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Example 1: Inventory Available for Manufacturing and Distribution; Scenario A
Example 1: Inventory Available for Manufacturing and Distribution; Scenario A
This scenario assumes that the value of the Sales Order Planning flag = Y (yes).
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Qty at Mfg Warehouse
(Sales Order Planning flag = Y)
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Qty at Dist Warehouse #1 (Available for Planning = Y)
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Qty at Dist Warehouse # 2 (Available for Planning = N)
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On-Hand
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H
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Y
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Y
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N
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20
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60
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50
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In Transit
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T
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N
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N
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N
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0
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0
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0
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Quarantine
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Q
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N
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N
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N
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0
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0
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0
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Distribution
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D
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N
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Y
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Y
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100
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30
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25
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Forecast = 150
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Manufacturing Warehouse
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100 + 20 = 120
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100
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Totals in types avail for mfg and dist.
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Distribution Warehouse #1
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30
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30
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Mfg inventory at distribution warehouse is always "invisible" for planning
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Distribution Warehouse #2
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NA
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25
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Inventory cannot be used for mfg since Avail for Planning flag = N
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001
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Y
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D
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Mfg Whs
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170
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100
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70
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0
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002
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N
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M
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Mfg Whs
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10
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0
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0
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10
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003
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NA
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D
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Dist #2
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20
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20
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0
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0
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Master Scheduling:
Available for Planning = Avail at Mfg Warehouse + Available for Distribution at Whs #1 = 120 +30 = 150
Net Forecast against planned order: 150 netted against 170: net demand = 170
Note: 003 is not included, since it is sourced from the distribution warehouse. Planned/unplanned
flag is irrelevant.
Total requirements = Net demand + unplanned orders = 170+10 = 180
Scheduled for production = Total requirements - inventory available for planning = 180 - 150 = 30