Planning process
Manufacturing Plans include material, transfer, and production plans. These plans are created based on the configured network topology for an item. The following illustration shows the steps involved in generating these plans. These steps are repeated for each product or site combination that is in the scope of a Manufacturing Plan.
The steps and logic for Demand Processing, Inventory Target calculation, and Net Requirements calculation are common between Manufacturing Plans and Auto Replenishment. For more information, see Planning process and Inventory policies.
Production requirements – For products with site combinations with sourcing rule type Manufacture, Supply Planning uses the production process referenced in the sourcing rule to calculate production requirements. Make type should be used for finished goods or sub-assemblies that go through a production process. Lead times and setup times from the production_process data entity, along with the BOM, is used to determine the material or component requirements. Supply Planning also applies the frozen horizon defined in the production process or the default setting to freeze supply during this time period and move all requirements to the first time period after the frozen time horizon.
BOM explosion – For products or sites with sourcing rules of type Manufacture, Supply Planning uses the BOM defined in the product_bom entity to determine production requirements for sub-assemblies and material requirements for component items. Supply Planning traverses the tree structure defined in the BOM for the finished good or sub-assembly item. If there are multiple components for a parent item with the same alternate group, Supply Planning prioritizes one of the component items that belong to the same alternate group. Component material requirements are calculated from the start date until the end date of the planning horizon, as defined in the planning settings. After component requirements are determined, Supply Planning applies Demand Processing and Target Inventory level calculation steps to determine net component requirements by considering inventory policy, lead times, and on-hand and on-order inventories.
