Creating an internal replenishment order is not always a straightforward process. Recall from the Establishing Item Information section that a minimum/maximum (min/max) control can be selected to define inventory standards and limit reorder quantities. Due to this control, two types of exceptions can occur: a minimum exception and a maximum exception.
A minimum exception occurs when the inventory level drops to or below the order point. When items reach this level, they appear on the Replenishment Action Report (RRACT). This report notifies warehouse managers that it is time to replenish the items.
The Replenishment Action Report is located in RMDS in the report group IN 260-3. The report ID is RRACT. For more information on accessing RMDS reports, refer to Viewing and Printing RMDS Reports Step-by-Step.
A maximum exception
occurs while an internal replenishment order is being created. Because
of the min/max control, orders are restricted by maximum allowable stock
levels. Thus, a maximum exception occurs when you try to order more of
an item than your warehouse is allowed to have. When this condition occurs,
you have three options:
| 1. | Ignore the maximum exception and continue the order. If you ignore the maximum exception, an additional approver is automatically added solely to approve the exception. |
| 2. | Reduce the quantity of the item ordered until it no longer exceeds the maximum allowable quantity. |
| 3. | Cancel the order line. |