1. Using Replenishment Planning
  2. Create a Policy Assignment Set

Create a Policy Assignment Set

This topic explains how you can create a policy assignment set in the Replenishment Planning work area.

To create the policy assignment set, you perform these steps:

  1. Name the policy assignment set, and associate it with a segment group.

  2. Add segments, and define the following for their item-location combinations:

    1. Policy parameters

    2. Default policy parameters

    3. Policy parameter overrides

  3. Define policy overrides for specific item-location combinations.

Name the Policy Assignment Set and Associate It with a Segment Group

Follow these steps to name the policy assignment set and associate it with a segment group:

  1. On the Tasks panel tab, under Plan Inputs, select Manage Policy Assignment Sets.

    The Manage Policy Assignment Sets page opens.

  2. Under Search Results, on the toolbar, click Create.

    The Create Policy Assignment Set dialog box opens.

  3. Enter the name and description of the policy assignment set.

  4. In Segment Group, select the segment group to which the policy assignment set should be attached.

    Only those segment groups for which the segmentation process has been successfully run are available for selection. The segment groups that use the Customer or Demand Class dimension aren't displayed.

  5. Click Save.

Define Policy Parameters

Follow these steps to define policy parameters for a segment:

  1. On the Segment-Level Policy Parameters Assignment tab, on the toolbar, click Add Row.

    A row appears underneath the toolbar.

  2. In the list under Segment, select a segment of the segment group.

  3. On the Policy Parameters subtab, under Replenishment Policy, in Policy Type, select the policy type for the segment.

  4. In Policy UOM, select the unit of measure (UOM) for the policy type.

    The policy parameters are calculated based on the UOM.

  5. In Fixed Order Cycle Calendar, select a calendar for the policy type.

    This list is enabled when you select Fixed order cycle in the Policy Type list.

  6. Under Safety Stock, in Safety Stock Calculation, select the method for safety stock calculation.

  7. In Safety Stock Days of Cover, enter the number of days to be covered by the safety stock.

    This field is enabled when you select Days of cover in the Safety Stock Calculation list.

  8. In Days of Cover Basis, select whether the average daily demand should be calculated based on the history or forecast.

    Note: Preferably, for bidirectional supersession chains, select Forecast.

  9. In Horizon for Average Daily Demand, enter the number of days of the history or forecast for which the daily demand is averaged.

  10. In Extrapolation Percentage, enter the value by which the average demand should be increased.

    This field is enabled when you select History in the Days of Cover Basis list.

  11. In Target Service Level Percentage, enter the value for calculation of the safety stock.

    This field is enabled when you select Service level-based in the Safety Stock Calculation list.

  12. Under Maximum Quantity, in Maximum Quantity Calculation Method, select the method for calculation of the maximum quantity.

    This list is enabled when you select Min-max planning or Fixed order cycle in the Policy Type list.

  13. In Maximum Quantity Days of Cover, enter the number of days for which the maximum quantity must be held.

    This list is enabled when you select Days of cover in the Maximum Quantity Calculation Method list.

  14. Repeat Steps 1 through 13 for other segments.

  15. Click Save.

Define Default Policy Parameters

Follow these steps to define default policy parameters for item-location combinations in a segment:

  1. On the Segment-Level Policy Parameters Assignment tab, under the toolbar, select a segment.

  2. On the Default Policy Parameters subtab, in Default Daily Demand, enter the default value for the daily demand.

    This value is used if history or forecast data is unavailable for the calculation of the average daily demand.

  3. Enter these values:

    If You Selected One of These Combinations on the Policy Parameters Subtab

    Then on the Default Policy Parameters Subtab

    • Min-max planning or Fixed order cycle in the Policy Type list and Minimum plus order quantity in the Maximum Quantity Calculation Method list

    • ROP and order quantity in the Policy Type list

    • In Default Order Quantity, enter the default value for the order quantity.

