You can set up an order point or transfer point for a product using a minimum-only order point. The system uses the value entered for the minimum as both the order point and the line point until the demand of the product exceeds the minimum value. When the value exceeds the minimum value, the system uses the calculated line point. The system still pulls and displays products on the Suggested Purchase Order Queue regardless if the product uses minimum-only or minimum-maximum order points.
For example, you want to have at least three of a product in a branch, but if the true demand would result in a line point of more than three, you want the system to use the greater line point.
Note:Order points and transfer points are the same. The system considers order points in a child branch to be transfer points.
Use the User Inventory Controls screen to set up an order point with only a minimum value. The following are true for this screen for this scenario:
The Exp Date field and Calc Dmnd field functions do not change.
The value in the Min field displays as the value for the order point and transfer point (OP/XP field) on the Primary Inventory Maintenance and Product Order Points/Line Points screens.
A lowercase m, such as 15m, next to the EOQ (Economic Order Quantity) field's value indicates that it is a minimum-only order point. An uppercase M, such as 15M, indicates that the system must consider both minimum and maximum values from the User Inventory Controls screen.
A minimum-only value acts as an order point for a purchasing branch and a transfer point for the child branch.
After you have loaded a minimum value for a branch, the system stops checking hits at this location because the item is considered stock.However, if a product is a nonstock, the system does not use a min/max or min only setting.
The system uses the value entered for the minimum as both the order point and the line point until the demand of the product exceeds the minimum value. When the value exceeds the minimum value, then the system uses the calculated line point. The system uses the greater value.
If a product has a minimum setting but no maximum setting, the order point and the line point quantity are equal to the value in the Min field unless the system calculated line point quantity is greater than the minimum. In this case, the system uses the calculated line point quantity.
See Also:
Reviewing Product Order Points and Line Points