How Eclipse Uses Package Quantities in Line Buy Calculations

When calculating the line buy quantities the system may round to package quantities. The system always rounds up to the next package quantity. If the package quantity exceeds Economic Order Quantity (EOQ) by twice the value (EOQ x 2) and the divisibility flag is set to Yes the package quantity rounding does not occur.

Note: Line items on purchase orders will not be repriced unless the quantity break level has been reached.

Package quantities and their divisibility may be set on a branch level, if the branch is a child branch in a central warehouse procurement path. A child branch package quantity may affect how much the child branch gets on a transfer from the central warehouse and, therefore, how many rounding increments the mother central warehouse performs. This ensures that the central warehouse buys enough to meet child branch package quantity rounding during branch transfers. Of course, this all depends on the vendor shipping complete without backordering.

Note: The surplus calculation is revised to set surplus quantity to the available quantity for an item, if the item's surplus point is zero (0) and there is a non-divisible buy package quantity for the item.

Example 1

"A" package quantity is equal to 1 as shown on the following Primary Inventory Maintenance window:

The Suggested PO Queue recommends a line buy quantity of 123 as shown in the following report:

Example 2

"B" package quantities are equal to 12 with the divisibility flag set to Yes as shown on the following Primary Inventory Maintenance window:

Since the package quantity exceeds EOQ x 2 in all branches, the system does not use the package quantity in the line buy calculation.

Example 3

"C package quantities are equal to 12 in all branches with the divisibility flag set toNoin the parent branch andYesin the child branches.

Since the package quantity exceeds EOQ x 2 in all child branches, the system does not use the package quantity in the line buy calculation. However, since the parent branch is not divisible, the system rounds once to 132 for the line buy quantity.

Example 4

"D" package quantities are equal to 12 in all branches with the divisibility flag set to No in the parent branch and No in the child branches.

The suggested purchase for the buy line is 144. This calculation allows each branch to have the minimum quantity of 12 as required without impacting the parent branch's order point.