Planning priority rules

If you use direct material supply (DMS), you can define planning priority rules for cross-docking. These rules specify conditions that can be applied to a specific situation and a specific order, and result in a priority figure when applied to a specific order. Aggregating the priority figures of all applicable priority rules results in a planning priority, which in turn is used as the system priority.

If you use planning priority rules and create a new cross-dock order or update an existing cross-dock order, LN recalculates and updates the system priorities of all other cross-dock orders for the item and warehouse combination of the new or changed cross-dock order. Canceled cross-dock orders and closed cross-dock orders are then ignored.

Note
Defining planning priority rules

To set up planning priorities, take the following steps:

  1. In the Priority Definitions (whinh6120m000) session, create a priority definition code and a description.
  2. On the appropriate menu, click Planning Priority Rules.
  3. In the Planning Priority Rules (whinh6122m000) session, create planning priority rules.
Note
  • The number of rules is unlimited.
  • Planning priority rules work according to a penalty system. You can define penalty points by rule. If a rule applies to a specific demand, the penalty points are assigned to that demand. The lesser penalty points a demand has, the higher its priority.
  • Points can be assigned by means of a priority constant and by using a priority factor. The factor is first applied to the rule. Next, the constant is added to the resulting penalty points.
  • If a rule has been defined for a specific field, but the rule does not apply to the demand, no penalty points are assigned. For example, a rule has been defined specifying that a demand will receive 10 points if that demand is not a rush order. No rule has been defined for a demand that is a rush order. As a result, if the demand is a rush order, the demand receives zero points. If the demand is not a rush order, the demand receives 10 points.
  • If none of the rules applies to a specific demand instance, this demand receives the maximum number of penalty points, that is, the lowest priority.
Example

The following table shows an example of how you can specify planning priority rules.

Planning Priority Definition A
RulePriority FieldOrder TypeField ValueFrom ValueTo ValueTime UnitPriority FactorPriority Constant
1Not ApplicableForecast----------200
2Order PrioritySales Order--010000--010
3Order PrioritySales Order--10001999999--020
4Order PriorityNot Applicable--0999999--030
5Rush OrderNot ApplicableNo--------100
6Back OrderNot ApplicableNo--------20
7Shipping ConstraintSales OrderOrder Complete--------10
8Shipping ConstraintNot Applicablenot specified--------20
9Customer PrioritySales Order--099--10
10Customer PriorityNot Applicable--099--050
11Time RemainingPlanned Production Order--05Days010
12Time RemainingPlanned Production Order--699Days15
13Time RemainingNot Applicable--099Days115
14LatenessPlanned Production Order--099Days- 0.110
15LatenessNot Applicable--099Days- 0.115
16WarehouseNot ApplicableA--------0
17WarehouseNot Applicablenot specified--------10
18Order QuantityNot Applicable--01000--- 0.0110

 

Note: "--" = not available

 

Explanation of Priority Field values:

  • Not Applicable
    LN only considers the order type. You can only set a priority constant.
  • Order Priority
    Rules 2 and 3 are defined for order priorities for sales orders. Rule 4 is for other order types. You can set a priority constant and a priority factor. The default value for both fields is zero.
  • Rush Order
    To assign zero priority to rush orders, define a priority constant for non-rush orders. However, to prevent that no rule applies, and a high planning priority figure (= low priority) results, Infor recommends that you also add a rule for rush orders.
  • Back Order
    To assign zero priority to back orders, define a priority constant for non-back orders. However, to prevent that no rule applies, and a high planning priority figure (= low priority) results, Infor recommends that you also add a rule for back orders.
  • Shipping Constraint
    To assign higher priority to specific shipping constraints, define higher priority constants for other shipping constraints.
  • Customer Priority
    To restrict the figures within the ranges to meaningful numbers, define priority factors between 0 and 1.
  • Time Remaining
    Use a mix of priority constants and factors to prioritize time remaining for various order types.
  • Lateness
    Because a greater lateness should translate to a higher priority, the priority factor must, in this case, be negative.
  • Warehouse
    Specify a warehouse to assign the warehouse a higher or lower priority than other warehouses.
  • Order Quantity
    Because greater order quantities usually receive higher priority, the priority factor here must also be negative.
Validating planning priority rules

