To generate planned orders

During an order simulation (RRP run), Enterprise Planning generates planned orders to cover inventory shortages.

Enterprise Planning uses the following procedure:

  1. Determine the finish date
  2. Determine the quantity
  3. Select a source of supply
  4. Select one or more suppliers, and determine the order quantity
  5. Correct the finish date
  6. Determine the start date
Step 1. Determine the finish date

For more information, see To compute supply lead-times.

Step 2. Determine the quantity

LN determines the quantity to be ordered, including all demand within the order interval, and taking the lot-size rules into account.

Step 3. Select a source of supply

Enterprise Planning can generate three types of planned orders:

LN chooses between these types of orders according to a sourcing strategy. If no sourcing strategy exists, Enterprise Planning uses the default source defined in the Items - Planning (cprpd1100m000) session.

Step 4. Select one or more suppliers, and determine the order quantity

This step only applies to planned purchase orders and planned distribution orders.

If the selected source is purchase, Enterprise Planning searches for one or more external suppliers.

If the selected source is distribution, Enterprise Planning searches for one or more internal suppliers.

The way the required volume is distributed over various suppliers is determined by the supply strategy defined in the Supply Strategy (cprpd7120m000) session. If no supply strategy is found, Enterprise Planning uses a default strategy.

If necessary, LN adjusts the order quantity for planned orders to account for the lot sizing rules. See Lot sizing.

Step 5. Correct finish date

For more information, see To compute supply lead-times.

Step 6. Determine start date

For more information, see To compute supply lead-times.

Exploded requirements

If LN generates a planned production order, it also generates the requirements for the components of the manufactured item. LN takes these exploded requirements into account when it simulates items with higher phase numbers. In case of a multicompany simulation, LN also carries out this explosion process for planned distribution orders.

For information on reviewing and modifying planned orders, see Planned orders in Enterprise Planning.

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