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.

 

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

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.
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).

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).

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.

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.

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
Seasonal Pattern for Forecast

The seasonal demand pattern for the item.

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.

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.
Use Recommended Quantity

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.