This chapter contains these topics:
Lot processing allows you to manage and maintain information about groups of items. For example, you can have the system assign lot numbers to groups of perishable items based on receipt dates to identify the items that you must sell first. You can view current information about each lot, such as the quantity of available items, and the transactions that have affected the lot.
Lot control is beneficial for identifying groups of items that are components of a final product. For example, if you assign lot numbers to both bicycle tires and bicycles assembled from the tires, you can:
Identify the lot number for the tires that were used to build a specific bicycle
Identify all bicycles that were assembled from a specific lot of tires
If you later find that a particular lot of tires is defective, you can immediately identify and recall all bicycles that were assembled from the defective tires.
A lot usually contains one type of item, but you can set up system constants to allow different types of items in the same lot. If a lot contains different items, the system maintains lot information for each lot number and item. You can also set up system constants to restrict a lot to one type of item and still allow that lot to exist in multiple warehouses.
In manufacturing, you can complete items to multiple lots in inventory from a single work order. When you report multiple lot completions, the system links materials issued to the work order to the completed items by lot number, by work order number, or by both. If you do not enter the lot number of the end item at the time of issue, the system only uses the work order number to link the component to the end item.
Process manufacturing industries generally operate in a lot-controlled environment, and many of the ingredients produced or consumed must be used before their expiration dates. Because ingredients cannot be used after their expiration dates, planning cannot use the unconsumed balance. Companies do not want to acquire unusable ingredients at any point in their operations.
Expiration planning considers the expiration dates of lots while calculating the quantity on-hand and consumes the lot quantities in the order of expiration dates. That is, lots with the most current expiration dates are consumed first. This is the first-in, first-out (FIFO) method. For example, when milk is delivered to a store, it is placed in the front of the shelf and continuously rotated so that the oldest product is sold to the customer first.
Expiration planning is important because whoever in the chain has the product when it expires, incurs the loss. Accurate planning, forecasting, and adherence to schedules are important to expiration planning because products must make it through the entire chain from the supplier and finally to the customer before the expiration date. If any party in the chain does not adhere to the schedule, at least one party incurs a loss.
When you set the appropriate processing options, JD Edwards World manufacturing planning systems:
Deduct expired quantities of items from the on-hand values
Send a warning message that is recorded in the MPS/MRP/DRP Message table (F3411)
Adjust the time series to reflect the expired product's effect
There are several methods you can use to assign lot number to items. You can:
Have the system assign lot numbers
Assign your own lot numbers
Assign supplier lot numbers
Each time you create a lot, the system adds a record to the Lot Master table (F4108).
You can create lots automatically when you:
Create purchase order receipts
Complete work orders
Adjust inventory
You can create lots manually:
On the Lot Master Revisions form
During work order entry
The actual grade and potency of a lot is defined in the Lot Master table (F4108). You also use the Lot Master Revisions program to specify a reason code for a grade or potency change, and, through the processing options, protect a grade or potency from update.
Lot master information also includes the lot's status and expiration date. You can assign up to ten category codes to the lot for reporting purposes. The system stores all information about lots in the Lot Master table (F4108).
A lot's status determines whether it is available to be processed by the system. When a lot is on hold for any reason, the system does not process it unless a processing option to allow processing of held lots is available.
You set up lot status codes to identify reasons that a lot can be put on hold. After you set up the codes, you can assign them to items and lots through item master information, branch/plant information, purchase order receipts, and lot master revisions. You cannot process items out of lots on hold.
You can assign different status codes to a single lot based on the different locations in which the lot resides. Working with status codes involves:
Setting up lot status codes
Assigning status codes to different lot locations
You can run Lot Status Update to place expired lots on hold. If you run the program in proof mode, you can produce a report showing all lots that will be put on hold. If you run the program in final mode, you can produce a report showing all lots that have been put on hold. Set up lot status codes in the user defined code list 41/L.
You assign lot statuses when:
You use the Lot Master Revisions screen to enter a new lot. If you do not enter a status at this time, the system uses the lot status from the item's branch information in the Item Branch table (F4102).
You set up a new location for an item using the Item Branch/Plant Information form.
You assign lot statuses using:
The lot status code from that lot's record in the Lot Master table (F4108).
The default status from the Item Branch table (F4102) if no lot status exists.
You can assign lot statuses to different lot locations using the Location Lot Status Change window from the Lot Master Revisions program. The system assigns statuses when you create a lot through transfer from another location. The system uses the status code of the From location. You can assign status codes to locations without using lots. Whether the system processes items out of locations on hold depends on how you set the processing options.
Use the following tables to determine a lot's status for newly created Lot Master records and Item Location records.
| Record | Description |
|---|---|
| Lot Master (F4108) | If you enter a lot status on the Lot Master Revisions form, the system uses that lot status.
If you do not enter a lot status, the system uses the default lot status from the Item Branch table (F4102). |
| Item Location (F41021) | If you enter a lot status on the Lot Master Revisions form, the system uses that lot status.
If you are moving a lot from another location:
|
See Also:
Section 34.4, "Setting Up Manufacturing Constants" in the JD Edwards World Inventory Management Guide for information about allowing different types of items in the same lot