Considerations While Specifying the Netting Sequence Time Window

You specify a time window for applying a common or segment-based netting sequence. Within each time window, the sequence is carried out based on the sequence number, for existing supplies.

If your window is larger than the scheduling bucket, future time buckets are explored to find existing supplies that might be a better attribute match for the current time bucket's demand shortfall. But this may result in temporary material shortfalls because the chosen existing supplies may have dates later than the planning time bucket of the demand shortfall.

If you want the netting sequence restarted with every new planning bucket, set the time window as 1 day. This ensures that the demand shortfall is met. But it may result in less-than-perfect netting matches because the plan uses existing supplies that are further down in the netting sequence.

Examples of How the Netting Sequence Time Window Is Used

Let's understand how the time window is used when the window is 1 day.

When the time window value is lesser than the supply planning bucket duration, the planning process creates a netting window for time buckets based on the bucket type that's set in the plan options. So let's say the bucket type is Days, and has a value of 60, and the netting sequence time window is 1 day long, then each daily bucket duration is the same as the netting sequence time window's, 1 day. And if the bucket type is Week, or Period, or Month, and has a value of 5 weeks, and the netting sequence time window is 1 day, then each weekly bucket is a netting window.

Scenario 1

Daily Buckets

Netting Sequence Application

Netting Windows

30

Applied every day for 30 days.

30

Scenario 2

Daily Buckets

Weekly Buckets

Netting Sequence Application

Netting Windows

30

2

Applied every day for the first 30 days and then every week for 2 weeks.

32

Scenario 3

Weekly Buckets

Netting Sequence Application

Netting Windows

1

Applied every week for 10 weeks.

10

Scenario 4

Periodic Buckets

Netting Sequence Application

Netting Windows

5

Applied every period for 5 periods.

5

Now, let's understand how the time window is applied when its duration is 7 days.

Scenario 1

Daily Buckets

Netting Sequence Application

Netting Windows

35

Applied every 7 days in daily buckets.

5

Scenario 2

Daily Buckets

Weekly Buckets

Netting Sequence Application

Netting Windows

35

2

Applied every 7 days in daily buckets for the first 35 days and then every week for 2 weeks.

7

The netting sequence applied for every 7 days for first 35 days and later every week for 2 weeks when the time window for netting sequence is equal to the number of days in a week.

Scenario 3

Weekly Buckets

Netting Sequence Application

Netting Windows

10

Applied every week for 10 weeks.

10

The netting sequence is applied for every weekly bucket for 10 weeks because the time window in days for applying the netting sequence matches the number of days in a week.

Scenario 4

Periodic Buckets

Netting Sequence Application

Netting Windows

5

Applied every period for 5 periods.

5

The netting sequence is applied for every period because the time window in days for applying netting sequence is lesser than the number of days in a period.