DMS and demand

To determine and prioritize demand, LN will consider the following:

Warehouse-item combination

DMS can only be run for a warehouse-item combination for which the DMS Supplied check box is selected and one of the DMS upon Receipt/ DMS on Inventory options is set.

If you run DMS for a supply warehouse, LN only considers demand from other (destination) warehouses that are DMS Supplied, and that have a relationship with the supply warehouse, as defined in the Warehouse Supply Structures (whinh6140m000) session.

For more information, refer to Warehouse supply structures.

DMS planning horizon

The planning horizon of the destination warehouse-item as defined in the Warehouse - Item (whwmd2510m000) session, determines demand that is taken into account when DMS is run in a supply warehouse. Demand for a date beyond the planning horizon is ignored.

In the Warehouses (whwmd2500m000) and Warehouse - Item (whwmd2510m000) sessions, you can define two planning horizons for the destination warehouse:

  • Planning Horizon for DMS upon Receipt
  • Planning Horizon for DMS on Inventory

If the DMS planning horizon for destination warehouse WH2 and item X is 90 days, demand up to 90 days will be considered for that DMS-supplied warehouse, regardless of any DMS planning horizon settings for supply warehouses.

Note
  • The planning horizon of the destination warehouse-item determines the planning horizon that will be considered for a DMS run in the supply warehouse.
  • During a DMS run the warehouse calendars are taken into account for the planning horizon.
  • If DMS planning horizons are (too) short, a lot of stock can end up in the supply warehouse.
DMS demand type

For DMS, the type of demand from destination warehouses can be taken into account. For this purpose, you can define two demand-type parameters in the Warehouses (whwmd2500m000) and Warehouse - Item (whwmd2510m000) sessions:

  • Demand Type for DMS upon Receipt
  • Demand Type for DMS on Inventory

The following demand types exist:

  • Warehousing Orders
  • Planned Inventory Transactions
  • Planned Orders
  • Forecast

If you select one option, any preceding options are included as well. For example, if you select Planned Orders, Warehousing Orders and Planned Inventory Transactions are also included.

Note
  • The demand type setting of the destination warehouse-item determines the demand types that will be considered for a DMS run in the supply warehouse. For example, forecast demand can be considered for one warehouse and ignored for another.
  • In Enterprise Planning, forecast data is stored at cluster level instead of at warehouse level. The plan item corresponding with the item has a default warehouse for the cluster. This default warehouse should correspond with the warehouse where stock for the item is stored, in case there is more supply than required to match demand.
  • If you use Enterprise Planning for demand forecasting, Infor strongly recommends that you set the DMS demand type to Forecast for the default warehouse of the cluster. For other warehouses, you can choose the other options.
Example

The following example illustrates how the planning horizon and demand type settings determine demand to be handled by DMS when goods are received at warehouse WH1.

Setup:

[...]

Result:

[...]

Explanation

  • Forecast and planned orders on warehouse WH3 are ignored, whereas actual orders on WH3 are taken into account.
  • Forecast on WH4 is ignored because it is outside the DMS planning horizon of WH4.
Priority rules

If you run DMS planning, LN assigns a priority to each demand instance. The priority is compiled based on the rules as defined in planning priority rules and assigned by LN to each demand instance. Users can change these priorities when they run the Direct Material Supply Distribution (whinh6130m000) session.

For more information, refer to Planning priority rules.

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