How You Use Multiechelon Replenishment Planning

This topic provides the high-level process for setting up multiechelon replenishment planning.

Before You Begin

Note these points while setting up your multiechelon replenishment plan:

• For policy computation at each echelon, you need the total forecast, which is the sum of the dependent and independent forecast.
• For calculating the replenishments at each echelon, you need only the independent forecast, because the dependent demand is already propagated up the supply chain during multiechelon replenishment planning.
• Because of the previously mentioned points, you need to set up two replenishment plans for multiechelon replenishment planning:
  • The first replenishment plan calculates policies using the total forecast (independent and dependent forecast).
  • The second replenishment plan calculates replenishments using only the independent forecast. The dependent demand will anyway be propagated from lower echelons.

    For the second replenishment plan, you must supply the independent forecast using a demand plan or an external forecast schedule.

    Note: If you're using the feature for multiechelon replenishment planning along with the feature for incremental planning, you don't need to supply the independent forecast to the plan that calculates replenishments. For incremental planning, only actual demand (demand for sales orders, transfer orders, and inventory position) is used during replenishment calculation, and you can't select a demand plan or an external forecast schedule for the demand forecast.

High-Level Process for Setting Up Multiechelon Replenishment Planning

Follow these steps to set up multiechelon replenishment planning:

1. Set up your sourcing rules, sourcing ranks, and sourcing allocation percentages for all the locations in your supply chain.
2. Collect the information for your replenishment plans using the collections functionality or the file-based data import (FBDI) templates.
3. Set up your replenishment plan for calculating the total demand (dependent and independent) and policies for all echelons of your supply chain.

   On the Plan Options page, select the Generate forecast and Calculate policy parameters check boxes.

4. Run your replenishment plan for calculating the total demand and policies for all echelons of your supply chain.

   In the Run Plan dialog box, on the Parameters tab, in the Details section, ensure that the Refresh with current data option, the Generate forecast check box, and the Calculate policy parameters check box are selected.

5. For obtaining the independent forecast that's required for calculating replenishments, set up a demand plan for the supply chain.

   On the Demand: Advanced Options dialog box that's opened from the Demand tab on the Plan Options page, ensure that the Include transfer orders check box isn't selected.

   You don't need to perform this step if you're going to use an external demand schedule.

6. Run your demand plan.

   In the Run Plan dialog box, on the Parameters tab, in the Details section, ensure that the Refresh with current data option is selected.

7. Set up your replenishment plan for calculating replenishments for all echelons of your supply chain.
   1. On the Plan Options page, select the Calculate replenishments check box.
   2. On the General subtab on the Supply tab on the Plan Options page, in the Multiechelon Plan Attributes section, select the Enable multiechelon planning check box.
   3. If you want constrained planned orders that are created after the top-down phase to be automatically released, in the Automatic Release Parameters section, select the Release planned orders automatically check box.

      On the General tab in the Supply: Advanced Options dialog box that you open from the General subtab, define the parameters for automatically releasing planned orders.

      In the Items table, edit the values for the Release Time Fence Type and Release Time Fence Days columns for item-location combinations.

   4. If you want purchase orders and transfer orders that aren't firm and that are rescheduled because of multiechelon replenishment planning to be automatically released, on the General subtab, in the Automatic Release Parameters section, select the Include rescheduled supplies in automatic releases check box.
   5. On the Organizations and Schedules subtab on the Supply tab on the Plan Options page, in the Demand Schedules section, select the demand plan that you created or the external demand schedule. The check box in the Use for Demand Schedule column is automatically selected and grayed out.

      You don't need to perform this step if you're using the feature for multiechelon replenishment planning along with the feature for incremental planning.

   6. Select the replenishment plan that you created for calculating the total demand and policies for all echelons of your supply chain, and select the check box in the Use for Policy Parameters column.

      Ensure that the check box in the Use for Demand Schedule column isn't selected.

8. Run your replenishment plan for calculating replenishments for all echelons of your supply chain.

   In the Run Plan dialog box, on the Parameters tab, in the Details section, ensure that the Refresh with current data option and Calculate replenishments check box are selected.

9. Review the results of multiechelon replenishment planning using the Supplies and Demands table.

   Unconstrained demand and supply are represented by the order types called unconstrained planned order demand and unconstrained planned order. You can't release orders of these types, and you can use the orders for only analysis.

   Constrained demand and supply are represented by the order types called planned order demand and planned order. You can release orders of the planned order type.

10. If you haven't selected the Release planned orders automatically check box on the General subtab on the Supply tab on the Plan Options page, manually release your constrained planned orders using the Supplies and Demands table.
11. If you haven't selected the Include rescheduled supplies in automatic releases check box on the General subtab on the Supply tab on the Plan Options page, manually release your rescheduled purchase orders and transfer orders using the Supplies and Demands table.