Glossary for Enterprise Planning

The actual receipts are only recorded for the current plan period. These receipts have already been included in the inventory on hand.

The actual scenario is the only scenario from which you can transfer planned orders to the execution level.

To aggregate items means that different items are grouped to form product families for planning purposes. This is also called a planning bill of material. To disaggregate items means that a product family is split up into smaller families, or into items.

Aggregation relationships can have the same structure as a single-level bill of material. However, similar to production bills of materials, also multilevel structures can be created.

You can allocate a quantity of inventory to a business partner or a particular demand order.

The ATP horizon is expressed as a number of working days during which LN can carry out ATP and CTP checks. Beyond the ATP/CTP horizon, LN does not check ATP or CTP: all customer orders are accepted.

If you run the order planning process with the automatic-update feature activated, LN updates these order groups based on the stored selection criteria.

In LN, available-to-promise (ATP) is part of a more extended framework of order promising techniques called capable-to-promise (CTP). If an item's ATP is insufficient, CTP goes beyond ATP in that it also considers the possibility of producing more than was initially planned.

In addition to the standard ATP functionality, LN also uses channel ATP. This term refers to the availability of an item for a certain sales channel, taking into account the sales limits for that channel.

For all other types of order promising functionality used in LN, the term CTP is used.

Acronym:

Capable-to-promise (CTP) involves an extension of the standard available-to-promise (ATP) functionality. CTP goes beyond ATP in that it also considers the possibility of producing more than was initially planned, when an item's ATP is insufficient.

The capacity CTP is used in capable-to-promise calculations.

The capacity CTP check is performed on resources in the item's bill of critical capacities or on the work centers of the item's routing, depending on the order horizon. Only the resources defined as CTP critical are checked.

If the demand for item A is recorded as a customer order, a capacity CTP reservation is recorded for resource R, and the resource's capacity CTP is reduced accordingly.

Alternatively, a percentage indicating the capacity use as a proportion of the total available capacity.

The channel ATP depends on the allowed demand for a channel. The total allowed demand for one channel ATP period forms the initial value of the channel ATP in that period. Every time a demand is recorded within this channel and within this channel ATP period, this demand is subtracted from the channel ATP.

Channel ATP is used to limit the supply that goes to specific channels, and to secure that enough quantity is left to supply other important customers.

Note that the main purpose of channel ATP is to reserve a certain quantity of the product for other channels, for example, for strategic reasons.

A channel is a grouping of customers and items.

A channel master plan supports sales-related functions such as demand forecasting and due-date quoting, as well as aggregation.

A cluster represents a geographical location that consists of one or more warehouses. Enterprise Planning considers these warehouses as one unit for planning purposes.

In the item code of a clustered item, the cluster segment contains the code of the cluster.

You can use clustered items to model distribution planning within a site or between sites.

The planning methods in Enterprise Planning use the total inventory of a clustered item in all warehouses in the cluster. Note that a cluster can also contain just one warehouse.

The type of check that is performed on a component item itself depends on the CTP parameters for the component in question.

The component CTP check is performed on components in the bill of critical materials or the bill of material, depending on the order horizon. Only components defined as CTP critical are checked.

In this case, a component CTP reservation is recorded for item B, and the ATP of item B is reduced accordingly. The quantity of item A that will be produced with the reserved quantity of the component is stored as CTP Reservation Receipts.

If the customer sends the forecast by period to the supplier that plans the supply, the customer can differentiate between confirmed and unconfirmed forecast.

Typically, confirmed forecast of a component is derived from actual sales orders and sales schedules of end item. The user can use various methods to determine how much of the forecast is confirmed forecast.

See also unconfirmed forecast.

In a vendor-managed-inventory situation, where the supplier is responsible for the supply planning of an item in a warehouse at the customer's site, the supplier keeps track of the inventory levels. In that case, the supplier informs the customer of the actual stock.

Other confirmed supply types are To Release and Released.

As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand.

The critical capacity requirements are based on a plan item's bill of critical capacities.

The critical capacity requirements are specified by plan period.

The critical material requirements are based on the production plan for an (end) item, and on its bill of critical materials.

The critical material requirements are specified by plan period. In the item master plan, critical material requirements are recorded as dependent material demand.

The CTP time fence must be smaller than the ATP/CTP horizon.

During the period of the CTP time fence, CTP is considered to be zero.

You can use the cumulative ATP to check the availability of an item when you receive a sales order or an inquiry.

Enterprise Planning uses the cumulative order lead time to determine the minimum value of the planning horizon.

