The example
The steps below use a sample distributor, Lone Star Industrial Supply. Your customers, items and numbers will differ; the window and the fields won’t.
Monday reorder run for the Houston Branch (HOU). Use PO Requirements/Generation with the Min/Max method: generate requirements, buy what's below its minimum up to its maximum, and don't buy anything that isn't needed.
Step by step in PO Requirements/Generation
- 1.
Open the Menu and search for PO Requirements/Generation.
- 2.
Pick HOU in Location ID.
- 3.
Pick Min/Max in Replenishment Method.
- 4.
Press Generate Requirements under the criteria. Items at or below their minimum are listed with a suggested quantity.
Net stock counts what's on order and what's backordered, so the suggestion won't double-buy.
- 5.
Press Purchase All: every line with a suggestion is ticked.
- 6.
Press Save: one PO per supplier.
Mistakes that cost money
These are the checks Simetta’s scored test makes on this task, and what each mistake costs a distributor when it happens for real.
Reorder quantity wrong
Too little and the item runs out again; too much ties up cash and shelf space.
Bought stock that was not needed
Buying above the minimum ties up cash in parts nobody needs yet.
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