Lot Processing
Lot processing enables you to manage information about groups of items. For example, for groups of perishable items, you can have the system assign lot numbers based on receipt dates that 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 in the manufacture of a specific bicycle.
Identify all bicycles that used tires from a specific lot.
If you later find that a particular lot of tires is defective, you can immediately identify and recall all bicycles that drew from the lot of defective tires.
A lot usually contains one type of item, but you can set up system constants in the Branch/Plants Constants program (P41001) to allow different types of items in the same lot. When 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 in 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. If you do not have a lot number for the end item by the time that you issue component materials, the system uses only the work order number to link the components to the end item.
The system enables you to define multiple dates that are relevant for lot processing. These dates can be used to determine when lot-controlled items become available. For each lot containing a lot-controlled item, you can define these availability dates based on the information that is set up for the item in the Item Master (P4101) and the Item Branch/Plant (P41026) programs:
Lot expiration date.
On-hand date.
Best-before date.
Sell-by date.
Lot effectivity date.
Based-on date.
User lot dates 1 through 5.
You can use the lot expiration date, the sell-by date, and the best-before date, as well as the user-defined lot dates, to define the commitment date method.
Expiration planning considers the expiration dates of lots while calculating the on-hand quantity 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. Expiration planning is important because whoever in the chain has possession of 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.
By using the lot effectivity date, you can define a lot to become available for use at a future date. You can calculate the effective date for the lot manually or automatically when the lot is created and becomes on-hand. You can use the Manufacturing Effective Days field on the Item Master Revisions form or the Item Branch/Plant Info form to define the number of days before which a lot will be effective.
When you set the appropriate processing options, JD Edwards EnterpriseOne Manufacturing Planning systems perform these actions:
Deduct expired quantities of items from the on-hand values.
Send a warning message that is recorded in the MPS/MRP/DRP Message File table (F3411).
Adjust the time series to reflect the expired product's effect.
You can use several methods to assign lot numbers to items. For example, you can use one of these methods:
Have the system assign lot numbers.
Assign user-defined lot numbers.
Assign supplier lot numbers.