Setting the Percentage of Parent Order Point to Protect

When calculating the order or line point for a baby branch in a parent/baby relationship, the lead time for the baby branch is the greater of the lead time of the parent branch or the transfer cycle from the parent branch to the baby branch. This method protects the baby branch from running out of material during the transfer cycle and ensures that the baby branch's order point is not higher than its line point.

When the system determines the quantity of products to transfer from the parent branch to the child branch, it does not transfer a quantity that takes the parent branch below its order point, unless there is an immediate need in the child branch. For non-immediate need suggested transfers, the parent branch will, by default, not transfer a quantity that takes the parent branch below its order point.

In regards to non-immediate need suggested transfers to child branches, you can modify how much of the parent branch's order point the system "protects." You can set this parameter at the system, buy line, and product level.

The following procedure is a manual process for a single product. Use the Mass Load program to enter inventory parameters to groups of products.

To set the percentage of a parent branch order point to protect for suggested transfers:

  1. From the Files menu, select Product to display the Product Maintenance screen.

  2. Select a product.

  3. Use the Inven hot key to display the Primary Inventory Maintenance screen and the AddL hot key to display the Additional Inventory Parameters screen.

  4. Use the Hierarchy hot key to select the branch.

Note: Use the Find hot key as necessary to locate a branch that is in the list, but not in the viewable area. Use Alt-Insert to add a branch or territory to the list. The new branch or territory inherits the settings of the previous entry. Use Alt-Delete to remove a branch or territory from the list.

  1. For a branch or territory, press Tab to move to the %OP field.

  2. In the %OP field, enter a percentage of the parent branch's order point to be protected in suggested transfers for non-immediate needs. For example, if the calculated order point is 12 and the %OP is 50, the system reads the parent branch order point as 6 for calculating suggested order quantities.

Note: The calculated order point at the parent branch includes manual service stock.

  1. Press Esc to return to the previous screen.

  2. You must exit Product Maintenance for the changes to take effect.

See Also:

Order Points and Line Points Overview

How the System Calculates Order Points