Pull Flows Logistics Configuration in a Multi-Company Environment

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20.7.2 Minimum Stock Rules

To automatically make stock replenishment proposals, you can use minimum stock rules. To do this use the menu Warehouse → Automatic Procurements → Minimum Stock Rules. The rule is the following: if the virtual stock for the given location is lower than the minimum stock indicated in the rule, the system will automatically propose a procurement to increase the level of virtual stock to the maximum level given in the rule. Figure 20.25: List of Minimum Stock Rules Tip: Conflict Resolution You may find draft production or procurement orders to be created although they should not exist. That can happen if the system is badly configured for example if you have forgotten to set the supplier on a product. To check this, look at the list of procurements in the exception state in the menu Warehouse → Schedulers → Procurement Exceptions. More details about processing these exceptions is given in Manufacturing . We underline that the rule is based on virtual quantities and not just on real quantities. It takes into account the calculation of orders and receipts to come. Take the following example: • Products in stock: 15 • Products ordered but not delivered: 5 • Products in manfacturing: 2 The rules defined are: • Minimum stock: 13 • Maximum stock: 25. Once the rules have been properly configured, the purchasing manager only needs to look at the list of orders for confirmation with the supplier using the menu Purchases → Purchase Management → Requests for Quotation. Note: Note that the procurement does not require that you buy from a supplier. If the product has a Supply method Produce the scheduler will generate a Manufacturing order instead of a supplier order. You can also set multiple quantities in the minimum stock rules. If you set a multiple quantity of 3 the system will propose procurement of 15 pieces, and not the 13 it really needs. In this case it automatically rounds the quantity upwards. In a minimum stock rule, when you indicate a warehouse it suggests a stock location by default in that warehouse. You can change that location by default when the scheduler completes, by location and not by warehouse. 277

20.8 Scheduling

The master production plan, sometimes called the MPS Master Production Schedule, enables you to generate forecasts for incoming and outgoing material. It is based on forecasts of inputs and outputs by the logistics manager. Note: MPS, Procurement and Production OpenERP distinguishes between Production, Purchase and Procurement. Production is manufacturing, Purchase is the acquisition of goods from another party, and Procurement is either one or both of those. So it would be better to call the MPS the Master Procurement Schedule. Which OpenERP does Tip: Product trading Also called the Production Plan, this tool is also very useful for traded products which are not manufactured. You can then use it for stock management with purchased and manufactured products. To be able to use the production plan, you must install the stock_planning module.

20.8.1 Sales Forecasts

The first thing to do to work with a production plan is to define the periods for stock management. Some companies plan daily, others weekly or monthly. Tip: Stock Management Interval The interval chosen for managing stock in the production plan will depend on the length of your production cycle. You generally work daily, weekly or monthly. If it takes several days to assemble your products, you most likely will define a weekly plan. If your manufacturing cycles take several months you can work with a monthly plan. Go to the menu Sales → Configuration → Stock and Sales Periods → Stock and Sales Periods. A window appears enabling you to automatically define the next periods that will be provided for stock management. Figure 20.26: Defining Periods for Stock Management Salespeople can then enter their sales forecasts by product and by period using the menu Sales → Sales Forecasts → Sales Forecasts. The forecasts can be made by quantity or by value. For a forecast by amount OpenERP automatically calculates for you the quantity equivalent to the estimated amount. This can be modified manually as needed before completion. 278 Figure 20.27: Sales Forecast to Help Create a Master Production Plan

20.8.2 Production Plan

The manager responsible for logistics then plans receipts manufacturing or purchases and outgoings consumption or customer deliveries by period. Go to the menu Warehouse → Stock Planning → Master Procurement Schedule . For each period and product, OpenERP gives you the following information: • Stock estimated at the end of the period, calculated as stock in the following period less the total estimated outgoings plus total estimated inputs, • Closed entries, coming from production or confirmed purchases, • Forecast inputs for the period, calculated using the incoming entries less the closing amounts, • Planned inputs entered manually by the logistics manager, • Closed outgoings which are the consumption of manufacturing waiting and deliveries to be made to customers, • Forecast outgoings, calculated from the planned outgoings, less the closing amounts, • Planned outgoings, manually entered by the logistics manager, • Sales forecasts, which represent the sum of forecasts made by the salespeople.