Priority-based planning
Demand-driven planning lets you prioritize replenishment orders to ensure that urgent demand is prioritized over less-important demand. For example, a stockout replenishment order is prioritized over a standard refill replenishment order. The system can automatically split larger orders into separate smaller orders, with order lines grouped by priority, and then process all high-priority orders first. This can be used in tandem with supply forecasts so you can ensure that you are purchasing materials on a timely basis.
Most industries can benefit from this, and a typical company that implements demand-driven planning can achieve:
- Improved customer service
- Lead time compression
- Right-size inventory
- Lower total supply chain cost
These capabilities enable you to:
- Assign planning priorities to purchase order lines, sales order lines, transfer order lines, and demand forecasts.
- Generate planned orders based on priority from demand and inventory levels.
- Assign reorder points to item coverage rules to add granularity (in addition to minimum and maximum quantities) when planning refill orders.
- Split replenishment automatically based on priority to help optimize the distribution of limited supply.
- Group purchase orders based on priority when firming planned orders.
- Define priority ranges to create a flexible planning priority setup.
- Assign a default planning priority level for each type of order (sales, purchase, and transfer).
- Create intercompany orders, which let you establish a planning priority flow that applies across legal entities.
- Factor in demand from sales quotations.
- Use supply forecasts to determine purchase or production minimums.
To learn more, see Priority-based planning.