Planned Netting Group: Borrowing and Payback

Hi @RASFE ,

The difference between Required and Not Required Borrow & Payback is whether the supply is surplus ‘now’ or ‘always’.

‘Now’ surplus means that the supplying PPSA has more than it needs right now but will need that supply replenished but there is time to do so, i.e. the next demand is further out than the lead time for replenishment.

‘Always’ surplus means that the supplying PPSA has more than it will ever need. Over supply or overly large Minimum order quantities mean that there is more stock in the business thais needed and that should be used before buying more.

The lead time for a Part is a critical piece of information in all this.The solution is totally reliant on there being reliable and accurate lead times in place for the parts to be shared.

It is also a balance of process, cost and convenience. Short lead time parts are usually lower value, so are more likely to be ‘Always’ surplus. Longer LT parts are more likely to be higher value and a lot less likely to be any form of surplus.

The whole process will get very complicated, very quickly. Users will get quite fed up with having to approve transfers between their projects. Project managers tend to be very jealous guardians of what they view as their stock and will not want to share their surplus, etc.

All in all, users in my experience do not use B&P. It just not being worth the hassle. 

They may treat all surplus supply as, in effect, ‘always’ surplus. This would then allow them to switch on the ‘Automatic MTR’ control and leave the movement of surplus inventory in the hands of PMRP. Surplus Inventory in the sharing projects is then just another source of supply.

It is all very dependent on the specific circumstances of the customer in question. Do you have a particular scenario in mind?

Gareth