difference between back order processing & replishment lead time

[Former Member]

pls try to explain back order processing & replenishment lead time .

when do we use above in what scenario.

bye

[Former Member]

Hi k.tiru.kumandan

Backorder process

The goods available earlier than delivery date we can go back with sales order and deliver the goods before first delivery date.

2 customers. First Customer gives order for 20 goods on 20/11/2011 & needs to be delivered on 25/11/2011.Raise sales order then the system goes & checks the availability stock in storage location & confirms the delivery date as per the customer requested.

Second customer gives order for same 20 goods on 20/11/2011 & needs to be delivery on 23/11/2011.But there is no stock available in storage & by doing the availability check the stocks will available on 24/11/2011. So the system picks the first order goods which are not yet delivered & delivers to second customer. The stock which is available on 24/11/2011 will delivered to first customer.

Replenishment lead time

Time that is needed to order or produce the requested material. The system determines replenishment lead time according to specific times defined by you in the material master record.

Available stock 20 in storage location. In-house production for 2 days in MRP2 in Material Master. Customer gives order for 25 goods on 20/11/2011.Raise sale order the system by doing the availability check will confirm the 20 qty on 20/11/2011 & remaining 5 on 22/11/2011. This is because of the RLT.

Regards

Pradeep

[kalyan_mokirala]

Hi Kumandan,

Back order process

For confirming the stock for a line item system will initailly perfom backward scheduling where it will subtract different times from the requested delivery date and check If stock is available on the requested delivery date. If it is able Then requested delivery date = confirmed delivery date.

If system is not able to confirm the stock on requested delivery date then it will do forward scheduling where system adds different times to the current date to arrive at confirmed delivery date. If customer is a back order customer then system will confirm the quantity according to the availability of the stock in different partial deliveries using the forward scheduling process.

Normally a back order customer can have a maximum of 9 partial deliveries.

Replenishment lead time.

Replenishment lead time is The total time for the in-house production or for the external procurement of a product. While assigning checking rule for the checking group in configuring availability check we may consider different stocks and we have an option to consider replishment lead time for confirming the stock availability during the availability check. If we consider replinshment lead time, and if requested delivery date falls outside the replenishment lead time then system will confirm the entire ordered quantity and will not perform availability check.

Hope this explains.

[Former Member]

Dear k.tiru.kumandan

Back order processing: If confirmed order quantity is" 0" is called back order. For example one order is confirmed with quantity 100 but requested delivery date is 30-11-2011.

For another customer the same material and quantity 100 he wants and in plant there is no stock and the customer wants the material to be delivered 10-11-2011.

Then first order quantity will be picked and given to he second order to whom we need to deliver immediatly 10-11-2011. This is called back order processing and the first order is called back order.

Replenishment lead time:By activating RLT you are saying "How much time it will take to produce or procure the goods in order to confirm the quantities in the sales order.

Please let me know if you have any further clarifications

Thanks&Regards

Raghu.k