Expedite Requirement Planning Logic
Expediting existing orders is a critical order management process necessary when demand does not follow plan and there is a need to modify released orders in order to meet ongoing plan changes. The logic is applied both in the planner action and the item detail view and works with a setting called "Expedite Lead Time."
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IMPORTANT: The current default integration setup does not support amending the quantities and dates of existing replenishment orders and directly updating the order in your ERP. If you require this functionality, please contact support.
Expedite Lead Time (required): This is the lead time that an order can arrive the fastest to meet an issue. In System Settings the option "Expedite Lead Time" enables the expedite lead time logic. By default, the Expedite Lead Time is set to Total Lead Time for all items in system settings. The planner action expedite message does not work unless an expedite lead time is applied. Expedite lead time (days) setting is applied against the SKU:
- System Settings means the Expedite Lead Time is set to the System Setting value noted above.
- None does not apply the Expedite Lead Time
- Total Lead Time makes it the same as the items Lead Time
- Item Specific sets an Expedite Lead Time value that is different than the items lead time.
- Transit/Transfer Lead Time (optional): This is the lead time where an order is considered in transit and may not be considered for expedite. This is an optional setting that can be used in concert with the expedite lead time.
Replenish Unfulfilled Forecast (optional): This determines what happens to unfulfilled forecast as a result of a stock-out during lead time. This works with both the standard lead time and expedite lead time. The default behavior of DemandCaster is for the system to suggest that the replenishment order include the unfulfilled forecast value. This, for many companies is unrealistic because unfulfilled forecast results in lost sales. This setting adds the ability to disregard the forecast value from the suggested order between the time of stock-out until the order is replenished.
- Yes, creates an suggested order that accounts for the unfulfilled forecast
- No, does not create a suggested order that accounts for the unfulfilled forecast
- Critical Safety Stock (optional): Safety stock is a reorder trigger. As such, it will communicate expedite messages at the moment the safety stock is breached. The critical safety stock setting reduces the trigger to allow the safety stock to be breached by a certain percentage prior to issuing an expedite message. This setting is applicable through the firm order horizon. To learn about the Critical Safety Stock feature, please read the article Safety Stock Options.
The Expedite Lead Time logic will not consider any orders within the Transfer Lead Time of an item. If there is no Transfer Lead Time, then any open orders during the Total Lead Time will be expedited up to the Expedite Lead Time value (any order that falls within the expedite lead time will not be considered for expedite).
Please note that if expedite lead time = total lead time, no orders within the time frame will be expedited.
Orders during the lead time are eligible for expedite only if they fall outside of the transfer lead time and before the total lead time. To only consider order that are outside the time frame that an order would not be in transit, planners should configure their Total Lead Time to be inclusive of the Transfer Lead Time. To do so:
- Change the lead time value to be the production time at the supplier. For example, a value of 75 can be entered here.
- Change the Transfer lead time value to the transit time from the supplier to your location. For example, 45 can be entered. The sum of the production time and transit time will equal a Total lead time of 120.
- Add the desired Expedite Lead Time. This should be configured based on the fastest delivery of goods available.
Any orders beyond the Transfer Lead Time may be expedited up to the Expedite Lead Time but no earlier than a Safety Stock or Stock-Out breach. This prevents orders from being moved up earlier than needed.
Please note that we will be further enhancing the Expedite Lead Time logic to expedite not the entire quantity of the order, but only what is needed to cover the breech, from the point of the breech through the due date of the next order. At present, a user will need to modify the expedite order quantity if the original order quantity is greater than what is needed to cover the breech.
If you wish to leverage the expedite rule and consider all orders within the lead time as eligible for expedite, you may make the expedite lead time and transfer lead time equal to 1 day.
In the example below, the item has 3 suggested actions for the planner to consider:
- The first is a "Review" line status with "Other" action. Review the possibility of expediting an existing open order of 864 units that has a due date currently within the lead time horizon. This order is not actionable because the assumption is that it is in-transit during the lead time horizon and nothing can be done.
- Since there is another open order beyond the lead time, the suggestion is to expedite the future order of 1,728 units with a modified due date at lead time. The need by date value is the orders current due date.
The Red highlighted background of the Review line status communicates that the likelihood of a stock-out during the lead time horizon.
For the item above, we have added an expedite lead time value of 14 days. Because there is no transfer lead time, all open orders from the expedite lead time and beyond are eligible for expedite. This results in additional actions as noted below:
- The first is to expedite the 864 unit order to the expedite lead time of 14 days from today since that is the earliest we can move up the order to address the safety stock breech.
- The second is to expedite the 576 unit order to address the second safety stock breech during lead time.
- The third is to expedite the future order of 1,728 units to the third safety stock breech during the lead time.
- The forth message is informational to denote that there will be a safety stock breech during the expedite lead time. Since it is within the expedite lead time there are no actions that can be taken.
In this example, we have added an expedite lead time of 14 days, a regular lead time of 75 days, and a transfer lead time of 45 days. This means that any open order during the transit lead time is not eligible for expedite.
- The first is to expedite the 576 unit order to the expedite lead time of 14 days from today since that is the earliest we can move up the order to address the safety stock breech.
- The second is to expedite the future order of 1,728 units to the third safety stock breech during the lead time.
- The third message is informational to denote that there will be a safety stock breech during the expedite lead time. Since it is within the expedite lead time there are no actions that can be taken.