MFG/PRO 9.0 User Guide Volume 3: Manufacturing - QAD.com

Order Policy Description
Order Modifiers
MATERIAL REQUIREMENTS PLANNING 245
Lot-for-lot (LFL) MRP generates a separate planned order to satisfy each net
requirement. If there are many sources of demand, MRP
creates many planned orders.
When LFL policies are used across multiple product levels,
running MRP may produce unmanageable numbers of
manufacturing orders.
One time only (OTO) MRP generates a single planned order with a quantity of one
unit. As long as one order for this item exists, the system will
not create another. OTO can be used for prototype items, or
for planning project activities and one-time events.
MRP uses order modifiers along with order policies to determine planned
order quantities.
Order Modifier Description
Order Quantity The quantity for which all MRP planned orders are
created for an item with an order policy of FOQ.
Safety Stock The quantity of this item maintained in inventory as
protection against fluctuations in demand or supply.
MRP processing considers safety stock a requirement,
and schedules planned orders to cover this requirement.
You should not designate safety stock levels for nonmaster
scheduled items because it may cause MRP to
overplan inventory.
Minimum Order Quantity The minimum quantity allowed for a planned order. If
the net requirement is below this amount, MRP creates
an order for this minimum quantity. To ensure that items
that have decimal demand values due to yield or scrap
calculations are ordered in whole number quantities, set
this value to 1, or to any whole number.
Maximum Order Quantity When a net requirement exceeds this amount, MRP
generates the action message Order Exceeds
Maximum for the order created to fill this requirement.
Order Multiple When order policy is POQ or LFL, planned orders are
created in multiples of this quantity. For example, if the
order multiple is 100, planned orders are only created for
quantities of 100, 200, 300, and so on.
Table 12.2
Order Modifiers