Inventory General PlanningHi,...

Inventory General Planning

Hi, I have to setup the automatic planning for an ORG and not sure what is the best methodology to use in General Planning. Min / Max ? Reorder point ? what is your experience ?

tks

All planning methods have

All planning methods have their own advantages and disadvantages. One planning method which is good for one inventory-item might not be the same for another item in the same inventory.

As a standard practice we can consider below points
Re order point planning : For items which carrying cost and ordering cost matters a lot. For which demand is almost constant.

Min Max Planning : Mostly use for low value expense items. Inventory can store these item s w/o bearing much of carrying cost

MRP with MPS (and CRP): A better planning method than above two.  It considers all kind of demand (forecast, sales order). Can be used for  subassembly work orders or purchased item POs