Entrepreneurs who automate their production often face the problem of product mismatches, confusion in stock balances, or sudden shortages of raw materials when several workshops or orders simultaneously «claim» the same materials from the warehouse.
The reservation mode in production is needed specifically to limit the possibility of creating several production acts based on the same list of actually available materials by physically separating the required raw materials.
Below is a description of how material reservation works in the Torgsoft program: from adding raw materials to an act to releasing finished products.
1. Where the reserve is stored and how to create it
In the Torgsoft system, material reservation for production acts is performed by moving raw materials to a 3rd-level technical warehouse.
The required material can be reserved in two ways:
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Automatically. To do this, open the «Production» -> «Settings» menu in the form and activate the «Automatically reserve materials when creating a production act» parameter. In this case, the raw materials are immediately assigned to the act without user intervention.
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Manually. The user can select the required production act to which materials have already been added and click the «Reserve materials for the production act» button.
In addition to production acts, it is also possible to reserve materials for routing sheets. In this case, raw materials are reserved based on the data from the bill of materials, while the total batch volume of the manufactured product must be taken into account.
2. Managing reserves: the «Material Reservation» tab
For convenient viewing and management of reserved raw materials, the program has a «Material Reservation» tab. It is visually and logically divided into two areas:
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Reserve — materials immediately appear here if automatic reservation is enabled.
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Materials awaiting reservation — by default, all materials from the production act appear here if automatic reservation is disabled and the raw materials have not yet been assigned to the act.
To reserve materials from the waiting list, select the required items and click the «Reserve material» button. In the window that appears, specify the exact quantity of goods to be reserved. To return raw materials from the reserve, use the «Remove from reserve» button, after which the materials are automatically moved back to the waiting list. For convenience, the list can be filtered by act number, product availability, or reserve status: fully or partially reserved.
3. Movement of materials: write-off, release and cancellation
The process of reserving and removing materials from reserve creates the corresponding internal transfer documents for raw materials between warehouses in the program.
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Full release or write-off. When finished products are released or an item is written off, the reserved materials are automatically moved to the production act warehouse and written off from it based on the quantity of products that were released.
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Release cancellation. If the release of finished products is cancelled, the materials are automatically reserved again, provided that the automatic reservation setting is active, to cover the volume of cancelled products.
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Deleting the act. When a production act is completely deleted, or when a material is deleted from it, all reserved raw materials are moved to the main warehouse, and the internal transfer documents are deleted.
4. How the program calculates stock balances and material availability
So that the owner or technologist can understand whether there are enough raw materials, Torgsoft uses two key calculation formulas:
The «Balance» field. Shows the quantity of material that will remain in the warehouse after all acts are closed and all reserves are removed.
Formula: total quantity of material in the production act warehouse - Total quantity of material used in production for items that have not yet been released + Total quantity of material reserved for all production acts and routing sheets.
The «% of material available» field. Displays the degree of raw material availability for a specific production act.
Formula: (Quantity of material in reserve + Quantity of material in the production act warehouse) / Quantity of material in the production act, excluding already released items * 100. If the value is 100% — the available and reserved raw materials are exactly enough to release the batch; if the value is 200% — there is twice as much material as required.
5. Important nuances and common mistakes
Specifics of partial product release. A material that, according to the bill of materials, must be written off directly when a production operation is performed will not be written off during a partial product release. The remaining quantity of such material will be written off from the warehouse only when the production act is finally closed, that is, after the entire batch has been released. If the user manually changes the quantity of this material in the routing sheet itself, then the write-off will be performed according to the manually entered data.
Errors when deleting closed periods. Sometimes, when users try to delete statistics for closed periods, they receive a blocking error: "Unfinished material reserves for production have been detected in the system", even though the production acts specified in the message were closed long ago. This happens if, due to a human factor or a failure, more goods or raw materials were once returned from the reserve than were originally sent there.
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