Hi Sum Kim
I see the use case you have outlined using the "Add Items to Multiple Storerooms" menu option in the Item Master application when you have set up a hierarchy of storerooms. Again, not one I have needed to use, but now I know more. This is an outlier case because most times the item is created only in the storerooms where it will be held, rather than the chance that it may be returned to any storeroom. Nothing wrong with that, it just that you have increased the number of items to be stock counted.
You mentioned that it would be better for reordering to combine the parent/child count for the purposes of reordering. Here's my view on that. The ROP should be specific to that store.
Storeroom A - ROP 0, current stock 1, EOQ = 1, preferred supplier = ABC
Storeroom B - ROP 0, current stock 0, EOQ = 1, preferred supplier = Storeroom A
So, when the reorder cron task runs (order of operation are important here):
- Storeroom B reorders from Storeroom A
- Storeroom A reorders from the supplier
As long as you run the satellite stores before the central store, this cascade works well. Even if you don't, it will be caught up on the next round, but that could be a whole day later. Not great.
Each store has specific requirements and behaviour specific to its operations. What this means is that you may have to adjust the EOQ or the ROP on the central store if multiple satellite storerooms are being fulfilled, i.e. what is the minimum stock at the central storeroom required so that the satellite store has a minimum lag tag time in order to meet the demands placed on them. In other words, "How much buffer stock do you need?"
It's an art and a balance as to storeroom/warehouse management, so that:
- You minimised stock
- Have sufficient quantities to meet expected demand without having them wait whilst more stock is received
- Keep stock turning over
- ....