Item Relationship Options for Replenishment Plans
The selections you make in the Item Relationships section on the General subtab on the Supply tab on the Plan Options page affect how related items are used during end item substitution and supersession in your replenishment plan.
The Use of Related Items Supplies and Lead Time Multiplier for Excess Window fields are enabled only when you select the Calculate replenishments check box on the Plan Options page. Also, you must not select the Rebalance inventory check box on the Plan Options page.
In the Use of Related Items Supplies field, these selections are available:
- Don't use related items: This selection is the default.
- Maximize use of related items to minimize new replenishments: The supply of the
substitute item or supersession item is used so that a new replenishment order for
the demanded item isn't triggered. The emphasis is on bringing the quantity of the
demanded item above the minimum quantity or reorder point (ROP) quantity. However,
the supply of the substitute item or supersession item is maintained above the
minimum quantity or ROP quantity so that the demand for this item can be met.
The shortage of the item is calculated as follows:
- If the Beginning Inventory Position is less than or equal to the Minimum Quantity or ROP Quantity, the shortage is calculated as Beginning Inventory Position - Minimum Quantity - 1 or Beginning Inventory Position - ROP Quantity - 1.
- If the value of the Minimum Quantity or ROP Quantity is null, when the Beginning Inventory Position is less than zero, the shortage is equal to the Beginning Inventory Position.
The excess is calculated as the least positive value for Projected Available Balance - Minimum Quantity - 1 or Projected Available Balance - ROP Quantity - 1 for a day in the excess window.
If the excess window extends beyond the planning horizon, the excess window is restricted to the end of the planning horizon.
- Use related items only when necessary to avoid stockouts: The demand is fulfilled by
the supply of the demanded item, including new replenishment orders, whenever
possible. The supply of the substitute item or supersession item is used only for
preventing backordering or stockouts of the demanded item and negative values for
the Projected Available Balance.
If the Projected Available Balance for an item on a day is less than zero, the Projected Available Balance is the shortage.
The excess is calculated as the least positive value for the Projected Available Balance in the excess window.
If the excess window extends beyond the planning horizon, the excess window is restricted to the end of the planning horizon.
The shortage is calculated on every day in the planning horizon and stored in the Initial Shortage for Substitution measure.
The excess is calculated on every day in the planning horizon and stored in the Initial Excess for Substitution measure.
When you select Maximize use of related items to minimize new replenishments or Use related items only when necessary to avoid stockouts, the Lead Time Multiplier for Excess Window field is enabled. Enter a value ranging from 0 to 10 in this field. This value is multiplied by the total lead time (preprocessing lead time + processing lead time + postprocessing lead time) specified in the Items table for the item for determination of the excess window.
If no data is available in the Items table, or you enter zero, only the supplies and demands for each day are used for determining the excess and shortage for that day.