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  1. Inventory
  2. Forum

How reordering rules take lead times into account (change of behaviour from v13 to v14)

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Gilles Merckx (gme)

Let's consider the following simple case:

1) I sell a product with a 10 days customer lead time

2) The vendor lead time for this product is 5 days

3) There is a Reordering Rule (min Q=0, max Q=0) on the product

Question: would the RFQ be created for the product as soon as possible or as late as possible? How did it change from v13 to v14.

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Gilles Merckx (gme)
Author Best Answer

This is a question we often received: why my RFQ is not automatically created when I validate my Sale order, despite that I have a reordering rule.

Reordering rules are triggered based on forecasted quantities on the product. BUT:

1) in v13, the system triggered reordering rules based on long-term forecasted quantities. 

Namely, for the introductory example, the RFQ would be created immediately when the SO has been validated (after having run the scheduler though).

Video:  https://drive.google.com/file/d/1xsgAGKzx7KuIbUCcek74ria4ulqspGQi/view?usp=sharing

2) In v14, the system triggers reordering rules based on daily forecasted values.

Namely, if the customer lead time is 10 days, when validating a sale order, the forecasted quantities will go from 0 to -1 from t+10. At the SO validation, the system checks what would be the forecasted quantity at t+5 (taking into account a vendor lead time of 5 days), which would be 0, as it becomes -1 from day t+10 (and it is 0 until then). 

Video:  https://drive.google.com/file/d/1F0ECbs6_FUO776ZeNgv71h4ER6Ifz4w_/view?usp=sharing

Therefore, the RFQ would be created 5 days before the delivery date in v14, rather than immediately in v13. This is why in v14, someone might be surprised that a RFQ is not created immediately , despite having reordering rules well configured.

If this is a problem for you, you might think about using security lead times for purchase and/or the MTO route.

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Chris Parker

What was the rationale behind this change?

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