Navigate to: Settings > Configuration > Orders
Definition
Definition
Specifies the number of days (the grace period) that the app uses instead of the replenishment cycle when determining how frequently to place orders.
The app automatically delays or reduces recommended orders if there are existing orders due to arrive within the grace period of the recommended receipt date.
If this parameter is disabled, the grace period equals the item’s replenishment cycle.
If this parameter is enabled, the grace period equals the number of days specified here.
Longer grace periods may result in longer periods of low or no stock, but they often provide a more realistic reflection of supplier lead times and ordering behavior.
⚠️ Note: This behavior applies only when the Projected Orders (Look Forward) module is enabled.
Explanation
Explanation
When an order quantity is recommended, it takes into account whether there are any open orders, provided their due date falls within a lead time from today.
If the due date is outside the lead time, the app believes it can recover earlier and will suggest placing another order today.
However, let’s think about why an open purchase order placed in the past would be due to arrive longer than a lead time into the future. Possible reasons include unreliable suppliers, blanket orders or inaccurate lead times. Whatever the reason, the order recommended today will probably not arrive within a planning lead time from now i.e. before the next open purchase order is due.
If it does, the quantity will be too high, as another order will arrive shortly after.
If it doesn’t, the quantity will be too high, as another order has arrived recently.
This parameter tells the system how far beyond the lead time to look when evaluating open purchase orders in the projection calculation before recommending a new order.
When the Projected Orders (Look Forward) setting is enabled, the system also evaluates the expected demand that will occur between today and the arrival date of the existing order.
This means that existing orders within the grace period reduce the recommended quantity, but this reduction may be offset by forecast demand that will be consumed before those orders arrive.
If unspecified, the grace period defaults to the replenishment cycle value.
In practical terms, this setting determines:
“How long to wait for existing orders to arrive before ordering more”
or equivalently,“How long to wait for existing orders to fall within a planning lead time into the future before ordering more.”
Forget about these 👇 😞 😐 😃 Have your say here!