Item - Ordering (tcibd2100m000)

	Item - Ordering (tcibd2100m000) Use this session to view, specify, and maintain the global item ordering data, which is required to order the item. The item ordering data includes: Limits for the quantities that can be ordered Default values that LN uses to generate the orders Note Item ordering data can be specified only if the corresponding global item data is defined in the Items (tcibd0501m000) session. Related topics Item data Setting up the item data Setting up item data for multisite Multisite overview Item ordering data Item The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold. An item can also represent a set of items handled as one kit, or which exist in multiple product variants. You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The 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. Method The item's order method. Related topics Item ordering data Warehouse The default warehouse in which the item is stored. For example, the default item warehouse is used to: Calculate the item's standard cost Create plan items Generate purchase orders You must specify a default item warehouse for items of these types: Product Purchased Manufactured Generic List (type kit) 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 quantity when planned orders are generated. If you select the Lot Size Calculation Allowed 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 Lot Size Calculation Allowed 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 Lot Size Calculation Allowed 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 Lot Size Calculation Allowed 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 A set inventory level where, if the total stock on-hand plus total on-order falls below that point, action is taken to replenish the stock. 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. 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. Currency The currency in which the costs are expressed. 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. 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. 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. Seasonal 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 First Allowed Order Date The first date on which an order can be created for the item. LN checks this date when you manually specify a purchase order or a production order and also when Enterprise Planning creates a planned order for this item. You can also specify a value for this field in the Item Data by Warehouse (whwmd2510m000) session. That field applies to a specific combination of item and warehouse. Lot Size Calculation Allowed 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. Recommended Order Quantity Project The recommended order quantity for the PCS project. The recommended order quantity is the total required quantity of a customized item as specified in the project structure. The recommended order quantity is calculated using the Calculate Standard Costs by Project (tipcs3250m000) session. Related topics Order quantity settings 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 by Project Cost Calculation If this check box is selected, LN replaces the Order Quantity Project with the Recommended Order Quantity Project when you run one of the following sessions: Calculate Estimated Cost by Project (ticpr2211m000) Calculate Standard Costs by Project (tipcs3250m000) Period Type The unit of time for the period in the selected seasonal pattern. Allowed values Possible values Number of Periods The number of days, weeks, or months (the selected period type) in one period of the selected seasonal pattern. 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. You can use the planner as a criterion to select or group production orders in Warehousing and Manufacturing. Time Unit Select Hours or Days as the time unit in which you want to express the safety time. Last allowed Order Date The last date on which an order can be created for the item. LN checks this date when you manually specify a purchase order or a production order and also when Enterprise Planning creates a planned order for this item. You can also specify a value for this field in the Item Data by Warehouse (whwmd2510m000) session. That field applies to a specific combination of item and warehouse. Related topics Using up remaining stock of outdated items