The scenario that contains the operational master plan or order plan, as opposed to scenarios used only for simulation, that is, what-if analysis.

The actual scenario is the only scenario from which you can transfer planned orders to the execution level.

A separate logistic company that acts as a business partner to your logistic company. You must define the sold-to role and the buy-from role for an affiliated company business-partner.

For example, an affiliated company can represent affiliated enterprises and locations of your enterprise in other countries.

To total figures or amalgamate amounts; to merge items in a higher plan level. Opposite of explode, disaggregate.

A specification, expressed as a percentage, of how items are aggregated or disaggregated.

To aggregate items means that different items are grouped to form product families for planning purposes. This is also called a planning bill of material. To disaggregate items means that a product family is split up into smaller families, or into items.

Aggregation relationships can have the same structure as a single-level bill of material. However, similar to production bills of materials, also multilevel structures can be created.

Example

A specification, expressed as a percentage, how items are aggregated or disaggregated.

To aggregate items means that different items are grouped to form product families for planning purposes. This is also called a planning bill of material. To disaggregate items means that a product family is split up into smaller families, or into items.

Aggregation relationships can have the same structure as a single-level bill of material. However, similar to production bills of materials, also multilevel structures can be created.

Example

The rule that defines how Enterprise Planning determines the quantity that must be supplied by a supplier or supplying planning cluster. For example, a percentage of the total supply or the supplier's capability to supply.

The maximum volume that you want to sell to customers in a particular channel. When this maximum is reached in a certain channel ATP period, you accept no more customer orders for that channel.

A substitute for a BOM material that the system can select in case the standard material is out of stock.

An alternative material is supposed to meet the same specifications, but only in the context of a BOM for a specific main item.

A list of buy-from business partners approved to deliver a specific item.

The date until which LN performs ATP and CTP checks.

The ATP horizon is expressed as a number of working days during which LN can carry out ATP and CTP checks. Beyond the ATP/CTP horizon, LN does not check ATP or CTP: all customer orders are accepted.

A group of planned orders, for which the criteria for inclusion are stored.

If you run the order planning process with the automatic-update feature activated, LN updates these order groups based on the stored selection criteria.

An indication of the type of activity for which a resource is available. With availability types, you can define multiple sets of working times for a single calendar.

For example, if a work center is available for production on Monday through Friday and available for service activities on Saturdays, you can define two availability types, one for production and one for service activities and link these availability types to the calendar for that work center.

A calculation that determines how many products are available (to sell or consume in a project) at a certain moment in the future.

Bills of critical capacities (BCC) indicate the work centers that are regarded as critical in the Master Planning processes. Critical capacities are usually the bottlenecks in a routing.

Enterprise Planning uses the bill of critical capacities to generate the rough capacity requirements for critical capacities.

A list of all parts, raw materials, and subassemblies that go into a manufactured item and show the quantity of each of the parts required to make the item. The BOM shows the single-level product structure of a manufactured item.

A plan that includes the budgeted quantities and/or amounts by period for the sorts selected; the budgeted or expected sales or purchase figures.

A part of a business model that is built from a selection of business functions that are initially created in the repository.

An XML message used to exchange data between enterprises or enterprise applications. The BOD is composed of a noun, which identifies the message content, and a verb, which identifies the action to be taken with the document. The unique combination of the Noun and the Verb forms the name of the BOD. For example, noun ReceiveDelivery combined with verb Sync results in BOD SyncReceiveDelivery.

A party with whom you carry out business transactions, for example, a customer or a supplier. You can also define departments within your organization that act as customers or suppliers to your own department as business partners.

The business partner definition includes:

• The organization's name and main address.
• The language and currency used.
• Taxation and legal identification data.

You address the business partner in the person of the business partner's contact. The business partner's status determines if you can carry out transactions. The transactions type (sales orders, invoices, payments, shipments) is defined by the business partner's role.

The employee of your company who is the contact to the concerned buy-from business partner. The buyer is also known as the purchasing agent.

A set of definitions, that are used to build a list of calendar working hours. A calendar is identified by a calendar code and availability type combination.

The capacity of a resource that is available in a plan period for additional production of a plan item in connection with a customer order.

The capacity CTP is used in capable-to-promise calculations.

An availability check on the capacity necessary to produce an extra quantity of an item to deliver a customer order on time.

The capacity CTP check is performed on resources in the item's bill of critical capacities or on the work centers of the item's routing, depending on the order horizon. Only the resources defined as CTP critical are checked.

Resource capacity reserved for the (as yet unplanned) production of items for which the demand could not be covered by the ATP of the items themselves.

This reservation is made in the following situation:

• There is a demand for item A that cannot be covered by this item's ATP.
• A capacity CTP check is carried out for item A.
• The bill of critical capacities for item A contains resource R.
• Resource R is defined as CTP critical.
• The capacity CTP of resource R is higher than zero.

If the demand for item A is recorded as a customer order, a capacity CTP reservation is recorded for resource R, and the resource's capacity CTP is reduced accordingly.

A sales or distribution channel used to assign goods to customer groups.

You can link channels to sold-to business partners and to items. Channels can be used in connection with available-to-promise (ATP).

You can assign a certain ATP volume to a channel. This volume limits the ATP for that channel to a maximum.

The item quantity that can still be promised to customers in a particular sales channel.

The channel ATP depends on the allowed demand for a channel. The total allowed demand for one channel ATP period forms the initial value of the channel ATP in that period. Every time a demand is recorded within this channel and within this channel ATP period, this demand is subtracted from the channel ATP.

Channel ATP is used to limit the supply that goes to specific channels, and to secure that enough quantity is left to supply other important customers.

An item-specific logistic plan that contains sales targets and constraints for a specific combination of a sales channel and plan item.

A channel is a grouping of customers and items.

A channel master plan supports sales-related functions such as demand forecasting and due-date quoting, as well as aggregation.

A group of entities that are not necessarily related to one financial company or logistic company.

In Enterprise Planning, planning clusters are used for groups of warehouses, connected by supplying relationships. See: planning cluster.

