Does anyone have a good definition of how ERP uses each of these fields?

Hi
Going by the help file, safety stock is considered as a factor in creating planned purchase or production orders in the modules
Master Production Scheduling
Material Requirement Planning
Inventory Control

While Re-Order point is considered for all order systems by session Generate Planned INV Orders.

Last but not least, Safety Stock must be less than or equal to Re-Order point..

Was this what you were looking for?

sk

Hi ilbaan,

It all has to do with lead times.
Safety stock and Re-order point are usually the same value and many people are not sure what the exact difference is.
Safety stock is the minimum quantity in stock you would like to have of an item. The Re-order point may be higher because it will take longer for your supplier to have the goods shipped to you so you run the risk of "being out of stock" of an item and therefore the re-order point can be set to a higher quantity than the safety stock.

Hope this helps.

The formula (not only in Baan but in general) is

Reorder Point = Safety Stock + Average Consumption * (Order Lead Time + Extra Days)

Basically safety stock is used by MRP to generate planned purchase and production orders. Safety Stock is that qty which should always be maintain in stock. So when the stock on hand or 'planned' stock on hand goes below safety stock then MRP engine plan orders to cover safety stock + any demand.

Reorder point is used by Generate planned INV order session to generate planned orders. Planned order is generated for qty to satisy the demand or as defined in the order method in the item master.

I'm pretty clear on the definitions of Safety Stock vs. Reorder point. My problem is that ERP LN is adding both numbers together to generate planned order quantity. I would've expected it to use the Safety Stock to generate the quantity, and the Reorder Point would be used to determine when to generate the planned order.

Thanks to everyone for their help!

Baan LN does not add Safety Stock and Reorder Point

MRP generates planned order for safety stock plus required quantity

SIC generates planned order if AVAIBLE stock for the date specified in parameters inventory analysis is lower than reorder point.

Thats correct...

In case of SIC, the qty planned will depend upon the Item ordering data (Ordering Method and item Ordering Qty Setting)

Will Infor LN allow the setup of multiple Reorder Points & Safety Stocks by Warehouse?

Example: Part# 123456
Warehouse 001 - 5,000 PC Reorder Point 1,800 PC Safety Stock
Warehouse 002 - 2,000 PC Reorder Point 750 PC Safety Stock

Can this be achieved and how?

Material Planning is performed by cluster, which stands for a logistic unit and warehouses are assigned to a cluster. If you want to plan material for several warehouses seperately you will need to set up as much clusters as you need planning results.