Safety Stock: This is the minimum stock balance that you want to have on hand at all times. The actual value will be heavily based on how critical the inventory item is to your operation.
Reorder Point (ROP): Reorder point is the balance level at which you want your inventory reorder to take place for the given item. The calculation is a forecast of demand over lead time plus a calculation of safety stock.
The ROP is used to trigger the reorder process for the item based on the following calculation:
Available Balance + Stock on Order =< (Equal to or less than)
(Available balance is the current balance - reserved quantity (reserved quantity is the quantity on all approved WO's referencing that item in the given storeroom) - expired stock)
(Stock on order is the quantity on all PR's and PO's for that item at that storeroom where PO/PR status is not closed or cancelled)
Note that when the work order has the "Required by Date" populated for the item the reorder process will not reorder if the SYSDATE + LEADTIME < REQUIREDBYDATE.
Setting the ROP to 0 will still reorder the item if the Available Balance + Stock on Order drops to 0.
If you want to prevent the reorder routine from ordering an item you should classify it as a non-stocked item.
Economic Order Quantity (EOQ): From a Maximo reorder point of view, this is the quantity that will be reordered once the reorder process has been triggered for the item.
EOQ refers to the optimum ordering quantity to keep inventory investments to a minimum. In other words, smaller ordering quantities would keep the inventory down, but would generate higher costs alternatively larger ordering quantities keep costs down but increase the cost of keeping the item in stock.
Reorder Point (ROP): Reorder point is the balance level at which you want your inventory reorder to take place for the given item. The calculation is a forecast of demand over lead time plus a calculation of safety stock.
The ROP is used to trigger the reorder process for the item based on the following calculation:
Available Balance + Stock on Order =< (Equal to or less than)
(Available balance is the current balance - reserved quantity (reserved quantity is the quantity on all approved WO's referencing that item in the given storeroom) - expired stock)
(Stock on order is the quantity on all PR's and PO's for that item at that storeroom where PO/PR status is not closed or cancelled)
Note that when the work order has the "Required by Date" populated for the item the reorder process will not reorder if the SYSDATE + LEADTIME < REQUIREDBYDATE.
Setting the ROP to 0 will still reorder the item if the Available Balance + Stock on Order drops to 0.
If you want to prevent the reorder routine from ordering an item you should classify it as a non-stocked item.
Economic Order Quantity (EOQ): From a Maximo reorder point of view, this is the quantity that will be reordered once the reorder process has been triggered for the item.
EOQ refers to the optimum ordering quantity to keep inventory investments to a minimum. In other words, smaller ordering quantities would keep the inventory down, but would generate higher costs alternatively larger ordering quantities keep costs down but increase the cost of keeping the item in stock.
No comments:
Post a Comment