We are on 405 CD so most anything we can do, so can you.

Choices include:

. Your scheme, which sounds a bit like DRP to me

. Safety Stock

. FOR / MRP100 / ORD-Coded

. How we sometimes do parts needing repair-or version conversion

Each method has advantages and disadvantages to be weighed.

This e-mail installment discusses Safety Stock.

We use safety stock, or minimum balance, several ways.

For items we ship to customers, this value says we want to keep in inventory
some quantity over and above whatever the customers order.

For items we purchase or manufacture, this value says how much we want to
try to keep on hand at all times.

Our reasons have to do with the uncertain vagaries of delivery of
components, and uncertainty of customers making requirement changes inside
our lead time practicalities.

Safety stock is perhaps the simplest to implement, in terms of human time
keying into BPCS, and it works instantly with MRP.

MRP plans what the customer wants, and adds extra for the safety stock

However, it is important to make some changes in how the personnel process
this info.

We have people who view only the customer orders, ignoring MRP, so we end up
with items inventory short by the safety stock. Whatever reports and
inquiry those people using, need to have safety stock requirement added.

We also need to have some way of knowing when the safety stock is no longer

I have developed some reports which we call UNUSED INVENTORY and SLOW MOVING
INVENTORY which list excess inventory scenarios.

For example, a particular customer has quit ordering a particular model from
us, although we make other parts for them. Thanks to safety stock, we are
holding in perpetuity the inventory which will never again sell to them.

So it is important to have some report which lists items with safety stock,
and maybe add some BOM where-used by customer info, so that safety stock
settings, which are no longer needed, can be dropped. Plus, we can identify
any cases where the safety stock value may need to be adjusted up or down,
thanks to changes in volumes really needed.

For our 405 CD, safety stock is either at IIM item master level, or CIC item
planning by facility.

You might have the complication of already using Safety Stock for reasons
similar to why we use it, then you have the pre-build extra, and how do you
do the sums of traditional + pre-build, and keep the math un-confusing.

There is also the topic of when to reduce safety stock which exists because
some pre-build is no longer needed.

Alister William Macintyre (Al Mac)

-----Original Message-----
From: BPCS-L [mailto:bpcs-l-bounces@xxxxxxxxxxxx] On Behalf Of Weston, Jeff
Sent: Tuesday, June 10, 2014 3:41 PM
To: BPCS ERP System
Subject: [BPCS-L] Prebuild Inventory in BPCS

Hello All,

Were on an old version of BPCS (6.0.2) and I was posed a question from one
of our planners, that I was hoping someone on this list could give me
suggestions on how to go about doing it.

There is going to be a prebuild of extra inventory this year. We do not want
this inventory to be netted out in BPCS MRP in future planning periods. The
thought was to create a transfer order that matches exactly to the pre build
production and subsequent prebuild inventory. The transfer order would
allocate against the prebuild inventory. Here is the desired scenario:

Production/Inv +150 (50 prebuild)

Customer orders -25

Transfer order -50

Qty available to plan +75

Without the transfer order, +125 are netted in MRP planning and the prebuild

Production/Inv +150 (50 prebuild)

Customer orders -25

Qty available to plan +125

The transfer order would be created to ship from 37 to a non-nettable
warehouse. The transfer order would never be received or shipped. It would
be reduced as the inventory was sold off against future customer orders
tagged as prebuild.



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