How Supply Planning Respects Reservations

When you use the constrained planning mode for your supply plan, the planning process respects reservations between supplies and demands. This ensures that reservations of on-hand or on-order supplies to sales orders are honored.

This functionality enables you to allocate available supplies to high priority customers or high value sales orders. There won't be any recommendations to pull-in or push-out supply when there is a change in the sales order schedule date.

The planning process supports reservations for these existing supplies:

• On-hands
• Purchase orders
• Purchase Requisitions
• WIP jobs
• Transfer orders from the Oracle Fusion source system

There are some of the key points for reservations in a constrained supply plan to keep in mind.

• All reserved supplies are considered firm by the planning process but a supply order such as a work order or transfer order for an item is not treated as firm if it’s dependent demand is reserved to an on-hand supply.
• If the supply reserved to dependent or independent demand is other than the on-hand supply, then the supply order such as a work order or transfer order will still be considered as firm and won’t be rescheduled.
• For a reservation, the supply is pegged to the sales orders in the amount of the reserved quantity.
• If the reserved quantity causes resource or supply capacity overloads, the planning process overloads the respective resource or supplier capacity. In this situation, the planning process also creates an overload exception.
• If a supply is partially reserved for a demand, the rest of the supply is eligible to be pegged to other demands.
• If a demand is met only partially with reserved supplies, other unreserved supplies (existing or planned) are used to meet the rest of the demand.
• The planning process respects a demand reservation to a lot without regard to the lot expiration date.
• The planning process uses the reserved supplies and demands in the calculation of Projected Available Balance (PAB). The reserved supplies aren't used to meet safety stock requirements.
• Reservations or reserved supply quantities can't be edited in Supply Planning.

In the Supplies and Demands table, the Reserved Quantity column displays the total reserved quantity for a supply of demand. You can't edit this field.

• For a supply, the Reserved Quantity column displays the total quantity reserved across all of the demands for which the supply is reserved.
• For a demand, the Reserved Quantity column displays the total of all supply quantities reserved for it.
• For back-to-back items, the Reserved Quantity column isn't populated by any planned supply quantities.

In the Material Plan table, these columns display information about reservations.

• Reserved Supply Quantity: Indicates the total supply quantity that's reserved for demands in a bucket.
• Reserved Supply Value: Indicates the monetary value of the total supply quantity that's reserved for demands in a bucket.