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Maximo Reorder Calculation

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Abstract

Maximo Reorder Calculation

Body

In Maximo, reorder quantity is calculated by this formula:
 
Order Quantity = [(ROP + 1) –Quantity on Order –Available Balance]
Y = Order Quantity / Economic Order Quantity (EOQ)
X = Next whole number integer of Y
Reorder Quantity = X * EOQ
 
 
Let me give an example how it works:
1. Create an testing item and set the Reorder parameters
1.1. Create ITEM1000 in ITEM Master application
1.2. Add ITEM1000 to Storeroom CENTRAL
1.3. Set current balance as 10
1.4. Activate the item in Organization and tick Roll New Status to Inventory.
1.5. Change the item status to ACTIVE
1.6. Go to Inventory to check ITEM1000 status. No PO, PR and reservation on this item yet.

image

 

1.7. In the Reorder tab, set Reorder Point as 20 and Economic Order Quantity as 5.

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2. Test the reorder calculation without PO, PR and Reservation
2.1. In Action - Reorder - Reorder Items, click Preview, Reorder Quantity is 15.
Order Quantity = Order Quantity = [(ROP + 1) –Quantity on Order –Available Balance]
= 20 + 1 - 0 - 10 = 11
Economic Order Quantity: 5
Y = Order Quantity / EOQ = 11 / 5 = 2.2
X = Next whole number integer is 3
Reorder Quantity = X * EOQ = 3 * 5 = 15

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3. Test the reorder calculation with Reservation only
3.1 In Work Order Tracking application, create a new record. In Plan Tab, assign 200 quantity ITEM1000 in Material for CENTRAL storeroom. Save and change the work order status to APPR.image

 

 

3.2 Check quantities of ITEM1000 in Inventory application

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3.3 In Action - Reorder - Reorder Items, click Preview, Reorder Quantity is 215.
Quantity on Order= PR + PO order quantity = 0
Available Balance = Current Balance - Reserved Quantity - Expired Quantity = 10 – 200 – 0 = - 190
Order Quantity = [(ROP + 1) –Quantity on Order –Available Balance]
= 20 + 1 - 0 – (-190) = 211
Economic Order Quantity: 5
Y = Order Quantity / EOQ = 211 / 5 = 42.2
X = Next whole number integer is 43
Reorder Quantity = X * EOQ = 43 * 5 = 215

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4.  Test the reorder calculation with Reservation + PR + PO
4.1 Created a PR and add ITEM100 into PR line. Set the Order Qty as 50, Conversion Factor as 1, and make sure it will be charge to CENTRAL storeroom.
Save the PR and leave it as WAPPR status.image

 

4.2 Created a PO and add ITEM100 into PO line. Set the Order Qty as 30, Conversion Factor as 1, and make sure it will be charge to CENTRAL storeroom.
Save the PO and change the status to APPR.

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4.3 Check Item Availability of ITEM1000 in Inventory application. Reserved = 200, PO = 30 and PR = 50.image

 

 

4.4 In Action - Reorder - Reorder Items, click Preview, Reorder Quantity is 215.
Quantity on Order= PR + PO order quantity = 80
Available Balance = Current Balance - Reserved Quantity - Expired Quantity = 10 – 200 – 0 = - 190
Order Quantity = [(ROP + 1) –Quantity on Order –Available Balance]
= 20 + 1 - 80 – (-190) = 131
Economic Order Quantity: 5
Y = Order Quantity / EOQ = 131 / 5 = 26.2
X = Next whole number integer is 27
Reorder Quantity = X * EOQ = 27 * 5 = 135

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