    • Min-max planning or Fixed order cycle in the Policy Type list and Minimum plus EOQ in the Maximum Quantity Calculation Method list

    • ROP and order quantity or ROP and EOQ in the Policy Type list

    • In Default EOQ, enter the default economic order quantity (EOQ).

      If you specify this default, you can't specify the default standard cost, default carrying cost percentage, and default ordering cost.

    • In Default Standard Cost, enter the default standard cost.

    • In Default Carrying Cost Percentage, enter the default carrying cost percentage.

    • In Default Ordering Cost, enter the default ordering cost.

  4. Repeat Steps 1 through 3 for other segments.

  5. Click Save.

Define Policy Parameter Overrides

Follow these steps to define policy parameter overrides for item-location combinations in a segment:

  1. On the Segment-Level Policy Parameters Assignment tab, under the toolbar, select a segment.

  2. On the Policy Parameters Overrides subtab, in Safety Stock Override, enter the override value for the safety stock.

    For slow-moving items or items with intermittent demand, you can optionally enter zero as the safety stock override.

  3. In Order Quantity Override, enter the override value for the order quantity.

  4. In Minimum Override, enter the override value for the minimum order quantity.

    The minimum override must be greater than or equal to the safety stock override.

    For slow-moving items or items with intermittent demand, you can optionally enter zero as the minimum override.

    This field is enabled when you select Min-max planning in the Policy Type list on the Policy Parameters subtab.

  5. In EOQ Override, enter the override value for the EOQ.

  6. In Maximum Override, enter the override value for the maximum order quantity.

    The maximum override must be greater than or equal to the minimum override and safety stock override.

    This field is enabled when you select Min-max planning or Fixed order cycle in the Policy Type list on the Policy Parameters subtab.

  7. In ROP Override, enter the override value for the reorder point (ROP).

    The ROP override must be greater than or equal to the safety stock override.

    This field is enabled when you select ROP and order quantity or ROP and EOQ in the Policy Type list on the Policy Parameters subtab.

  8. Repeat Steps 1 through 7 for other segments.

  9. Click Save.

Define Item-Location Level Policy Overrides

Follow these steps to define overrides at the item-location level for the segment group:

  1. On the Item-Location Level Policy Overrides tab, on the toolbar, click Add Row.

    A row appears under the column headings.

  2. In the list under Item, select an item of the segment group.

  3. In the list under Location, select a location for the item.

  4. In the list under Policy Type, select a policy type for the item-location combination.

  5. In the list under Policy UOM, select the UOM for the policy type.

  6. In the field under Safety Stock Override, enter the override value for the safety stock.

    For a slow-moving item or an item with intermittent demand, you can optionally enter zero as the safety stock override.

  7. In the field under Minimum Override, enter the override value for the minimum order quantity.

    The minimum override must be greater than or equal to the safety stock override.

    For a slow-moving item or an item with intermittent demand, you can optionally enter zero as the minimum override.

    This field is enabled when you select Min-max planning in the Policy Type list.

  8. In the field under Maximum Override, enter the override value for the maximum order quantity.

    The maximum override must be greater than or equal to the minimum override and safety stock override.

    This field is enabled when you select Min-max planning or Fixed order cycle in the Policy Type list.

  9. In the field under ROP Override, enter the override value for the ROP.

    The ROP override must be greater than or equal to the safety stock override.

    This field is enabled when you select ROP and order quantity or ROP and EOQ in the Policy Type list.

  10. In the field under Order Quantity Override, enter the override value for the order quantity.

    This field is enabled when you select ROP and order quantity in the Policy Type list.

  11. In the field under EOQ Override, enter the override value for the EOQ.

    This field is enabled when you select ROP and EOQ in the Policy Type list.

  12. In the list under Fixed Order Cycle Calendar, select a calendar for the policy type.

    This list is enabled when you select Fixed order cycle in the Policy Type list.

  13. Repeat Steps 1 through 12 for other item-locations combinations.

  14. Click Save.