As Herschel calculates the suggested orders required for each partnumber, it examines the partnumber’s ordering method and ordering parameters, held in the Store module. These details tell Herschel how the requirements for each item should be grouped together.
The various ordering methods available, and how they are handled by the plan explosion, are as follows:
Simple manual ordering |
Herschel does no reordering calculations at all and no new orders are suggested. It is up to you to decide when and what to order. However, note the lead time of the item is used during the plan explosion. |
Simple reorder point control |
No reordering calculations are performed during the plan explosion (the Store module can create a reorder report for these items). Note the plan explosion will use the item’s lead time in its calculations. |
Reorder point control, using plan |
Taking the current stock on shelf figure into consideration, Herschel works forward through the exploded requirements, calculating the remaining stock as it proceeds. When the item’s reorder point is reached, a suggested order is created for the item’s reorder quantity. The plan explosion will also ensure that the item’s stock on shelf does not fall below the item’s safety stock figure at any time. If two or more suggested orders for an item have the same duedate they will be combined into one order. |
Economic order quantity |
Herschel looks through the exploded requirements file and calculates the average monthly requirement for the item. It multiplies this figure by 12 to arrive at an annual usage figure for the item and uses this as the basis of its EOQ calculation. It then works through the exploded requirements and calculates when suggested orders, of the newly calculated EOQ, are required. Note Herschel will ensure that the stock on shelf does not fall below the safety stock figure. Although the EOQ method was very popular for some time it is now considered rather inaccurate - it can tend to increase stock levels unless it is used with care. |
As planned requirements |
A suggested order is created for each exploded requirement of the production plan. Herschel will warn you if the quantity suggested is less than the item’s minimum order quantity. Note Herschel will ensure that the item’s safety stock is maintained at all times. |
Weekly orders |
The exploded requirements for each week are totalled, and a suggested order raised for each week. Herschel will warn you if the weekly total is below the item’s minimum order quantity and will always ensure that the item’s safety stock is maintained. |
Monthly orders |
As for weekly batches, but on a monthly basis. |