Specifies the reordering policy. When quantities must be replenished, the reordering policy is used to calculate the lot size per planning period (time bucket).

Additional Information

You can select from the following reordering policy options.

Option Description

Fixed Reorder Qty.

Uses the quantity that is specified in the Reorder Quantity field as the standard lot size. The quantity may be adjusted to meet additional requirements or the specified inventory level.

The Reorder Quantity field is used for calculating the overflow level. For more information, see Design Details: Staying under the Overflow Level.

Maximum Qty.

Uses the quantity that is specified in the Maximum Inventory field to determine the maximum lot size. The quantity may be adjusted to meet additional requirements or the specified inventory level.

The Maximum Inventory field is used for calculating the overflow level. For more information, see Design Details: Staying under the Overflow Level.

Order

Generates an order for each requirement and does not use the planning period. An automatic reservation between the requirement and the corresponding replenishment order proposal is created. This preserves the customized information on the relevant orders and links them for inventory and costing.

Creating a manual reservation is an alternate method for setting aside items in inventory and designating them for use in a specific order.

Note
A related policy for multi-level production items is the Make-to-Order option in the Manufacturing Policy field.

Lot-for-Lot

Generates an order proposal with a quantity that meets the sum of the requirements that are due in the planning period.

Note
Using the reorder point with this option can create surplus replenishment order proposals.

Blank

Does not calculate order proposals for this item. You will manually plan for this item.

The final order proposal quantities may be adjusted according to the following order modifier fields:

  • Minimum Order Quantity
  • Maximum Order Quantity
  • Order Multiple
Note
This applies when you select the Maximum Qty. reorder policy option. However, if you use the Maximum Inventory field as a restrictive expression of your maximum storage capacity, then you should not use these modifier fields.

Important
If you change to a different reordering policy option, then some planning parameter fields that were previously active and contain the most recently used values may be disabled. Planning calculations will ignore these values.

Planning for Locations Without Using SKU

If you are planning for demand at a location that differs from the Components at Location field and you are not using stockkeeping units, then the Lot-for-Lot reordering policy option with blank planning parameters is used. Items that use the Order reordering policy option still use the order reordering policy. For more information, see Planning with/without Locations.

Tip

See Also