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Does your use of MS-SharePoint requires interface with your ERP system?
We do not use MS-SharePoint
47%
We do not have a need for an interface between SharePoint and ERP
16%
We need to insert or update data in SharePoint from the ERP
10%
We need to access SharePoint data from the ERP
2%
We need to access and insert data to SharePoint from the ERP
14%
We already have a third party tool to create the interface between SharePoint and ERP
10%
Other - Please Comment
2%
Total votes: 58

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  #1  
Old 20th October 2006, 23:12
ilbaan ilbaan is offline
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Baan: LN - DB: SQL - OS: Windows
Safety Stock vs. Reorder Point
Baan: Other/Unknown

Does anyone have a good definition of how ERP uses each of these fields?
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  #2  
Old 21st October 2006, 07:53
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sukesh75 sukesh75 is offline
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Baan: Baan 4c - DB: SQL Server 2000 - OS: Windows 2003
Cool

Hi
Going by the help file, safety stock is considered as a factor in creating planned purchase or production orders in the modules
Master Production Scheduling
Material Requirement Planning
Inventory Control

While Re-Order point is considered for all order systems by session Generate Planned INV Orders.

Last but not least, Safety Stock must be less than or equal to Re-Order point..

Was this what you were looking for?

sk
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  #3  
Old 23rd October 2006, 09:09
EdwinvdBorg EdwinvdBorg is offline
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Baan: 2.2, 3.1, b40, b50, b51, ERP LN FP3, ERP LN FP7, ERP LN 10.2.1 - DB: ALL - OS: ALL
Hi ilbaan,

It all has to do with lead times.
Safety stock and Re-order point are usually the same value and many people are not sure what the exact difference is.
Safety stock is the minimum quantity in stock you would like to have of an item. The Re-order point may be higher because it will take longer for your supplier to have the goods shipped to you so you run the risk of "being out of stock" of an item and therefore the re-order point can be set to a higher quantity than the safety stock.

Hope this helps.
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  #4  
Old 24th October 2006, 09:47
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Jan Ruppert Jan Ruppert is offline
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Baan: BAAN IV, Infor ERP LN - DB: Informix, Oracle - OS: Unix
Formula

The formula (not only in Baan but in general) is

Reorder Point = Safety Stock + Average Consumption * (Order Lead Time + Extra Days)
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  #5  
Old 24th October 2006, 17:30
santosh santosh is offline
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Baan: Baan IV C4 - DB: MS SQL Server 7.0 - OS: Windows NT
Safety Stock vs Reorder Point

Basically safety stock is used by MRP to generate planned purchase and production orders. Safety Stock is that qty which should always be maintain in stock. So when the stock on hand or 'planned' stock on hand goes below safety stock then MRP engine plan orders to cover safety stock + any demand.

Reorder point is used by Generate planned INV order session to generate planned orders. Planned order is generated for qty to satisy the demand or as defined in the order method in the item master.
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Old 25th October 2006, 15:06
ilbaan ilbaan is offline
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Baan: LN - DB: SQL - OS: Windows
I'm pretty clear on the definitions of Safety Stock vs. Reorder point. My problem is that ERP LN is adding both numbers together to generate planned order quantity. I would've expected it to use the Safety Stock to generate the quantity, and the Reorder Point would be used to determine when to generate the planned order.

Thanks to everyone for their help!
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  #7  
Old 25th October 2006, 16:37
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Jan Ruppert Jan Ruppert is offline
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Baan: BAAN IV, Infor ERP LN - DB: Informix, Oracle - OS: Unix
Generate Planned Orders (SIC)

Baan LN does not add Safety Stock and Reorder Point

MRP generates planned order for safety stock plus required quantity

SIC generates planned order if AVAIBLE stock for the date specified in parameters inventory analysis is lower than reorder point.
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  #8  
Old 25th October 2006, 21:30
rkathait rkathait is offline
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Baan: BaanIV, BaanERP, SSA ERP LN - DB: Oracle, Informix - OS: Unix, WinNT, Sun Solaris
Thats correct...

In case of SIC, the qty planned will depend upon the Item ordering data (Ordering Method and item Ordering Qty Setting)
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