Maximo Open Forum

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?

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?

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.

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?