A working environment in which you can carry out logistic or financial transactions. All the transaction data is stored in the company's database.

Depending on the type of data that the company controls, the company is:

• A logistic company.
• A financial company.
• A logistic and a financial company.

In a multicompany structure, some of the database tables can be unique for the company and the company can share other database tables with other companies.

An availability check on the components necessary to produce an extra quantity of an item to deliver a customer order on time.

The type of check that is performed on a component item itself depends on the CTP parameters for the component in question.

The component CTP check is performed on components in the bill of critical materials or the bill of material, depending on the order horizon. Only components defined as CTP critical are checked.

The item quantity reserved to be used as critical components for the (as yet unplanned) production of other items.

This reservation is made when the ATP data in an item master plan is updated and the following is true:

• The cumulative ATP for plan item A drops below zero.
• The plan item settings for item A are set to enable component CTP checks.
• The bill of critical material for item A contains item B.
• Item B is defined as CTP critical in the plan item settings.

In this case, a component CTP reservation is recorded for item B, and the ATP of item B is reduced accordingly. The quantity of item A that will be produced with the reserved quantity of the component is stored as CTP Reservation Receipts.

The part of the total forecast which the customer definitely expects to consume.

If the customer sends the forecast by period to the supplier that plans the supply, the customer can differentiate between confirmed and unconfirmed forecast.

Typically, confirmed forecast of a component is derived from actual sales orders and sales schedules of end item. The user can use various methods to determine how much of the forecast is confirmed forecast.

See also unconfirmed forecast.

Quantity of the item the supplier has confirmed will be delivered to the customer on the planned delivery date.

The part of the demand plan that has been consumed by the actual demand in a specific period.

As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand.

An application, integrated with LN to configure an item. The integration can be used only as part of the web user interface.

The production capacity of a resource, required by a plan item for the execution of that plan item's production plan.

The critical capacity requirements are based on a plan item's bill of critical capacities.

The critical capacity requirements are specified by plan period.

The quantity of a plan item that is required to serve as critical components for the production of another plan item.

The critical material requirements are based on the production plan for an (end) item, and on its bill of critical materials.

The critical material requirements are specified by plan period. In the item master plan, critical material requirements are recorded as dependent material demand.

The total item quantity that you can promise to deliver in a particular plan period.

You can use the cumulative ATP to check the availability of an item when you receive a sales order or an inquiry.

The sales order quantities and the sales schedule quantities that have already been delivered to the customers involved.

The customer deliveries are part of the actual demand. These deliveries are used to consume the demand forecast, and to generate a new demand forecast.

The sales orders that have not yet been delivered to the customers involved.

The customer orders are part of the actual demand and are used to consume the demand forecast.

An item produced on a customer specification for a specific project. A customized item can have a customized BOM and/or a customized routing and is normally not available as a standard item. A customized item can, however, be derived from a standard item or a generic item.

The item quantity that is forecast to be required in a plan period. A demand forecast can be generated based on seasonal patterns or historical demand data.

The demand forecast is part of the demand plan for a plan item or channel.

The expected demand for an item, specified by period.

The demand plan is the sum of

• demand forecast
• extra demand
• special demand

The demand plan belongs to the master plan for an item or channel.

A demand related to a demand for another item.

Two basic types of dependent demand exist:

• Demand for components that are used to manufacture an item.
• Demand that originates from another warehouse location or a related company.

With master planning, the dependent demand is equal to the sum of the following fields:

• dependent material demand
• dependent scheduled demand
• dependent distribution demand

LN explodes the ATP and the dependent demand of a main item to plan items that have the same planning cluster as the warehouse you specified on the bill of critical materials of the main item.

Demand for an item that results from the explosion of requirements of a production plan or a planned production order for another item.

In other words, when requirements for an item's production plan or planned production orders are exploded, this leads to dependent material demand for items that occur in the former item's bill of (critical) material.

The process in which a seller orders goods from a buy-from business partner, who must also deliver the goods directly to the sold-to business partner. By means of a purchase order that is linked to a sales order or a service order, the buy-from business partner delivers the goods directly to the sold-to business partner. The goods are not delivered from your own warehouse, so Warehousing is not involved.

In a Vendor Managed Inventory (VMI) setup, a direct delivery is achieved by creating a purchase order for the customer warehouse.

A seller can decide for a direct delivery because:

• There is a shortage of available stock.
• The ordered quantity cannot be delivered in time.
• The ordered quantity cannot be transported by your company.
• Costs and time are saved.

A process that splits a family into smaller families, or into items.

Disaggregation is used in planning procedures, for example, to split the demand plan or the production plan.

The split is based on a disaggregation rule, such as one of the following:

• Planning percentages (defined in the aggregation relationships)
• Inventory
• CTP volume

You can also disaggregate items that are not part of a family.

The quantity that has been delivered to other companies to meet dependent distribution demand.

The item quantity that is planned to be delivered by internal or sister-company suppliers. These planned deliveries are shown in the item master plan as planned distribution orders (outside the order horizon).

The distribution plan belongs to the supply plan for a plan item.

The amount of an item to be purchased or manufactured at one time. This amount is the quantity for which the combined costs of acquiring and carrying inventory are the lowest. This is also referred to as the minimum cost order quantity.

The first day on which a record or a setting is valid. The effective date often includes the effective time.

The period of time defined by the effective date and expiry date in which a record is valid.

A reference number, for example a sales order line or a project deliverable line, that is used to model deviations for a unit effective item.

An item that is ready to be delivered to a warehouse. An end item is produced at the end of a dangle routing (co-products and by-products) or a main routing.

A user-defined group of planned production orders.

A financially independent part of your organization that includes entities such as departments, work centers, warehouses, and projects. The enterprise unit's entities must all belong to the same logistic company, but a logistic company can contain multiple enterprise units. An enterprise unit is linked to a single financial company.

When you carry out logistic transactions between enterprise units, the resulting financial transactions are posted to the financial companies to which each enterprise unit is linked.

A separate and independent building block for a planning cluster, site, or enterprise unit. For example, warehouse, work center, employee, sales department, purchase department, project, customer, supplier, financial company.

