Maximo Open Forum

 View Only

Related Content

  • 1.  Minimum vs Reorder Point

    Posted 02-05-2025 15:04

    We're trying to convert from a min/max inventory to the reorder point / economic order quantity in Maximo. A typical inventory item is min of 1 (on hand) and max of 2. In Maximo, would we set the reorder point at 1 or 0? If we set it at 1, then Maximo would reorder when balance reaches 1? Seems like we would never actually reach a minimum of 1. If we set ROP to 0, then we have at least one in stock until its issued (balance goes to 0)? Should we think of ROP as Minimum -1?


    #Inventory

    ------------------------------
    Jason Johnson
    RSI
    ------------------------------


  • 2.  RE: Minimum vs Reorder Point

    Posted 02-06-2025 09:33

    Hi Jason

    Reorder calculation happens via 

    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

    Have you checked this URL? It show detail calculation which will help to clear any doubt.

    https://www.ibm.com/support/pages/maximo-reorder-calculation



    ------------------------------
    Prashant Sharma
    Sedin Technologies
    Connect with me @ https://www.linkedin.com/in/psharmamaximo/
    Learn Maximo with me @https://www.youtube.com/@reliabilityodyssey/

    #IBM Champion 2022
    #IBM Champion 2023
    #IBM Champion 2024
    ------------------------------



  • 3.  RE: Minimum vs Reorder Point

    Posted 02-06-2025 17:00

    Hi Jason

    The article that Prashant put forward is an excellent answer.

    As pointed out in the equation, a value of 1 gets added to the ROP.  So, from the 'old' min, the value of 1 is the same as having an ROP of 0. However, you also need to have the EOQ set to 1 (which is the lowest possible value).  This is gives you the just in time solution.  Please remember that the EOQ is ordering in "batches of" i.e. you set the EOQ as 5 and the answer to the calcuation is that you need to order 4, then you'll get 5 ordered, also if the calc = 6, then you'll order 10.



    ------------------------------
    Craig Kokay
    Principal Consultant
    COSOL

    email: craig.kokay@cosol.global
    #IBMChampion
    ------------------------------



  • 4.  RE: Minimum vs Reorder Point

    Posted 02-11-2025 08:37

    Thank you both for the insights.



    ------------------------------
    Jason Johnson
    RSI
    ------------------------------

    Original Message