PO Suggestions - Understanding Why

Kinetic ERP
1

I have an inventory part that is not used in Production. We have a min and max set on the part. We allow consumption of minimum and we reorder to max (to minimize how often we reorder this part). My buyer generates weekly POs to replenish our spare parts inventory and would not add a part to these orders without a PO Suggestion. For this case, we kept getting PO suggestions for this part, even though we were projected to have stock levels above maximum. I am not sure why the suggestions kept coming through in a quantity of 6 also. Here is our Time Phase:

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The only source seems to be the minimum on hand (unless I am missing something).

Why would we keep getting suggestions for 6 pieces even after we are projected to have a balance above our maximum?

2

Those don’t look like suggestions. They are firm POs and Epicor is raising an exception warning you you’ll be over the maximum.

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3

Mark,
Thank you. Yes these are POs, but they came in as New PO Suggestions and my buyer just kept ordering them (with a hundred other parts) every week. Once the Max on hand was projected to be satisfied, why did we continue to get New PO Suggestion?

4

Seeing the Time Phase beforehand would be helpful. Next time it happens, or if you can duplicate it, paste a new Time Phase here please.

5

Hi Brian

As mark said, everything in timephase is related to an existing PO. Suggestions appear as:

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Now this bit is an assumption but I think timephase is doing a calculation to say the POs are bringing you in over max.

There are no po suggestions in your screenshot.

6

Matt,
I agree that Time Phase is calculating that the open POs will put us over Max.

My buyer would not issue a new purchase order without a Suggestion. So why would Epicor have made the suggestions (that my buyer has already turned into POs) that show due dates of 11-8-2022, 11-15-2022, 11-29-2022, and 12-13-2022? That is 4 more POs (that were suggestions at one point in time) that will not be needed as we will already be over max. I am also trying to understand why the quantity is 6.

7

Do you lock either QTY or date on POs?

8

No to both (on any of the open POs).
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9

locking has caused me to over-order in the past but not the case here.

I know from testing on a previous issue that the re-order to max does not prevent you from going over your max. The only use I see for the exception column stating Above Maximum is that you can use that as a criteria in this report:

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That QTY of 6 is odd. We don’t currently use re-order to max so not sure what is going on.

10

Which is why a Time Phase beforehand would be helpful. Until then, we’re just guessing. Maybe something was Buy Direct at one point? :person_shrugging:

11

Or there was demand in the system that was removed?

Check your lot sizing on the part to see if that is where the 6 is coming from.

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12

Part Trans Action History Tracker shows this (nothing in the last 2 years):

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Our change log shows that the min and max was adjusted on 10-21-22:
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No orders and no jobs for this part, so the only demand has been min/max on hand.

Lot size has no requirements:
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13

After reading this thread - you may want to look into using Kanban PO’s

You can set the trigger level at the warehouse or bin location to create a new release on an existing PO.

When your inventory drops below the minimum, a new release is created (even if the PO is closed)
The buyer prints a weekly open PO report filtered for that supplier to request the replishment.

Makes it a lot simplier to manage.

14

So I have it figured out. Our vendor will sometimes change the part number on us. In this case, we had 2 on hand for the old part and the min was set at 3 and max set at 8. We are set to reorder to max so to get to 8 from 2 on hand, we need 6 (so that is why the suggestions/POs have been for 6). When we get the confirmation back from our vendor, showing a new part number, the Buyer is supposed to contact the people in charge of adjusting the inventory levels to have them change the min/max between the two parts, set the old one to run-out, set up an alternate part number.

2 Likes
15

I notice your Days of Supply is set to 0. I’m not sure what that does to looking forward at PO’s but it is something I would experiment with. We tend to let it look a month ahead.