How does ReOrder to Max work?

So we are facing an issue with when suggestions are being generated. What we would like is that E10 would create a suggestion only when the quantity on hand goes below Min and creates a suggestion to order to Max (reorder to Max is checked) and take current demand and open PO’s into account.

However, when we check reorder to Max, it generated a suggestion every time quantity drops below Max and it takes the demand into account but not the open PO’s. Am I missing something in understanding how this is working or should work?

Please help!!!

The way it SHOULD be working is:

  1. When you fall (or are predicted to fall) below Minimum + Safety:
  2. Order enough to get you to the MAX.

if you dont have the reorder to max check turned true, then it will only order enough to get you at or above Min+safety.
Example:

  • safety 100
  • Minimum 1000
  • Maximum 10000
  • You have 2000 on hand, but have a demand next week for 1200 pieces… that will leave you with 800 on hand.

With Reorder to max: The system sees this, and proactively suggests that you purchase 9200 parts to get you to max.
Without Reorder to Max: the system will only suggest to purchase 300 parts.

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A screenshot of Time Phase would help us understand your specifics.

Also, @timshuwy is always right about these questions. And he didn’t say it explicitly, but the system will recognize your open POs.

But “taking open POs into account” is a loaded term. What it means to most people is not what it means to JIT software. There is a lot that goes into the MRP/suggestion calculations, like receive time, for example.

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hahah… no… not “Always”. Every once in a while, I am “mistaken”.

@msoni, One other thought. There is a setting for “Allow Consumption of Minimum” which, if turned ON, the system will not make a suggestion if there is already a PO that is WITHIN THE LEADTIME of the part and the qty of the PO will take you above the minimum.

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Here is an example of a part that I don’t see it creating a suggestion correctly. Unless I am counting wrong.

Hi Mansi,

We have used reorder to max in the past. A couple of thoughts… Your dates are very old, I would test with dates that are believable. Bad dates give bad results frequently. Also, if you would like the system to combine the PO suggestions and demands, use a days of supply value. If you cannot change a cut PO, consider locking the PO release quantity and date, then you’ll get less noise on expedite or increase qty suggestions. From the looks of it, you’re treating MOH like SS. Do you want the system to work to never go below MOH, similar to SS, or allow consumption of minimum on hand as normal procedure?
There’s a setting in site maintenance for it, per sceenshot. Finally, is there usage of the part in between the MRP run and your screenshot? 58 is fairly close to 61…

HTH, Nancy

Posted a screenshot. Please let me know what you think.
Also, 2014 is an open PO that got carried forward when we migrated to Epicor from our old system. There are several parts that migrated with open PO’s which may have been received but never got closed on the system. That is definitely another issue which we are not sure how to tackle given that we have over 100k parts on our system. Having said that could definitely be messing with our suggestions generated. Thoughts?

I believe it is working 100% as it “should” based on the dates…

  1. your current qty is “Below minimum” (see exception column). This will trigger the system to pull in a PO.
  2. you have a demand on 6/5/2014… this futher drives you below the minimum. You now only have 30 projected in stock on 6/5/14
  3. you have Reorder to Max…
  4. The system sees your 3 PO deliveries in the future for 12, 12, and 4 (28 total pieces).
  5. it “suggests” that you reschedule all three of those to 5/11 (probably the date you ran MRP, or the date you have as your MRP start date).
  6. it is not suggesting that you purchase anymore, because your current supply is above the minimum.
    to demonstrate this:
  • you could cancel the three PO’s and you would probably see a new suggestion to purchase 33 pieces (61-28).

BUT in times like this. I tend to suggest the data be corrected.

  • Fix the sales order date. Make it realistic
  • confirm that the POs are correct
  • confirm that the Lead Time is correct
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