Create a Cluster

This topic provides information about clusters and how you create them.

About Clusters

A cluster is a grouping of locations, regions, or zones.

These are the notable points about clusters:

• Inventory rebalancing is performed for the selected item-location combinations in the cluster. If the cluster is defined at the level of a region or zone, inventory rebalancing is performed for the item-location combinations in the selected regions or zones.

  If Yes is clicked in the Plan Subinventories column on the Organizations tab on the Maintain Supply Network Model page for an organization (location), item-subinventory combinations are available for selection, and inventory rebalancing is performed for the selected item-subinventory combinations.

• After inventory rebalancing is performed for the cluster, the excess inventory can optionally be transferred to a sweep location that may or may not be in the cluster.

• You can even define a nested cluster that consists of the sweep locations of other clusters.

• A location can be in more than one cluster.

• You can use the Cluster dimension to configure your tables and graphs in the Replenishment Planning work area.

• While creating a cluster, you can specify the expiration days tolerance for on-hand lots. Any on-hand lot with an expiration date within the specified tolerance isn't considered as supply during inventory rebalancing.

  For example, if the expiration days tolerance is 7 days, when the replenishment plan is run on Day 1, any on-hand lot with an expiration date on or before Day 8 (the plan run date + 7 days) isn't considered for supply.

Create a Cluster

Follow these steps to create a cluster:

1. On the Tasks panel tab, under Plan Inputs, select Manage Planning Clusters.

   The Manage Planning Clusters page opens.

2. Click Add Row.

   A new row appears for the cluster.

3. Enter the name and description for the cluster.

4. In Source System, select the source system from which you're going to select locations, regions, and zones for the cluster.

   Ensure that the source system matches that of the replenishment plan with which you're going to use the cluster.

5. In Sweep Location, optionally, select the sweep location to which excess inventory is moved after inventory rebalancing is performed for the cluster.

   The sweep location doesn't need to be a part of the cluster.

6. In Lead Time Multiplier for Excess Window, enter the number by which the lead time for an item-location combination is multiplied for determination of the window within which the item-location combination's excess inventory is calculated.

   The lead time is the total of the preprocessing, processing, and postprocessing lead times that are specified for the item-location combination in the Items table.

   Tip: Use a long window for calculating the excess inventory for the item-location combination so that future demands within the total lead time are taken care of.

7. In Lead Time Multiplier for Shortage Window, enter the number by which the lead time for the item-location combination is multiplied for determination of the window within which the item-location combination's inventory shortage is calculated.

   Enter a number that's equal to or less than the number in the Lead Time Multiplier for Excess Window field.

   The lead time is determined as explained in the previous step.

   Tip: Use a short window for calculating the inventory shortage for the item-location combination so that urgent demands can be met from nearby locations.

8. In Reserved Safety Stock Percentage, enter a whole number for the percentage of safety stock for the item-location combination that's reserved before the item-location combination's excess inventory is calculated.

   Only the unreserved portion of the safety stock is considered during the calculation of the excess inventory.

9. In Expiration Days Tolerance for On Hand Lot, enter a whole number that is equal to or greater than zero.

   If you don't enter a value, all on-hand lots are considered as supply.

   If you enter zero, on-hand lots that expire on the plan run date aren't considered as supply.

10. In Location Hierarchy, select the hierarchy for adding members to the cluster.

    If you select Region or Zone, inventory rebalancing is performed for the item-location combinations within the selected regions or zones.

11. Under Cluster Members, click Edit: Clusters Members to open the Search and Select: Cluster Members dialog box.

    Search for the locations, regions, or zones that you want to include in the cluster, move them to the Selected Members list, and click OK.

    If organizations (locations) are enabled for subinventory planning, you can search for and select subinventories.

12. Click Assign Location Priority to open the Assign Location Priority dialog box.

    You can view the selected locations or locations within the selected regions or zones.

13. Under Location Priority, optionally, enter a number for the priority for a location.

    During inventory rebalancing, the location with an inventory shortage and the highest priority (lowest number) is processed first. If two locations have the same number or no priority, the location with the larger shortage is processed first.

14. Click OK to return to the Manage Planning Clusters page.

15. Save the cluster.