A deviation of an effective item's standard configuration. An exception indicates, for example, whether a specific BOM line or a specific routing operation is used for an effectivity unit. Exceptions are often created as a result of customer requirements, or technology upgrades.

A short standardized message that LN generates to advise the user to change or correct a specific planning parameter, value, or constraint to avoid undesired results or conflicts in planning.

The number of days for which Enterprise Planning generates exception messages of a certain type.

The exception message horizon is expressed as a number of working days from the date you carry out the simulation.

Beyond the exception message horizon, Enterprise Planning does not generate exception messages of the exception message type involved.

Within Enterprise Planning, the designation of the LN packages that control the execution of orders and the actual goods flow, such as:

• Manufacturing
• Order Management
• Warehousing

Enterprise Planning uses planning algorithms to carry out simulations and optimizations. The other packages control the execution of orders, and the goods flow.

The date from which a record or a setting is no longer valid. The expiry date often includes the expiry time.

A demand forecast method that takes account of recent data over and above past data.

An extra item quantity that is expected to be sold in a plan period, on top of the regular demand forecast.

The extra demand is part of the demand plan for a plan item or channel.

Example

An extra demand can be defined for an unusual large customer order or an extra market demand because of sales promotions.

Time reserved for extra activities that are necessary to fully complete a planned order.

Enterprise Planning treats the extra lead time in the same way as the safety time: the order must be delivered earlier based on the extra lead time.

The extra lead time is expressed in days or in hours.

A CTP check that is carried out at a higher product-family level, instead of the level of the item itself.

Like the regular CTP check for an item, a family CTP check can involve several types of ATP and CTP checks.

In this case, you can configure LN so that, when the CTP of the mountain bike must be checked, LN will in fact check the CTP of the bicycle family.

Example

The mountain-bike item is part of the bicycle family.

The time period for which LN performs the capable-to-promise (CTP) check for an item on a higher product-family level, instead of the level of the item itself.

The start date of the family CTP horizon is defined in the plan-item settings. The end date coincides with the CTP time fence.

The application of family CTP depends on the plan period in which the delivery date of a customer order falls:

• If the plan period falls before the family CTP horizon, LN checks the CTP of the item itself.
• If the plan period falls within the family CTP horizon, LN checks the CTP on a higher product-family level.

A planned order that can no longer be modified by Enterprise Planning in an order-planning run. However, you can manually change a firm-planned order's start date and finish date, or the order quantity.

The estimated time necessary to carry out a planned order.

To plan an order's lead time, Enterprise Planning can either use a fixed lead time or more detailed routing data. When using a fixed lead time, the results are less precise, but the calculation is faster.

The time period for which Enterprise Planning uses a fixed lead time to plan orders.

Planning with a fixed lead time is faster than planning on the basis of routing data, but the results are less precise.

The start date of the fixed lead-time horizon is defined in the plan-item settings. The end date coincides with the end of the order horizon.

Before the fixed lead-time horizon, Enterprise Planning plans on the basis of routing data. Within the fixed lead-time horizon, Enterprise Planning plans using a fixed lead time.

The demand for an item, calculated by the customer that purchases that item, and aggregated to forecast periods according to the agreed terms and conditions.

The customer sends the forecast to the supplier that plans the item supply.

The number of days into the future on which the calculation of the inventory plan is based.

The forecast horizon is expressed as a number of calendar days.

The forecast-based calculation of the inventory plan is based on the following principle: The inventory plan must be equal to the expected demand during a certain forecast horizon.

Example

If the forecast horizon is 10 days, LN aims at an inventory level for each plan period that is sufficient to cover the demand for the next 10 days.

The periods to which the customer aggregates forecast caused by multiple orders.

The forecast periods are based on the terms and conditions.

The date up until which Enterprise Planning ignores the demand forecast when generating master plans and planned orders. In the first few days after the current date, LN expects to receive no more sales orders than the actual sales orders that you already received.

The overlap period of the frozen zone+ and the frozen zone-. No changes to the purchase schedule line are permitted in this period.

The number of days, calculated from the current date, for which you can no longer reduce the quantity of required items.

The number of days, calculated from the current date, for which you can no longer increase the quantity of required items.

Set of components, per generic item, from which product variants can be composed. The generic bill of material forms the basis for the variant bill of material which arises during the configuration/generation of a product variant. For each BOM line (component) a constraint rule may apply.

An item that exists in multiple product variants. Before any manufacturing activities are performed on a generic item, the item must be configured to determine the desired product variant.

Example

Generic item: electric drill

Options:

• 3 power sources (batteries, 12 V or 220 V)
• 2 colors (blue, gray).

A total of 6 product variants can be produced with these options.

A collective term for all transactions that influence the inventory of items, such as customer orders, production orders, and inventory adjustments.

Goods-flow data is recorded at the execution level of LN. When the goods-flow data in Enterprise Planning is updated, this data is loaded into Enterprise Planning as a basis for the planning. This data includes both historical and planned goods-flow transactions, as well as current inventory data.

For product families, LN generates the goods-flow data by aggregation through the aggregation relationships.

The time interval between the arrival of the items and the actual storage in the warehouse.

A demand that is unrelated to demand for other items.

Examples of independent demand:

• Demand for finished goods.
• Demand for components required for destructive testing.
• Service part requirements.

A supply-planning method that does not take any capacity constraints or material constraints into account.

Infinite planning starts from the assumption that there are no critical constraints. In other words, it assumes that it is always possible to find or arrange the necessary resource capacity and the necessary materials to produce an item.

Infinite planning is especially suitable in situations in which it is no problem to flexibly add resource capacity, and in which the supply of components is easy.

The quantity that has been delivered internally, that is, within the same company, to meet dependent demand.

The time required between the recognition of needs and the release of the purchase order. Internal processing time includes document preparation and sourcing.

The inventory quantity that can be available in a warehouse. In VMI or subcontracting scenarios, warehouse supply can be based on inventory levels laid down in contracts between suppliers and customers.

