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MRP glossary TOP > Material Planning > Order Cancel

Order Cancel

Order Cancel

It is a recommendation to be made by MRP, and is used to cancel the order whose logistics is done for some reason. As the figure depicts, for example, when the quantity of 20 is cancelled for Period 3 of Product Z, the quantity of 15 is cancelled for Period 6 in the Planning of Part a, the gross requirements for Period 3 of Pat a is 15, and the gross requirements for Period 6 is 0. In this case, the gross requirements of 19 can be covered by the available stock of 22 for Period 4. Therefore the released orders of 50 for Period 5 do not have to delivered by the due date, and thus their due dates are sequentially adjusted to Period 6 and 7, and as the result they turn to be unnecessary within Part a's planning period. In this way, the recommendation to cancel the released order or work in process order is called Order Cancel.

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Related term: Recommendation


Reference:JIT Business Research Mr. Hirano Hiroyuki

Order Cancel | Material Planning | Order Relationship