'Location Select – Available Locations' (MMS160)). Entering a stock zone in (MMS010) is required.

2 Stock zone per 'Balance Identity. Display' (MMS060) is automatically retrieved from the location when the balance ID is created and is used to split an order into several picking lists (one picking list per stock zone). The printers used to print the picking lists are defined per stock zone in ('Stock Zone. Open' (MMS040)).

3. Stock zone per 'Item. Connect Warehouse' (MMS002) is used to suggest locations when performing stock receipt through (MMS160). The stock zone specified here is also suggested as the From stock zone on proposed replenishment orders (MMS170). The stock zone in (MMS002) is specified manually and is not required.

(MMS002/G)

Location type

…a group of locations based on the characteristics (size etc). The information can be used to locate unoccupied locations of the right size in connection with receipt of goods.

(MMS002/G)

CTP policy

…the CTP policy to be used. The CTP policy determines how the ATP and CTP calculations are performed.

(MMS002/G)

Physical inventory cycle

...the applicable physical inventory cycle. The inventory cycle contains information as to how many days are to elapse before inventory for the item is once again taken. A physical inventory cycle is created in 'Physical Inventory Cycle. Open' (CRS110).

(MMS002/G)

Statistic storage group

...how the inventory statistics are to be saved. The group is defined in a separate table in 'Statistics Storage Group. Open' (CRS255) and can be specified for each item/warehouse.

(MMS002/G)

Time phased safety stock exists

…if a date dependent safety stock is activated.

The valid alternatives are:

0 = No

1 = Yes

(MMS002/G)

History storage method

...if and how stock transactions are stored in the stock transaction history file. The valid alternatives are:

0 = No storage. Item statistics will not be updated, and financial transactions will not be created.

1 = Detailed storage, that is, each transaction corresponds to one record in the transaction history file.

2 = Accumulated storage on daily level per order and transaction type.

3 = Accumulated storage on daily level per transaction type.

For alternatives 2 and 3, all receipts are stored on a detail level (as for alternative 1).

(MMS002/G)

Allocation method

...how allocation is carried out. The valid alternatives are:

1 = Manual allocation

2 = Automatic allocation using the allocation table if one is created for the item. If there is no table, allocation is performed using FIFO without considering the location type.

3 = Automatic allocation for the location entered per item/warehouse. Overallocation is permitted per location but not per warehouse. This method may not be used if the item is lot controlled.

4 = Automatic allocation for the location specified per item/warehouse. Allocation is performed without a balance check. This method may not be used if the item is lot controlled.

5 = Automatic allocation using the allocation table, but only one lot number can be allocated. This method can only be used in combination with lot control.

6 = Soft automatic allocation with a check against allocatable balance on warehouse level. See note 1.

7 = Soft automatic allocation without balance check. See note.

In the allocatable quantity check, only the allocatable balance IDs that have status 2 and have not been allocated before, are included in the quantity.

When allocation method 0 is specified, the item/warehouse balance can only be reduced by backflushing or syncroflushing. This is only appropriate for manufacturing orders without a picking list.

Note:  For methods 6 and 7, actual issued balance identities are specified manually when reporting picking lists in 'Picking List. Report' (MMS421) if manual allocation has not been performed before.

(MMS002/G)

Quantity controlled allocation

…if a quantity controlled allocation table is connected to the item/warehouse. This information is maintained automatically. The table is maintained in 'Item. Connect Stock Location Type' (MMS057). The valid alternatives are:

0 = Allocation can only be made in relation to the specified location or location type

1 = Allocation is made according to defined quantity limits.

The table enables allocations to be made repeatedly and to be placed in the location type that is consistent with the quantity that remains to be allocated. This means that the allocation of a reservation can affect several different location types, for example, a whole pallet or picking inventory.

(MMS002/G)

Issue method

...when and how material issues to work orders and material orders are reported. The valid alternatives are:

0 = Material issue method 0 may be used for non-stocked items for maintenance work orders in (MOS101). The material transaction status is set to 90 as soon as the transaction is done.

1 = Material is issued against a picking list according to the allocation method used. Note that this method should be used if the item is order-initiated.

