💡 This feature is a replenishment method available exclusively for customers using P21.
Order Point/Order Quantity (OP/OQ) enables tailored management of specific products, optimizing procurement and inventory levels based on individual item characteristics.
While Recurrency primarily recommends using Dynamic Min/Max for inventory management, OP/OQ can be set up for specific items in P21 and managed through Recurrency. It’s important to note the following:
Once an item is configured as Min/Max, it cannot be switched to OP/OQ within Recurrency; this particular change must be made in P21.
However, you can convert OP/OQ items back to Min/Max in Recurrency, as Min/Max is the preferred replenishment model. This approach is often more dynamic, allowing for responsive adjustments based on changing demand patterns.
Users can review OP/OQ items from the Planning page. Here, they have the ability to toggle between item-location pairs using Min/Max and item-location pairs using OP/OQ, for a comprehensive inventory overview.
How OP/OQ Works
When an item is designated as OP/OQ in P21, the following applies:
Order Point: The order point is dynamic and calculated using the same methodology as the Min value. This ensures effective monitoring of inventory levels and timely reordering based on demand patterns.
Order Quantity (OQ): The order quantity is a fixed value defined by your organization, often determined by supplier agreements, inventory turnover rates, or other operational factors. Unlike the order point, there is no calculation for OQ since it is a set value.
Key Considerations
While OP/OQ provides a structured approach to managing specific items, organizations may want to consider using it in scenarios where fixed order quantities are necessary, such as when supplier agreements dictate a specific order size each time. However, the ideal replenishment method is typically Min/Max due to its dynamic nature, allowing for more responsive inventory management based on fluctuations in demand. By leveraging the flexibility of Min/Max, businesses can optimize inventory levels, minimize stockouts, and better align with changing market conditions.
Frequently Asked Questions
Q: Can I switch OP/OQ items to Min/Max?
A: Yes, you can easily transition OP/OQ items to Min/Max using the OP/OQ edit modal.
Q: Can I convert Min/Max recommendations to OP/OQ?
A: Currently, this option is not available. While both Min/Max and OP/OQ are supported, Recurrency Recommendations are most effective with Min/Max because it leverages dynamic variables that enhance inventory management. OP/OQ is generally designated for specific items, whereas most items and suppliers benefit more from the flexibility offered by Min/Max replenishment. To change an item to OP/OQ, you’ll need to update the replenishment method in P21, after which Recurrency will recognize the change and display it accordingly.
Q: Can I view historical changes to OP/OQ data?
A: Yes, you can access historical changes through the OP/OQ edit modal, which includes updates to all key attributes such as Safety Stock, Lead Time, Order Point, and Order Quantity.
Q: What should I consider when using OP/OQ in Recurrency?
A: OP/OQ is a useful tool, but it should be utilized alongside other inventory management factors. While we provide recommendations for the Order Point similar to Min/Max, the Order Quantity must be managed manually, as it typically depends on supplier agreements or specific buyer preferences.