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This folder defines the terms for product supply. This information is used by Request per Order Point, that automatically calculates the need of purchase or production.

• Order Point

Pre-established minimum amount in stock which, when reached, automatically generates a Purchase Request or Production Order.

To calculate the Order Point, the monthly average consumption, the replenishment time, and the safety stock are considered.

Example:

CM = average consumption

TR = replenishment time

ES = safety stock

CM = 30

TR = 2 months

ES = 20

PP = (CM*TR) + ES

PP = (30*2) + 20 = 80

• Economic Lot

This field determines the ideal amount to purchase or produce in a single operation in order to obtain the lowest cost.

Economic lot is used:

- When generating automatic requests per order point.

- When generating intermediate (child) production orders and purchase requests, that is, for intermediate products that are part of finished product structure.

• Minimum Lot

Enter the minimum amount to be produced or purchased (lower than the economic lot) used to calculate the needs of products.

Economic lot is used to generate intermediate (child) production orders and purchase requests, that is, for intermediate products that are part of finished product structure.

• Delivery

It is the number of hours, days, weeks, months, etc. that indicates the time for manufacturing or delivering a product after receiving its order or opening a PO.

For products whose delivery deadline depends on other characteristics, not being a fixed period, a formula can be used, which must be registered in Configurator environment.

In this case, the field Deadline Formula must be entered because the field Delivery Deadline must be used for fixed periods.

By preference, the system uses the field Deadline Formula and, in its absence, the traditional Delivery Deadline.

The variable AMOUNT (QUANTIDADE) can be used in delivery deadline formula in order to obtain the real amount to be used to evaluate delivery deadline.

For example:

Suppose a product whose delivery deadline is 10 economic lots per day.

The formula to express the delivery deadline of this product  in the field Deadline Formula is:

- Round((QUANTIDADE/(10*B1_LOTE)),0)

This formula returns the deadline in DAYS, necessary to produce a specific amount planned through MRP or the total time to be spent to produce a certain Production Order and other routines concerning delivery deadline.

• Tolerance

Tolerance of product discrepancy concerning Purchase Order.

Tolerance is a percentage to be taken into account during purchase in order to minimize the stock. This percentage is applied to the economic lot in order to obtain the highest and lowest tolerance limit.

If the need is between the two tolerance limits, the need is purchased. If it is lower or higher, the rule of amount per package is considered.

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