PO Suggestions well before Safety Stock is reached

Kinetic ERP
1

We have some purchased parts that are creating PO Suggestions but the demand is not bringing it down to the Safety Stock.

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It’s a backflush part, we have 1 warehouse, and we don’t want to order until it’s at safety, the lead time is 7 days. I’ve read several postings on PO Suggs and have looked all through our system and cannot seem to find a reason why this is happening.

2

Safety Stock is subtracted from your on hand quantity when MRP does it’s calculation.

Your on hand is 109, Epicor is subtracting your safety stock value (40) from that to get a new current on hand of 69.

That demand from job 43605 for 10 brings you below minimum (40) which is generating the suggestion.

3

The PO suggestion is created based on Min plus Safety Stock (40 + 40). The idea is you never want to go below Min and since it takes 7 days to arrive, you have the additional Safety Stock to use during that time so it never goes below Min. If you ordered when it hit Min, you could go below before the new PO arrived. If you only want to order when it hits Min, set Safety Stock to zero.

4

That’s interesting, for other parts we don’t get suggestions until OnHand = Safety Stock

5

When we did our testing we didn’t initially use Safety Stock and we weren’t getting PO Suggs until OnHand went well below Min. Once we started setting Safety we have been getting PO Suggs once OnHand reached Safety.

Thank you, I have a new outlook on Min and Safety

6

@JasonMcD had a nice visual a while back that helps folks wrap their head around this: Safety Stock versus Minimum Stock - #8 by JasonMcD.

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