The desired inventory level, specified by period.

The inventory plan is part of the item master plan.

The inventory plan can also be a constant inventory level.

Any change in the inventory records.

A classification that is used to indicate the type of inventory movement.

The following inventory transaction types are available:

• Issue

  From warehouse to other entity than warehouse.

• Receipt

  From other entity than warehouse to warehouse.

• Transfer

  From one warehouse to another.

• WIP Transfer

  From one costing work center to another.

The raw materials, subassemblies, finished products, and tools that can be purchased, stored, manufactured, and sold.

An item can also represent a set of items handled as one kit, or which exist in multiple product variants.

You can also define nonphysical items, which are not retained in inventory but can be used to post costs or to invoice services to customers. The examples of nonphysical items:

• Cost items (for example, electricity)
• Service items
• Subcontracting services
• List items (menus/options)

Identification code for an item (product, component, or part). The item code can consist of multiple fields or segments.

A time-phased overview of the demand and supply for an item related to a specific customer.

LN provides item customer plans to work with vendor managed inventory. The item customer plan displays data such as the forecast your customer sent to you and the confirmed supply information you sent to your customer.

You can compare an item customer plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers or customers and the item customer plan displays demand and supply for a specific customer.

A group of items with similar characteristics. Each item belongs to a particular item group. The item group is used in combination with the item type to set up item defaults.

An item-specific, overall logistic plan that contains planning data and logistic targets for sales, internal and external supply, and inventory. All planning data in the item master plan is specified by plan period. Enterprise Planning uses this data to carry out master-planning simulations.

Within the item master plan, you can distinguish the following subplans:

• demand plan
• supply plan
• inventory plan

In addition, an item's master plan contains information about actual demand, actual supply, planned supply in the form of planned orders, and expected inventory.

If an item has a master plan and channels have been defined for this item, each channel usually has its own channel master plan. A channel master plan contains channel-specific information only, that is, demand data and information about sales restrictions.

Item master plans and channel master plans are defined within the context of a scenario. These scenarios can be used for what-if analyses. One of the scenarios is the actual plan.

A time-phased overview of your order planning.

The item order plan contains overview values for demand and forecast on one hand, and the other hand it provides information about scheduled receipts (actual orders) and planned supply (planned orders).

A time-phased overview of the demand and supply for an item related to a specific supplier.

LN provides item supplier plans to work with vendor managed inventory. The item supplier plan displays data such as the forecast you sent to the supplier and the confirmed supply information the supplier sent back to you.

You can compare an item supplier plan with an item order plan. The difference is, that the item order plan displays demand and supply from all suppliers and customers and the item supplier plan displays demand and supply for a specific supplier.

A classification of items used to identify if the item is, for example, a generic item, a service item, or an equipment item. Depending on the item's type, certain functions will only apply to that item.

The cumulative lead time of the production process, calculated from the production stage where the relevant critical material or critical capacity is required to the final stage of the production process. The lead-time offset is a factor in determining the start date of the critical material or critical capacity requirement.

The lead-time offset can be expressed in days or hours.

The end result of a production order.

A main item is either be changed to an end item (for delivery to a warehouse), or delivered directly to the customer in bulk.

The items that can be manufactured end products and subassemblies. A manufactured item is usually associated with a bill of material and a routing that describe the components used to assemble it and the manner in which it is assembled. Manufactured items are also referred to as production items and can be purchased.

A planning concept in which all planning data is accumulated into time buckets with predefined lengths.

In master planning, all demand, supply, and inventory data is handled in terms of these time buckets, and is stored in master plans.

In master planning, supply is planned in the form of a supply plan. This supply plan is calculated on the basis of demand forecasts, actual orders, and other information. For production planning, this planning method only considers critical requirements, as recorded in an item's bill of critical materials and bill of critical capacities.

The planning algorithm used in master planning to plan supply.

The master-planning engine generates a supply plan for each item involved.

The following master-planning engines are available:

• Infinite Planning
• Workload Control

For each plan unit, you can choose the appropriate planning engine. If an item has not been assigned to a plan unit, infinite planning is used by default.

That part of the planning horizon which falls outside the order horizon, and for which Enterprise Planning uses master planning to plan supply.

The master-planning horizon is not defined on its own, but depends on the definition of the order horizon and the planning horizon.

If the order horizon coincides with the planning horizon, there is no master horizon. In this case, Enterprise Planning plans all supply with order planning.

A schedule on which forecasted information is provided about shipping times, delivery times, and quantities.

In general, a material release can be considered as a planning release. However, the material release can also contain the actual order.

The maximum inventory quantity that can be available in a warehouse.

The minimum inventory quantity that must be available in a warehouse.

The minimum quantity of items to be purchased or produced. When planned orders are generated, the quantity of items to be purchased or produced is never less than the minimum order quantity. The minimum order quantity prevents the purchase or production of this item in quantities that are too small.

A planning unit for a customized, manufactured, or purchased part, for which the logistical planning is related directly to the project network planning. A module may be a more or less complex compound part or a single part, such as a long delivery time part.

The structure of several physical or logical companies between which transactions can be done.

From a logistical point of view, multicompany relates to the flow of goods or information between multiple locations, which are implemented in different logistic companies. Typically, these locations are situated in various regions or countries.

From a financial point of view, multicompany relates to the financial flow between financial entities, represented by departments and warehouses, which are implemented in different financial companies. Typically, these warehouses and departments are located in various countries or belong to different business units.

A distribution order in which two separate logistical companies are involved.

In LN, the user can determine if the multicompany planned distribution must be transferred to either a purchase order, or a warehouse transfer. To do so, the user must define the order type for a specific company relation.

Refers to the management of multiple sites within a single (logistic) company.

In a multicompany structure, which includes several companies, multisite applies to each of the logistic companies.

The date on which something changes that affects the current master plan or the current planned orders. For example, a higher demand or a change in a BOM.

When a net-change simulation is performed, then items are selected based on the net-change date and flag. For example, when the flag is set and the date is outside the order horizon, then the item is skipped.

