Clusters introduction

The internal network in companies is becoming increasingly complex. Forecasting, sales, inventory planning, order acceptance, and inventory replenishment can take place in and between every entity of that network. These entities can be the following:

  • Production sites
  • The head office
  • Regional distribution center
  • Decentralized sales offices

Enterprise Planning supports all of these business procedures for various entities, using the cluster concept. A cluster represents a geographical area. For each item, you can define several plan items, one for each cluster, and a nonclustered item that is not linked to any cluster, as shown in the following example:

  • Clusters: A, B, C
  • Item: RAL END 1

  • Plan items:

    1. A/ RAL END 1
    2. B/ RAL END 1
    3. C/ RAL END 1
    4. - / RAL END 1 (nonclustered item)

Functionally, a nonclustered plan item does not differ from a clustered plan item. The nonclustered plan item simply represents one of the geographical areas. If a logistical company has only one location, you need not define any clusters and can simply use nonclustered plan items for that location.

To support planning by location, the planning process takes the requirements and supply strategies for each plan item into account separately.

In addition, each clustered plan item, as well as the nonclustered plan item, has a unique item order plan view and (optionally) item master plan view that enables you to evaluate all requirements and supplies.

Note

The cluster concept is only used in Enterprise Planning. The other packages in LN, such as Warehousing, Procurement, and Manufacturing, do not use clusters.