How Demand Cutoff Parameters Affect Demand Dates

How Demand Cutoff Parameters Affect Forecast Demands

Planning won’t plan supplies for any item-organization forecast quantity that can’t be satisfied by the Final Date to Satisfy Forecast Demand value. This value is determined based on the following equation:

Final Date to Satisfy Forecast Demand = Forecast Demand Date + Number of Days for Demand Cutoff

If the Final Date to Satisfy Forecast Demand falls inside a Period or Week planning bucket, then planning considers the last day of the bucket as the cutoff date for demand. If the cutoff date is in a bucket on or after the Forecast Bucket in which the Forecast Demand can be satisfied, then the forecast demand is partially or completely satisfied. In case of partial satisfaction, the remainder of the forecast will be unmet.

How Demand Cutoff Parameters Affect Sales Order Demands

For sales orders demands, planning first looks to determine if there’s a Latest Acceptable Date specified. If there is, then planning uses the Latest Acceptable Date value to set demand cutoff.

The Latest Acceptable Date is specified at the sales order line level.

Note that the Request Type affects the Latest Acceptable Date:

If the Request Type value is Ship on, then the Latest Acceptable Date equals the Latest Acceptable Ship Date.
If the Request Type value is Arrive on, then the Latest Acceptable Date equals the Latest Acceptable Arrival Date.

If the Latest Acceptable Date for a sales order falls inside a Period or Week planning bucket, then it’s moved to the last day of the bucket for planning purposes. The plan output displays the Latest Acceptable Date after it’s offset by the transit lead time.

If there isn’t a Latest Acceptable Date specified for a sales order, then planning will use a demand cutoff parameter set at either the item-organization level (next priority) or the plan level (last priority).

Past Due Demand and Demand Cutoff Dates

Demand cutoff parameters also apply to past due sales orders, past due forecasts, and past due manual demands. For a past due forecast or manual demand, the Final Date to Satisfy Demand is calculated from day 0. If the Latest Acceptable Date or the Final Date to Satisfy Demand is before the plan start date, then the corresponding demands are ignored by the planning process, and they aren’t brought to the plan output.

End Item Substitution and Demand Cutoff Dates

If the demand of an original item is substituted with the supply of a substitute item, then the demand cutoff date is calculated based on the demand cutoff parameters of the original item.

Reservations and Demand Cutoff Dates

Planning still respects reservations if demand cutoff parameters are used. That is, planning can ignore the Latest Acceptable Date or the Final Date to Satisfy Demand in order to honor reservations.

For more information on reservations, refer to the How Supply Planning Respects Reservations in a Constrained Plan topic in this guide