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 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.

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 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 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.

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.

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.

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.

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.

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.

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

The forecast periods are based on the terms and conditions.

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.

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.

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.

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 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.

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

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

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.

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.

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.

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

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).

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.

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

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.

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.

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

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.

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 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.

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 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

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

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.

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 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

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.