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What is the difference between MPQ, parent/child and lot matrix?

MPQ = Master Pack Quantity

This is the incremental quantity required by the supplier when ordering. Example: If you order tubes by the box in increments of 50, enter 50 as the MPQ. When purchase orders are generated the quantity to order will be based on the MPQ.

Example: MPQ = 50, Reorder Point = 15, Reorder Level = 80. The purchase order amount will be 100 since 15 + 50 is less than 80.

Parent/Child is used when you sell both boxes and single units or buy by the box and sell by the unit. You will need to create two item codes. Once for the parent item and one for the child. The parent item is purchased and received. The child item is sold.

Example: Powerbars sold by the box of 24 and by the bar.

If you have 2 boxes in stock (parent) and 1 more bar (child), and sell 2 more bars at the POS, the parent item will now show 1 box in stock and the child will show 23. The chilld item costs will be calculated based on the cost of the parent divided by the child quantity.

Under the child's properties Special tab assign the Parent item code and indicate 24 as the quantity under the Child.

Set the min/max on the parent, not the child. Set the child to "May not be placed on Purchase Order" under Options. Depending on the item, it may be necesssry to check the child item quantity when ordering a parent item to ensure you don't over order based on min/max alone. To avoid this, make sure the parent item's description is informatiive such as "box/100" or add "-P" to the item's lookup code to clearly identify it as a parent item.

If you typically break open boxes when received, but want to offer quantity discounts, use the quantity discount option under the Pricing tab in Item Properties (such as break break at 24). You can also use the Mix/Match discount scheme to offer discounts for quantities between mixed items, such as different flavors of PowerBars.

RMS also handles lot matrix which is when you need three levels, such as a case comprised of 4 boxes which contain 6 singles.

Many retail industries assign different UPCs for a case versus a single. In situations where the same UPC is used, the lot matrix feature allows the salesperson to select which type is being purchased (by assigning the UPC to the lot matrix master). It can also work for matrix items sold under the same UPC which is common in industries where you buy pre-assortments. In this case insert the UPC as the lot matric lookup code. The salesperson will be prompted to select case, box or single.

The key issues are how you sell the product to the consumer and how the supplier interprets quantities on your purchase orders.

RMS does not support buy/sell units where a single item can be defined as box purchased from the supplier, but sold by the unit to the customer. Instead RMS relies on a parent/child relationship to acheive this function, or lot matrix if you need three levels.
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  1. Dave J

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