How You Use Multiechelon Replenishment Planning

This topic provides the high-level process for setting up multiechelon replenishment planning.

Before You Begin

Note these points while setting up your multiechelon replenishment plan:

• For the policy computation at each echelon, you need the total forecast, which is the sum of the dependent and independent forecasts.
• To calculate the replenishments at each echelon, you need only the independent forecast, because the dependent demand is already propagated up the supply chain during multiechelon replenishment planning. The replenishments calculation considers the independent forecast and dependent demand.

This table lists some ways in which you can set up your plans for multiechelon replenishment planning:

Number of Replenishment Plans	Source of Forecast	Types of Replenishment Plans	Comments
1	Replenishment plan	You'll use the integrated plan to generate the forecast, calculate policy parameters, and calculate replenishments.	The integrated plan will use two forecasting profiles, one for generating the total forecast and the other for generating the independent forecast (with the predefined forecasting profile named Forecast Independent Shipments).
2	Replenishment plans	You'll use one plan to calculate the policy parameters and total forecast. You'll use the other plan to calculate the replenishments.	The plan for calculating the policy parameters will use a forecasting profile for generating the total forecast. The plan for calculating the replenishments will use the predefined forecasting profile named Forecast Independent Shipments for generating the independent forecast and the first replenishment plan for the policy parameters.
2	External forecast schedules	You'll use one plan to calculate the policy parameters. You'll use the other plan to calculate the replenishments.	The plan for calculating the policy parameters will use an external forecast schedule for the total forecast. The plan for calculating the replenishments will use another external forecast schedule for the independent forecast and the first replenishment plan for the policy parameters.

High-Level Process for Setting Up Multiechelon Replenishment Planning

Follow these steps to set up multiechelon replenishment planning:

1. Set up your sourcing rules, sourcing ranks, and sourcing allocation percentages for all the locations in your supply chain.
   Note: Sourcing ranks are supported for only those source locations that are within the scope of the replenishment plan that you use for calculating replenishments.
2. Collect the information for your replenishment plans using the collections functionality or file-based data import (FBDI) templates.
3. Set up your replenishment plans according to your requirement or as suggested in this topic.

   You can set up an integrated replenishment plan or separate plans.

   Ensure that the measure catalogs for your plans have the required measures for multiechelon replenishment planning. For information, see the topic titled Measures for Multiechelon Replenishment Planning.

   In the replenishment plan for which you select the Calculate policy parameters checkbox on the Plan Options page, in the End Item Demand field in the Demand Measures dialog box that you open from the Demand Schedules section on the Organizations and Schedules subtab on the Supply tab on the Plan Options page, for the replenishment plan or demand plan that you're using for generating the forecast, select the measure that should be updated for the total forecast. This total forecast is used for the policy calculation.

   In the replenishment plan for which you select the Calculate replenishments checkbox on the Plan Options page, do the following:

   • On the General subtab on the Supply tab, in the Multiechelon Plan Attributes section, select the Enable multiechelon planning checkbox.
   • If you want constrained planned orders that are created after the top-down phase to be automatically released, in the Automatic Release Parameters section on the General subtab on the Supply tab, select the Release planned orders automatically checkbox.

     On the General tab in the Supply: Advanced Options dialog box that you open from the General subtab on the Supply tab, define the parameters for automatically releasing planned orders.

     In the Items table, edit the values for the Release Time Fence Type and Release Time Fence Days columns for item-location combinations.

   • If you want purchase orders and transfer orders that aren't firm and that are rescheduled because of multiechelon replenishment planning to be automatically released, in the Automatic Release Parameters section, select the Include rescheduled supplies in automatic releases checkbox.

     You don't need to perform this step if you're using the feature for multiechelon replenishment planning along with the feature for incremental planning.

   • If you're using an external forecast schedule for the independent forecast, in the Demand Schedules section on the Organizations and Schedules subtab on the Supply tab, select the schedule. The checkbox in the Use for Demand Schedule column is automatically selected and grayed out.
   • In the Demand Schedules section on the Organizations and Schedules subtab, for the replenishment plan that you're using for the forecast, in the Independent Demand field in the Demand Measures dialog box, select the measure that should be updated for the independent forecast. This independent forecast and the dependent demand propagated up the supply chain are used for the replenishments calculation.
   • If you're using another replenishment plan to calculate the policy parameters with the total forecast, while selecting this replenishment plan in the Demand Schedules section on the Organizations and Schedules subtab, don't select the Use for Demand Schedule checkbox.
   • In the Supply Schedules section on the Organizations and Schedules subtab, select the constrained supply plan or demand and supply plan that you're using for constraining the planned orders from the manufacturing organization to the top-most node of your replenishment plan for item-location combinations with transfer sourcing rules. For information, see the topic titled Supply Schedules for Multiechelon Replenishment Plans.
   • If you've selected the Enable for incremental planning checkbox on the Plan Options page, in the Demand Schedules section on the Organizations and Schedules subtab, select another replenishment plan for the policy parameters that are calculated with the total forecast.
     Note: If you're using the feature for multiechelon replenishment planning along with the feature for incremental planning, you don't need to supply the independent forecast to the plan that calculates replenishments. For incremental planning, only actual demand (demand for sales orders, transfer orders, and the inventory position) is used during the replenishments calculation, and you can't select a replenishment plan, demand plan, or external forecast schedule for the demand forecast.
4. Run your replenishment plans.

   In the Run Plan dialog box, on the Parameters tab, in the Details section, ensure that the Refresh with current data option and required checkboxes are selected.

   If you're using a supply schedule for the replenishment plan for which you've selected the Calculate replenishments checkbox, do the following:

   1. Run the replenishment plan with the Refresh with current data option selected and Consider supply schedule checkbox not selected.
   2. Run the constrained supply plan or demand and supply plan with the replenishment plan selected as a demand schedule on the Organizations and Schedules subtab on the Supply tab.
   3. Run the replenishment plan with the Refresh with current data option and Consider supply schedule checkbox selected.
5. Review the results of multiechelon replenishment planning using the Supplies and Demands table.

   Unconstrained demand and supply are represented by the order types called unconstrained planned order demand and unconstrained planned order respectively. You can't release orders of these types, and you can use these orders for only analysis.

   Constrained demand and supply are represented by the order types called planned order demand and planned order respectively. You can release orders of the planned order type.

6. If you haven't selected the Release planned orders automatically checkbox in the Automatic Release Parameters section on the General subtab, manually release your constrained planned orders using the Supplies and Demands table.
7. If you haven't selected the Include rescheduled supplies in automatic releases checkbox in the Automatic Release Parameters section on the General subtab on the Supply tab, manually release your rescheduled purchase orders and transfer orders using the Supplies and Demands table.

Validations

Check the measures that you selected in the End Item Demand and Independent Demand fields in the Demand Measures dialog box that you open from the Demand Schedules section on the Organizations and Schedules subtab on the Supply tab on the Plan Options page. The measure in the End Item Demand field should reflect the total forecast for the policy computation, and the measure in the Independent Demand field should reflect the independent forecast for the replenishments computation along with the dependent demand propagated up the supply chain. The Gross Forecast measure and Independent Gross Forecast measure will be updated by the total forecast and independent forecast respectively.

If you're using external forecast schedules, you need to ensure that one schedule represents the total forecast and the other only the independent forecast. The Gross Forecast measure and Independent Gross Forecast measure will be updated through the external forecast schedules for the total forecast and independent forecast respectively.