This field determines how Material Requirements Planning (MRP) plans orders for this item.
Order Policy operates in combination with Plan Orders. When Order Policy is blank, MRP does not plan this item, regardless of how Plan Orders is set. No requirements or action messages are generated.
When Order Policy is not blank, MRP plans the item. It calculates net requirements and suggests or creates planned orders to fill them. The quantity and due date of the order is determined by the order policy, lead time, and order modifiers.
Leave this field blank or enter one of the following order policies:
o POQ (Period Order Quantity): MRP creates one planned order to cover the requirements for the number of calendar days specified in Order Period.
o FOQ (Fixed Order Quantity): MRP creates planned orders with the quantity specified in the Order Qty field. If the value for Minimum Order is greater than Order Quantity, planned orders are created with the order quantity specified in the Minimum Order field instead. Order Quantity must be greater than zero (even if Minimum Order is greater than zero) for MRP to create planned orders.
o LFL (Lot for Lot): MRP creates a separate planned order to satisfy each net requirement. If there are many sources of demand, MRP creates many planned orders.
o OTO (One Time Only): MRP creates a single planned order with an order quantity of one. This policy is not used for inventory items, but could be used to plan project activities and milestone events that happen only once.
Any other non-blank value is processed as lot for lot (LFL).
The value entered in Item Master Maintenance is used as the default for all sites. Set up site-specific values in Item-Site Planning Data Maintenance.
This field determines how Material Requirements Planning (MRP) plans orders for this item.Order Policy operates in combination with Plan Orders. When Order Policy is blank, MRP does not plan this item, regardless of how Plan Orders is set. No requirements or action messages are generated.When Order Policy is not blank, MRP plans the item. It calculates net requirements and suggests or creates planned orders to fill them. The quantity and due date of the order is determined by the order policy, lead time, and order modifiers.Leave this field blank or enter one of the following order policies:o POQ (Period Order Quantity): MRP creates one planned order to cover the requirements for the number of calendar days specified in Order Period.o FOQ (Fixed Order Quantity): MRP creates planned orders with the quantity specified in the Order Qty field. If the value for Minimum Order is greater than Order Quantity, planned orders are created with the order quantity specified in the Minimum Order field instead. Order Quantity must be greater than zero (even if Minimum Order is greater than zero) for MRP to create planned orders.o LFL (Lot for Lot): MRP creates a separate planned order to satisfy each net requirement. If there are many sources of demand, MRP creates many planned orders.o OTO (One Time Only): MRP creates a single planned order with an order quantity of one. This policy is not used for inventory items, but could be used to plan project activities and milestone events that happen only once.Any other non-blank value is processed as lot for lot (LFL).The value entered in Item Master Maintenance is used as the default for all sites. Set up site-specific values in Item-Site Planning Data Maintenance.
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