Handling Shortages—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

Inventory Locations

Purpose: The purpose of this exercise is to set up inventory locations to be used when performing the main exercise.

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

Purchase/Inventory/Sales Part

Purpose: The purpose of this exercise is to create part data entries necessary for running the main exercise.

Windows:
New Part Assistant

  1. Create XX-58-401, and XX-58-402 as purchased, inventory, and sales parts by using the New Part Assistant. Use supplier 5000.

General exercise for Purchased Part

General exercise for Stored Sales Part

Enabling Shortage Handling

Purpose: The purpose of this exercise is to modify basic data to be used when performing the main exercise below.

Windows:
Parameters for Distribution and Manufacturing
Inventory Basic Data/Asset Class
Inventory Part

  1. Open the Parameters for Distribution and Manufacturing window. Verify that the shortage function is enabled in the Shortage Handling field.
  2. Enter a new asset class and indicate usage of the shortage function, with all other conditions remaining unchanged, in the Inventory Basic Data/Asset Class tab.
  3. Go to the Inventory Part/General tab, and search for parts XX-58-401, and XX-58-402. Assign the new asset class to the parts.
  4. Verify that the Shortage Notification check box on the Misc Part Info tab is selected, and that the Availability Check check box is cleared.

General exercise for Inventory Part
 General exercise for Asset Classes

Required Data

Enabling Shortage Handling

Purpose: The purpose of this exercise is to show you the required data that has to be entered to be able to perform the main exercise below.

  1. Receive a small number of the two parts into stock by using the Receive Inventory Part window.

General exercise for Receive Inventory Part

Main Exercises

Purpose: The purpose of this exercise is to resolve shortages in receipt situations, using shortage notification.

Windows:
Inventory Parts
Inventory Part
Receive Inventory Part
Material Requisition
Resolve Shortages for Inventory Part

Our customer has an urgent need for part XX-58-401, and XX-58-402, but we are unfortunately not able to fulfill the request. A shortage flag has been set when we tried to reserve the order, and a message will be displayed to any user receiving this part. The message is an indication that manual intervention is needed to speed up the shortage handling. The resolve shortages process is triggered by all actions that increase the availability, however this exercise is limited to the receiving inventory parts.

Creating a Shortage

  1. Create two material requisitions, one for each of the two inventory parts with the shortage function enabled.
  2. The mode of acquisition should be Inventory Order and the required quantity on the requisitions should exceed the quantity on hand.
  3. Try to reserve the parts by using the Operations menu option, Reserve. Is it possible?
  4. The shortage is now created.

Resolving the Shortage

  1. Create a manual receipt, which is less than or equal to the quantity needed, in the Receive Inventory Part window for the two inventory parts. What message is displayed?
  2. Open the Resolve Shortages for Inventory Part window and search for the parts with shortages.
  3. Distribute the received parts manually for the first part by indicating an amount for each requisition line in the Qty to Reserve field.
  4. For the second part, let the system distribute the received parts by using the Operations menu option, Propose Shortage Resolution. Modify the proposal before saving it.