I would like to understand the minimum order quantity and order multiple quantity.
For example, part number SKP-100 has a minimum order quantity of 200 pieces, and additional parts must be ordered in increments of 100. Another example is part number SKP-150, which has a minimum order quantity of 5 pieces and an order multiple of 1 piece. Although items with minimum order quantities and multiples make up a small percentage of our purchases, there are still a dozen or so (mostly coulters/discs and hydraulic motors) that have these restrictions.
How and where will this information be entered when new parts are created or when existing parts are updated to reflect these purchasing conditions? Why was the minimum order quantity not included in the PO recommendation?
MRP and Generate PO Suggestions both use these values.
basically, the way MRP / PO Suggestions works is:
system determines the NEED
then the system applies all the parameters:
Days of Supply - system will group demands into groupings by the number of days of supply - example, if DOS is set to 7 days, then at the first demand, the system will look ahead 7 days, and group all the demands together.
MIN order qty: Then the system will apply this rule. It will “force” to the minimum if the demand is less than the minimum… otherwise this will be ignored.
Order Multiple: The system will also bump the value up to the next order multiple. example, if the multiple is 12, and your demand is for 15 pieces, the system will bump the quantity to 24.
So… for example:
DOS = 14
min = 36
mult = 12
demand 1/1/2025 30 pieces demand 1/5/2025 10 pieces
SUGGESTION will be for 1/1/2025 for 48 pieces (hit DOS and Multiple rules) demand 1/15/2025 37 pieces
SUGGESTION for 1/15/2025 for 36 pieces (we already have 8… so we only need 29 pieces, but our minimum order is 36, so it will bump up to 36 for the minimum
You can either edit the individual part’s lot sizing, or you can edit it by the product group. I always like the part settings, as we don’t use product group much. Open Part Entry > Part > Sites > Details. Some of the quantity sizing is listed here, and you can find more lot sizing options under the Planning tab.
If the part is setup as a purchased part, then these are purchasing sizes. If the part is setup as manufacture, then these are manufacturing sizes. Additional purchasing specifics can be found in Part > Sites > Detail > Purchasing.
