Supply Planning

Supply planning is the component of supply chain management involved with determining how best to fulfill the requirements created from the Demand Plan. The objective is to balance supply and demand in a manner that achieves the financial and service objectives of the enterprise. A supply plan is another component of the Sales and Operations Planning (S&OP) process and falls under the right side of the demand and supply planning structure.

The Process:

The supply planning process commences with an approved Demand Plan. The demand plan is a sum of all the sales reviewed and approved channel, regional, and/or customer forecasts.

Total Demand Plan

Total Demand Plan View

The approved demand plan goes through a demand translation step. The demand translation automatically allocates the demand plan to the location where the demand for a specific customer/item relationship is typically fulfilled. DemandCaster uses the customer orders record to identify the ship from location and generates a forecast to be applied against a specific ship from location. The view facilitates the capability to transition demand from one location to another by part. This transition can be done manually within the view or automatically via location linking.

Demand Translation

Demand Translation Allocates Demand to a Supply Location

Once the translation step is completed, the supply plan is run to generate a finished goods master production schedule by item and by location (if DRP is enabled). The supply plan includes all item related attributes and data such as on hand quantities, open and planning customer orders, open and planned shop orders, lead times, minimum order quantities, safety stocks, level loading, and demand chase.

Supply Plan View

Supply Plan View with Level Loading Logic

Once the supply plan is complete, the user can run a requirement review and capacity review to assess the impact of the demand and supply plan on resources. If required, the plan may be changed to address any constraints.

Upon completing supply planning, the user approves the plan to generate the MPS that can be pushed back to the ERP for execution or used in DemandCaster to run day to day requirement planning and ordering.

DemandCaster Supply Planning Options and Analytics

DemandCaster includes several supply planning features to help project and optimize inventory:

  • Master Production Scheduling (supply planning)
  • Material Requirements Planning
  • Capacity Planning
  • Multiple Locations Planning (DRP)
  • Level loaded and demand chase supply planning
  • Multi-level BOM explosions including birth dates and discontinue dates