The network planning includes all the activities required to carry out (plan and control) a project. The relations within the network show the interdependent activities.

The part of the forecast demand that has not yet been consumed by actual demand.

As a rule, the demand forecast, extra demand, and special demand are gradually filled by actual orders. This process is referred to as consumption of forecast demand by actual demand.

One of a series of steps in a routing that are carried out successively to produce an item.

The following data is collected during a routing operation:

• The task. For example, sawing.
• The machine used to carry out the task (optional). For example, sawing machine.
• The place where the task is carried out (work center). For example, woodwork.
• The number of employees required to carry out the task.

This data is used to compute order lead times, to plan production orders and to calculate standard cost.

A step in a master routing. Based on a reference activity, an operation is identified by a unique sequence number.

A planning concept in which planning data is handled in the form of orders.

In order planning, supply is planned in the form of planned orders. LN takes into account the start and finish dates of individual planned orders. For production planning, this method considers all material and capacity requirements, as recorded in an item's BOM and routing.

The quantity that must be delivered according to the terms on the order line. The quantity is expressed in the purchase unit or the sales unit of the item.

A collection of planned production orders, which you can use as a selection criterion to transfer planned production orders from Enterprise Planning to the Job Shop Control module of Manufacturing.

JSC can use the same collection of production orders to organize manufacturing tasks.

The time period for which Enterprise Planning uses order-based planning to plan supply.

The order horizon is expressed as a number of working days from the date you carry out the simulation.

If the order horizon is zero, Enterprise Planning does not use order-based planning for the item involved.

To calculate the order horizon, LN uses the calendar that you specified for the enterprise unit of the default warehouse to which the plan item belongs.

If you did not specify an enterprise unit for the default warehouse of the plan item, Enterprise Planning uses the company calendar to calculate the order horizon.

The number of workdays or working hours for which all the requirements of a specific item are bundled in one (planned) order, during an order planning run. LN calculates the order interval from the day when the first requirement occurs. Order intervals are used to prevent an excessive number of planned orders in one time period.

The production time of an item expressed in hours or days, based on the lead time elements as defined in the routing operations.

The order parameter that controls the ordered quantities of recommended purchase and production orders.

Options:

• Lot-for-lot
• Economic order quantity
• Fixed order quantity
• Replenish to maximum quantity

The status assigned to a planned order in Enterprise Planning.

The order status can either be:

• Planned
• Firm Planned
• Confirmed

The order parameter that controls the way by which recommended purchase and production orders are generated.

Options:

• FAS (final assembly scheduling).
• SIC (statistical inventory control).
• Planned (schedule-based and order-based planning).
• Manual (manual reordering).

The time interval between taking the items out of the warehouse and the departure of the carrier on which the items are placed.

A scheme on which you can define the day of the week, day of the month, or day of the year, and the time of the day you want an activity, such as a release or a delivery, to be carried out.

An assembly that is produced as part of a manufactured item, and that can have its own routing.

A phantom is usually not held in inventory, although occasionally some inventory can exist. The planning system does not create material requirements for a phantom, but drives the requirements straight through the phantom item to its components. Phantoms are mainly defined to create a modular product structure.

Example

The door of a refrigerator is defined as a phantom item in the bill of material of a refrigerator. The materials of the door are listed on the production order's material list for the refrigerator.

A number that determines the order in which plan units and plan items are planned.

As a rule, plan units and plan items are planned in order of increasing phase number: first phase number 0, then phase number 1, and so on.

An item has separate phase numbers for master planning and order planning. For items that belong to a plan unit, the master phase-number equals the plan unit's master phase-number.

An item with the order system Planned.

The production, distribution, or purchase of these items is planned in Enterprise Planning based on the forecast or the actual demand.

You can plan these items by means of the following:

• Master-based planning, which is similar to master production scheduling techniques.
• Order-based planning, which is similar to material-requirements planning techniques.
• A combination of master-based planning and order-based planning.

Plan items can be one of the following:

• An actual manufactured or purchased item.
• A product family.
• A basic model, that is, a defined product variant of a generic item.

A group of similar plan items or families is called a product family. The items are aggregated to give a more general plan than the one devised for individual items. A code displayed by the item code's cluster segment shows that the plan item is a clustered item that is used for distribution planning.

The level within a hierarchical planning structure.

When you plan on a higher plan level, plans are general and less detailed.

Example

Plan level 1 is the highest plan level; the higher the number, the lower the plan level.

An order in Enterprise Planning for an internal supplier or sister company to deliver a quantity of an item.

The expected changes in the inventory levels due to planned orders for items.

A supply order in Enterprise Planning that is created for planning purposes, but which is not an actual order yet.

Enterprise Planning works with planned orders of the following types:

• planned production order
• planned purchase order
• planned distribution order

Planned orders are generated in the context of a particular scenario. The planned orders of the actual scenario can be transferred to the execution level, where they become actual supply orders.

A planned order in Enterprise Planning to produce a certain quantity of an item.

A planned order in Enterprise Planning to purchase a certain quantity of an item from a supplier (buy-from business partner).

The date on which the goods are expected to arrive in the destination warehouse.

An object used to group warehouses for which the inbound and outbound flow of goods and materials is planned collectively. For this purpose, the demand and supply of the warehouses of the planning cluster is aggregated. Within a planning cluster one supply source is used, such as production, purchasing or distribution.

If multisite is implemented, a planning cluster must include one or more sites. The site or sites include the warehouses for which the planning processes are performed. A site is linked to one planning cluster.

The time period for which LN maintains planning data for an item.

The planning horizon is expressed as a number of working days from the date you carry out the simulation.

Enterprise Planning does not generate supply plans or planned orders that are after the item's planning horizon.

To calculate the planning horizon, Enterprise Planning uses the calendar that you specified for the enterprise unit of the default warehouse to which the plan item belongs.

One of a series of time buckets into which all planning data in a master plan is accumulated.

Plan periods are defined in the context of a scenario.

Plan periods are identified by a period number, and are defined in days, weeks, or months.

A group of plan items that is planned as a single unit.

