Sunday, 14 October 2007

Planning replenishment with Requisition Worksheet

Requisition Worksheet is used to calculate
1) What items to be ordered
2) When to order
3) How many to order.

How to use Requisition Worksheet ?
1) To open the Requisition Worksheet window, go to Purchase --> Planning --> Requisition Worksheets.
2) Click Function --> Calculate Plan to orepn the request form.
3) You can set filter at the Item tab and Options tab or just accept the default value to calculate for all. However, the Order Date and Ending Date in the Option tab are a mandatory fields. The replenishment order will be proposed from Order Date onwards while the any demands after the Ending date will not be calculated.
4) Navision will calculate and list out order proposal lines.
5) You can edity the proposed lines if you are not happy with the proposed lines.
6) If you are OK with the proposed lines, click on Function --> Carry Out Action Message to open the Message box.
7) Click on the OK button create Purchase Orders.

Please note that the proposed due date in the Requisition Worksheet will depends on when the item is required by the company. To illustrate this clearer, consider the following scenario:

Item A requires 2 weeks lead time to be purchased and the reorder point has been set to 130. Reorder Quantity for Item A has been set to 150.

On 14 October 2007, a salesperson has created a sales order for an important customer with 100 units of Item A. By the time the salesperson created the sales order, Navision has prompted him that there are only 20 units of Item A available in the warehouse. Therefore, the sales person calls the purchaser immediately to replenish the item.

The purchaser run the Calculate Plan in the Requisition Worksheet for Item A. Navision proposed 2 replenishment orders with different due date. The first replenishment order has the due date on 14th October 2007 with the Order quantity of 80 to fulfill the sales order requirement. This can fullfill the quanitity required by the sales order although it is not possible to deliver the item to customer on 14th October 2007. After minus out 100 units for the sales order, there are 0 units remain in inventory, which is lower than the reorder point of 130 units. This will trigger Navision to propose the 2nd replenishment order of 150 units. But this time, the due date is set to 28th October 2007, which is 2 weeks later than the order date.

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