To generate order advice (SIC)In the Generate Order Advice (SIC) (whina3200m000) session, you can generate order advice to replenish purchased and manufactured items. However, you can only do so if:
Order horizon Before LN generates order advice, LN determines the order horizon for which the replenishment must take place. The order horizon is determined as follows: order horizon = current date + (total lead time * order horizon factor) + order horizon constant LN determines the total lead time based on the item type, without taking the calendars into account. If the item type is Purchased, LN retrieves and adds up the following lead times:
If the item type is Manufactured, LN retrieves the Order Lead Time from the Items - Production (tiipd0101m000) session. Note In the Generate Order Advice (SIC) (whina3200m000) session, you can overrule any of the order horizon data that is defined under SIC Order Horizon in the Inventory Analysis Parameters (whina0100m000) session. Reorder point and safety stock The reorder point does not need to be a fixed amount; it can fluctuate over time. The fluctuations of the reorder point depend on the fluctuations of the seasonal pattern with its seasonal factors of the forecast/demand. You can let the safety stock fluctuate based on a seasonal pattern with its seasonal factors. For more information, refer to Seasonal pattern for safety stock and demand. You can specify:
Note You can specify a seasonal pattern for at most one year. All seasonal patterns start at January 1, after which they are repeated during the year according to the number of periods. In the Item Data by Warehouse (whwmd2510m000) or the Items - Ordering (tcibd2100m000) session, you can specify:
To generate orders With the Generate Order Advice (SIC) (whina3200m000) session, LN generates an order advice for each requirement within the order horizon. A requirement may occur if the projected on hand drops below the reorder point, which can be caused by:
The ordered quantity depends on:
The kind of order advice that is generated for the item depends on the item type:
Note Planned inventory transactions that are excluded from planning, that is, for which the Exclude from Planning have quantity 1, are not taken into account for SIC runs. To determine the requirement date The requirement date is the date on which the projected on hand drops below the reorder point. To determine the actual requirement date, LN takes into account the actual calendar. If the requirement date is not available according to the actual calendar, LN looks backwards for the first available date/time before the requirement date. LN sets the first available date/time as the actual requirement date. To determine the planned receipt date LN determines the planned receipt date by planning forwards from the requirement date and taking into account the actual calendar. LN determines the planned receipt date as follows: planned receipt date = planned requirement date + outbound lead time + inbound lead time + item safety time + supplier safety time LN only takes into account:
LN retrieves:
To determine the planned delivery date LN determines the planned delivery date based on the planned receipt date with the following formula, taking into account the actual calendar: planned delivery date = planned receipt date - transport time LN determines the transport time between the ship-from's address and the ship-to's address, based on a relevant distance table (if available) in the Distance Table by City (tccom4137s000) session or in the Distance Table by ZIP Code/Postal Code (tccom4138s000) session. From which of these two sessions the transport time is retrieved depends on the value of the Usage Distance Tables field in the COM Parameters (tccom0000s000) session. To take into account the actual calendar When LN determines the requirement date, the planned receipt date, and the planned delivery date, it takes into account the actual calendar. Therefore, LN first searches for a calendar in the following order:
LN bases the actual calendar on the found calendar code and the availability type. LN determines the requirement date, the planned receipt date, and the planned delivery date based on the actual calendar. Before the calendar's start date and after the calendar's end date, the standard calendar applies. When LN determines the requirement date, the planned receipt date, and the planned delivery date, and if the lead times are expressed in hours, LN takes into account all the time that is available on a day according to the actual calendar. However, if the lead times are expressed in days, LN considers a day a whole day if the actual calendar indicates that time is available on that day. Note
Example To generate order advice for an item with item type Purchased.
The warehouse's actual calendar is available from Monday through Friday each week and has an 8:00:00 start time and a 17:00:00 end time. LN determines the order horizon as follows:
The seasonal pattern for safety stock and reorder point is as follows, with the resulting safety stock and reorder point (only the first four weeks are listed):
Planned inventory transactions:
The projected on hand before planning the replenishment is as follows:
Each day, the Generate Order Advice (SIC) (whina3200m000) session is run. This means for today (Current date/time: Wednesday, January 3/1:30:00 pm) the following information is valid:
This is below ROP, so an order advice will be created. The order quantity will be: Safety Stock + Quantity Allocated – Quantity On Order – Quantity On Hand = 10 (Safety Stock is taken at the end of the order horizon, which is week 4) + 17 – 0 – 18 = 9. Because EOQ = 24, this quantity will be ordered and stored on the order advice. The order date is the current date when creating the purchase/production order advice, which means for this example January 3/1:32:45 (some minutes after the Generate Order Advice (SIC) (whina3200m000) session was started). The delivery date will be: Order Date + Inbound Lead Time (4 hours) + Transport Time (only for Purchase) (2 days) = Friday January 5/5:32:45 pm. Because this is outside the calendar, delivery date will be Monday January 8/8:32:45 am (08.00 + 32:45 minutes/seconds of Friday). Safety times are not calculated with forward planning used by SIC. When the order advice is confirmed and transferred to purchase (or production), the first allowed order date will be increased with the order interval of 7 days to January 10/10:00:00 am. This means that when Generate Order Advice (SIC) (whina3200m000) is run tomorrow (January 4), this item will be skipped, because the first allowed order date is still in the future. The projected on hand after planning the replenishment is as follows:
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