Using Supply Usage Tolerance

When the system plans a demand, it begins by searching backward for supplies that are planned to be available between the demand's due date/time and the current date/time. If the supplies available during that time do not satisfy the demand quantity, the system searches for on-hand inventory. If the demand is still not satisfied, the system can then use the Supply Usage Tolerance to search for supplies that are planned to be available AFTER the demand's due date.

See “Supply Usage Tolerance” for information about setting up supply usage tolerance on the Planning Parameters and Items forms.

Exception Messages

When a tolerance supply is used, the "Move In Receipt (Tolerance)" exception message displays for that supply on the Planning Detail form and on the Exceptions Report. You will need to move the supply to the date specified in this exception message.

General Notes

  • The system applies supply usage tolerance only if there are insufficient planned supplies and inventory available to satisfy the demand.
  • The system uses a 24-hour day, 7-day week calendar when applying these values.
  • If the system must use tolerance supplies, it uses as much of the tolerance supplies as possible before it uses any inventory or supplies available before the demand's due date.

EXAMPLE:

Consider this demand and supplies:

  • Demand A: Qty 75 due 3/24/2004 15:00
  • On-hand inventory: Qty 25 available 3/22/2004 00:00
  • PO A: Qty 25 available 3/23/2004 13:00
  • PO B: Qty 25 available 3/25/2004 13:00
  • PO C: Qty 25 available 3/26/2004 13:00
  • Supply Usage Tolerance: -2

When planning this demand, the system first searches backward from the due date and finds PO A. Then it finds the available quantity from on-hand inventory, for a total quantity of 50.

Because the demand quantity of 75 is not satisfied, the system searches forward from the due date and applies the Supply Usage Tolerance factor (see “Supply Usage Tolerance” for more information). Because Supply Usage Tolerance is -2, the system searches forward from the demand's due date at 00:00 to 48 hours after the due date. In this example, the -2 tolerance allows the system to find the quantity of 25 from PO B and satisfy the demand.



Note: If the Supply Usage Tolerance were -3, the system would have been able to use PO C. It would have used the 50 tolerance supplies from POs B and C plus the supplies from PO A to satisfy the demand (the on-hand inventory would not have been used).