Order Environment Examples

This topic provides examples of how to set up and use Supply Chain Order functionality in different environments.

Pure Make To Order (MTO)

All levels must be set up as supply chain planned. That is, have a supply chain policy setup in 'Item. Connect Warehouse' (MMS002).

The supply chain policy must have the ‘Link existing orders’ field set to ‘0’.

When a CO line is entered, all levels below are created and automatically pre-allocated to each other. When changing the quantity on the CO, all levels change to reflect that change.

Rescheduling the whole chain can be done either by changing the date on the CO line or via the Fashion Planning Workbench.

Upstream change of quantities can also be used.

The main advantages of using the supply chain concept instead of order initiation in this scenario are:

Combined Distribute To Order and Make To Stock (DTO/MTS)

In this scenario, there might be a forecast on the MO that drives down all demands to lower levels. When a CO is entered, a distribution order is created to distribute the material to this specific CO. This shows that the link can be broken anywhere in the chain, and from that point MRP or re-order point etc., can be used.

The distributed item must have a supply chain policy on the receiving warehouse record only. That is, in 'Item. Connect Warehouse' (MMS002).

The supply chain policy must have the ‘Use existing orders’ field set as ‘0’.

All levels are MRP planned. A forecast is placed on the manufactured item to produce for stock.

When entering a CO line, a distribution order proposal is created and connected to the supply chain, and so is pre-allocated to the CO line.

The MO is received into stock and allocated to the DO as normal.

Make To Order combined with lot sized Purchase To Order (MTO and PTO)

In this scenario, you might have a forecast on the CO/DO level that drives down all demands to the purchase order level, or have the forecast on the PO level.

When a CO is entered, a supply chain is created to source the material to this specific CO. The POs can be connected either manually or automatically to the supply chain.

All items must have a supply chain policy setup in 'Item. Connect Warehouse' (MMS002)

The supply chain policy must have the ‘Use existing orders’ field set as ‘0’ on all items apart from the purchased ones. These should be set to ‘1’ or ‘2’ depending on how the POs are to be connected).

The ‘Auto find supply chains’ field can be set to either ‘0’ or ‘1’ depending on how the connection to the supply chain is to be activated.

All levels are MRP planned. A forecast is placed on the distributed or purchased item. The proposals for all levels, except the PO level, must be left in status 10, as they are currently only used for exploding the demand to the purchase level.

When receiving a CO line, the forecast is consumed, and a supply chain is created, thus creating proposals for all levels except the PO level. The old proposal in status 10 is removed, or the quantity decreased by the MRP.

The PO level is either manually connected to the supply chain via ‘Preallocation. Perform Detailed’ (MWS121), automatically connected when the supply chain is created (depending on the ‘Use existing orders’ setting), or automatically connected at release or confirmation of the PO (depending on the ‘Auto find supply chain’ setting).

Make To Order combined with lot sized Distribute To Order (MOT and DTO)

In this scenario, the supply chain is generated from CO/forecast on the DO level. When releasing the DO proposals, a supply chain is created. The CO lines are then manually pre-allocated to the DOs.

All items must have a supply chain policy in Item/Warehouse (MMS002/E), except for the receiving item/warehouse record for the DO (top level).

The supply chain must have the ‘Use existing orders’ field set as ‘0’.

All levels are MRP planned. COs and/or a forecast is placed on the DO level and the MRP drives down the demand to all lower levels, including lot sizing of the DO level.

The status on all levels must be left as ‘10’. When releasing the lot sized DO, a supply chain is created which can then be manually pre-allocated to the COs as they arrive. This is a normal pre-allocation and the CO does not belong to the supply chain. That is, it is not part of the supply chain identity.

An alternative to this could be to have a supply chain on the CO-DO part as well. This means that there is one supply chain connected to another supply chain, which still gives full traceability, including the CO level.

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