IC141 & IC142 and Vendor Minimum Orders

We run an integrated LUM delivery system to our pars, and also happen to own the Distributor (which is setup like a vendor, much like a medline, or cardinal LUM implementation). As a best practice we have constrained the minimum order quantity (you can set this at the bin level in IC81) to 1/2 the bin quantity rounded down. The only other way is make sure the par max is in the UOM that is the minimum order from the vendor. Hope that helps -

How do you automatically generate a requisition from a cycle count?

In mobile supply chain, our tech's "cycle count" each par, which then triggers an order to bin max quantity (data is held in IC81 for max quantities) then through an interface (I think its the RQ500) when the handheld is uploaded that turns the orders into requisitions.

Ok, I understand. The terminology was throwing me. For us, cycle counting refers to periodically counting items in a perpetual inventory location and adjusting quantities up or down to maintain accuracy of stock on hand.

For standard par location ordering, if there's a quantity ordered for a nonstock item that is under the vendor's minimum set in PO13, the buyer will have to adjust the PO line accordingly. Same goes for inventory items. If there's a minimum PO line quantity set in PO13, after IC140 is run the line won't go to a PO unless the buyer increases the quantity at or above minimum. IC141 is used to replenish stock from another perpetual location. Vendor minimums wouldn't come into play here. But with IC142 the process would be similar to IC140 for us if we replenished inventory this way. The order would go to PO23 and would not interface to PO20 unless the quantity was at or above minimum.

Of course, if you're referring to a minimum $ for orders that's a whole other problem. We haven't come up with a good way for the system to catch these so we're not assessed a minimum order fee. The buyers know which of our vendors require a minimum $ and try to sit on those orders until they reach that minimum.

Minimum dollars for orders can be set on PO10 or PO10.2 for the vendor or vendor purchase from location. Having a minimum set means the PO will not release on PO20 unless the buyers go to PO22 (Authorization, Release) and release it on that screen. It gives the buyers that extra chance to confirm that even though the PO doesn't meet the minimum we still need it or to go back and add more to the PO to meet the minimum.

I should mention that although we have POs automatically created, we require each of our buyers to touch them to make the decision about releasing; we don't automatically release any PO.

Thanks Michelle. I either forgot about those fields or just glossed over them. I'll have to ask our buyers if they want to set that up for the vendors that require the minimum. We do auto release POs, mostly those that come from par orders and for certain vendors (not those that require minimums).