Re: Purchasing order policy

Joe,

I agree with the assessment that if you are forced to second guess the MRP 
output for purchasing direction then you have a planning credibility 
problem (the forecast is not accurate) that must be resolved. Another 
point I would make is if you are using PUR640 (PO Consolidation/Release), 
the column next to the "Action" column has a "T" for order type (P=planned 
order, F=Firm Planned order) so it would be very easy to distinguish 
between the two during the consolidation process. The order policy could 
be a factor if you are using a large lot sizing or minimum balance 
override to the MRP planning, but before you start changing everything to 
an (A) discrete order policy you need to research what the impact would be 
for minimum order quantities with your vendors, and order placement costs. 
If you are using Repetitive Purchase Contracts (Scheduled PO Contracts) 
this may not be an issue. Good luck. 

Frederick C. Davy, CPIM, PMP
Business Systems Analyst
Interface Solution, Inc.
Phone: (315) 592-8101
Fax: (315) 592-8481
e-mail: fcdavy@xxxxxxxxxxxx




"Joe McCormick" <joemccormick@xxxxxxxxxxxxxx> 
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[BPCS-L] Purchasing order policy






Hi,
What would be the most suitable order policy to use in order to only 
purchase for firm (not planned ) shop orders. We currently by for both but 
are finding this is contributing to excess inventory as many planned 
orders are not made.

Thanks

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