2 = Material is issued against a requisition and is reported manually.

3 = Material is issued automatically based on the quantity reported as put away. The issue is always from the location specified per item/warehouse.

4 = Material is issued automatically based on the quantity reported as produced in the operation where it is used. The issue is always from the location specified per item/warehouse.

5 = Material is issued automatically based on the quantity reported as put away. The issue is from the location specified in the work center for the operation to which the material is connected.

6 = Material is issued automatically based on the quantity that is reported as produced in the operation where it is used. The issue is from the location specified in the work center for the operation to which the material is connected.

Note:  The planning groups, to which the material is connected must be set as Item location issue on 'Work Center. Open' (PDS010/F) when issue method 5 or 6 is used. Otherwise, the issue method will automatically be reset to 3 or 4 for the manufacturing orders created.

(MMS002/G)

Warehouse equipment

…a specific piece of warehouse equipment used in a warehouse. This is used when special equipment is required for in-house movements of certain items, or to/from certain locations.

Warehouse equipment can be set for each item/warehouse (MMS002/G) and location (MMS010/F). Of the two, the item/warehouse has the highest priority.

When the special equipment is required for an issue, separate picking lists are created in M3 for different pieces of warehouse equipment.

(MMS002/G)

Allocate non-approved balance ID

...whether automatic allocation should be possible for non-approved balance IDs, for example balance IDs with status 1. The valid alternatives are:

0 = No

1 = Yes

Automatic allocation of non-approved balance IDs applies only to order lines connected to a distribution order.

(MMS002/G)

Delivery split rule

...the delivery split rule for the item, which is used to group items when delivery shares are defined.

(MMS002/G)

Buyer

…the buyer is normally responsible for purchasing. The buyer can, for example, be responsible for purchase orders, agreements, item/supplier combinations, or item/warehouse combinations.

The specified buyer for each item/warehouse is copied to the planned orders generated by M3.

(MMS002/G)

Inspection location

...the location where goods received are stored while waiting to be quality inspected in the purchase component group.

If the item is to be inspected, this location is proposed by default in 'Purchase Order. Receive Goods' (PPS300). If the location is left blank per item/warehouse the location is proposed by default from the goods receiving method.

(MMS002/G)

Distribution/supplier calendar check

...how a check of the distribution and supplier delivery calendars is to be performed when an order's delivery date is determined. The valid alternatives are:

0 = Calendar not used

1 = Back scheduling. The issue data/receiving data are computed starting with the planned date for the order and working backward to determine the first distribution day/receipt day.

2 = Forward scheduling. The issue data/receiving data is computed starting from a known start date and working forward to determine the completion date for an order, proceeding from the first operation to the last.

3 = Closest date possible is selected, regardless if a previous or later delivery date will be selected.

The calendar used is determined by the acquisition method.

(MMS002/G)

Distribution group

...a distribution group which is used to group similar items distributed to the same warehouse.

(MMS002/G)

Fill partly empty locations

…whether M3 BE should look for partly empty locations and try to fill them when finding put-away locations. The valid alternatives are:

0 = No

1 = Yes

(MMS002/G)

Minimum remaining quantity

…the minimum quantity that should be left on a balance ID after a stock issue (allocation).

This allows checking that an unusable quantity is not left in stock after issuing. This control is performed during allocation. Cables and floor coverings are examples of the types of items that can use this.

(MMS002/G)

Cross-dock

…whether cross-docking is allowed in the warehouse.

The valid alternatives are:

0 = No

1 = Yes

Parameters to set - (MMS002/H)

H panel in 'Item. Connect Warehouse' (MMS002).

Program ID/Panel

Field

The field indicates...

MMS002/H

 

Displays on-hand balance and status information.

MMS002/H

Annual usage

Calculates and updates (MBUSYE) for selected item/warehouse records. Calculated by 'Item Statistics. Period Run' (MMS805). The usage is calculated as the sum of the last years usage ending with the to period specified in (MMS805).

