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Avoid purchase order suggestion when inventory is zero but PO is on its way

Posted on by 4
I have items where the inventory is zero but PO is on its way.

SKU is set up LFL with safety stock or Reorder point.

The planning worksheet suggests that I place a purchase order in the past to make up for my SKU, even though purchase order is on its way. This does not seem relevant, as placing an order will not have it come in earlier due to set up lead time on SKU.

I can modify the SKU, but then I have to remember to change it back when PO arrive, and that does not seem optimal.
I can use the requisition worksheet and not look at items with open PO quantity, but then I might miss out on relevant items.  
 
So how can I avoid that the planning worksheet suggests placing an order in the past?
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  • Suggested answer
    Ben Baxter Profile Picture
    Ben Baxter 4,754 Super User 2024 Season 2 on at
    Avoid purchase order suggestion when inventory is zero but PO is on its way
    This suggestion is highly dependent on your lead time before that PO arrives, but push your Start Date out to beyond the Planned Receipt Date of that PO.  Essentially telling Planning that you want to start planning for the day after that PO is set to arrive.  If your receipt is happening for a while, this strategy doesn't work.  Compound the issue by the number of Items with this situation and the varying receipt dates it becomes messy and unmanageable.
     
    Unfortunately, this is the reason the Warnings exist in the Planning Worksheet, to let you know your material is not going to make it in time for the need.  You could also push out your shipment date on the Sales Order (or whatever the demand source is), which would allow the PO receipt to be on-time and the system would stop making the suggestion to buy sooner.  Try to think of this as a Customer Experience exercise, where your team can inform the customer of an updated receipt date.
     
    I hope one of these ideas helps, but it is basic supply and demand, and in this case they are out of sync.
     
    Best Regards,
    Ben Baxter
    Accent Software Inc
  • jlc Profile Picture
    jlc 4 on at
    Avoid purchase order suggestion when inventory is zero but PO is on its way
    Yes, planned and expected date is filled in. 
  • KasparsSemjonovs Profile Picture
    KasparsSemjonovs 3,865 Super User 2024 Season 2 on at
    Avoid purchase order suggestion when inventory is zero but PO is on its way
    Is the expected/planned receipt date filled in correctly on the purchase order for that item?

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