A plan unit groups a set of plan items that share the production capacity of certain resources.

A plan unit is planned with a specific planning engine. You can specify a planning method and planning parameters for each plan unit.

A plan unit often corresponds to a production department. Usually, a production system distinguishes no more than three to five plan units.

An option that enables you to add a certain rating for suppliers. If the priority is defined, the item/supplier combinations are sorted according to descending priority.

The rule on which Enterprise Planning bases the choice of suppliers. For example, the costs, supply time, or the priority of the supplier.

An item that represents a group of similar plan items (or families). The items are aggregated to give a more general plan than the one devised for individual items.

The aggregation relationships specify the percentage of each plan item in the product family.

Use product families with care. A product family does not normally have its own BOM or routing. However, you can create production orders or sales orders for a product family, though this can lead to inconsistencies in the planning.

A predefined configuration that specifies the production method, list of materials, time and capacity required and reporting method.

A production model contains the following:

• Production process
• Time and capacity required
• Production process reporting
• Materials supply process
• Item inspection method
• Required tools

If the Multi-Product Production check box on a production model for repetitive manufacturing is selected, a list of products is added to the production model that specifies which items are produced.

An order to produce a specified quantity of an item on a specified delivery date.

The planned receipts of manufactured items, specified by period.

These receipts are the quantity that must be produced internally.

Note that the production plan does not include the quantity of the plan item that is delivered by other companies or warehouse locations.

The production plan is part of the supply plan for a plan item.

A period of time in which product is manufactured in the Repetitive Manufacturing module for a specific reason and linked to a cost document. The period length can be defined by the user.

User-definable item grouping data that is used as a sorting and selecting criterion. The product type is intended for classifying items with similar characteristics for production purposes.

An endeavour with a special objective to be met within the prescribed time and money limitations and that has been assigned for definition or execution.

A collection of manufacturing and purchasing actions that are performed for a particular customer order. A project is initiated to plan and coordinate the production of the to be manufactured items.

For a standard-to-order production, the project is only used to link the item with the customer order. A project can also include these:

• Customized item data (BOMs and routings)
• Project planning (activity planning)

The expected inventory level at the end of a plan period.

Note that the projected inventory of plan periods that are entirely in the past equals the inventory on hand.

An item that is produced or purchased for a particular sales order. The item's project provides a link with the sales order.

A project item can be recognized by its item code. If a code has been entered in the project segment, the item is a project item.

A project item can be customized to the specifications of a customer, but it can also be a standard-to-order item.

The project structure indicates the subprojects that belong to the main project. Project structures are especially important where there are extensive projects in an engineer-to-order situation.

Project structures can be important for network planning. This is because the start dates and finish dates of subprojects can depend on the computed start dates and finish dates of the main project's activities.

The costs of subprojects are aggregated to the relevant main project in the project calculation.

The project structure only applies to a project with a type other than Budget.

You can only delete a project structure if the main project has the Free or Archived status.

Purchase contracts are used to register specific agreements with a buy-from business partner that concern the delivery of specific goods.

A contract is comprised of:

• A purchase contract header with general business partner data, and optionally, a linked terms and conditions agreement.
• One or more purchase contract lines with (central) price agreements, logistic agreements, and quantity information that apply to an item or price group.
• Purchase contract line details with logistic agreements and quantity information that apply to an item or price group for a specific location (warehouse) of a multicompany corporation. Contract line details can exist only for corporate purchase contracts.

A department in your organization that is responsible for buying the materials and services required by your organization. You assign number groups to the purchase office.

An agreement that indicates which items are delivered by a buy-from business partner according to certain terms and conditions.

A purchase order contains:

• A header with general order data, buy-from business partner data, payment terms, and delivery terms
• One or more order lines with more detailed information about the actual items to be delivered

The item quantity that is planned to be delivered by external suppliers, specified by period.

The purchase plan belongs to the supply plan for a plan item.

Note the distinction between purchase plan and distribution plan. The distribution plan covers the volume to be delivered by internal or sister-company suppliers.

A timetable of planned supply of materials. Purchase schedules support long-term purchasing with frequent deliveries and are usually backed by a purchase contract. All requirements for the same item, buy-from business partner, ship-from business partner, purchase office, and warehouse are stored in one schedule.

A date that determines when a rolling scenario is shifted forward in time.

Example

On or after January 19, the scenario is shifted forward 14 days. The new reference date will be January 19.

A schedule of dates, times, and quantities for the delivery of items.

The supplier creates the replenishment plan and sends the replenishment plan to the customer.

An order signal that informs the planner whether an order must be expedited (rescheduled in), delayed (rescheduled out), or canceled.

A group of machines or employees in Enterprise Planning, corresponding to a work center in other LN packages.

Each operation performed to manufacture an item requires a certain capacity amount from a resource (for example, production hours). The capacity of the resource can be a constraint in the planning.

The availability of a resource can be specified by using the resource calendar.

A time-phased overview of the capacity use at a certain resource.

In a resource master plan, the following types of capacity use are recorded per plan period:

• Critical capacity requirements from master-based planning.
• Capacity use related to planned orders.
• Capacity use related to JSC (production) orders and service activities.
• Capacity use related to PCS (project) activities.

In addition, the resource master plan contains capacity CTP information.

A period based overview of the capacity utilization of a specific resource and of the orders that require resource capacity.

The resource order plan can contain the following order types/entities:

• Critical capacity requirements from Enterprise Planning
• Planned production orders from Enterprise Planning
• Production orders from the Job Shop Control module of Manufacturing
• Project activities from the Project Control module of Manufacturing
• Service order activities from the Service Order Control module or the Work Control System module of Service

The revision number linked to the messages that communicate demand and supply data between customer and supplier.

A business partner can send multiple revised versions of messages with demand and supply data. Each revised version gets a revision number that has been incremented by one.

The customer generates the revision numbers. The supplier uses the same revision to mark a corresponding message to the customer.

The number of days after which a rolling scenario is shifted forward in time.

The number of days by which a plan is shifted forward equals the value of the scenario's rolling frequency.

