Purchase Requisition Methods in Crouse Co.

Totally there are 4 different attitudes in purchase requisition in Crouse Co.

 Purchase requisition for BOM base components (normal MRP)

 P.R with Reorder Point approach for BOM base components
 P.R for Consumed based components
 P.R for spare parts, samples and special machineries

Purchase requisition for BOM base components (normal MRP):

This method is using for components which has correct BOM especially in Makhsoos 1 Plant (countable components such as screws, connectors, terminals and …). In this
method all the components should be checked in a certain period (weekly, monthly) and according to normal formulas of MRP components should be ordered.

. = ( . + . )− ( + + ) ∗

 Finally the P.R quantity should be round up to its related MOQ

 Lead Time, Safety stock, Stock, Transit and Remain order, the Unit of Measure should be in Day
 Each component has its own L.T and S.S
 Consumption should be driven via Forecast according to customer demand and sales strategies

P.R with Reorder Point approach:

This method is using for components which has correct BOM especially in Old Plant and Makhsoos 2 plant. In this method first of all we should assign an Order Point (Day)
for each component. The logic will be comparing durability of (Stock + Transit + Remain order) with Order Point, if the Durability was equal or less than Order Point we
should smooth our durability up to Order Point + Period Order Fence.

. = ( . + . . )− ( + + ) ∗

For example with taking 150 days as Order Point and 60 days as Period Order Fence for a component which its Durability is 135 and Consumption is 1000 per day our
calculation will be according:

(150 + 60 – 135)*1000 = 75000 (with taking MOQ (10000) our P.R will be 80000)

 Each components of this Group belongs to a Category which should be ordered together. For example if we have 4 components with below circumstances our P.R
will be: (O.P=150 days, P.O.F=60 days

PN Durability (day) Consumption per day P.R quantity

A0001 150 1000 (150+60-150)*1000=60000
A0002 140 500 (150+60-140)*500=35000
A0003 170 200 (150+60-170)*500=20000
A0004 100 100 (150+60-100)*500=11000
About item A0003, according to its durability we are not allowed to order this component because it is more than Order Point but we should create 20000 P.R to be set with
other components in this Category.

P.R for Consumed based components:

These components have two main groups: (Product direct related material such as metallization material, Product indirect related material such as stationeries). In these cases we should
suppose the history of consumption for calculating P.R quantity as below:

. = ( . + . . )− ( + + ) ∗

 Consumption would be the average consumption of our past 6 -12 months consumptions

P.R for spare parts and special machineries:

These requisitions will be driven via its related point of use such as special tools, spare parts. Each department has its own responsible that will be the responsible of putting such P.R. In
such cases Planning Department should be notified about those requests at a same time when they are putting P.R for purchasing department.

 Each component has its own MRP controller who is responsible of putting P.R

All components in Crouse have been divided in three main Groups:

 Local purchasing Group (components which we are preparing via local market)
 Foreign purchasing Group (components which we are preparing via foreign market)
 Crouse made components (P.R will be done for their related raw material)