Supply Planning
Supply Planning is the process of anticipating demand and planning the materials and components needed to meet that demand, to ensure that customers stock the right parts, in the right place, at the right time, in order to deliver high customer satisfaction and reduce operational and inventory costs. Supply Planning utilizes:
• Calculation processes to evaluate stock levels and project need.
• Ordering Parameters to establish how a segment (or group of segments) are to be planned.
The Generate Order Plan process is the primary foundation of the Supply Planning process. When the Generate Order Plan process is run, it tries to satisfy needs on any given day by searching for supply in the following sequence:
1. Upchain Excess
2. Substitution
3. Repair
4. Balancing
5. Excess Recall
6. Procurement or Replenishment
7. Remaining Need Chain Transfer
8. Expensive Repair
For some of these supply methods, it is possible to set priorities for the supply sources using base setup data, such as substitution priority or repair priority.
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GAP SKUs are planned together.
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