Note that the rolling frequency is defined in calendar days.

Example

If the rolling frequency is seven days, the scenario will be shifted forward seven days, every seventh day.

A particular type of scenario that is shifted forward in time. You can specify a rolling frequency to determine the number of days after which LN must roll the scenario.

In the course of time, the current date will reach or exceed a certain reference date plus the rolling frequency. When this is the case, the scenario's start date and finish date, the plan period division, and the reference date itself are shifted forward.

The sequence of operations required to manufacture an item.

For each operation, the reference operation, machine, and work center are specified, as well as information about setup time and cycle time.

A group of items with similar routing attributes, for example, the same work center, routing operation, BOM, and so on. A routing group is defined by the user as a selection criterion for production orders.

A routing line that specifies the work center, the duration, and setup times of a Manufacturing task.

The buffer inventory necessary to meet fluctuations in demand and delivery lead time. In general, safety stock is a quantity of inventory planned to be in inventory to protect against fluctuations in demand or supply. In the context of master production scheduling, safety stock is the additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog.

The time that you can add to the normal lead time to protect delivery of goods against fluctuations in the lead time so that an order can be completed before the order's real need date.

Sales contracts are used to register agreements about the delivery of goods with a sold-to business partner .

A contract is comprised of the following:

• A sales contract header with general business partner data, and optionally, a linked terms and conditions agreement.
• One or more sales contract lines with price/discount agreements and quantity information that apply to an item or price group.

An agreement that is used to sell items or services to a business partner according to certain terms and conditions. A sales order consists of a header and one or more order lines.

The general order data such as business partner data, payment terms, and delivery terms are stored in the header. The data about the actual items to be supplied, such as price agreements and delivery dates, is entered on the order lines.

A statement of price, the terms of sale, and a description of goods or services offered by a supplier to a prospective purchaser; a bid. The customer data, payment terms, and delivery terms are contained in the header; the data about the actual items is entered on the quotation lines. When given in response to a request for quotation, a bid is usually considered an offer to sell.

A timetable of planned supply of materials. Sales schedules support long-term sales with frequent deliveries. All requirements for the same item, sold-to business partner, ship-to business partner, and delivery parameter are stored in the same sales schedule.

The identification of an overall planning solution.

Each scenario represents one overall planning solution, and involves particular settings for the planning of items and resources. You can use scenarios to analyze and compare various planning options and to find the best planning solution. For example, you can vary demand forecasts or sourcing strategies.

One of the scenarios is the actual scenario, which corresponds with the actual planning situation. You can only transfer planned orders and production plans from the actual scenario to the execution level of LN.

The quantity scheduled to be received from the orders created when planned distribution orders are transferred to the execution level, (that is, transfer orders and/or purchase orders.

The quantity scheduled to be received from (actual) production orders.

The quantity scheduled to be received from (actual) purchase orders and purchase schedules.

The location where all separate requirements of one specific item delivered by a combination of the same buy-from business partner and ship-from business partner, ordered from a single purchase office, are located.

Seasonal patterns define the fluctuation of certain values, such as the expected usage or demand of an item in the course of a year. These values serve as parameters in forecast and advice.

A subdivision of the item code in different logical parts, called segments.

These segments are visible in the sessions as separate fields. Examples of segments are:

• Project segment
• Cluster segment
• Item identification

A shipping schedule with precise information about the production or deliveries of the requirements. This schedule can include the production or delivery sequence, and the order, the place, and the time of unloading after shipment.

A business location of an enterprise that can maintain its own logistical data. It includes a collection of warehouses, departments and assembly lines at the same location. Sites are used to model the supply chain in a multisite environment.

These restrictions apply to sites:

• A site cannot cross countries. The warehouses and departments of the site must be in the same country as the site.
• A site is linked to one planning cluster. Consequently, all warehouses and work centers of a site must belong to the same planning cluster.
• A site is linked to one logistic company.

You can link a site to an enterprise unit or an enterprise unit to a site.

If an enterprise unit is linked to a site, the entities of the site belong to the enterprise unit. Conversely, if a site is linked to an enterprise unit, the entities of the enterprise unit belong to the site.

The business partner who orders goods or services from your organization, who owns the configurations you maintain, or for whom you perform a project. Usually a customer's purchase department.

The agreement with the sold-to business partner can include:

• Default price and discount agreements
• Sales order defaults
• Delivery terms
• The related ship-to and invoice-to business partner

The rule that defines how a required volume is divided over the following sources of supply:

• Job Shop
• Purchase
• Distribution

The source allocation rule is either Percentage or Priority.

A percentage used to calculate how orders are divided among suppliers.

The planning system that contains the rules for allocating demand based on a combination of supplier priority and percentage allocation to specific suppliers.

The subdivision of the planned supply of a plan item over the following sources:

• Job Shop
• Purchase
• Distribution

Sourcing strategies are defined within the context of a scenario.

You can define sourcing strategies for planning cluster, item groups, and plan items.

An extra item quantity that is expected to be sold in a plan period, on top of the forecast demand, and for a specific reason. For example, a special sales action.

You can view and maintain special demand in the Special Demand by Item (cpdsp2100m000) session. Here you can also record a reason for each instance of special demand.

The assembly-part demand forecast from Configurator is also stored as special demand.

The special demand is part of the demand plan for a plan item or channel.

A purchased item, material, subassembly, or finished product that is normally available.

All items that are not built according to customer specification for a specific project are defined as standard items. Opposite term is customized item.

The production of non-customized items after receiving a customer order.

An indication of the chance that a quote is accepted.

The company from which a plan item is delivered through the multicompany distribution structure.

A distribution link between a supplying planning cluster and a receiving planning cluster. The planning clusters involved can be in the same company, or in different companies.

Enterprise Planning uses supplying relationships for distribution planning: the supplying relationships represent valid supply paths for particular items or groups of items. You can specify supplying relationships at the level of individual items, but also at more general levels.

The supplying relationships also determine the costs of supply, lot size rules, and other parameters.

The total supply that is planned in master planning.

