Hello, If your safety stock and reorder point are well calculated, they should cover the average demand during the procurement lead time (the 6 months then), plus the variability of the demand and the supply. Your explanation is only true if you have a peak of reservations that far exceeds the average consumption. In that case, it means you are above the 97% of service rate we usually take as input in the safety stock calculation. And that’s the game with the method of replenishment, which supposes the part is compatible which such an approach. Or you should change your plans and use a demand-driven model. Hello @Bertrand Dousset, thank you for your reply. You are correct, we have calculated reorder point and safety stock based on standard method, however our industry has a very unpredictable demand pattern and many demands for parts will often exceed the standard deviation.What you say is Planning Method B shouldn’t be used in such cases then, correct? If yes, how in IFS should I the
I always find this help topic is pretty good about explaining this: [yourifsinstance]/ifsdoc/documentation/en/default.htm?openpage=https://ifshelp.instron.com/ifsdoc/documentation/en/MaintainInventory/AboutOrderProposals.htm The short answer is that Order Point is different than MRP and ignores any current demand in the system, it operates only on the Projected Quantity On hand which is different than Available Qty. Available is based on a viewpoint of time = now (unless you simulate future availability), but Projected Quantity On Hand is a calculation that is one leadtime into the future, but future demand is not part of the equation. Unless you are picking the inventory to the orders that require it on a realtime basis, just reserving doesn’t help you with Order Point. Hello @ShawnBerk,This issue seems to be precisely what you say: future demand is not considered. Our problem, is we have customers buying parts but asking for delivery only in months from now.Example, we have 10
Thank you @ShawnBerk, I will test it!
Thank you @EqeMithuV .Our monthly demand pattern are not very stable and are somewhat erratic. The standard deviation, month-to-month, is high making it difficult.In addition, we often have wanted delivery from customer orders in the future, hence why we make inventory reservation or pegging to ensure availability at the time of wanted customer delivery date.What would then be the best way to manage a larger than usual future demand (but not greater than OP-SS) that is somewhat “automated” or prompted by the system?Or do we have to accept manually planning the supply versus future demands
Hello @EqeMithuV ,I did think the Planning Method G was going to help, since it says that “the lot size is determined by the total demand during the order cover time”, however I ran some tests using 180 days cover time (which I thought meant the system would look ahead 180 days for demand) and it still didn’t take into account future reserved demand.It seems I’m struggling to find the appropriate Planning Method of the particularities of our business, which is inconsistant standard demand, for which we still need stock, and with episodes of abnormal demands.
Thank you @EqeMithuV !Shouldn’t the OEUNSHIP inventory transaction be taken into account in this list? Or is the list customizable and we can choose to add it or not?The OEUNSHIP should create an increase quantity (positive direction) for issued inventory since you undo a shipment and you put inventory back, no?
The Inventory Turnover Rate on the Inventory Turnover Rate per Period screen is a calculated field. You could use that same calculation in a custom field on the po req lines or po lines. The only challenge may be feeding the calculation the from/to year & period. It means it needs to be programmed by our support team, there’s no easy inclusion of a new field into the PO/PR table, correct?
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