VMI planning based on forecast

This topic describes how a VMI supplier can plan the supply for a customer based on the forecast received from the customer.

For an introduction to the various planning methods, refer to Planning methods (VMI).

General planning procedure

If the VMI planning is based on forecast, the general planning procedure is as follows:

Your customer sends you a forecast.
LN uses the values of the forecast to generate planned orders to fill the customer warehouse. Most of these planned orders are planned distribution orders. In case of direct delivery, LN generates planned purchase orders.
The planned orders are based on either the total forecast or on the confirmed part of the forecast.

Note

In this procedure, you do not determine a confirmed supply.

For more information, refer to Confirmed forecast and unconfirmed forecast.

Parameter setting

To specify this planning method, define an appropriate terms and conditions agreement on the Terms and Conditions Line (tctrm1620m000) session's Planning tab.

Use the following settings:

Forecast received from Customer	=	Yes
Confirm Supply	=	No
Replenishment Based On	=	Total Forecast, Confirmed Forecast, Inventory Level, or Manual
Planning Based On	=	Total Forecast or Confirmed Forecast

Note

The replenishment quantity can never exceed the planned quantity; therefore, if the Replenishment Based On field is Total Forecast, you cannot set the Planning Based On field to Confirmed Forecast.

For more information, refer to Replenishment methods (VMI)