The customer deliveries are part of the actual demand. These deliveries are used to consume the demand forecast, and to generate a new demand forecast.

The customer orders are part of the actual demand and are used to consume the demand forecast.

With this report you can determine how much volume can be delivered on time and how much is delivered late.

According to the item master plan, more chairs will be completed later that month. Some of those newly produced chairs have already been promised to other customers.

The demand forecast is part of the demand plan for a plan item or channel.

Related term: soft peg

The demand plan belongs to the master plan for an item or channel.

With master planning, the dependent demand is equal to the sum of the following fields:

LN explodes the ATP and the dependent demand of a main item to plan items that have the same cluster as the warehouse you specified on the bill of critical materials of the main item.

In other words, when requirements for an item's production plan or planned production orders are exploded, this leads to dependent material demand for items that occur in the former item's bill of (critical) material.

The distribution plan belongs to the supply plan for a plan item.

The exception message horizon is expressed as a number of working days from the date you carry out the simulation.

Beyond the exception message horizon, Enterprise Planning does not generate exception messages of the exception message type involved.

Enterprise Planning uses planning algorithms to carry out simulations and optimizations. The other packages control the execution of orders, and the goods flow.

The extra demand is part of the demand plan for a plan item or channel.

Enterprise Planning treats the extra lead time in the same way as the safety time: the order must be delivered earlier based on the extra lead time.

The extra lead time is expressed in days or in hours.

Like the regular CTP check for an item, a family CTP check can involve several types of ATP and CTP checks.

In this case, you can configure LN so that, when the CTP of the mountain bike must be checked, LN will in fact check the CTP of the bicycle family.

The start date of the family CTP horizon is defined in the plan-item settings. The end date coincides with the CTP time fence.

The aggregation relationships specify the percentage of each plan item in the product family.

The family site makes it possible to redirect CTP checks to a central logistic company.

When a customer order is received, the CTP is checked at the family level in the central site.

For each plan item you can select the appropriate fixed delivery code.

If you defined fixed delivery moments for a plan item, LN sets the unconstrained planned finish date back to the nearest fixed delivery moment.

You can define incidental fixed delivery moments, or define a pattern of recurring fixed delivery moments.

Enterprise Planning uses calendar recurrences to create fixed delivery patterns.

To plan an order's lead time, Enterprise Planning can either use a fixed lead time or more detailed routing data. When using a fixed lead time, the results are less precise, but the calculation is faster.

Planning with a fixed lead time is faster than planning on the basis of routing data, but the results are less precise.

The start date of the fixed lead-time horizon is defined in the plan-item settings. The end date coincides with the end of the order horizon.

Before the fixed lead-time horizon, Enterprise Planning plans on the basis of routing data. Within the fixed lead-time horizon, Enterprise Planning plans using a fixed lead time.

The customer sends the forecast to the supplier that plans the item supply.

The forecast horizon is expressed as a number of calendar days.

The forecast-based calculation of the inventory plan is based on the following principle: The inventory plan must be equal to the expected demand during a certain forecast horizon.

The forecast periods are based on the terms and conditions.

Goods-flow data is recorded at the execution level of LN. When the goods-flow data in Enterprise Planning is updated, this data is loaded into Enterprise Planning as a basis for the planning. This data includes both historical and planned goods-flow transactions, as well as current inventory data.

For product families, LN generates the goods-flow data by aggregation through the aggregation relationships.

Infinite planning starts from the assumption that there are no critical constraints. In other words, it assumes that it is always possible to find or arrange the necessary resource capacity and the necessary materials to produce an item.

Infinite planning is especially suitable in situations in which it is no problem to flexibly add resource capacity, and in which the supply of components is easy.

The inventory plan is part of the item master plan.

The inventory plan can also be a constant inventory level.

LN provides item customer plans to work with vendor managed inventory. The item customer plan displays data such as the forecast your customer sent to you and the confirmed supply information you sent to your customer.

You can compare an item customer plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers or customers and the item customer plan displays demand and supply for a specific customer.

In addition, an item's master plan contains information about actual demand, actual supply, planned supply in the form of planned orders, and expected inventory.

If an item has a master plan and channels have been defined for this item, each channel usually has its own channel master plan. A channel master plan contains channel-specific information only, that is, demand data and information about sales restrictions.

Item master plans and channel master plans are defined within the context of a scenario. These scenarios can be used for what-if analyses. One of the scenarios is the actual plan.

