When setting Purchase Order Minimum, Maximum, and Safety values, is it necessary to set a Maximum value. If a Maximum value is set to zero, will the suggested quantity be the current demand plus the quantity to satisfy the Minimum? Also will Lot Multiple be followed if one is not running MRP?
Note that there are two different MINIMUMs…
- Min Lot Size
- Min On Hand
Normally we talke about Min/Max/Safety (this is Min-on-hand/MaxOnHand/SafetyOnHand) as a set… your question seems to bleed the MinOrderQty with MaxOnHand and Safety
Onto your question:
You do NOT need to set a maximum Lot Size, unless there is a max, or unless you want to use the “reorder to max” value.
Minimum order qty is the minimum you can order at a time
Order Multiple is the grouping quantity that you order… (Eggs come in packs of 12)
Min & Order Multiple work together.
- Min = 24, Order Multiple = 12, if you need 13, you will order 24. if you need 1, you will order 24. If you need 25, you will order 36
- Min = 24, order multiple = 0: if you need 13, you will order 24. If you need 1, you will order 24. If you need 25, you will order 25
The only time max is used is if you have a max set… if you need 60, but the max is set to 48, then teh system will only recommend to order 48, and then a second recommendation will be made for the additional 12 that you need.
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