How Order Modifiers Are Applied When Replenishments Are Calculated

This topic explains how order modifiers are applied when replenishments are calculated for a replenishment plan.

Settings That Affect How Order Modifiers Are Applied to Replenishments

The policy type specified in the policy assignment set that's attached to the replenishment plan affects how order modifiers are applied to the calculated replenishments.

How Order Modifiers Are Applied to Replenishments

This table describes how order modifiers are applied to replenishments calculated for the replenishment plan when the policies are of different types:

Policy Type	How Order Modifiers Are Applied	Example
Min-max planning	The order modifiers specified in the Fixed Lot Multiplier, Minimum Order Quantity, Maximum Order Quantity, and Fixed Order Quantity columns of the Items table are applied to the replenishment order quantity. The minimum order quantity and fixed lot multiplier can also be defined at the supplier level. Here's how the modifiers are used: If the replenishment order quantity is less than the minimum order quantity, the former is increased to the latter. If the replenishment order quantity is more than the maximum order quantity, the former is decreased to the latter. If the replenishment order quantity isn't a multiple of the fixed lot multiplier, the former is converted into a multiple of the latter. If the fixed order quantity is defined, it's used as the replenishment order quantity.	If the minimum quantity is 50, maximum quantity is 100, beginning inventory position (sum of the projected available balance and on order quantity) is 40, and fixed order quantity is 50, the replenishment order quantity is 60 (100 - 40). Two replenishment orders of 50 each are created.
Fixed order cycle	The order modifiers are specified and used as explained for the min-max planning policy type.	If the maximum quantity is 100, beginning inventory position (sum of the projected available balance and on order quantity) is 80, and fixed lot multiplier is 50, the replenishment order quantity is 20 (100 - 80). One replenishment order of 50 is created.
Reorder point (ROP) and order quantity	Not applicable	Not applicable
ROP and economic order quantity (EOQ)	Not applicable	Not applicable

For buy orders, the order modifiers and lead times defined at the item-supplier level are considered before those defined at the item-organization level.