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Subject Author Date
Parent/Child vs. MPQ? jboysen 05-31-2007
Posted by jboysen on May 31, 2007, 3:49 pm
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Can someone explain to me the differences between the Parent/Child Item
function vs. the MPQ (Master Pack Quantity) data?

I have to purchase certain items in Master Packs, and then break them down
to individual units in order to sell them. When I create a Purchase Order in
SO, using the Reorder/Restock Point calculations, I want SO to look at how
many individual units I need to reach my Restock Point and convert this to
how many Master Packs I need to order from my supplier. Am I being mislead
by the MPQ data field?

Thanks!

Johan

Posted by Glenn Adams [MVP - Retail Mgmt on May 31, 2007, 4:51 pm
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Parent/Child allows you to stock cases and singles. When the quantity
of the single item (child) reaches 0 and the case (parent) quantity is
greater than 0, 1 case will be 'broken' and the single item quantity
will increase by the case contents.

MPQ is an ordering mechanism. It is similar to the case described above
in that it contains a number of single items, but there is no special
logic to break master packs as the contents are sold. MPQ is used
during ordering. If an item has an MPQ or 12, then you can only order
it in quantities of 12, 24, etc... But on the RMS PO, you will not be
entering 1 or 2 (as in 1 case or 2 cases), you will be entering 12 or 24
(as in the number of individual items you are purchasing).

I don't see MPQ as particularly useful, but I'm sure many people would
disagree...

Glenn Adams
Tiber Creek Consulting
http://www.tibercreek.com
glenn@tibercreek.com
----------------------------------------------
Please DO NOT respond to me directly but post all responses here in the
newsgroup so that all can share the information.


jboysen wrote:
> Can someone explain to me the differences between the Parent/Child Item
> function vs. the MPQ (Master Pack Quantity) data?
>
> I have to purchase certain items in Master Packs, and then break them down
> to individual units in order to sell them. When I create a Purchase Order in
> SO, using the Reorder/Restock Point calculations, I want SO to look at how
> many individual units I need to reach my Restock Point and convert this to
> how many Master Packs I need to order from my supplier. Am I being mislead
> by the MPQ data field?
>
> Thanks!
>
> Johan

Posted by jboysen on May 31, 2007, 5:44 pm
Please log in for more thread options
That says to me that I've effectively got two options to accomplish what I
want:

1. Forego Parent/Child relationship, use MPQs and set the Reorder/Restock
points to individual units, creating Purchase Orders that then show the unit
quantity I need (rather than case qty.).

This option makes it tough both for me and my suppliers when it comes to
placing orders and receiving shipments.

2. Use Parent/Child relationships, set the Child item Reorder/Restock
points to zero as well as making them 'unorderable' so they don't show up on
POs, and JUST order/transfer the Parent 'case' (thereby also letting the
Parent item 'break' to Child items automatically). This would mean not using
MPQ for anything at all and would give me POs that have case quantities
rather than unit quantities.

This option seems to fit a little better and would give me a more easily
managed Purchase Order. But it would also make my inventory counts slightly
'inaccurate' if I'm just looking at the parent items....not a big deal I
suppose if the case quantity is low, but if it's high I would potentially
reorder the case based on Reorder/Restock points even though the 'last' case
may have just broken down to 144 widgets. Any ways around this other than
setting the case Reorder point one case lower than I would have otherwise?

Thanks,

Johan




"Glenn Adams [MVP - Retail Mgmt]" wrote:

> Parent/Child allows you to stock cases and singles. When the quantity
> of the single item (child) reaches 0 and the case (parent) quantity is
> greater than 0, 1 case will be 'broken' and the single item quantity
> will increase by the case contents.
>
> MPQ is an ordering mechanism. It is similar to the case described above
> in that it contains a number of single items, but there is no special
> logic to break master packs as the contents are sold. MPQ is used
> during ordering. If an item has an MPQ or 12, then you can only order
> it in quantities of 12, 24, etc... But on the RMS PO, you will not be
> entering 1 or 2 (as in 1 case or 2 cases), you will be entering 12 or 24
> (as in the number of individual items you are purchasing).
>
> I don't see MPQ as particularly useful, but I'm sure many people would
> disagree...
>
> Glenn Adams
> Tiber Creek Consulting
> http://www.tibercreek.com
> glenn@tibercreek.com
> ----------------------------------------------
> Please DO NOT respond to me directly but post all responses here in the
> newsgroup so that all can share the information.
>
>
> jboysen wrote:
> > Can someone explain to me the differences between the Parent/Child Item
> > function vs. the MPQ (Master Pack Quantity) data?
> >
> > I have to purchase certain items in Master Packs, and then break them down
> > to individual units in order to sell them. When I create a Purchase Order
in
> > SO, using the Reorder/Restock Point calculations, I want SO to look at how
> > many individual units I need to reach my Restock Point and convert this to
> > how many Master Packs I need to order from my supplier. Am I being mislead
> > by the MPQ data field?
> >
> > Thanks!
> >
> > Johan
>

