Requirement Planning Settings

Order Execution Method: This defines the means to which the order point is calculated for an item when its net available inventory reaches a minimum threshold. There are two methods to The minimum threshold is calculated as follows:

  • Planned Order: Order points are calculated only for independent demand items as documented in the article Basic Order Quantity and Replenishment Logic. Thereafter the independent demand items planned orders explode their requirements to components. This is the default means of requirement planning in DemandCaster. Dependent demand items do not have order points.
  • Order Point: This method calculates order points for both independent and dependent demand items. This method calculates the forecast necessary for an order point  by using the item's independent and dependent demand history.
  • Do Not Reorder:  This method will prevent the creation of suggested orders in the requirement plan. Existing replenishment orders will be considered as supply in the requirement plan.  Expedite messages will still be generated to recommend changes to a future replenishment order to cover any potential shortages.

Default Consumption Types: Consumption types are the different methods to calculate supply consumption relative to the demand type. There are 5 consumption type options available. The setting of Stocking Type defines if a forecast is used to set the reorder point of the item during the lead time. The consumption types are described in the article What Are The Different Consumption Types In Requirement Planning.

Reorder point type: Choices are System Calculated and ERP. Recommend using system calculated to utilize DemandCaster's optimized recommendation.

Max: The amount of inventory set for an item at a location (if DRP is enabled) that can not be exceeded when suggesting an order. If the forecast drives requirements greater than the max values will result in a constrained supply situation where projected on hand may go negative or below safety stock for a period of time. The options are similar to the safety stock settings. To learn how the max value is applied in requirement planning, read the article Min / Max Replenishment Planning

Setup / Ordering Cost: Basic cost to order value. Used when calculating EOQ values.

Default requirement planning table length: This is the length of the item planning detail requirement planning table. Options are Ordering, Planning (based on planning horizon set under Time Fence Settings), and 6 months.

Pack calculations mode: There are 3 options:

  • Case pack and cube: A pack consists of a bundle of items and a cube is the volume of a case pack. For example, a carton (case-pack) of eggs consists of 12 eggs. A case cube is the length * height * width of the carton of eggs. The case cube is used when using the containerization functionality in DemandCaster.
  • Case pack only: a bundle of items.
  • None: Applied when there is no case pack or case cube available.

Cost of inventory percentage: Percentage used to calculate the cost of carry inventory. When entered, it will influence the EOQ calculation as well as other inventory related metrics.

Units of measure decimal places: These are options to apply rounding rules to the values of Each, Length, Weight, and Volume. 0 rounds to a whole number value.

Forecast Source: Visible when the S&OP add-on is enabled. This setting established if the forecast will be from the S&OP add-on or an uploaded forecast directly to the requirement plan as covered in the article Manually Uploading User-Defined Forecasts in Requirement Planning (S&OP NOT enabled)

Suggested order edit recalculation mode: This sets the rule of how edits to suggested orders affect other orders in DemandCaster. There are two options:

  • Freeze All Buckets: This freezes all suggested orders before and after the edited period regardless of the change made.
  • Freeze Prior Buckets: This freezes all values before the edited suggested order but after the edited period the value changes to re balance inventory.

Suggested orders default due day (weekly bucket planning and time horizon only): Sets the day of the week a suggested order should be scheduled to arrive. Default is Monday but any day of the week may be scheduled as a default. The scheduled day is also an item based setting to allow items to have their own scheduled default due day. Only applicable in weekly bucketed planning and planning in the planning horizon when daily buckets are enabled.

Weekly to Daily distribution type: Applicable only when daily requirement planning is enabled. This determines how a weekly forecast is split to daily. The options are Evenly or Weighted. Evenly simply takes the weekly forecast and evenly splits it into days. The weighted determines how demand is distributed in a week and splits it based on a weighted calculation.

Weekly to Daily weighted split algorithm: If the weighted options is chosen, the calculation can be based on an average across an entire year or within the specific month.

Include approved suggested orders in feedback loop: Applicable only when the Feedback Loop feature is enabled in DRP. This option pushes back available inventory and orders from source to destination and up an items BOM to visualize availability of inventory to meet demand.

Push Inventory: Push inventory works with the feedback loop, however, instead of pushing the correct amount of inventory to meet the demand requirement, the system will push all the available quantity of the source to the destination.

Use Full Weekly Forecast in Requirement plan: Customers that only order weekly can enable this setting to prevent the weekly forecast value to be reduced as the forecast progresses during the week. The default logic reduces the forecast value each day of the week in the current week in order not to overstate the requirement. This is applicable when you order daily. This is a system wide setting and not an item based setting.

Lead Time Cushion: Add a % or # of weeks above the items lead time. Useful for holiday shutdowns. Best to handle by vendor at the item level.

Constraint supply distribution type: Related to the Feedback Loop. This option determines how to push supply to multiple locations when there is not enough inventory at the source to meet the requirements at the destination. The options are Weighted or Equally. Weighted looks at the Requirements at the location and distributes the supply based on a weighted distribution. Equally means that the supply is distributed equally to destinations. For example, if there is 750 units at the source and there are 3 destinations, each destination will receive 250 units from the source.

Planner Action Default View: This defines the default planner action view. The options are One line per Item which shows the first recommended order line of an item or Multiple lines which will show all firm and planned orders for the items.

Lock RP order editing on due dates due today: Prevents orders from being approved and edited when due on the same day the requirement plan is run.


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