The supply plan of an item consists of:

• Production plan
• Purchase plan
• Distribution plan (shown in the item master plan as planned distribution orders)

The item master plan also takes into account the supply planned in order planning (planned orders). However, this type of supply is not part of the item's supply plan. In other words, a supply plan usually exists only outside the item's order horizon.

The methods by which the supply of plan items is divided over multiple suppliers.

The supply strategy defines the priority rules and allocation rules that direct the planning engines in the choice of suppliers. There are separate supply strategies for:

• External suppliers (planned purchase orders)
• Internal suppliers (planned distribution orders)

You can define supply strategies for planning cluster, item groups, and plan items.

The total time required to obtain an item that is forecasted. This time is used to calculate an item's order lead time, based on which a company takes commitment decisions and executes capacity planning and order management.

Example

For item A, the supplier communicated a supply time of 50 days. This is in fact a reduced lead time and is only possible because a three year forecast is sent to the supplier for this item. If additional quantities are needed, which are not included in the forecast, the supplier needs the full supply time, which is 300 days.

An activity to manufacture or repair an item. For example, sawing, drilling, or painting.

A task is carried out on a work center, and can be related to a machine.

An agreement between business partners about the sale, purchase, or transfer of goods, in which you can define detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging, and define the search mechanism to retrieve the correct terms and conditions.

The agreement includes the following:

• A header with the type of agreement and the business partner(s).
• Search levels with a search priority and a selection of search attributes (fields) and linked terms and conditions groups.
• One or more lines with the values for the search levels’ search attributes.
• Terms and conditions groups with detailed terms and conditions about orders, schedules, planning, logistics, invoicing, and demand pegging for the lines.

Groups the detailed terms and conditions about orders, schedules, planning, logistics, invoicing, or demand pegging for the terms and conditions line.

Holds the values for the search attributes of a terms and conditions search level. Therefore, it specifies the fields to which the detailed terms and conditions, as stored in the terms and conditions groups, apply.

An element (field) selected on the terms and conditions search level and specified and searched for on the terms and conditions line.

The date until which an item's supply plan and planned orders are frozen.

The time fence is expressed as a number of working days or working hours from the date you carry out the simulation.

As a rule, Enterprise Planning does not regenerate the supply plan or the planned orders within the time fence. However, you can overrule this behavior when you run a master-plan simulation or order simulation.

The time fence is meant to prevent:

• Disturbance of orders that have already started (at the shop-floor level).
• Generation of planned orders with start dates in the past (that is, orders that are late).

Usually, the lead time of an item's production process is a reasonable value for the time fence.

A reusable resource, manual or mechanical, that is used to perform manufacturing and/or service tasks. When you have finished with the tool, it is returned to inventory to be used for the next requirement. The tool's life is reduced each time you use it. A tool can be identified in LN as a unique combination of tool type and tool serial number.

Example

• Hand tools

  A saw or power drill.

• Machine tooling

  A jig, mould, pattern or cutting tools.

• Instruments

  A durometer or gauge.

• Equipment

  A shovel.

The part of the total forecast for which the customer desires a supply in addition to the confirmed forecast. Possibly, the customer is unsure whether this quantity will be needed.

The sum of the confirmed forecast and the unconfirmed forecast is the total forecast.

Typically, the total forecast includes not only the demand based on actual sales orders for the customer's end products, but also forecast demand based on estimated future sales of the customer's end products.

See also confirmed forecast.

A means to control the validity of variations by effectivity units.

Unit effectivity enables you to model changes for the following entities:

• Engineering bill of material
• Production bill of material
• Routing
• Routing operations
• Supplier selection
• Sourcing strategies

A material that has been replaced by another item in all BOMs.

After the use-up material's last allowed order date elapses, any remaining stock is used up; then, the replacement material will be used.

An inventory management method according to which the supplier usually manages the inventory of his customer or subcontractor. Sometimes, the supplier manages the supply planning as well. Alternatively, the customer manages the inventory but the supplier is responsible for supply planning. Inventory management or inventory planning can also be subcontracted to a logistics service provider (LSP).

The supplier or the customer may own the inventory delivered by the supplier. Often, the ownership of the inventory changes from the supplier to the customer when the customer consumes the inventory, but other ownership transfer moments occur, which are laid down by contract.

Vendor-managed inventory reduces internal costs associated with planning and procuring materials and enables the vendor to better manage his inventory through higher visibility to the supply chain.

The supplier (buy-from business partner) that handles the inventory management and optionally the supply planning of a particular item for a customer. This term is used in a vendor managed inventory (VMI) setup.

A terms and conditions agreement can designate a particular supplier as the VMI supplier for an item.

A place for storing goods. For each warehouse, you can enter address data and data relating to its type.

A warehousing order to move an item between warehouses.

A warehouse transfer consists of a warehousing order of inventory transaction type Transfer.

A special form of user assistance that automates a task by setting the parameter values within a business model and which directs the software to meet the specific requirements of an organization.

A specific production area consisting of one or more people and/or machines with identical capabilities, that can be considered as one unit for purposes of the capacity requirement planning and detailed scheduling.

A day on which work can be performed.

Lead times, horizons, and time fences in Enterprise Planning are defined in workdays (except for the forecast horizon).

Enterprise Planning converts workdays to working hours, minutes, and seconds on the basis of the basic day capacity.

A type of time interval such as Monday morning, Wednesday afternoon, or service weekend. For a working hours type, you can define defaults for start time and end time.

The amount of work scheduled for a resource.

The term workload is used in the following contexts:

• In the Workload Control (WLC) module, workload is defined as the total capacity used in a certain plan period. For example: 50 hours of production in week 23.
• In the Transfer Order Planning (cppat1210m000) session, workload is the required capacity for the production orders that must still be carried out. For example: resource R has a total workload of 300 hours of production orders that must still be carried out.

The amount of work that must await execution in job shop for a resource.

If the workload is much lower than the workload norm, there is a risk that the resource becomes idle. If the workload is much higher, the production lead times can become unacceptably long.

The percentage by which the resource's workload is allowed to deviate from the workload norm.