Using Consignment Stock at our Warehouse—Exercises

IMPORTANT
It is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Basic Data Setup

Purchase/Inventory/Sales Part

Purpose: The purpose of this exercise is to create part data entries necessary when using the consignment stock functionality.

Windows:
New Part Assistant

  1. Create XX-58-401 as a purchased, inventory, and sales part by using the New Part Assistant. Use supplier 5000.

General exercise for Purchased Part

General exercise for Stored Sales Part

Inventory Locations

Purpose: The purpose of this exercise is to set up the basic data required for using the consignment stock functionality.

Windows:
Inventory Locations

  1. Open the Inventory Locations window and create inventory locations of the following types: Arrival, Quality Assurance, and Picking.

General exercise for Entering Inventory Locations

Setting up Consignment Stock

Purpose: The purpose of this lesson is to set up consignment stock at our own warehouse.

Windows:
Supplier for Purchase Part/General
Supplier for Purchase Part/Inspection Info
Inventory Part/Default Locations

  1. In the Supplier for Purchase Part/General tab, select the Consignment Stock from the Consignment list.
  2. In the Inspection Info tab, click the Receive Case field to select Receive into Inventory.
  3. In the Inventory Part/Default Locations tab, set a picking location as default location.

General exercise for Setting up Consignment Stock

Main Exercises

Purpose: The purpose of this exercise is to perform the entire flow of consignment stock at our warehouse, consume some parts, and report the consumption.

Windows:
Inventory Part/Planning Data
Inventory Part Availability Planning
Create Order Proposal
Background Jobs
Register Purchase Order Arrivals
Consignment Consumption
Issue Inventory Part
Purchase Order Receipt/General

You have just set up basic data needed to use the consignment stock at our warehouse. Now it is time to set the stocking parameters, and issue the first supply order.

Set Stocking Parameters

  1. Open the Inventory Part/Planning Data tab, search for your part, and set the Planning Method field to C, Safety stock to 2, Order Point to 10, and Order Point Qty to 20.
  2. Set the Supply Type field to Order.

Refilling the Consignment Stock

  1. Open the Inventory Part Availability Planning window, and review the availability situation.
  2. Open the Create Order Proposal dialog window and enter your consignment part and coordinator ID. Click OK.
  3. Check in Background Jobs. Execute the job if it does not start automatically.
  4. Refresh the Inventory Part Availability Planning window, and notice that a purchase order is created.
  5. Select the line, right-click, then click Supply/Demand Details to go to the purchase order.
  6. Release the purchase order.
  7. Open the Register Purchase Order Arrivals window, and search for your purchase order.
  8. Select the line, and use the right mouse button option to receive the parts.
  9. In the receive dialog, click OK to receive the part into your default location.
  10. Open the Purchase Order Receipt/General tab and view the Qty Consignment field. What is stated in the field?
  11. Refresh the Inventory Part Availability Planning window, and review the availability situation.

Consume Parts, and Send Consumption Information

  1. The Construction Dept. needs 5 parts for developing a new chassis. Issue the parts manually.
  2. Open the Consignment Consumption window and search for the part.
  3. Right-click, then click Notify Supplier - Print Summarized List. Enter a validity period and click OK.
  4. Review the report. How many parts were consumed?
  5. Refresh the Consignment Consumption window. What is the status of the consumption line?

Transferring Refill Responsibility to Supplier

You and your supplier have decided to transfer the refill responsibility to the supplier.

  1. Open the Inventory Part/Misc Part Info tab, and select the VMI (Vendor Managed Inventory) check box.
  2. Verify that our system will not reorder by issuing parts until the available stock level is below the order point, and then run Create Order Proposal for the part.