Selecting internal suppliers
Distribution planning in Enterprise Planning handles the generation and planning of distribution orders. You can use distribution orders to:
- Transfer goods between planning clusters.
- Transfer one item into another item.
Distribution planning is very similar to purchase planning. The main differences are:
- Distribution planning is based on the supplying relationships, while purchase planning is based on item-supplier information.
- Distribution planning always works with planned orders (also in master planning).
Distribution planning chooses between alternative suppliers and distributes volumes over these suppliers on the basis of the parameters defined in the following sessions:
- Supply Strategy (cprpd7120m000)
- Supplying Relationships (cprpd7130m000)
Distribution planning uses supply strategies with supply type Distribution.
The supply planning carries out the following steps for each required plan item:
- Determine the requirements.
- Determine the source of supply (production, purchase, or distribution).
- Put the supplying relationships in order of preference.
- Determine delivery date by supplying relationship.
- Determine the volume by supplying relationship.
If a plan item has no valid supply strategy, LN uses the following values by default:
- Priority rule: Priority
- Allocation rule: Percentage
If LN cannot find a valid supplying relationship to fulfill a requirement at a certain moment, LN tries to fulfill the required demand with the other supply sources following the sourcing rules that you defined for the plan item in the Sourcing Strategy (cprpd7110m000) session. If LN still cannot fulfill the required demand, LN generates a signal.