Distribution Requirements Planning

The concept secures item supply at distributing warehouses.

Signals indicating a shortage come to a supplying warehouse as a distribution order from the distributing warehouse. The source of the signals can be the master production schedule or a demand from a customer order, work order, manufacturing order as well as a purchase order.

In 'Item. Connect Warehouse' (MMS002) the following details are entered for an item per warehouse, which affects how distribution requirements planning is managed.

Note: When customer orders create shortages (order-initiated planning method), a master production schedule is the basis for the shortage signals that lead to distribution orders.

When distributing and supporting warehouses do not belong to the same facility, internal invoicing is activated between facilities.

Before you start

The concept can be used when the following are entered:

Workflow

The section below describes the workflow in the concept.

  1. Master Production Schedule

    A signal for future demands is taken from the master production schedule for distribution requirements planning. The master production schedule obtains demands from forecasts and distribution orders.

  2. Customer-, Work-, Manufacturing- and Project Orders

    An order with a future demand date is considered a future demand in distribution requirements planning. For orders of the same type, the demand is calculated for the main item as well as for inclusive material.

  3. Replenishment Orders/Distribution Orders

    After completing distribution requirements planning, a planned order is created to cover demands from the master production schedule and customer orders, either from the actual warehouse or from a supplying warehouse.

    The order type used for planned orders is entered in 'Item. Connect Warehouse' (MMS002).

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