Using run quantity to optimize compliance processing
When a compliance service is configured, you can configure run quantity to control your processing of special items. A run quantity is used to calculate how many of the item should be created when there is insufficient inventory to meet an order for the item.
When an order for an item that requires compliance services is placed, the system tries to schedule against available inventory that has been set aside to fulfill these special orders (or segmented) at the ship node specified on the order. If inventory is not available at the ship node, the system tries to schedule against any segmented inventory at configured procurement nodes. If there is still not enough inventory to satisfy the order, a work order is created, based on the compliance services for the item. This work order is used to manage the specific requirements for supplying the item.
For example, Big Store purchases over 150 refrigerators each week. The compliance service for those refrigerators is configured so 100 refrigerators should be made when a work order is created.
Another buyer, Local Store, purchases 10 to 15 refrigerators a week. When configuring a compliance service for them, only 10 refrigerators should be created when a new work order is created. The following table summarizes the weekly purchases and the configuration for the compliance service.
| Buyer | Refrigerators purchased weekly |
Compliance Service: Run Quantity |
|---|---|---|
| Big Store | 150 | 100 |
| Local Store | 10-15 | 10 |
The current inventory for the customized refrigerators is described in the following table.
| Buyer | On Hand |
|---|---|
| Big Store | 21 |
| Local Store | 7 |
If Big Store orders another 30 refrigerators, there is not enough inventory available to supply them. A work order is created which specifies the steps for the compliance service. The run quantity for the compliance service is 100, so a total of 100 refrigerators are customized to the Big Store's requirements.
If Big Store is having a sale and orders 150 refrigerators, a work order is created for 200 refrigerators (two runs of 100 each). This occurs because only 21 refrigerators are onhand and when added to a run quantity of 100, only 121 refrigerators would be available. Therefore, the run quantity is used repeatedly to create enough inventory to meet the requirements of the order.
When the ordered quantity is not equal to the run quantity, two inventory checks occur during scheduling instead of one.
If the Local Store orders another 7 refrigerators, no work order is created, and no additional refrigerators are created. This completely depletes the stock of Local Store refrigerator. If the Local Store orders 7 or more refrigerators, then an additional 10 refrigerators are created.