How You Use Supply Planning Integration for Backlog Management

To plan your backlog with an accurate supply picture, select existing supply plans from Supply Planning for use in Backlog Management. To do so, open the Manage Backlog Planning Options task and select one or more plans from the Supply Plans choice list.

How Backlog Management Plans with Supply Planning Information

When you run the backlog plan, supply from planned orders in a supply plan is read in by Backlog Management and used to plan sales orders.

Settings that Affect How Supply Planning Information Is Used

Backlog Management reads planned supply make, transfer and buy supply from the supply name:

• Make: Supply for the item that's made is created on the date of the planned order; the corresponding component availability and resource requirements are reduced to keep the overall supply and demand consistent.

• Transfer: Supply for the planned transfer item is created at the destination organization and while supply at the source organization is simultaneously reduced.

• Buy: Supply for the planned transfer item is created at the receiving organization and while supplier capacity is simultaneously reduced.

Example of How Supply Planning Information Is Used

Let's say you have a planned make end item, END_ITEM_1, being built from a component COMP_1 and Resource RES_1. Here are the availability details:

Planned Order and Planned Order Demand	Item, Component, and Resource	Quantity	Date
Planned Make Order	ITEM_1	100 units	01/10/2021
Planned Make Order Demand (Component)	COMP_1	200 units	01/05/2021
Planned Make Order Demand (Resource)	RES_1	5 hours	01/05/2021

The planned make supply information is that 100 units of END_ITEM_1 need to be manufactured on 01/10, from 200 units of COMP_1 using 5 hours of RES_1, both of which need to be consumed by 01/05.

Here's how Backlog Management reads in this information:

Item, Component, and Resource	What Happens on 01/05/2021	What Happens on 01/10/2021
ITEM_1	-	Increases by 100 units
COMP_1	Reduces by 200 units	-
RES_1	Reduces by 5 hours	-

Backlog Management increases supply availability for the end item by 100 units, and reduces the component and resource availability on the date they have been consumed.

Considerations While Using Supply Planning Integration

• Ensure that the Supply Plans you select on the Manage Backlog Planning Options page are feasible. If, say, the supply plan you select was created in the Unconstrained mode, then planned orders will likely exceed resource capacity. You might get an optimistic Planned Date for your sales orders.

• Ensure that the backlog planning rules assigned to item-organization combinations for supply planned orders are defined with the Supply Chain Availability Search mode, with the Search components and resources setting enabled.

• Ensure that Planned Orders is enabled in supply sources specification.