Perform Order Proposal

Explanation

The order proposal is used by a purchaser or planner to study the demand for inventory parts using planning method B - Order Point System, or planning method C - Refill Level.

It is also possible to create and delete purchase requisitions, shop order requisitions and create purchase orders and distribution orders. The supply type on the inventory part determines whether a purchase order or a purchase requisition will be created by the order proposal. A distribution order will be created instead of a purchase order if the primary supplier for the part has Multi-site Planned Part selected. The requisitions that can be deleted must have been created by the order proposal.

Some of the fields in the planning data that affect the order proposal are:

• Planning Method - For a part to be processed by the order proposal, the planning method must be B or C.
• Safety Stock - May be zero, but must be less or equal to the order point.
• Order Point - May be zero, but must be less or equal to the lot size.
• Lot Size - Only used for planning method B. Must be greater than zero (0). If a quantity is proposed by the order proposal it will be a multiple of the lot size. For example, the lot size equals 10 and the quantity needed is 12, the quantity proposed will be 20.
• Manufactured/Acquired Split - The order proposal quantity could be split in accordance to the Manufactured/Acquired Split percentage as defined on the inventory part. If this split is used, one split quantity will be sent to manufacturing on a shop order requisition and the other split quantity will be sent to purchasing on a purchase requisition, purchase order or distribution order.

The Advanced feature enables you to specify additional selection criteria for records that will be included in the order proposal. For example, delete old requisitions, create requisitions/orders, and process manufactured orders.

The Default feature allows you to use the default settings for this activity. Default settings are derived from the Database Tasks window set by the administrator. 

Note 1: Order proposal calculations only include standard inventory (i.e., project inventory balances are excluded).
Note 2: If the available quantity is below the specified safety stock, the Order Proposal Planning functionality may still create duplicate supplies / supply proposals (i.e., when converting the generated requisition to purchase order with the due date falling within the purchase lead time).

Prerequisites

• The inventory part must use planning method B - Order Point System, or C - Refill Level. This can be checked on the Inventory Part/Planning Data tab.
• The part must exist in standard inventory.
• To have a distribution order created, the supply type must be Order, and Multi-site Planned Part must be selected for the primary supplier of the part.

System Effects

The system effects vary depending on which settings you have indicated.

• If the Create Requisition/Order check box is selected, purchase requisitions/orders, shop order requisitions, or distribution orders will be created for the parts that are processed. To decide which orders should be created, the Lead Time Code in the Inventory Part/Acquisition tab is considered. To decide whether purchase order requisitions, purchase orders or distribution orders should be created, the Supply Type field on the Inventory Part/Planning Data tab is considered.
• If the Delete Old Requisitions check box is selected, the purchase requisitions and shop order requisitions that were created previously, but have not been converted to orders by the order proposal feature as yet, and the distribution orders still in the Planned status will be deleted.
• If the Process Purchased Parts check box is selected, purchase parts will be included in the calculation of the order proposal.
• If the Only Parts with Inventory Activity check box is selected, the order proposal will exclude parts that do not have any activity since the last order proposal review for the parts in question. Reserve, issue, move, receive, scrap, return parts, change planning data are considered as activities performed on inventory parts.
• If the Calculate Planning Data Before Creating Order Proposals check box is selected, planning data will be calculated for selected parts prior to creating an order proposal.
• If the Process Manufactured Parts check box is selected, the manufactured parts will be included in the calculation of the order proposal.

Window

Create Order Proposal

Related Window Descriptions

Create Order Proposal
Create Order Proposal-Additional Parameters

Procedure

You can either create an order proposal directly (procedure A) or schedule the task as a background job (procedure B).

A. To perform the create order proposal task directly:

1. Open the Create Order Proposal dialog box. 
2. Enter a value for the Site field or click List to select one from the List of Values.
3. If you want to use the part number, commodity group 2 or planner as a selection criteria, enter the appropriate values in the respective fields. Do this by entering values or click List to select one from the List of Values. The wildcard character (%) can also be used to select a group of records.
4. Enter a value for the PO Coordinator field or click List to select one from the List of Values
5. If you want to specify additional selection criteria, click Advanced. You can choose from among the following additional selection criteria as appropriate: delete old requisitions and distribution orders that are not released as yet, create requisitions/orders, and process purchased parts. If you select the Calculate Planning Data Before Creating Order Proposals check box, you can specify a value in the Periods field. 
6. If the necessary selection criteria has been defined, click OK to complete the operation.

Note: Click Default if you want to use the default settings. 

B. To schedule the create order proposal task as a background job:

1. Click Schedule to open the New Database Task Schedule window. Set the scheduling parameters as desired and save. Scheduled tasks can be seen in Scheduled Database Tasks window.