1. Using Replenishment Planning
  2. Example of Pegged Supplies in Supplies and Demands Table

Example of Pegged Supplies in Supplies and Demands Table

This topic provides an example of how the Supplies and Demands table for a constrained supply plan represents the pegged supplies for a multiechelon replenishment plan.

In this example, a manufacturing organization named M1 is planned in a constrained supply plan, and two distribution centers named D1 and D2 are planned in a multiechelon replenishment plan.

After the constrained supply plan is run with the multiechelon replenishment plan selected as a demand schedule on the Organizations and Schedules subtab on the Supply tab on the Plan Options page, the Supplies and Demands table for the constrained supply plan looks as follows:

Item Organization Suggested Due Date Source Organization Pegged Quantity Order Quantity Order Type
Item A M1 04/04/23 DC1 — –300 Planned Transfer Order Demand
Item A M1 04/04/23 M1 300 450 On Hand
Item A M1 04/06/23 DC1 — –100 Planned Transfer Order Demand
Item A M1 04/04/23 M1 100 450 On Hand
Item A M1 04/08/23 DC2 — –250 Planned Transfer Order Demand
Item A M1 04/04/23 M1 50 450 On Hand
Item A M1 04/06/23 M1 200 300 Planned Order
Item A M1 04/12/23 DC2 — –100 Planned Transfer Order Demand
Item A M1 04/06/23 M1 100 300 Planned Order
Item A M1 04/09/23 DC1 — –200 Planned Transfer Order Demand
Item A M1 04/14/23 M1 200 280 Work Order
Item A M1 04/15/23 DC2 — –50 Planned Transfer Order Demand
Item A M1 04/14/23 M1 50 280 Work Order

Note these points:

  • The constrained supply plan is run on 04/04/23.
  • On 04/04/23, the planned transfer order demand created in M1 for unconstrained planned orders from DC1 is –300 units. From an on-hand quantity of 450 units on 04/04/23 at M1, 300 units are pegged. Therefore, this on-hand quantity is reduced to 150 units.
  • On 04/06/23, the planned transfer order demand created in M1 for unconstrained planned orders from DC1 is –100 units. From the on-hand quantity of 450 units on 04/04/23 at M1, 100 units are pegged. Therefore, this on-hand quantity is reduced to 50 units.
  • On 04/08/23, the planned transfer order demand created in M1 for unconstrained planned orders from DC2 is –250 units. From the on-hand quantity of 450 units on 04/04/23 at M1, 50 units are pegged. Therefore, this on-hand quantity is now consumed for meeting the unconstrained planned orders. Now, 200 units remain to be fulfilled from the unconstrained planned orders from DC2 on 04/08/23.

    From a planned order of 300 units on 04/06/23 at M1, 200 units are pegged. Therefore, this planned order quantity is reduced to 100 units.

  • On 04/12/23, the planned transfer order demand created in M1 for unconstrained planned orders from DC2 is –100 units. From the planned order of 300 units on 04/06/23 at M1, 100 units are pegged. Therefore, this planned order quantity is now consumed for meeting the unconstrained planned orders.
  • On 04/09/23, the planned transfer order demand created at M1 for unconstrained planned orders from DC1 is –200 units. From a work order of 280 units on 04/14/23 at M1, 200 units are pegged. Therefore, this work order quantity is reduced to 80 units.
  • On 04/15/23, the planned transfer order demand created at M1 for unconstrained planned orders from DC2 is –50 units. From the work order of 280 units on 04/14/23 at M1, 50 units are pegged. Therefore, this work order quantity is reduced to 30 units.

The supply snapshot for DC1 is depicted by the following table:

Item Organization Suggested Due Date Source Organization Pegged Quantity Order Type
Item A M1 04/04/23 M1 300 On Hand
Item A M1 04/04/23 M1 100 On Hand
Item A M1 04/14/23 M1 200 Work Order

The supply snapshot for DC2 is depicted by the following table:

Item Organization Suggested Due Date Source Organization Pegged Quantity Order Type
Item A M1 04/04/23 M1 50 On Hand
Item A M1 04/06/23 M1 200 Planned Order
Item A M1 04/06/23 M1 100 Planned Order
Item A M1 04/14/23 M1 50 Work Order

When the multiechelon replenishment plan is run with the Consider supply schedule checkbox selected on the Parameters tab in the Run Plan dialog box, the pegged quantities for DC1 and DC2 are read during the creation of planned transfer orders from M1 to DC1 and DC2.

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