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  • 1.  IRP Recommendation/Advice

    Posted 05-10-2024 09:09
    Edited by Madeline Stefanou 05-13-2024 10:55

    Looking for thoughts and advice.  Here is the scenario:  

    • Item has 3000 units on hand, 600 units on Sales Order and a Reorder Point of 4000 units.  
    • Item is Buy to STOCK (corrected) 
    • There are no Work Tickets demanding this product
    • IRP is recommending a purchase of 1000 units. In my mind the On Hand Quantity fulfills the Sales Order Demand for this item, and even with Date Based IRP, the 1000 units recommended to buy should be one single PO Line Item (with a date that matches up with the Item/Vendor Lead Time

    INSTEAD:

    • IRP is creating a PO Line Item for each "required" date on the sales order.  If those 600 units were on 60 separate Separate Sales orders it is creating 60-date specific Purchase Order Line Items (one for each Sales Order Required Date); and then a 61st line for the remaining quantity needed (400 units) to get to the Reorder Point

    Sage is telling me it is working as designed as Date Based Purchasing.  I'm trying to explain that there are sufficient on hand to meet demand, so the entire demand is 1000 units.  If the Reorder Point was 3600 units, it would create a single PO Line for 400 units.   

    I'll tag a few people that may have a suggestion for the client.  Having a PO with 61 separate line items to order 100 units is not going to work for our client; even if we can summarize the Printed PO, it is a receiving nightmare, especially if their vendor does partial shipments.   Any advice?  Any pull with engineering to explain why this is not right? 
    @Gil Ponte @John Hoyt @Jane Scanlan @Joseph Jenders 



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    Madeline Stefanou
    RKL eSolutions, LLC
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  • 2.  RE: IRP Recommendation/Advice

    Posted 05-13-2024 10:32

    Madeline,

    Since the procurement method is Buy to Order, that is the reason for the separate PO lines; the procurement method should be changed to Buy to Stock.



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    Jane Scanlan
    Partner
    Next Level Manufacturing Consulting Group
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  • 3.  RE: IRP Recommendation/Advice

    Posted 05-13-2024 10:54

    @Jane Scanlan  THAT IS A TYPO.  It is definitely "Buy to Stock".  



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    Madeline Stefanou
    RKL eSolutions, LLC
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    Original Message


  • 4.  RE: IRP Recommendation/Advice

    Posted 05-13-2024 11:07

    Madeline - OK, that's better!  I can sort of understand Sage's logic of date based purchasing, or JIT, because of the varying dates on the sales orders.  How does the standard auto-generate PO's feature handle this same situation with the PO creation?



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    Jane Scanlan
    Partner
    Next Level Manufacturing Consulting Group
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    Original Message


  • 5.  RE: IRP Recommendation/Advice

    Posted 05-13-2024 11:12

    I'm wondering if you change the reorder method to "economic qty" and put in a value for the Economic Qty to order. Maybe that would order a larger amount on the first "need by" date.



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    David Overholt
    DWD Technology Group
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    Original Message


  • 6.  RE: IRP Recommendation/Advice

    Posted 05-13-2024 13:17

    Maybe IRP is using the PO Generate settings, and it is set to that option?



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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 7.  RE: IRP Recommendation/Advice

    Posted 05-13-2024 13:44

    @David Overholt changing to Economic Qty and an Economic Qty = 1,000; it creates the PO Line item for 0 quantity.  (yes, PU3 is installed which did address PO Lines getting created at 0.00 units.  Changed Economic Quantity to 600, closer to Qty on SO; IRP showed demand of 600 (the Economic Qty); but also created PO Lines for 0 units.  Changed Economic Qty to 300; and it created 5 line items.  Addressing each SO individually, 

    @Kevin Moyes checked the PO Generate Settings; it is set to PO Date.  That is a great idea of how IRP could use a PO Setting so it can work in multiple scenarios; but I don't see it recognizing that setting either.  



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    Madeline Stefanou
    RKL eSolutions, LLC
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