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 Maximo 7.6 Inventory Reorder and EOQ

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Chad Sandquist's profile image
Chad Sandquist posted 03-25-2021 14:14
My question is: Why doesn't Maximo ​​calculated the order quantity with EOQ and the amount the inventory is below ROP.  Example ROP is 7 and current balance is 5, you run a reorder and it returns the order quantity of the EOQ amount and not the EOQ + 2.  I do I need to have my supplier remembering to do the calculations.

Thanks,
Chad​
Alex Walter's profile image
Alex Walter
Chad,

EOQ is used when there are potential discounts for purchasing in higher volume quantities. In cases where EOQ is greater than 1, Maximo will purchase in increments of the EOQ until it exceeds the ROP.

Hope this helps,
Alex
Gina Leonard's profile image
Gina Leonard
Hi Chad!
Here is Maximo Reorder calculation:
In Maximo, reorder quantity is calculated by this formula:
 
Order Quantity = [(ROP + 1) –Quantity on Order –Available Balance]
Y = Order Quantity / Economic Order Quantity (EOQ)
X = Next whole number integer of Y
Reorder Quantity = X * EOQ
Hope this helps!
Gina Leonard

Gina Ordaz's profile image
Gina Ordaz
Chad
This is also an issue for us. We would prefer Maximo order using a min/max when at or below min or max Maximo would order to max also taking into account any open orders. I'm hoping that IBM will change this. Having a powerful system that still requires manual management defeats the purpose of the system.

Gina
Chad Sandquist's profile image
Chad Sandquist
Alex,
Thanks for your response.  So, with that being said if you are below your ROP you will have add to the reorder qty if you need more than the EOQ set point.  I know that Maximo has a Min and Max Level ROP in the background / database table and is available to see when creating reports.  The fields do not align with each other.  You would think that the max would be the EOQ + ROP levels.  What is the purpose of Max level in the background?

Thanks,
Chad
Alex Walter's profile image
Alex Walter
Chad,

Unfortunately there is not an option to utilize the MAXLEVEL field that exists in the database during the reorder calculation. Many years ago, Maximo shifted to a "just in time" calculation for reordering. The automated reorder is just going to order enough to get you above the reorder point based on the existing data (like current balance, quantity on order, quantity on reserve, expired lot quantity, etc.).

-Alex