To generate orders by demands, you can use the following options:
- Set filters by demand properties, such as a warehouse, assignment, and product for which demands should be fulfilled.
- Set filters by supply method parameters, according to which demands are to be fulfilled. Supply parameters include supply/replenishment source (warehouse, partner), supply type, and department. Supply type is set by default.
- Set up inventory level control.
- Adjust demand fulfillment methods for further order generation – next delivery date is specified when generating orders by schedule.
- Adjust quantity of goods recommended to order to control inventory level and fulfill current shipment orders.
- Generate orders (purchase orders, assembly or disassembly orders, transfer orders, production orders, and tolling orders) depending on supply type.
- Specify information on generated orders.
In the diagram, you can see the process of generating orders to control inventory level and fulfill demands against shipment orders.
The main tool to generate orders by demands is the Generation of orders based on demands workplace. Path to the workplace is determined by supply type (purchase, assembly or disassembly, transfer, own production, or production by a toller).
To open the workplace for generating purchase orders by demands, click Purchases – Purchases – Purchase orders– Create – By demands.
To work with the Purchase order document, use the Supply officer or Chief procurement officer profiles.
To open the workplace for generating assembly or disassembly orders by demands, click Warehouse and delivery – Internal goods transfer – Assembly (disassembly) orders – Create – By demands.
To work with the Assembly (disassembly) order document, use the Supply officer profile.
To open the workplace for generating transfer orders by demands, click Warehouse and delivery – Internal goods transfer – Transfer orders – Create transfer order – By demands.
To open the workplace for generating production orders by demands, click Manufacturing – Intershop management – Production orders – Create – By demands.
To work with the Production order document, use the Chief production scheduler profile.
To open the workplace for generating tolling orders by demands, click Manufacturing – Transfer to tolling – Tolling orders – Create – By demands.
To work with the Tolling order document, use the Local production dispatcher profile.
To generate orders for transfer to production, use the Generation of orders of transfer to production workplace. To open it, click Create on the basis – Order for materials for production in the form of the following documents:
- Sales order
- Material provider order
- Order for internal consumption
- Transfer order
- Assembly order
- Repair order
To work with the Order for transfer to production document, use the Chief production scheduler profile.
The Generation of orders based on demands workplace is a wizard where you need to perform five sequential steps. To switch between steps, click Next.
The wizard is primarily designed to generate orders by demands according to certain supply parameters (supply method, supply source, inventory level control parameters, and other).
You can generate orders by demands if the following conditions are fulfilled:
- There are shipment orders with certain statuses:
- Sales orders For completion.
- Orders for internal consumption To supply.
- Transfer orders To supply.
- Assembly (disassembly) orders To supply, and other.
- Demand fulfillment parameters are set (demand fulfillment method, inventory level control parameters, and other).
Filtering demands and specifying inventory level control parameters
In the first step of the wizard, you can filter demands by their properties and specify inventory level control parameters if required (click Configure inventory level control in the Generation of orders based on demands workplace).
You can use the following filter options:
- Simple filters – the list of filters predefined by the application.
- Arbitrary filters – the list of filters you can select. You can set filters by various parameters.
You can set filters by following parameters:
- Warehouse – specify the warehouse to be replenished.
- Supply type – set by default depending on order type (purchase, transfer, assembly or disassembly, own production, or production by a toller).
- Supply method– selected from the Demand fulfillment methods list.
- Supply source– as a supply source, you can specify a warehouse (warehouse area), partner (supplier), and other. A supply source depends on supply type. For example, if demands are fulfilled by purchasing goods from supplier, the partner (supplier) is a supply source.
- Department – department to be inserted into generated orders.
- Receiving department– specified if the order (purchase order, production order, assembly order, transfer order, or tolling order) is registered for a work. Works are supplied if the Provide on pegging basis supply option is specified in the shipment order.
Selecting and customizing demand fulfillment methods
In the second step of the wizard, you can create orders by a specific set of supply methods. That way you can defer order generation by other supply methods to the next time you open the data processor for generating orders.
For the selected supply methods, you can additionally specify which product items are to be included in the order (the Goods to order column):
- Order point reached – product items for which demands are to be fulfilled not later than order fulfillment period set in the supply method are suggested to order.
- All, planned order placement – all product items are suggested to order only if the order is placed by schedule on the day of the planned order date. The application will recommend you goods quantity to order to fulfill all demands until the date specified in the Next delivery date field. The field is required when you select this option. If you select the All, planned order placement value manually, the rule of generation by schedule is automatically set in the supply method according to which demands are fulfilled.
Inventory level control
In the third step of the wizard, you can exercise Inventory level control using various demand fulfillment methods. In this step, you can see information on goods whose stock balance is to be kept on the level required to fully fulfill demands. In the step for inventory level control within the Generation of orders based on demands workplace, you can do the following:
- Keep track of the information on available stock, maximum and minimum inventory.
- Analyze and edit the information on the demand fulfillment method if required (the Supply method column).
- Analyze and specify the information on demand fulfillment parameters (supply method, inventory level control parameters, and shipment order fulfillment mode). To open demand fulfillment parameters, click the link in the Supply method column.
- Specify the information on the supply source (warehouse, partner) depending on the supply type (the Supply source column).
- Edit goods delivery date (the Delivery date column).