Quantities used are the 'Demand Types' (FCS100) from item statistics (MITSTA, 'Stock Transaction. Display' (MWS070) / 'Stock Transaction. Display History' (MMS070) that are connected to the items forecast method.

MMS002/H

Fixed annual demand

Moves (MBYEQT) to (MBLYQT) for selected item/warehouse.

Parameters to set - (MMS002/I)

I panel in 'Item. Connect Warehouse' (MMS002).

Program ID/Panel

Field

The field indicates...

(MMS002/I)

 

Displays expiration date, aging and VAT information.

(MMS002/I)

Exp date tab

(Point of time table)

… the ID of a time table containing planning points specified in days, hours and minutes. The table type determines how the time table is used.

A time table with table type 10 is used to total the requirements when order policy 15 is used in MRP.

A time table with table type 20 is used as a supplier calendar when purchase orders are created in MRP.

A time table with table type 30 is used to collect deliveries to allow forecast pacing in delivery windows.

A time table with table type 40 is used to collect orders to monitor orders as well as forecast pacing.

A time table with table type 50 is used to calculate the expiry date within a period bucket when expiry date table on (MMS002/I) is filled.

Time tables are created in (RPS080). When defining a time table, you can use facility, warehouse and table type to control the extent of its validity. This means that the same time table ID can be used in different situations and have different settings. To define a time table:

  • for an entire company, leave facility and warehouse blank.
  • for a specific facility, specify the facility ID and leave warehouse blank.
  • for a specific warehouse, specify the warehouse ID and leave facility blank.
  • with different time periods, define the time table ID twice and use different start and end dates.
  • with different table types, define the time table ID twice and use different table types.

Parameters to set - (MMS001/J)

J panel in 'Item. Connect Warehouse' (MMS002).

Program ID/Panel

Field

The field indicates...

(MMS002/J) Consignment level ...how consignment goods are tracked in stock. The valid alternatives are:

0=No consignment

1=Consignment on warehouse level – this is used when consignment quantities are accumulated per warehouse. It can be used if your own goods and supplier owned goods can be mixed on the same balance ID. The possibility to track goods through inbound and outbound processes is limited.

If item is lot controlled, the consignment quantities are accumulated per warehouse, item and lot.

(MMS002/J) Consignment usage rule

...how the usage of consignment goods is calculated and reported.

The valid alternatives are:

0 = No rule

1 = Consume own stock first, then supplier owned stock

2 = Consume supplier owned stock first, the own stock.

(MMS002/J) Detailed sequence of supplier usage 1, 2, 3

...the sequence of usage of supplier owned goods, if existing consignment stock for an item is owned by several different suppliers. The valid alternatives are:

0=No detailed sequence

1=First receipt date

2=Last receipt date

3=Suppliers priority

Valid combinations are 1 2 3 and 2 1 3. If several records have the same detailed sequence, the supplier’s ID is used as the last object to select which supplier goods are to be used.

(MMS002/J) Consignment on Hand Balance

…the on-hand balance quantity of goods under consignment per item/warehouse. The quantity is the total of all goods owned by a supplier.

Note that supplier owned goods in status under inspection with a reporting number, and in status rejected with a reporting number are not included

(MMS002/J) Consignment on Hand - inspection

...the on-hand balance quantity of consignment goods under inspection.

Note: ...the on-hand balance quantity of consignment goods underOnly the balance IDs of consignment goods in status under inspection with a reporting number are included.
(MMS002/J) Consignment On Hand - Rejected

...the on-hand balance quantity of consignment goods with status Rejected.

Note that only the balance IDs of consignment goods in status Rejected with a reporting number are included.

(MMS002/J) Consignment on Hand – Catch Weight … the on-hand balance of goods under consignment in catch weight U/M.
(MMS002/J) Consignment on Hand – inspection – Catch Weight

…the on-hand balance of consignment goods under inspection expressed in catch weight U/M.

Note: This only includes balance IDs with reporting number in status = Under inspection.
(MMS002/J) Consignment on Hand – Rejected – Catch Weight

…the on-hand balance of rejected consignment goods expressed in catch weight U/M.

Note: This only includes balance IDs with reporting number in status = Rejected
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