Overview of Support for Hold Dates and Expiration Dates in On-Hand Lots

In replenishment plans, on-hand lots are considered on or after their hold dates. The lots are also considered in the order of their expiration dates, and the expired quantity is flagged as unusable.

For example, assume that your on-hand lot has 48 units, a hold date of 12-Jan-2023, and an expiration date of 14-Jan-2023. You can use the on-hand lot only on or after 12-Jan-2023. If 40 units are used by 14-Jan-2023, then the expired lot quantity on that date is 8 units.

Benefits of Support for Hold Dates and Expiration Dates

By using the inbuilt support for hold dates and expiration dates in replenishment plans, you get these benefits:

You can recognize the hold date for an on-hand lot and consider it as supply only on or after the hold date, thereby streamlining inventory usage.
Thus, you can cater to the requirements of industries (such as consumer packaged goods or healthcare) in which newly transacted inventory must go through an inspection process or physically mature before being considered for downstream processing or shipment to a customer.
Demand isn't met through the use of expired lots or lots that expire before the due date, and customer satisfaction is increased.
On-hand lots are considered in the order of expiry dates. Better use of on-hand lots happens because there's visibility into on-hand lots that are unused.

Additional Points About Support for Hold Dates and Expiration Dates

Note these additional points about the support for hold dates and expiration dates:

You can collect the hold dates and expiration dates for lots using the collection process or the file-based data import (FBDI) template named Supply Chain Planning Supply On Hand.
The Lot, Hold Date, and Expiration Date columns in the Supplies and Demands table provide you with information about on-hand lots and their hold and expiration dates.
These columns are populated for orders of the on-hand type.
The expired lot order type in the Supplies and Demands table enables you to identify expired lots. The Suggested Due Date column for such orders indicates the expiry dates of the lots.
You can review expired lot quantities using the Expired Lot Quantity measure, which stores only values that are greater than zero.
The Expired Lot Quantity measure is used in the calculation of the Total Demand and Projected Available Balance measures. The Expired Lot Quantity measure is treated as demand, and the Projected Available Balance measure is reduced by the amount in the Expired Lot Quantity measure.
Ensure that you add the Expired Lot Quantity measure to your user-defined measure catalog.
After you add the Expired Lot Quantity measure to the Replenishment Workbench, you can drill from it to orders of the expired lot type in the Supplies and Demands table.
Any on-hand lot quantity with a hold date is shown under the In Receiving measure on the hold date.
You can simulate changes to the Hold Date column using a simulation set in the Plan Inputs work area.
Hold dates and expiration dates for on-hand lots are supported in inventory rebalancing. When you create a cluster for inventory rebalancing, 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.
After the suggested due date is calculated on the basis of the hold date, if the suggested due date falls outside the windows for calculation of the excess inventory and inventory shortage, then the on-hand lot isn't used for inventory rebalancing.
The inventory rebalancing process is run before the replenishment planning process. After the inventory rebalancing process, the planned outbound shipments that are generated are considered as a part of the Total Demand measure and used in the computation of the Expired Lot Quantity measure.
Hold dates and expiration dates for on-hand lots are supported in plans that use the functionality for multiechelon replenishment planning.
The unconstrained planned order demand is included in the computation of the Total Demand measure. Therefore, when the lot expiration date for an echelon is determined on the basis of the Total Demand measure, the unconstrained planned order demand is considered indirectly.
Hold dates and expiration dates for on-hand lots are supported in replenishment plans that are enabled for incremental planning.