Item - Ordering (tcibd2100s000)

	Item - Ordering (tcibd2100s000) Use this session to maintain the general order data for an item. Note The item ordering data includes: Limits for the quantities that can be ordered. Default values that LN uses to generate the orders. Note Before you can define the item ordering data for an item in this session, you must first enter the general item data in the Item - General (tcibd0101s000) session. Related topics Item ordering data Item In LN, the raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, sold, and so on. An item can also represent a set of items handled as one kit, or exist in multiple product variants. You can also define nonphysical items, which are not held in inventory but can be used to post costs or to invoice services to customers. The following are examples of nonphysical items: Cost items (for example, electricity) Service items Subcontracting services List items (menus/options) Note Segmented item codes consist of a project-code segment and an item-base segment (the item code). You can define the item code segmentation in the Item Code Segmentation (tcibd0500m000) session. Order Policy The item's order policy. Allowed values Order Policy Related topics Item ordering data Order System The item's order system. The order system that you can select depends on the combination of the item type and the item's order policy, and whether a purchase schedule is in use for the item. Allowed values Order System Related topics Item ordering data Order Method The item's order method. Related topics Item ordering data Order Quantity Increment The size of the step by which the order quantity can be increased. The recommended order quantity must be a multiple of the quantity that you specify as the order quantity increment. LN verifies this when planned orders are generated. Example If the required order quantity is 62 and the order quantity increment is 8, then LN recommends an order quantity of 64. Note LN verifies this, when planned orders are generated. If you select the Inventory/Order Data check box, LN updates this field when you run the Global Update of Inventory Parameters (whina2200m000) session. Related topics Item ordering data Order quantity settings Minimum Order Quantity The minimum order quantity for the item. Note If you select the Inventory/Order Data check box, LN updates this field when you run the Global Update of Inventory Parameters (whina2200m000) session. Example The economic stock is 100. The reorder point is 230. The order method is Lot for Lot. The minimum order is quantity 800. As a result, LN generates a planned order for 800 instead of an order for 130 (230-100). Related topics Item ordering data Order quantity settings Maximum Order Quantity The maximum order quantity for the item. Note If you select the Inventory/Order Data check box, LN updates this field when you run the Global Update of Inventory Parameters (whina2200m000) session. Example The economic stock is 100. The reorder point is 530. The order method is Lot for Lot. The maximum order quantity is 400. As a result, LN generates two orders for 400 each instead of a single planned order for 430 (530-100). Related topics Item ordering data Order quantity settings Fixed Order Quantity The fixed order quantity for the item. Note If you select the Inventory/Order Data check box, LN updates this field when you run the Global Update of Inventory Parameters (whina2200m000) session. Example The order method is Fixed Order Quantity and the Fixed Order Quantity is 20. If you require 70 units, LN will generate four orders for 20 units each (a total of 80 units). Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Fixed order quantity. Related topics Item ordering data Order quantity settings Economic Order Quantity The economic order quantity for the item. Example LN generates a planned order for 20 units of an item with a SIC order system and the Economic Order Quantity order method. The economic order quantity is 30 units. The minimum order quantity is 25. As a result, the order is adjusted to 30 units. Related topics Item ordering data Order quantity settings Reorder Point The reorder point. Inventory control is based on a number of decision rules, which determine when, and in what quantity an item is ordered. This depends on the values of the following fields: Reorder Point Economic Order Quantity Fixed Order Quantity Order Interval Maximum Inventory There are four different decision rules: BQ sQ BS sS Under the BQ and BS rules, recommended orders are generated as soon as the economic order quantity falls below the reorder point. Under the sQ and sS rules, LN checks at fixed points in time whether the economic order quantity has fallen below the reorder point, in which case LN generates a recommended order. Note The reorder point is updated in the Global Update of Inventory Parameters (whina2200m000) session. If the Update Inventory/Order Data check box in this session is selected for the item concerned, the reorder point is updated. Maximum Inventory If the order method is Replenish to Maximum Inventory, LN generates purchase orders or production orders for the quantities of the item that are required to reach this inventory level. Service Level [%] The service level percentage determines to what extent the item can be delivered directly from inventory. Example A service level of 95% means that in 95% of all cases customer demand must be satisfied by immediate delivery. In other words, 'no' is accepted in 5% of the cases. Note A service level of 100% is not recommended, because it causes an infinitely high safety stock. Safety Stock The safety stock for the item. Note The safety stock must be less than or equal to the maximum inventory and/or the re-order point. Order Interval The