How the Natural Time Fence Controls the Creation of Planned Orders
Enable a natural time fence for your replenishment plan so that a planned order is created with a due date that's after the due date of the latest, firm purchase order or transfer order.
The natural time fence date is set to the due date of the latest, firm purchase order or transfer order. Therefore, if the demand before the natural time fence date increases, a new planned order is recommended with a due date that's one day or more after the natural time fence date. Thus, the natural time fence improves the efficiency of generating planned orders.
During the bottom-up phase of multiechelon replenishment planning, for purchase orders, purchase requisitions, movement requests, and transfer orders that aren't firm and are rescheduled (preponed), the due dates must be one day after the natural time fence.
This feature is useful in scenarios such as these:
-
Your supplier might delay the delivery of a purchase order on account of manufacturing issues. Your buyer firms the purchase order, and you run your replenishment plan again after collecting firm purchase orders. In this situation, you don't want to release another planned order with a due date that's before the due date of the existing, firm purchase order.
-
To cater to increased demand, your store might generate a planned order with a due date that's earlier than that for an existing, firm purchase order. In this situation, you want to ensure that the due date of the new planned order is after that of the existing, firm purchase order.
Settings That Affect the Creation of the Natural Time Fence
These settings affect the creation of the natural time fence:
-
The selection of the Create natural time fence check box on the General subtab on the Supply tab on the Plan Options page for your replenishment plan.
Note: Select this check box for the replenishment plan for which you've selected the Calculate replenishments check box on the Plan Options page. -
The due date of the latest, firm purchase order or transfer order.
How the Natural Time Fence Is Calculated
The natural time fence is set to the due date of the latest, firm purchase order or transfer order.
New planned orders are created with due dates outside the natural time fence. However, the order dates of the planned orders can be inside the natural time fence.
Example of a Natural Time Fence
Consider this example of an item-location combination for which the policy type is min-max planning:
|
Measure |
March 12 |
March 13 |
March 14 |
March 15 |
March 16 |
March 17 |
March 18 |
March 19 |
|---|---|---|---|---|---|---|---|---|
|
Total Demand |
20 |
120 |
20 |
20 |
20 |
20 |
20 |
30 |
|
Final Minimum Quantity |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
|
Final Maximum Quantity |
180 |
180 |
180 |
180 |
180 |
180 |
180 |
180 |
|
On Hand |
60 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Purchase Orders |
0 |
0 |
0 |
0 |
0 |
140 |
0 |
80 |
|
Total Supply |
60 |
0 |
0 |
0 |
0 |
140 |
160 |
80 |
|
Projected Available Balance |
40 |
-80 |
-100 |
-120 |
-140 |
-20 |
120 |
170 |
|
On Order |
0 |
0 |
140 |
140 |
380 |
240 |
80 |
0 |
|
Beginning Inventory Position |
40 |
-80 |
40 |
20 |
240 |
220 |
200 |
170 |
|
Planned Replenishments by Order Date |
0 |
0 |
0 |
160 |
0 |
0 |
0 |
0 |
|
Planned Replenishments by Due Date |
0 |
0 |
0 |
0 |
0 |
0 |
160 |
0 |
|
Final Inventory Position |
40 |
-80 |
40 |
180 |
240 |
220 |
200 |
170 |
Note these points:
-
The replenishment plan is run on March 12.
-
The due date of March 17 for the firm purchase order of 140 units is taken as the natural time fence date.
Any new planned order must have its due date after March 17.
-
The Beginning Inventory Position measure on March 12 is less than the Final Minimum Quantity measure. But, the planned order isn't created on March 12. Instead, the planned order is created with an order date of March 15 and due date of March 18 to ensure that the due date is outside the natural time fence.