The item order plan contains overview values for demand and forecast on one hand, and the other hand it provides information about scheduled receipts (actual orders) and planned supply (planned orders).

LN provides item supplier plans to work with vendor managed inventory. The item supplier plan displays data such as the forecast you sent to the supplier and the confirmed supply information the supplier sent back to you.

You can compare an item supplier plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers and customers and the item supplier plan displays demand and supply for a specific supplier.

In LAC, a fast MRP engine calculates the requirements for assembly parts that must be supplied to the assembly line. The planning of the assembly parts themselves is carried out by Enterprise Planning. LAC calculates the requirements, based on forecast and actual sales orders, and replicates the requirements to Enterprise Planning.

In master planning, all demand, supply, and inventory data is handled in terms of these time buckets, and is stored in master plans.

In master planning, supply is planned in the form of a supply plan. This supply plan is calculated on the basis of demand forecasts, actual orders, and other information. For production planning, this planning method only considers critical requirements, as recorded in an item's bill of critical materials and bill of critical capacities.

The master-planning engine generates a supply plan for each item involved.

For each plan unit, you can choose the appropriate planning engine. If an item has not been assigned to a plan unit, infinite planning is used by default.

The master-planning horizon is not defined on its own, but depends on the definition of the order horizon and the planning horizon.

If the order horizon coincides with the planning horizon, there is no master horizon. In this case, Enterprise Planning plans all supply with order planning.

A price limit that you can define for a exception message type in Enterprise Planning.

If you define a minimum cost price for a certain exception message type, Enterprise Planning does not generate the corresponding exception message for items that cost less than the minimum cost price.

In LN, the user can determine if the multicompany planned distribution must be transferred to either a purchase order, or a warehouse transfer. To do so, the user must define the order type for a specific company relation.

When a net-change simulation is performed, then items are selected based on the net-change date and flag. For example, when the flag is set and the date is outside the order horizon, then the item is skipped.

The distinction nettable-nonnettable is not used anymore in the current version.

In the item code of a nonclustered item, the cluster segment is empty.

If clustered items exist that have the same item-base segment as the nonclustered item, these items are physically identical, but the inventory data differs (for example, the quantity on hand). The inventory data for a nonclustered item does not include the quantities related to specific clusters. You can use clustered items to model distribution planning within a site or between sites.

If LN is installed without cluster segments, all plan items are nonclustered items.

As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand.

Enterprise Planning uses the noncritical cumulative order lead time to determine the minimum value of the order horizon.

The distinction nettable-nonnettable is not used anymore in the current version.

For planned orders beyond the operation storage horizon, you cannot analyze the capacity use of planned orders and you cannot transfer the planned orders to the execution level.

In order planning, supply is planned in the form of planned orders. LN takes into account the start and finish dates of individual planned orders. For production planning, this method considers all material and capacity requirements, as recorded in an item's BOM and routing.

SFC can use the same collection of production orders to organize manufacturing tasks.

The order horizon is expressed as a number of working days from the date you carry out the simulation.

If the order horizon is zero, Enterprise Planning does not use order-based planning for the item involved.

To calculate the order horizon, LN uses the calendar that you specified for the enterprise unit of the default warehouse to which the plan item belongs.

If you did not specify an enterprise unit for the default warehouse of the plan item, Enterprise Planning uses the company calendar to calculate the order horizon.

Performance indicators are especially useful to compare different scenarios, resources, or plan items.

As a rule, plan units and plan items are planned in order of increasing phase number: first phase number 0, then phase number 1, and so on.

An item has separate phase numbers for master planning and order planning. For items that belong to a plan unit, the master phase-number equals the plan unit's master phase-number.

Planned orders are generated in the context of a particular scenario. The planned orders of the actual scenario can be transferred to the execution level, where they become actual supply orders.

If the projected inventory at that date is less than the required quantity, the planning engine generates a planned order or a reschedule-in exception message.

The planned requirement date of a manually entered planned order is equal to the planned order's finish date.

The planning horizon is expressed as a number of working days from the date you carry out the simulation.

Enterprise Planning does not generate supply plans or planned orders beyond an item's planning horizon.

To calculate the planning horizon, Enterprise Planning uses the calendar that you specified for the enterprise unit of the default warehouse to which the plan item belongs.

Plan periods are defined in the context of a scenario.

Plan periods are identified by a period number, and are defined in days, weeks, or months.

The plan status can be Open or Closed.

When a scenario has the Closed plan status, you can no longer modify it.

A plan unit groups a set of plan items that share the production capacity of certain resources.

