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Setting ROP ( Re-Order Point) & PSL ( Preferred Stock Level) based on ship date
I have a typical scenario for the industry I work in ( mattresses & furniture).
The customers who order usually order in advance. So with the ROP & PSL set for them ( consider mattresses only as we manufacture them), the delivery dates ranges between 2 days to 6months. Due to this, I have stock pilled up as the ship date has not arrived and since they are committed on FIFO method of the sales order ( we have advance invoicing here) , the system keeps triggering to order as long as it is less than the preferred stock level.
Is there a way around this?
Thank you in advance.
| Sreejeth Supply Chain Manager |
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