About phantom inventory usage

If a stocked quantity of a phantom is on hand, the system reduces the demand quantity for the phantom's material components by the amount of the phantom's on-hand quantity.

Example:

Consider the usage of the phantom item "Item-2" in this bill of material:

• There is a customer order for Item-1 for a quantity of 20.
• You have 5 of Item-2 on hand.

When you run the Planner, the system generates a planned order normally for Item-1. But before it blows through the phantom Item-2 to plan its components, it first reduces the component demand quantity by Item-2's on-hand quantity of 5. So, instead of planning a demand of 20 for Item-2a and Item-2b, it plans for 15.