Overview Materials Management Planning Purchasing

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Materials Management

Topics

Materials Planning
Purchasing External Services Management

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Materials Planning

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Materials planning

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Materials planning Reorder Point Procedure

Stock Lot size

Reorder level

Safety stock

Reorder point

Delivery date

Time

Replenishment lead time

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Materials planning Net Requirements Calculation in the Reorder Point Procedure

Purchase order proposal to the amount of the lot size Purchase order Fixed planned orders Fixed purchase requisition Warehouse stock Shortage

Reorder level

Comparison

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Materials planning Safety Stock and Reorder Level

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Purchasing (External Procurement)

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Purchasing

Procurement Cycle

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Types of Procurement

External Procurement (Purchasing)

Procurement of raw materials, operating supplies, trading goods/merchandise or services from an external supplier for the organizational units within a firm that need such items.

Internal Procurement (In-house Production)

The product is produced in this location. The product is not procured via purchase requisition or inbound delivery.

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External Procurement for stock

Purchasing document(s) Item: no account assignment category Goods receipt

Warehouse

Goods issue

Material

Production

Vendor

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External Procurement for consumption

Purchasing document(s) Item: with account assignment category

Goods receipt

Production

Vendor
Material

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SR

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Purchasing documents
Purchase requisition
RFQ

Purchase requisition

RFQ

Quotation

Quotation

Quotation

Purch.order

Purchase order

31. Contract

1.

Release order

Scheduling agreement

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Structure of a purchasing document

Purchasing document

Document header

Document
General data statistics Messages Conditions

Item 1
General data Conditions Texts Schedule line

Additional data for item 1

Purchase order history ... Additional data for item 2 ...

Item 2
...
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Purchase requisition

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Purchase requisition
Department Materials Requirement Planning (MRP)

Requisition

Requisition

Purchasing

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Purchase requisition processing

MRP Direct entry

Purchase requisition Determine source of supply

Release

Vendor

o.k.
Allocate and process
RFQ Purchase order

?
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Release order

Purchase Requisition Details

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Request for Quotation and Quotation

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Request for quotation/ quotation

RFQ 1

RFQ 2

Requirements known. Procure from which source?

?
Vendor 1 Vendor 2

Quotation 1

Quotation 2

Price comparison list

Purchase order

Rejection

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Entering a Quotation
1
Item list
Vendor 1
Inquiry 1

Vendor 2

Inquiry 2

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Processing Quotations: Example

1

Enter price and pricing conditions

Vendor A Quotation for RFQ 1 Item 10 Gross price: 400/t Discount: $50 Vendor B Quotation for RFQ 2 Item 10 Gross price: 400/t Surcharge: 50% Vendor C Quotation for RFQ 3 Item 10 Gross price: 400/t Fixed costs: $40

Compare quotations using price comparison list

Steel 2 t 350/t 480/t 520/t 450/t

Price Quotation 1 Quotation 2 Quotation 3

Mean value quotation

Create info record or reject quotation

Vendor A - Order Mat. Qty Price Steel 2t 350/t Vendor C, B - RejectionThank you for your offer. Unfortunately, we cannot place an order at this time .....

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Purchase Orders

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Processing Purchase Orders

Purchase requisition
RFQ Reference document

Contract

?
Vendor
Purchase order Order history

Pcs

%
Conditions

One-time vendor

SR

Info record

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Purchase Order Details

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Outline Agreements-Contracts

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Contract
Contract request Reference RFQ Reference contract Purchase requisition

Contract

Release order

1
Vendor

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Special Stocks and Special Procurements

Consignment
Subcontracting Stock Transfer with Stock Transport Order Returnable Transport Packaging

Pipeline handling
Project Stock

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Procurement Via Blanket Orders

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External Services Management

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Planning and Purchasing Q & A

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