Planning on total forecast, replenishment on confirmed forecast
This topic describes how a VMI supplier can plan the supply for a customer based on the total forecast received from the customer, and replenish the customer based on confirmed forecast.
To build up sufficient inventory for an uninterrupted service and at the same time supply no more than necessary, the supplier can base its planning process on the total forecast and base the replenishment on confirmed forecast
If the supplier uses this strategy, the planned orders that fill the unconfirmed part of the forecast are not immediately transferred and executed.
For a detailed description of the difference between total forecast and confirmed forecast, 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:
| Responsible for Supply Planning | = | Yes |
| Forecast received from Customer | = | Yes |
| Confirm Supply | = | No |
| Replenishment Based On | = | Confirmed Forecast |
| Planning Based On | = | Total Forecast |
The planned orders that fill the unconfirmed part of the forecast are not immediately transferred and executed. For more information, refer to Replenishment method different from planning method.