Posted by convoluted on May 31, 2007, 6:32 pm
Please log in for more thread options
I'd use the parent/child relationship only if you need to stock and sell both
the parent item and the child item; in your case it appears you will only
sell the child item but must order in "parent" item quantities; it seems
you're better of just working with child items and using MPQ to track the
number of child items your supplier places in their "master pack". and
dividing the master pack cost by the MPQ to get your unit cost (supplier
cost) at the child level (the math will work out the same in terms of total
cost of goods ordered); as you mention, stocking just the parent item but
selling the child item may confuse your store employees come physical
inventory time.....

"jboysen" wrote:

> That says to me that I've effectively got two options to accomplish what I
> want:
>
> 1. Forego Parent/Child relationship, use MPQs and set the Reorder/Restock
> points to individual units, creating Purchase Orders that then show the unit
> quantity I need (rather than case qty.).
>
> This option makes it tough both for me and my suppliers when it comes to
> placing orders and receiving shipments.
>
> 2. Use Parent/Child relationships, set the Child item Reorder/Restock
> points to zero as well as making them 'unorderable' so they don't show up on
> POs, and JUST order/transfer the Parent 'case' (thereby also letting the
> Parent item 'break' to Child items automatically). This would mean not using
> MPQ for anything at all and would give me POs that have case quantities
> rather than unit quantities.
>
> This option seems to fit a little better and would give me a more easily
> managed Purchase Order. But it would also make my inventory counts slightly
> 'inaccurate' if I'm just looking at the parent items....not a big deal I
> suppose if the case quantity is low, but if it's high I would potentially
> reorder the case based on Reorder/Restock points even though the 'last' case
> may have just broken down to 144 widgets. Any ways around this other than
> setting the case Reorder point one case lower than I would have otherwise?
>
> Thanks,
>
> Johan
>
>
>
>
> "Glenn Adams [MVP - Retail Mgmt]" wrote:
>
> > Parent/Child allows you to stock cases and singles. When the quantity
> > of the single item (child) reaches 0 and the case (parent) quantity is
> > greater than 0, 1 case will be 'broken' and the single item quantity
> > will increase by the case contents.
> >
> > MPQ is an ordering mechanism. It is similar to the case described above
> > in that it contains a number of single items, but there is no special
> > logic to break master packs as the contents are sold. MPQ is used
> > during ordering. If an item has an MPQ or 12, then you can only order
> > it in quantities of 12, 24, etc... But on the RMS PO, you will not be
> > entering 1 or 2 (as in 1 case or 2 cases), you will be entering 12 or 24
> > (as in the number of individual items you are purchasing).
> >
> > I don't see MPQ as particularly useful, but I'm sure many people would
> > disagree...
> >
> > Glenn Adams
> > Tiber Creek Consulting
> > http://www.tibercreek.com
> > glenn@tibercreek.com
> > ----------------------------------------------
> > Please DO NOT respond to me directly but post all responses here in the
> > newsgroup so that all can share the information.
> >
> >
> > jboysen wrote:
> > > Can someone explain to me the differences between the Parent/Child Item
> > > function vs. the MPQ (Master Pack Quantity) data?
> > >
> > > I have to purchase certain items in Master Packs, and then break them down
> > > to individual units in order to sell them. When I create a Purchase Order
in
> > > SO, using the Reorder/Restock Point calculations, I want SO to look at how
> > > many individual units I need to reach my Restock Point and convert this to
> > > how many Master Packs I need to order from my supplier. Am I being
mislead
> > > by the MPQ data field?
> > >
> > > Thanks!
> > >
> > > Johan
> >

Posted by jboysen on May 31, 2007, 7:12 pm
Please log in for more thread options
Yes, but using MPQs also makes inventory counts difficult. My stock-room at
the shop won't be, for the most part, individual units (child). Rather it
will be cases (parent). At that point I think I'm better off doing two
seperate physical inventory counts, one for the 'floor' on a child basis and
another for the stock-room on a parent basis. I guess that just means being
extra vigilent about pulling the entire case from back stock and putting it
out on the floor and not leaving any individual units behind.