- Adjust quantity of goods calculated by the application and recommended to order (the To order column).
- Cancel goods items recommended to order if required.
- Set order packaging to round quantity of goods being ordered to control inventory level.
- Round goods quantity in the order according to order packaging.
- Get recommendations on a specific product item (order placement schedule, warehouse inventory, and order calculation). Click Recommendations.
In the Inventory level control step, in the To order column, you can see the information on goods quantity to order calculated automatically to control inventory level using the Calculation by statistics, Min – Max, and Calculation by standard methods.
In the inventory level control step, you can filter data by inventory level (the Inventory level filter) and keep track of inventory shortage/surplus by the following indicators:
- – stock balance does not exceed the minimum inventory value (critical inventory level). Goods with such inventory level are to be ordered as soon as possible to prevent shortage (the indicator is shown in the Available stock/Remaining quantity column).
- – goods with such inventory level were ordered in excess, it is recommended that you adjust the orders to receive.
Shipment order fulfillment
When fulfilling shipment orders, you can accomplish the following tasks:
- Analyze the information on goods quantity required against shipment orders.
- Keep track of the information on goods quantity supplied against shipment orders from stock in the warehouse.
- Determine a supply source: partner (supplier), for example, if demand is fulfilled by purchasing goods from a supplier, or warehouse, for example, if demand is fulfilled by transferring goods from a warehouse.
- Edit goods quantity recommended to order.
- Cancel goods items recommended to order.
- Set order packaging and round goods quantity to order.
In the workplace, in the fourth step of shipment order fulfillment, you can see the following:
- Order – order documents in which demand for products is recorded. Orders are in the For completion (For production) status, and the To supply (Provide on pegging basis) supply option is set for them.
- Required – quantity of goods items required against the shipment order.
- Supplied – quantity of goods items supplied against the shipment order. Quantity of pegged goods against shipment order can be supplied from goods reserved for a specific assignment in enterprise warehouses different from the shipment warehouse. Pegged demand in other enterprise warehouses different from shipment warehouses eliminates the need to generate orders for pegged demand fulfillment within the Generation of orders based on demands workplace.
- To order– quantity of goods items recommended to order to fully fulfill demands by shipment orders considering available stock or previously created purchase orders.
If demands by shipment orders are fulfilled from stock, goods quantity To order for demand fulfillment is calculated based on goods quantity to order calculated to control inventory level.
It is required to supply 600 units against the Transfer order document, which serves as a shipment order. There are 50 units of this product in available stock at the warehouse. Based on this data, the application recommends to order 200 units of the product because 400 units are already supplied (from available stock in the warehouse and goods quantity to order to control inventory level).
In the diagram, you can see examples of calculating goods quantity recommended to order from a supplier to fulfill shipment orders (the From stock fulfillment mode).
If demands by shipment orders are fulfilled regardless of inventory level control, available stock in the warehouse and calculated goods quantity to control inventory level are ignored when calculating goods quantity to order.
In the diagram, you can see examples of calculating goods quantity recommended to order from a supplier to fulfill current shipment orders (the Regardless of inventory level control fulfillment mode).
In the To order column, you can see goods quantity to order calculated automatically to fully fulfill demands by shipment orders.
To view a detailed explanation of calculation results, click Recommendations.
If it is not reasonable to replenish inventory at the moment (both against shipment orders and for inventory level control), you can cancel goods items to order. For this purpose, click Clear.
In the fifth step of the wizard, you will see generated orders, which you can analyze and adjust if required.
By default, purchase orders are generated with the Approved status, and transfer orders and assembly (disassembly) orders – with the To supply status.
After the orders by demands are generated, shipment orders are fulfilled based on the created purchase orders, transfer orders, assembly (disassembly) orders, and production orders.
If the Place orders for shipment in the generated purchase orders check box is selected, shipment orders will be automatically placed in purchase orders. The To supply supply option in shipment orders will be automatically changed to Reserve to date.
To fulfill demands by shipment orders, you can also create purchase orders, transfer orders, assembly (disassembly) orders, and production orders on the basis of the shipment orders. To do it, click Create on the basis.
Orders for demand fulfillment are generated according to shipment order data.
Order packaging and rounding of goods quantity to order
In the inventory level control and shipment order fulfillment step, you can round goods quantity to order. To do it, click Set a packaging for rounding in the Generation of orders based on demands wizard form.
To be able to round goods quantity to order, you need to specify the following parameters:
- Goods quantity to order (the To order column).
- Order packaging (the Order packaging column). The order packaging is specified individually for products. It can be specified in advance within the Set up demand fulfillment method workplace or the Generation of orders based on demands wizard by clicking Set a packaging for rounding.
All lines with matching product, characteristics, and warehouse are rounded up. You can see the information on rounding in the status bar under the demand table.
Pegged quantity is considered while rounding, but it will be moved into the order being created without rounding. The difference will be moved into not pegged lines of the order being created or added as a new line.
The order packaging includes 255 units. The application calculated that 500 units are to be ordered to replenish inventory. After rounding, 510 units are recommended to order by the application.
You can change order packaging. To do it, in the Generation of orders based on demands wizard, click the link for packaging used to round goods quantity to order. After you change packaging, rounded goods quantity to order will be recalculated.