Reorder Will Select Items for Reorder Before Reorder Point is Reached in Some Scenarios

Technote (FAQ)


Question

Is it expected that an item should be selected for reorder if the reorder point is less then the current balance?

Cause

When the reorder point is 0 and the available balance is greater than 0 and less than 1 (such as .5), then the item will get selected for reorder.

Answer

The order quantity, expressed in issue units, is calculated from this formula:

Order Quantity = [(Reorder Point + 1) - Quantity on Order - Available Balance]

The Maximo reorder algorithm applied to the following scenarios will establish these reorder quantities:

If the Available balance is .5,
Order Quantity = [(0 + 1) - 0 - .5] = 0.5, so a PR will get generated;

If the Available balance is 1,
Order Quantity = [(0 + 1) - 0 - 1] = 0, so a PR will not get generated;

If the Available balance is 0,
Order Quantity = [(0 + 1) - 0 - 0] = 1, so a PR will get generated;

In response to multiple client scenarios, a new business rule and functionality has been implemented in 7.1.1.5. In this new version, a PR will NOT generate in the scenario where the available balance is 0 and less than 1.
In the case where the available balance is greater than the reorder point, the reorder routine will NOT execute for the item. The 'Reorder Point +1' rule only will be applied to serve as the basis for setting the order quantity. Once reorder is initiated, the process will reorder to achieve a balance equivalent to 'Reorder Point + 1' at a minimum.

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Document information


More support for:

IBM Maximo Asset Management
Reorder Application

Software version:

6.2.1, 6.2.2, 6.2.3, 6.2.4, 6.2.5, 7.1.1, 7.5

Operating system(s):

AIX, HP-UX, Linux, Solaris, Windows

Software edition:

Enterprise

Reference #:

1424249

Modified date:

2013-07-29

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