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:
- Determine the finish date
- Determine the quantity
- Select a source of supply
- Select one or more suppliers, and determine the order quantity
- Correct the finish date
- Determine the start date
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.