Determining the VMI Relation

This topic describes how LN determines the value of the VMI Relation field in the Items - Planning (cprpd1100m000) session.

Whenever you run order-based planning, LN reevaluates the VMI Relation field. LN takes the entire period between current date and the planning horizon into account.

If at any time in that period an applicable terms and conditions agreement is found, the VMI Relation field is set to Create Supplier Forecast or Receive Customer Forecast, even if this terms and conditions agreement is not effective at the current date.

With this, LN ensures the order-based planning run carries out the vendor managed inventory (VMI) functionality if it is needed and makes the VMI related sessions and features available.

Overall procedure

  • The Master Plan check box in the Items - Planning (cprpd1100m000) session must be cleared.
  • Order Planning checks if Receive Customer Forecast is set up, if this is not the case Order Planning checks if Create Supplier Forecast is set up.
  • If neither applies, LN sets the VMI Relation field to Not Applicable.

Checking if VMI purchase contract is set up

To determine if the VMI relation is set to Create Supplier Forecast, LN performs the following actions:

  1. LN searches for suppliers ( buy-from business partners) with terms and conditions agreements effective between the current date ('now') and the planning horizon.

    LN also retrieves the plan item's default warehouse.

    This terms and conditions agreement must be valid for the combination of item, buy-from business partners, and warehouse.

    A terms and conditions agreement defined for a group of items, such as an item group or product type, is valid for every item within that group of items. Similarly, a terms and conditions agreement in which no warehouse is specified is valid for all items.

    A terms-and-conditions agreement without an active purchase contract is not a valid terms-and-conditions agreement.

  2. LN finds the effective terms and conditions lines between the current date and the planning horizon, based on the terms and conditions search attributes.
  3. From the applicable record in the Planning Terms and Conditions (tctrm1135m000) session, LN retrieves the values of the Supply Planning by Supplier check box.
  4. If the Responsible for Supply Planning check box is selected, LN sets the VMI Relation field to Create Supplier Forecast.

To check if VMI sales contract is set up

To determine if the VMI relation is set to Receive Customer Forecast, LN performs the following actions:

  1. LN retrieves the plan item's planning cluster, based on the first segment of the plan item code, and checks whether this planning cluster has a sold-to business partner.

    A planning cluster's sold-to business partner is defined in the Sold-to Business Partner field in the Planning Clusters (tcemm1135m000) session, optionally you can define a planning cluster's ship-to business partner there as well.

  2. LN searches for a valid terms and conditions agreement for the combination of item, sold-to business partner, and optionally ship-to business partner.

    A terms and conditions agreement defined for a group of items, such as an item group or product type, is valid for every item within that group of items.

    A terms-and-conditions agreement without an active sales contract is not a valid terms-and-conditions agreement.

  3. LN finds the effective terms and conditions lines between the current date and the planning horizon, based on the terms and conditions search attributes.
  4. From the applicable record in the Planning Terms and Conditions (tctrm1135m000) session, LN retrieves the value of the Responsible for Supply Planning check box.
  5. If the Supply Planning by Supplier check box is selected, LN sets the VMI Relation field to Receive Customer Forecast.