Purchase Order (by weight)

[tigress7]

Hi. I have a problem. The company orders raw materials in weight (kg). For example, paper rolls. They order 1000kg. But they do not know how many of those will be delivered to them. Because the weight per paper roll is not exact. They keep track of the raw material inventory by counting them. My question is what concept will I use to determine if they need to reorder again.

[TopLink]

Originally Posted by tigress7

Hi. I have a problem. The company orders raw materials in weight (kg). For example, paper rolls. They order 1000kg. But they do not know how many of those will be delivered to them. Because the weight per paper roll is not exact. They keep track of the raw material inventory by counting them. My question is what concept will I use to determine if they need to reorder again.

Hi. This sounds rather like the problem in Grocery Retail with the use of catch weight for meat. i.e. you don't really know the quantity being delivered until it arrives and is weighed.

You may need to track both quantities. Weight and units. Weight becuase that is how you pay for it, and units becuase that is how it is consumed and tracked from an Inventory perspective.

I have no direct experince of that issue, so hopefully others will contribute some thoughts too.

[Neo]

Originally Posted by tigress7

Hi. I have a problem. The company orders raw materials in weight (kg). For example, paper rolls. They order 1000kg. But they do not know how many of those will be delivered to them. Because the weight per paper roll is not exact. They keep track of the raw material inventory by counting them. My question is what concept will I use to determine if they need to reorder again.

Can you let us know what kind of paper rolls you are referring to.

[tigress7]

It is a manufacturing company that makes sanitary napkins. i did not get a chance to look at the paper rolls. they have other products like polymer, tissue paper (not the ordinary ones we use), etc. My problem is all of their raw materials they order by weight. They do bulk orders. I just want to know if there is any other way for them to order what they just need for the supplier so that their warehouse will not be full. Or bulk order is the sufficient way?

[tigress7]

Originally Posted by TopLink

Hi. This sounds rather like the problem in Grocery Retail with the use of catch weight for meat. i.e. you don't really know the quantity being delivered until it arrives and is weighed.

You may need to track both quantities. Weight and units. Weight becuase that is how you pay for it, and units becuase that is how it is consumed and tracked from an Inventory perspective.

I have no direct experince of that issue, so hopefully others will contribute some thoughts too.

Exactly. anyone got any ideas?

[Neo]

Originally Posted by tigress7

It is a manufacturing company that makes sanitary napkins. i did not get a chance to look at the paper rolls. they have other products like polymer, tissue paper (not the ordinary ones we use), etc. My problem is all of their raw materials they order by weight. They do bulk orders. I just want to know if there is any other way for them to order what they just need for the supplier so that their warehouse will not be full. Or bulk order is the sufficient way?

The BOM for sanitary napkin is by weight. As for Soft Tissue Or Napkin Parent Rolls it is bulky and is quantified by weight and each roll weight varies and it is normally assigned with a roll number to facilitate receiving and issuing. If storage space is a constraint then scheduling of incoming quantity based on production weekly usage would be ideal. Purchase Order issuance in bulk quantity to supplier will only act as a blanket or confirm order. Maybe by discussing with the supplier to deliver according to delivery schedule will ease storage space problem.