Because rules can contradict each other, LN provides an option to validate the priority definition. You must validate a priority definition before you can use it. To make changes to a validated priority definition, you must first click the Undo Validate on the appropriate menu in the Priority Definitions (whinh6120m000) or the Planning Priority Rules (whinh6122m000) session.

Validation checks that are blocking:

  • A higher order priority figure should result in a higher priority figure.
  • A rush order usually results in a lower priority figure (higher priority) than no rush order.
  • A greater time remaining usually results in a higher priority figure than less time remaining.
  • A greater lateness usually results in a lower priority figure than shorter lateness.
  • An overlap in defined ranges. This precludes the compilation of a priority.
  • A gap in defined ranges. This precludes the compilation of a priority.

Validation checks that are not blocking:

  • A back order usually results in a lower priority figure (higher priority) than no back order.
  • Shipping constraints usually result in lower priority figures than no shipping constraints.
  • Lateness usually has a lower priority figure than time remaining.
  • A greater order quantity usually results in a lower priority figure.
Using planning priority rules

You can define priority definitions on various levels:

  • In the Inventory Handling Parameters (whinh0100m000) session. The priority defintion you specify here is the default for every warehouse.
  • In the Warehouses (whwmd2500m000) session. The priority defintion you specify here becomes the default for each new item linked to that warehouse.
  • In the Item Data by Warehouse (whwmd2510m000) session.

When prioritizing a number of demand orders, LN first uses a planning priority definition from the warehouse-item level. If no priority definition is specified on this level, LN uses the definition as specified on warehouse level. If no priority definition exists on this level either, LN uses the definition as specified in the parameters session. If no defintion exists here either, no prioritizing takes place. LN calculates planning priorities whenever you run DMS planning.

When LN prioritizes demand based on priority definitions, all demand data for a specific item in the relevant warehouses is gathered, and a planning priority is calculated for each demand instance.

Example

The following DMS example assumes that all demand is in the same warehouse-item combination, and for that reason use the same planning priority definition.

First, a number of orders with relevant attributes for the priority calculation is listed. Next, this section describes the calculation for each demand instance.

Demand
Nr.Order TypeOrder PriorityRush OrderBack OrderShipping ConstraintCustomer PriorityTime RemainingLatenessWarehouseOrder Quantity
1Forecast-----20-A50
2Sales Order5000Yes--105-B50
3Sales Order25000-Yes-202-B100
4Sales Order10000-0Order Complete10-2A200
5Service Order20000---51-B100
6Service Order5000---20-4A50
7Planned Production Order10000----2-A100
8Planned Production Order20000-----3C200

 

Based on the planning priority definition example, the following priorities are calculated:

Order/Demand
Rule12345678
1200-------
2-10-10----
3--20-----
4----30303030
5100-100100100100100100
62020-2020202020
7---10----
8202020-20202020
9-10*120*110*1----
1050---50505050
11--------
12--------
1320*1+155*1+152*1+15-1*1+15---
14--------0.1*3+10
15--------
160--0-000
17-1010-10--10
18-0.01*50 +10-0.01*50 +10-0.01*100 +10-0.01*200 +10-0.01*100 +10-0.01*50 +10-0.01*100 +10-0.01*200 +10
Priority46499196173255244239248

 

Based on these outcomes, available supply is distributed in the following order:

  1. Order 2 (rush order)
  2. Order 4 (overdue)
  3. Order 3 (back order)
  4. Order 7
  5. Order 6 (overdue)
  6. Order 8 (overdue)
  7. Order 5
  8. Order 1 (forecast)