Feature - ATP Regen to Consider Order Multiple and Economic Order Qty
When running the ATP Regen to create plan orders, the program only creates enough plan order quantity to make sure there will be no negative inventory in the future. The program does not consider the Order Multiple or Economic Order Qty. When the user converts the plan order to actual order (requisition or production), the application will warn users about the order multiple. Therefore, the enforcement is not at the stage of creating planning orders. It is done later when creating the actual orders from planning. On the other hand, some users like Elliott to enforce the rule at the stage when the planning orders are created.
This feature will give the user the ability to choose whether he or she wants to consider the order multiple and/or economic order quantity when creating planned orders. A new option, Consolidate Plan Order Qty, has been added to the ATP Regen parameter screen:
ATP Regen - Consolidate Plan Order Qty Option
2. Consolidate Plan Order Qty - Y/N. This option is not applicable if "1. Create Plan Order" is set to N. The default value is set in Global Setup -> System -> Available to Promise-> "34. Default value for Consolidate Plan Order Qty? if entered.
If "2. Consolidate Plan order" is set to "Y," then ATP Regen will consider flags 35 and 36 in ATP Global Setup for order multiple or economic order quantity when generating planned orders. On the other hand, if this option is set to "N," then flags 35 and 36 will be ignored and will consider their value as "N." See sample Global Setup screen below:
Global Setup -> System -> Available to Promise:
34. Default value for “Consolidate Plan Order Qty? Y/N Default N
This option allows the user to determine the default value of the field "2. Consolidate Plan Order Qty" on the ATP Regen parameter screen.
35. Consolidate Plan Order Qty by Order Multiple? Y/N/A Default Y
This option allows the user to choose if the item's order multiple should be considered when calculating the plan order qty. The options are:
- Y=Yes - Order Multiple Rule will be applied when generating plan order except the last one.
- N=No - Order Multiple Rules will not be applied. Instead, enforce at the time of creating the actual order.
- A=Always - Choose "Y" and the rule will be applied to the last planning order as well.
Options "Y" and "A" are very similar except for the treatment of the last plan order. For many users, they make no material difference. The last plan order may be controlled by the availability of ATP records currently in the system, or it may be controlled by the flag "3. Cutoff Days" in ATP Regen screen.
When the ATP Regen is run with "2. Consolidation Plan Order options," the program will "borrow" inventory from the next planned order to make up for the extra plan order quantity needed to meet the order multiple or the economic order quantity. If this option is set to Y, the extra amount that was borrowed will be rolled back from the last planned order. If this option is set to A, the borrowed amount will not be rolled back for the last planned order. This may result in over planning for the last plan order. The following examples outline the difference between option Y and option A.
Example of ATP Regen with "Y" Option - Last Plan Order
In this example, the item has the "Order Multiple" value in the item master set to "234". As of this writing (01/20/2021), the "3. Cutoff Days" is set to 270 for Regen ATP. If the Global Setup flag 35 is set to "Y," the last plan LP record on 10/08/21 has quantity of 16, which is not a multiple of 234. The asterisk "*" beside the 16 signals that the quantity does not comply to the order multiple rule. Systems will remind the planner when converting this plan order to an actual order (purchase or production):
Example of ATP Regen with "A" Option - Last Plan Order
On the other hand, if the Global Setup flag 35 is set to "A," note that the last LP transaction Qty-Ord is a multiple of 234. As a result, there's an over planning of quantity as you can see in the "Balance" column.
If the last plan order is way in the future and you don't usually pay attention to it, then it will make no material difference whether you choose "Y" or "A" in the Global Setup.
36. Consolidate Plan
Order Qty by Economic Ord Qty? Y/N/A Default Y
This option allows the user to choose if an item's economic order quantity should be considered when calculating the plan order qty. The options are Y=Yes, N=No and A=Always. See the description above for the Y and A options. "Economic Ord Qty" is considered as "minimum quantity" if you should use it.
Examples of ATP Regen With or Without Consolidation
Continuing from the previous example, the item master order multiple is set to "234." Through Global Setup in ATP and ATP Regen option "2. Consolidate Plan Order Qty?" you can decide how the plan order quantity is suggested:
ATP Regen without Consolidation
By default, ATP Regen will create just enough plan order quantity so it is a "Just in Time" planning system. The "*" beside the examples "287*" and "323*" above are indications that the quantity does not conform to the "Order Multiple" rule. The user will be warned about this when planners use the ATP process to convert the plan order to an actual order (purchase or production order).
ATP Regen With Consolidation
On the other hand, if you'd rather let the computer enforce the order multiple or econ order qty rule at the time of ATP Regen for a plan order, then you can expect to see the following example:
As you can see in the above example, the LP (planning order) replenish quantity is in a multiple of 234.
Modified Programs: NSCTLFIL.FD, NSCTLFIL.W30, NSCTLINI, NSCTLMN1, IMATPGSN, IMATPGEN
CLS, EMK