Let’s start with the simplest example – I’ve created an item called MP Min. It has a coverage code of Min/Max. No QOH (quantity on hand), no QOO (quantity on order), no min (Minimum on Hand), no SOQ (standard order quantity), and no OM (order multiple).
If I put in a requirement for this item (a sales order for qty=10), this is what Master Planner will produce:
It tells you to order a quantity of 10, which is the actual amount of the demand.
Now, let’s add a min of 7 to the mix, and rerun Master Planner – see what happens:
It now takes the min, which is 7, adds that to the demand, which is 10, and suggests procurement of 17.
Let’s add an SOW of 20 to the mix and see what happens:
Master Planner now will suggest 20, since 20 will cover the min and the demand.
Now, let’s change the sales order quantity to 15 and rerun Master Planner:
Master Planner will respect the SOQ and demand, now suggesting that you order 22.
Let us now add an OM of 5 and rerun master planner:
Since there now exists an OM, the quantity suggested is now 25. The system has a min of 7, demand of 15, equaling 22, however, with an OM of 5, the system suggests 25.
Now let’s change the coverage code to requirement, rather than min/max. What will happen now? Well, Ascent will ignore the minimum on hand and plan without a minimum on hand qty.
Since the SOQ is still 20, even though the demand is actually only 15, Ascent will still recommend the SOQ, but will ignore the 7 min. If you change the SOQ to 21, Ascent will do the following:
Since the OM is 5, it will round up the SOW from 21 to 25 and suggest that.