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IBP TS Supply Heuristic - MOQ Question

mark_j
Explorer
0 Kudos

Good day Gurus!

Can anyone provide some insight into best practices for how to best handle MOQ split between more than one location? We currently have been using one LOCID for which we map specific level 2 locations (plant) to that LOCID. We are currently operating with only one generic vendor under master data as source for supply for this LOCID. Now we are moving from one LOCID to three to better represent our network while keeping the generic vendor. When we run heuristic, it will propose a TRANSPORT of at least the MOQ for any LOCID that dips below Inventory Target; so we now will be over buying in situations where multiple LOCIDs drop below target in the same month.

Example, with an MOQ of 2,000, and each location is 500 pieces below inventory target in the same month, the system will suggest a MOQ of 2,000 at each location for a total buy of 6,000 pieces even though the actual requirement would be 1,500. With the original model with only one LOCID we'd expect a TRANSPORT of 2,000 but with the new model we will see a surplus of 4,000 pieces.

Hopefully I was able to describe the sitution well. I am hoping someone is able to provide insight into best practices on how IBP can handle MOQ in a situation like this.

Thank you!

Z

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girish_nitie
Participant
0 Kudos

Hi Zach,

Please check Receipts Balancing with Lot-Size Parameters

This should meet your requirements.

Thanks

Girish