Using MPQs seems like it would also present serious problems when receiving
everything in a shipment from my supplier. I see cases when unpacking the
pallet and have no idea how many units are in each case. It would also cause
problems when sending Purchase Orders to my suppliers, they want case qtys.
not unit qtys.

I guess the lesser of two evils at this point is using Parent/Child
relationships. Now I just have to figure out how best to deal with having
unique ILCs for each, but that's an entirely seperate discussion (coming soon
I'm sure)!



"convoluted" wrote:

> I'd use the parent/child relationship only if you need to stock and sell both
> the parent item and the child item; in your case it appears you will only
> sell the child item but must order in "parent" item quantities; it seems
> you're better of just working with child items and using MPQ to track the
> number of child items your supplier places in their "master pack". and
> dividing the master pack cost by the MPQ to get your unit cost (supplier
> cost) at the child level (the math will work out the same in terms of total
> cost of goods ordered); as you mention, stocking just the parent item but
> selling the child item may confuse your store employees come physical
> inventory time.....
>
> "jboysen" wrote:
>
> > That says to me that I've effectively got two options to accomplish what I
> > want:
> >
> > 1. Forego Parent/Child relationship, use MPQs and set the Reorder/Restock
> > points to individual units, creating Purchase Orders that then show the unit
> > quantity I need (rather than case qty.).
> >
> > This option makes it tough both for me and my suppliers when it comes to
> > placing orders and receiving shipments.
> >
> > 2. Use Parent/Child relationships, set the Child item Reorder/Restock
> > points to zero as well as making them 'unorderable' so they don't show up on
> > POs, and JUST order/transfer the Parent 'case' (thereby also letting the
> > Parent item 'break' to Child items automatically). This would mean not
using
> > MPQ for anything at all and would give me POs that have case quantities
> > rather than unit quantities.
> >
> > This option seems to fit a little better and would give me a more easily
> > managed Purchase Order. But it would also make my inventory counts slightly
> > 'inaccurate' if I'm just looking at the parent items....not a big deal I
> > suppose if the case quantity is low, but if it's high I would potentially
> > reorder the case based on Reorder/Restock points even though the 'last' case
> > may have just broken down to 144 widgets. Any ways around this other than
> > setting the case Reorder point one case lower than I would have otherwise?
> >
> > Thanks,
> >
> > Johan
> >
> >
> >
> >
> > "Glenn Adams [MVP - Retail Mgmt]" wrote:
> >
> > > Parent/Child allows you to stock cases and singles. When the quantity
> > > of the single item (child) reaches 0 and the case (parent) quantity is
> > > greater than 0, 1 case will be 'broken' and the single item quantity
> > > will increase by the case contents.
> > >
> > > MPQ is an ordering mechanism. It is similar to the case described above
> > > in that it contains a number of single items, but there is no special
> > > logic to break master packs as the contents are sold. MPQ is used
> > > during ordering. If an item has an MPQ or 12, then you can only order
> > > it in quantities of 12, 24, etc... But on the RMS PO, you will not be
> > > entering 1 or 2 (as in 1 case or 2 cases), you will be entering 12 or 24
> > > (as in the number of individual items you are purchasing).
> > >
> > > I don't see MPQ as particularly useful, but I'm sure many people would
> > > disagree...
> > >
> > > Glenn Adams
> > > Tiber Creek Consulting
> > > http://www.tibercreek.com
> > > glenn@tibercreek.com
> > > ----------------------------------------------
> > > Please DO NOT respond to me directly but post all responses here in the
> > > newsgroup so that all can share the information.
> > >
> > >
> > > jboysen wrote:
> > > > Can someone explain to me the differences between the Parent/Child Item
> > > > function vs. the MPQ (Master Pack Quantity) data?
> > > >
> > > > I have to purchase certain items in Master Packs, and then break them
down
> > > > to individual units in order to sell them. When I create a Purchase
Order in
> > > > SO, using the Reorder/Restock Point calculations, I want SO to look at
how
> > > > many individual units I need to reach my Restock Point and convert this
to
> > > > how many Master Packs I need to order from my supplier. Am I being
mislead
> > > > by the MPQ data field?
> > > >
> > > > Thanks!
> > > >
> > > > Johan
> > >


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