Supplier exception policies can be set up to faciliate the search for excess stock in other warehouses before suggesting a supply from an external supplier, and thereby automate the process of moving suggestion lines to an internal replenishment suggestion.
Supply exception policies can be set up for items defined with the following:
- Externally supplied warehouses, i.e. distribution level 1.
- Planning method 1 (Purchase suggestion according to ROP model) and Planning method 2 (MRP)
The automated process works as follows:
- When you want a warehouse to look for excess stock in other warehouses before suggesting a supply from an external supplier, a Supply exception policy for each warehouse can be defined in the Item file on the Inventory management panel.
- When the job is run to create purchase suggestions from external suppliers, if the system can find a warehouse in the supply exception policy that has excess stock, the system will create an internal replenishment suggestion instead from that warehouse.
Options
| Add | Select this option to add a record. |
| Change | Select this option to change a record. |
| Copy | Select this option to copy a record. |
| Delete | Select this option to delete a record. Note: Deletion is not allowed when warehouses exist. |
| Display | Select this option to view a record. |
| Warehouses | Select this option to access the Work with supply exception policies, Warehouses panel where you can add/maintain the warehouses you want the system to search for excess stock. |
Selection fields
- Supply exception policy
- This column lists the supply exception policy code.
- Description
- This column lists the supply exception policy code description.
- Last movement days
- This column lists the minimum number of days that must have passed since the last inventory movement for the item in the warehouse.
- Item active days
- This column lists the minimum number of days that must have passed since the item was created. If the item has been created within the specified number of days it will not be checked for overstock.
- No of EOQ available
- This column lists the maximum number of available EOQs that is allowed before the item is considered to have overstock.
- Demand days avail
- This column lists the maximum number of available demand days that is allowed before the item is considered to have overstock.
- Excess of ROP + EOQ
- This column denotes if the item should be considered to have overstock if the available quantity exceeds the sum of ROP and EOQ.
- ROP + Demand days
- This column lists a number of demand days. When stock is suggested to be taken from a warehouse using this supply exception policy, at least the quantity (ROP + the forecasted demand for entered number of days) is left untouched.
- ROP + ROP %
- This column lists a percentage value. When stock is suggested to be taken from a warehouse using this supply exception policy, at least the quantity (ROP + entered percentage of ROP) is left untouched.
Work with supply exception policies (INVD04204)
On this panel you create a new supply exception policy or maintain an existing one.
- Supply exception pol
- Enter a code to identify the supply exception policy.
- Description
- Enter a description of the item attribute template.
Excess stock definition
Define one or several that must all be fulfilled
- Last movement days
- Enter the minimum number of days that must have passed since the last inventory movement for the item in the warehouse.
Note: If more than one excess stock definition is entered, then they must all be fulfilled for the policy to qualify as excess stock.
- Item active days
- Enter the minimum number of days that must have passed since the item was created. If the item has been created within the specified number of days it will not be checked for overstock.
Note: If more than one excess stock definition is entered, then they must all be fulfilled for the policy to qualify as excess stock
- No of EOQ available
- Enter the maximum number of available EOQs that is allowed before the item is considered to have overstock.
Note: If more than one excess stock definition is entered, then they must all be fulfilled for the policy to qualify as excess stock.
- Demand days avail
- Enter the maximum number of available demand days that is allowed before the item is considered to have overstock.
Note: If more than one excess stock definition is entered, then they must all be fulfilled for the policy to qualify as excess stock.
- Excess of ROP + EOQ
- Set this field to YES or NO to indicate if the item should be considered to have overstock if the available quantity exceeds the sum of ROP and EOQ.
Note: If more than one excess stock definition is entered, then they must all be fulfilled for the policy to qualify as excess stock.
Buffer definition
The following allows you to prevent that too much stock is taken from a warehouse that has overstock, thus avoiding creating an imminent need to supply. Define one of them.
- ROP + Demand days
- Enter a number of demand days. When stock is suggested to be taken from a warehouse using this supply exception policy, at least the quantity (ROP + the forecasted demand for entered number of days) will be left untouched.
- ROP + ROP %
- Enter a percentage value. When stock is suggested to be taken from a warehouse using this supply exception policy, at least the quantity (ROP + entered percentage of ROP) will be left untouched.
Work with supply exception policies, Copy (INVD04205)
- Supply exception policy
- Displays the supply exception policy(ies) you selected to copy.
- New supply exception policy
- Enter the code(s) for the new supply exception policy(ies) that you are creating.