A plan unit is planned with a specific planning engine. You can specify a planning method and planning parameters for each plan unit.

A plan unit often corresponds to a production department. Usually, a production system distinguishes no more than three to five plan units.

These receipts are the quantity that must be produced internally.

Note that the production plan does not include the quantity of the plan item that is delivered by other sites or warehouse locations.

The production plan is part of the supply plan for a plan item.

Note that the projected inventory of plan periods that are entirely in the past equals the inventory on hand.

The purchase plan belongs to the supply plan for a plan item.

Note the distinction between purchase plan and distribution plan. The distribution plan covers the volume to be delivered by internal or sister-company suppliers.

The release time fence is expressed as a number of working days from the date you carry out the simulation.

Enterprise Planning needs operation data to transfer planned production orders to Manufacturing. As a rule, Enterprise Planning stores operation data for a planned order only if the order's start date falls within the plan item's release time fence.

The supplier creates the replenishment plan and sends the replenishment plan to the customer.

Each operation performed to manufacture an item requires a certain capacity amount from a resource (for example, production hours). The capacity of the resource can be a constraint in the planning.

The availability of a resource can be specified by using the resource calendar.

In addition, the resource master plan contains capacity CTP information.

The resource order plan can contain the following order types/entities:

You can see the results of this planning in the resource master plan.

A business partner can send multiple revised versions of messages with demand and supply data. Each revised version gets a revision number that has been incremented by one.

The customer generates the revision numbers. The supplier uses the same revision to mark a corresponding message to the customer.

The number of days by which a plan is shifted forward equals the value of the scenario's rolling frequency.

Note that the rolling frequency is defined in calendar days.

In the course of time, the current date will reach or exceed a certain reference date plus the rolling frequency. When this is the case, the scenario's start date and finish date, the plan period division, and the reference date itself are shifted forward.

Each scenario represents one overall planning solution, and involves particular settings for the planning of items and resources. You can use scenarios to analyze and compare various planning options and to find the best planning solution. For example, you can vary demand forecasts or sourcing strategies.

One of the scenarios is the actual scenario, which corresponds with the actual planning situation. You can only transfer planned orders and production plans from the actual scenario to the execution level of LN.

In Enterprise Planning, the term pegging is generally used to denote soft pegs.

Related term: demand peg

The source allocation rule is either Percentage or Priority.

Sourcing strategies are defined within the context of a scenario.

You can define sourcing strategies for clusters, item groups, and plan items.

You can view and maintain special demand in the Special Demand by Item (cpdsp2100m000) session. Here you can also record a reason for each instance of special demand.

The assembly-part demand forecast from Configurator is also stored as special demand.

The special demand is part of the demand plan for a plan item or channel.

LN uses the specification to match supply and demand.

Enterprise Planning uses supplying relationships for distribution planning: the supplying relationships represent valid supply paths for particular items or groups of items. You can specify supplying relationships at the level of individual items, but also at more general levels.

The supplying relationships also determine the costs of supply, lot size rules, and other parameters.

The item master plan also takes into account the supply planned in order planning (planned orders). However, this type of supply is not part of the item's supply plan. In other words, a supply plan usually exists only outside the item's order horizon.

You can define supply strategies for clusters, item groups, and plan items.

LN uses internal suppliers to generate distribution orders, and external suppliers to generate purchase orders.

The time fence is expressed as a number of working days or working hours from the date you carry out the simulation.

As a rule, Enterprise Planning does not regenerate the supply plan or the planned orders within the time fence. However, you can overrule this behavior when you run a master-plan simulation or order simulation.

Usually, the lead time of an item's production process is a reasonable value for the time fence.

The sum of the confirmed forecast and the unconfirmed forecast is the total forecast.

Typically, the total forecast includes not only the demand based on actual sales orders for the customer's end products, but also forecast demand based on estimated future sales of the customer's end products.

See also confirmed forecast.

A terms and conditions agreement can designate a particular supplier as the VMI supplier for an item.

Lead times, horizons, and time fences in Enterprise Planning are defined in workdays (except for the forecast horizon).

Enterprise Planning converts workdays to working hours, minutes, and seconds on the basis of the basic day capacity.

Workload control is based on the idea that workload levels and production lead times are related.

This method is used to control both the workload by resource and the lead time per item.

If the workload is much lower than the workload norm, there is a risk that the resource becomes idle. If the workload is much higher, the production lead times can become unacceptably long.

Note that the workload norm is expressed in hours.