Aggregate Planning Buckets and Replenishment Orders
This topic explains how aggregate planning buckets are used with replenishment orders.
Replenishment Calculation in Aggregate Planning Buckets
For planning buckets at a time level higher than a day, the following is how replenishments are calculated:
-
Policies and replenishments are calculated at the daily level and subsequently aggregated and published at the bucket level.
-
Measure values are aggregated and displayed at the bucket level.
-
Replenishment orders and demands are pushed to the ends of the aggregate planning buckets.
On the General subtab on the Supply tab on the Plan Options page for a replenishment plan, in the Replenishment Plan Attributes section, if Yes is selected in Aggregate Planned Orders, the planned orders for each day are aggregated into one large order that's pushed to the end of the aggregate planning bucket. While the number of planned orders is reduced, order modifiers might be violated.
If No is selected, the planned orders generated daily are pushed to the end of the aggregate planning bucket. These planned orders aren't aggregated into one large order and don't violate order modifiers.
However, if the fixed order quantity order modifier or economic order quantity (EOQ) is used with a very small value, the replenishment plan might generate too many planned orders with small quantities. For reducing the number of planned orders and improving the replenishment plan performance, the first nine planned orders are generated according to the order modifiers, and the tenth planned order is generated for the remaining quantities and might violate the order modifiers. The tenth planned order can't be released. The generated orders are pushed to the end of the aggregate planning bucket, and this process is followed on every day of the aggregate planning bucket.
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If a replenishment plan with a planning time level higher than a day is used for releasing replenishment orders, the bucket start dates are used as the dock dates.
Normally, such a plan isn't used for releasing replenishment orders.
- In a plan with an aggregate time level, the logic for calculating and releasing planned orders is the same whether the functionality for multiechelon replenishment planning is used or not.
Example of Replenishment Calculation for Weekly Planning Buckets
In this example, replenishments are calculated for a replenishment plan with weekly planning buckets for the min-max planning policy type. The Minimum Quantity measure is 50 units, and the Maximum Quantity measure is 100 units.
|
Measure |
Day 1 |
Day 2 |
Day 3 |
Day 4 |
Day 5 |
Day 6 |
Day 7 |
Day 8 |
Day 9 |
Day 10 |
Day 11 |
Day 12 |
Day 13 |
Day 14 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Gross Forecast |
0 |
0 |
0 |
0 |
0 |
0 |
70 |
0 |
0 |
0 |
0 |
0 |
0 |
140 |
|
Total Demand |
10 |
10 |
10 |
10 |
10 |
10 |
10 |
20 |
20 |
20 |
20 |
20 |
20 |
20 |
|
On Hand |
25 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Purchase Orders |
0 |
10 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total Supply |
25 |
10 |
0 |
75 |
0 |
0 |
0 |
0 |
0 |
60 |
0 |
0 |
60 |
0 |
|
Projected Available Balance |
15 |
15 |
5 |
70 |
60 |
50 |
40 |
20 |
0 |
40 |
20 |
0 |
40 |
20 |
|
On Order |
10 |
75 |
75 |
0 |
0 |
0 |
0 |
60 |
60 |
0 |
60 |
60 |
0 |
60 |
|
Beginning Inventory Position |
25 |
90 |
80 |
70 |
60 |
50 |
40 |
80 |
60 |
40 |
80 |
60 |
40 |
80 |
|
Planned Replenishments by Order Date |
75 |
0 |
0 |
0 |
0 |
0 |
60 |
0 |
0 |
60 |
0 |
0 |
60 |
0 |
|
Planned Replenishments by Due Date |
0 |
0 |
0 |
75 |
0 |
0 |
0 |
0 |
0 |
60 |
0 |
0 |
60 |
0 |
|
Final Inventory Position |
100 |
90 |
80 |
70 |
60 |
50 |
100 |
80 |
60 |
100 |
80 |
60 |
100 |
80 |
The weekly forecast is spread in daily buckets, and the Beginning Inventory Position measure is evaluated every day. On Day 1, the Beginning Inventory Position measure is 25 units, which is less than the Minimum Quantity measure of 50 units. Therefore, a replenishment order of 75 units is created (Maximum Quantity – Beginning Inventory Position). Similarly, on Day 7, a replenishment order of 60 units is created. These two replenishment orders are pushed to the end of the bucket for Week 1.
On Days 10 and 13, two more replenishment orders are created and pushed to the end of the bucket for Week 2.
When the replenishment plan is viewed through the Replenishment Workbench table, the results are aggregated as follows:
|
Measure |
Week 1 |
Week 2 |
|---|---|---|
|
Gross Forecast |
70 |
140 |
|
Total Demand |
70 |
140 |
|
On Hand |
25 |
0 |
|
Purchase Orders |
10 |
0 |
|
Total Supply |
110 |
120 |
|
Projected Available Balance |
40 |
20 |
|
On Order |
0 |
60 |
|
Beginning Inventory Position |
40 |
80 |
|
Planned Replenishments by Order Date |
135 |
120 |
|
Planned Replenishments by Due Date |
75 |
120 |
|
Final Inventory Position |
100 |
80 |