Using Supply Usage Tolerance

This topic applies to APS.

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.

To set up supply usage tolerance, follow these steps:

Open the Planning Parameters form.
Select the Advanced tab.
Enable the Use Supply Usage Tolerance parameter.
Select Actions > Save to save the changes.
You can define a default, global tolerance value on the Planning Parameters form or you can define an item-specific tolerance value on the Items form.
On either form, define the tolerance time window in the Supply Usage Tolerance field. The system uses a window of hours or days, depending on whether you enter a positive or negative number:
- Positive number: the system searches for supplies starting from the demand's due date/time + the tolerance number of hours. For example, if the demand's due date is 3/5/2004 at 9:00, a value of 4 means the demand can use any supplies that are available between the current date/time and 3/5/2004 at 13:00.
- Negative number: the system searches for supplies starting from the demand's due date at 00:00 (midnight) + (24 hours * the positive tolerance value). For example, if the demand's due date is 3/5/2004 at 15:00, a value of -4 means the demand can use any supplies that are available up to 3/9/2004 at 00:00. In the same example, a value of -1 means the demand can use any supplies available up to 3/5/2004 at 24:00 (the same day).
Note: A value of 0 entered on the Items form bypasses the item-level tolerance; the system instead uses the global tolerance value.
Select Actions > Save to save the changes.
Note:
- 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.
- 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.

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
Job A: Qty 25 available 3/23/2004 13:00
Job B: Qty 25 available 3/25/2004 13:00
Job 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 Job 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. 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 Job B and satisfy the demand.