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Explanation of planning method A and planning method B

  • 12 July 2024
  • 2 replies
  • 42 views

Hello together, 

we have min/max stocked items as well as items that only need to be procured when needed.

Could someone explain the difference between A and B again?

Thank you for your help. 

2 replies

Userlevel 3
Badge +8

Hi @Mirajo,

Planning Method A. Lot for Lot

 

This planning method means that the order quantity is equal to the actual demand of the period. It considers minimum, maximum, or multiple lot sizes. The demands are not combined unless they are from the same day.

Example: When the quantity on hand decreases, order proposals are created with the same lot size as the quantity required.

 

Planning Method B. Order Point Planning

 

The part is not affected by MRP. The order point and order quantity are specified in the inventory part register. When the quantity on hand falls below the order point, a new order proposal is created, which is shown on the order proposal list. The order quantity you enter determines the default order quantity.

  • The Order Point Quantity field is used to define the Replenishment Level,. Order Quantity is calculated as multiples of a Fixed Ordering Quantity, until the Order Point is reached.

Refer: https://ifs22r1costestcmb.rnd.ifsdevworld.com/ifsdoc/documentation/en/MaintainInventory/AboutMRPOrderCodes.htm

Regards,

Nikila Dissanayake

Userlevel 7
Badge +18

@Mirajo I’m also leaving below a generic link to the documentation that @Nikila Dis provided as probably you won’t have access to the one he shared above.

https://docs.ifs.com/ifsclouddocs/24r1/MaintainInventory/AboutMRPOrderCodes.htm?StandAlone=true

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