Introduction for Technical Users      

Supplier Ordering is split into three areas as follows:

Recommended Order Processing (1)

Reporting (2)

File maintenance (3).

At the end of each month, PSC1 updates the monthly forecast figure for each part using the forecasting method specified at either supplier order classification or part level. There is also an option available to recalculate the safety stock factor for each part within a supplier order classification.

Recommended orders created in batch take input from a variety of sources to provide a full picture of the requirements (1.1). These requirements are then converted into orders where required and reports produced detailing the orders (1.2).

Recommended orders may also be created on-line. PS40 is used for adding recommended order lines for a part/warehouse/supplier/review class. The recommended order quantity must be entered by the user. The remainder of the details can be defaulted from the lowest available level for the key information. The program automatically adds call-off details relating to the order line based on the order type and associated requirements. Purchase orders will automatically create one call-off whereas schedule orders will create the number specified for the order type.

The call-offs can then be viewed in PS41 and amended as required.

PS40 and PS41 can also be used to review and update recommended orders created in the batch environment.

Once the user is happy with the order it can then be confirmed (1.3).

Alternatively, the requirement can be cancelled by deleting the recommended order in PS40.

PS30 is used to request a recommended order run for a particular warehouse/review number. It is also possible to add a range of parts and/or suppliers for which details should be reviewed if no corresponding select review number has been defined in PS14.

PSG1 extracts details of all future customer schedule order call-offs. These make up the known demand.

PSG5 then matches the warehouses in the search chain for each extracted customer order call-off with those which have been selected for recommended order review in PS30. These details are output to a file for processing with the other requirements.

PSG2 extracts details of all kit build requests and explodes them down to their component details. Details are only extracted if the warehouse expecting the goods has been selected for review and the supplier on the firm order is set up as a kit packer for the part.

PSG4 extracts details of all supplier orders currently on the system for all parts at the warehouses to be reviewed.

PSG6 then uses the information entered in PS30 together with the extract files of customer demand, kit component requirements and existing supplier orders to create a consolidated file of requirements. It also recalculates the demand for the parts to be reviewed for the duration of the run only. A report is also produced detailing parts which have been selected for review but for which no supplier is available.

PSD1 calculates the nett requirements for each part at each warehouse to be reviewed. It takes into account outstanding and future customer requirements, kit requirements, forecast requirements, current stock levels and any firm supplier orders and requisitions.

The details calculated by PSD1 are then passed to PSD4 which determines whether a recommended order is required or not. If no requirement is identified, details are output to the non-recommended orders file. If a requirement is identified, a new recommended order is created using the batch order type details set at the lowest level for the part/supplier/warehouse. If a recommended schedule is required, the existing schedule is updated to allow for any changes in the requirements. Details currently within lead-time cannot be changed so PSD4 has to cater for this when calculating call-off quantities. PSD4 creates a file detailing all recommended orders created.

The file of non-recommended orders is processed by PSD3 to produce a report of all parts for which no recommended order was required.

The file of recommended orders is passed through PSD5 to add a number of additional parameters for sorting purposes. This file is then used by PSD2 to produces the Recommended order reports for both schedule and purchase orders. A more detailed explanation of the report can be found in the Procurement User Guide - section 3 - Recommended Order Creation.

Once the user is satisfied with the order requirements, the recommended order lines can be confirmed individually in PS40 or by review number using PS30 and the batch suite.

If the purchasing module is used, PS40 will trigger a background task to convert the recommended order to either a requisition or a firm order. If the part is a fast path part set in PB10 and the supplier details are valid, the recommended order will bypass the requisitioning stage and creating a firm order immediately.

If the purchasing module is not installed, PS40 will simply flag the line for confirmation and it will be picked up during the next batch run.

To confirm a range of recommended orders in one run, PS30 is again used but this time with the firm indicator set, either for specific ranges within a review or for the entire review. These details are then used by the batch system to create requisitions or firm orders using the same criteria as used on-line.

PMA1 produces a file of Parts Stock records whilst PMH1 produces a file of Parts Supplier records. PSF4 then uses these files to produce a list of parts on the system which have not been reviewed.

If a part has no supplier details it will not have been reviewed and so is automatically passed on to PSF5 for reporting on the Non-Reviewed Parts report.

If a part has supplier details but has not been reviewed it will also be passed on to PSF5 for reporting on the non-reviewed parts report, along with any alternative suppliers that exist for the part.

Three sets of master records are maintained within the supplier ordering module. These are Supplier details (3.1), Part details (3.2) and System Control details (3.3).

PS10 is used for maintaining supplier information related to a specific warehouse. Details maintained are review time, safety stock factor and EOQ ordering cost.

PS14 is used to view and maintain part information for a specific warehouse. Many of the parameters used within the calculations in the supplier ordering modules can be maintained here.

PS15 is used to enter anticipated forward demand for a particular part/warehouse. This would be to cover an expected requirement which has not yet been placed on the system as such (customer order or kit demand) and is not covered by any forecast or trend factors applied but which needs to be considered during recommended ordering.

PS60 is used to set up the forecast, tracking and trend alpha factors used in recalculations, together with the safety stock calculation beta factor. These details are held at warehouse level.

PS61 is used to set up default ordering parameters for a particular warehouse/supplier order classification combination. These details are used when lower levels are not defined.

PS62 is used to define seasonality codes and their trends. The factor is used to determine the amount of the basic forecast to be used for a particular period. When totalled, the factors for the year should equal the number of periods in the year to ensure that during the course of the year, the total years requirements are covered.