number of workdays or working hours for which all the requirements of a specific item are bundled in one (planned) order, during an order planning run. LN calculates the order interval from the day when the first requirement occurs. Order intervals are used to prevent an excessive number of planned orders in one time period. Order Interval Unit Select Hours or Days as the time unit in which you want to express the order interval. Safety Time The time that you can add to the normal lead time to protect delivery of goods against fluctuations in the lead time so that an order can be completed before the order's real need date. First Allowed Order Date The first date on which an order can be created for the item. LN checks this date if you enter a purchase order or a production order manually and also if Enterprise Planning creates a planned order for this item. You can also specify a value for this field in the Warehouse - Item (whwmd2510m000) session. That field applies to a specific combination of item and warehouse. Last Allowed Order Date The last date on which an order can be created for the item. LN checks this date if you enter a purchase order or a production order manually and also if Enterprise Planning creates a planned order for this item. You can also specify a value for this field in the Warehouse - Item (whwmd2510m000) session. That field applies to a specific combination of item and warehouse. Related topics To use up remaining stock of outdated items Order Costs The (administrative) costs for placing an order. Order costs include the handling and transportation costs. The costs of the purchasing department, production planning department, and control department incurred by a production order or a purchase order. Planner The employee or department responsible for planning the production, purchase and distribution of items. The planner takes into account the inventory levels, availability of materials, and capacities of resources, and reacts on signals such as rescheduling messages that LN generates. If you enter a planner in this field, you can use the planner as a criterion to select or group production orders in Warehousing and Manufacturing. Shop Floor Planner The person responsible for printing, (re)scheduling and releasing production orders and managing workloads. If you enter a shop floor planner in this field, you can use the shop floor planner as a criterion to select or group production orders in Warehousing and Manufacturing. Routing Group A group of items with similar routing attributes, for example, the same work center, routing operation, BOM, and so on. A routing group is defined by the user as a selection criterion for production orders. If you enter a routing group in this field, you can use the routing group as a criterion to select or group production orders in Warehousing and Manufacturing. Seas Pattern for Safety Stock The seasonal pattern for safety stock. Related topics Seasonal pattern for safety stock and demand Seasonal Pattern for Forecast The seasonal demand pattern for the item. Related topics Seasonal pattern for safety stock and demand Number of Periods for Forecast The number of days, weeks, or months (the selected period type) in one period of the selected seasonal pattern. Number of Periods for Forecast The unit of time for the period in the selected seasonal pattern. Inventory/Order Data If this check box is selected, LN automatically updates the item's inventory and order data when you run the Global Update of Inventory Parameters (whina2200m000) session. Update Order Quantity Project If this check box is selected, LN replaces the Order Quantity Project with the Recommended Order Quantity when you run one of the following sessions: Calculate Estimated Cost and Valuation Prices by Project (ticpr2211m000) Calculate Cost Prices by Project (tipcs3250m000) Warehouse The default warehouse in which the item is stored. For example, LN uses the default item warehouse: To calculate the item's cost price To create plan items To generate purchase orders You must specify a default item warehouse for items of the following types: Purchased Manufactured Generic Critical in Planning If this check box is selected, this plan item is critical in master planning. This means that in the master-planning process in Enterprise Planning, this item is treated as a critical component. If the item order system is Planned, you can select or clear this check box. In order planning, all components are taken into account. In master planning, only critical components are considered. Note Master planning uses an item's bill of critical materials (BCM) for production planning. As a rule, the BCM is derived from the BOM, and contains only those components that are designated as critical in master planning. You can generate a BCM for an item in the Generate BCM or BCC (cprpd3220m000) session. Related topics Master planning, an overview Recommended Order Quantity The recommended order quantity for the PCS project. The recommended order quantity is the total needed quantity of a customized item which has been specified in the project structure. The recommended order quantity is calculated using the Calculate Cost Prices by Project (tipcs3250m000) session. Order Quantity Project The item's order quantity for a PCS project. LN needs the order quantity for the following purposes: The calculation of the setup costs for operations during the estimated project calculation. The calculation of the lead-time offset. Update Order Quantity Project If this check box is selected, LN replaces the Order Quantity Project with the Recommended Order Quantity when you run one of the following sessions: Calculate Estimated Cost and Valuation Prices by Project (ticpr2211m000) Calculate Cost Prices by Project (tipcs3250m000)