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Set up shortage analysis values for pull planning

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Items that are analysed in shortage analysis either have planning method 4 or 5:

In order to be able to analyse the order controlled items (planning method 5) in the shortage analysis, the following must be done:

  1. Set up the Min/med/max inventory table.
  2. Run the MRP calculation in order to get order proposals/requirements.
  3. Run the Quantity on hand level calculation.

    4. When these steps are done you can work with the order proposals in the Pull planning program.

Set up Min/med/max inventory table

In this table you enter values defining stock levels to be used for the calculation of the quantity on hand level. The stock levels can be defined on warehouse/item group level.

  1. Select the Min/med/max inventories menu item.
  2. You access Work with min/med/max inventory. Click Add.
  3. You access Min/Med/Max inventory maintenance. Complete the following fields:
    4. Warehouse
    Enter the warehouse for which the min/med/max values are valid.
    Minimum
    Enter a factor for calculating the minimum quantity on hand.
    Medium
    Enter a factor for calculating the medium quantity on hand.
    Maximum
    Enter a factor for calculating the maximum quantity on hand.

    Click OK and exit the routine.

Run the MRP calculation

When calculating MRP for Pull Planning purposes, we recommend that you use a simulation version. This section will illustrate the fields and procedures that are important when using this function in Pull planning. For information about the MRP calculation in general, see Calculate material requirements planning (MRP).

  1. Select the Work with reports/jobs – MFG orders menu item.
  2. You access Work with batch jobs. Select MRP_RUN and click Submit job.
  3. You access Material requirements planning (MRP). Complete the following fields:
    4. Simulation version
    Enter a simulation version. If the version is new, enter a description.
    Supply plan version
    Enter an existing supply plan version.
    Gross requirements
    Indicate if quantity on hand should be taken into consideration when creating requirements. Note: If this field is set to NO, the Order rule field must be set to 4 (gross requirement) for the items in the Item file.
    Supply plan forecast
    Indicate if a supply plan forecast version should be selected.
    Divide forecast
    Mandatory entry if Supply plan forecast is set to YES. Indicate if and how the supply plan forecast is to be divided by ticking one of the following options:
    Code Description
    1 Divide forecast according to the period interval that is defined in the IC control file.
    2 Divide forecast to week.
    3 Divide forecast to day.

    See the Panel help for information about the remaining fields.

    Click OK. The system calculates the MRP. Exit the routine.

Run the Quantity on hand level calculation

This batch job calculates quantity on hand levels for items coded with planning method type 5 (shortage analysis min/med/max). The calculated levels are automatically transferred to the Quantity on hand level table and are used in the shortage analysis for the creation of order proposals.

The quantity on hand levels are calculated in the following way:

  • The lead time factor is multiplied by the min, med and max values to get three values indicating a number of days. From these values, three horizon dates are calculated starting from today’s date.
    • Lead time factor * Min, Med or Max value = number of days (horizon dates for min, med and max)
  • Within each horizon (min, med and max), the system checks the order proposal quantity that is generated from MRP. The MRP order proposal quantities are divided with the lead time to get the quantity on hand level for the min, med and max levels.
    • MRP order proposal qty/Lead time = quantity on hand level
  1. Select the Work with reports/jobs – MFG orders menu item.
  2. You access Work with batch jobs. Select ON_HAND and click Submit job.
  3. You access Quantity on hand level calculation. Complete the following fields:
    4. Lead time factor
    Enter the lead time factor. This factor is used to multiply the lead time to get number of days for forecast horizon.
    Rounding off
    Indicate if and how the calculated quantity is to be rounded off by ticking one of the following options: No decimals, One decimal, Two decimals or No rounding off.
    Simulation version
    Enter a simulation version from MRP that you want to use for the calculation of quantity on hand levels.

    Tip: Use the selection fields to narrow down the selection of items to be included in the calculation.

    Click OK. The system calculates the quantity on hand. Exit the routine.

    Result
    You can now analyse the order controlled items in the shortage analysis. See Release manufacturing orders during pull planning or Re-schedule purchase orders during pull planning for instructions.

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