Sources of Demand

To project expected demand for an item in a business unit, the ATP function considers sales orders and material stock requests that have previously been promised. You can specify additional sources of demand on the Setup Fulfillment-ATP Reservations page, including; dependent demand for an item, work orders from PeopleSoft Maintenance Management, planned interunit transfers and planned purchase orders from PeopleSoft Supply Planning.

Sales Orders

Sales orders that have been promised or lot allocated, but not confirmed as picked, are included as a standard source of demand in the ATP calculation.

Unpromised sales orders are not counted as demand. Sales orders that have been confirmed as picked are not counted as demand because the order quantity has already been subtracted from the item's available quantity.

Material Stock Requests

All material stock requests and interunit transfers (including those sourced from PeopleSoft Purchasing or created by PeopleSoft Supply Planning) that have been promised (or lot allocated) but not confirmed as picked are included as a standard source of demand.

Unpromised stock requests are not counted as demand. Stock requests that have been confirmed as picked are not counted as demand because the order quantity has already been subtracted from the item's available quantity.

Dependent Demand

Demand for an item that can be sold as part of an assembly can be included as an optional source of demand. Dependent demand is derived from bills of material for other items or end-products. The Dependent Demand check box on the Setup Fulfillment-ATP Reservations page only includes production orders with a status of firmed, released, or in process are eligible as sources of dependent demand.

Select the Include WIP in Starting Quantity check box on the Setup Fulfillment-ATP Reservations page if item quantities in WIP storage locations should be considered available to promise in the ATP calculation; that is, if item quantities in WIP storage locations is available to fulfill finished good demand. This check box applies to both Dependent Demand and Planned Production Demand.

For standard production orders, all components on the component list are counted as dependent demand. For rework and tear down orders, the production ID assembly item is not counted as demand, because assemblies to be torn down or reworked are assumed to be in non-nettable storage locations. Quantities in non-nettable storage locations are excluded from the item's available quantity; therefore, the production ID assembly item on the tear down or rework production order should not be counted as demand. All other components on the rework or tear down order; however, are included as sources of dependent demand.

The production order's start date is used as the component item's demand date unless the component item is required for some operation sequence; in this case, the operation's start date is used as the component item's demand date.

If the production order's status is firmed or released, the scheduled quantity for the component item is counted as the dependent demand quantity. If the production order is in process, the dependent demand quantity is calculated as follows:

  • For any in-process production, if the component's issue method is Kit, or if the component's issue method is Issue or Replenish and the component's quantity per is Per order, the demand quantity is equal to the largest of the following values: (1) pending issue quantity, plus pending yield loss quantity; (2) current schedule quantity, minus issue quantity minus the smaller of [a] yield loss quantity or [b] current schedule quantity x (1 − (component yield / 100)); (3) zero.

  • If the component issue method is Issue or Replenish, the component's quantity per is Per assembly, and no routing exists for the production ID, then the demand quantity is calculated using the following formula:

    ((order production quantity − order completed quantity − order scrapped quantity) x quantity per assembly x (100 / component yield)) + pending issue quantity + pending yield loss quantity

  • If the component issue method is Issue or Replenish, the component's quantity per is Per assembly, and a routing exists for the production ID, the demand quantity is calculated using the following formula:

    ((order production quantity − "quantity completed" − "quantity scrapped") x quantity per x (100 / component yield)) + pending issue quantity + pending yield loss quantity

  • If the component item is required for a particular operation sequence, the quantity completed in the above formula refers to the completed quantity at that operation, and quantity scrapped refers to the quantity that was scrapped at that operation, plus quantity scrapped in prior operations.

  • If the component item is not required for any particular operation sequence, the quantity completed and quantity scrapped in the above formula refer to the completed and scrapped quantity, respectively, at the first operation.

Note:

Dependent demand is considered promised for all ATP calculations.

Planned Demand

Planned interunit transfer orders and planned production orders from PeopleSoft Supply Planning can be used as sources of demand. When selecting these options on the Setup Fulfillment-ATP Reservations page, you will define which planned transfers and planned production should be included based on whether or not the order is approved, the status of the order (planned, firm planned, or both), and if the order is frozen or not.

Work Order Demand

If PeopleSoft Maintenance Management is installed, work orders can be included in the demand side of the ATP calculation.