EIDX Replenishment Scenario II - Classic Material Release,
Version 1.0
Business Overview
Prior to establishing forecasting process, buyer generates
blanket PO for stated period (such as yearly). Blanket includes authorization
and other terms. Buyer forecasts requirements (net of inventory),
normally weekly. If replenishment is required, buyer issues weekly
or daily, or JIT releases against the blanket order. Enables theoretical
zero lead-time, zero inventory, and electronic Kanban strategies.
Conducive to an environment where releases are more frequent than
weekly.
There are many similarities between this business model and Replenishment
Scenario 1. The major difference is that a material release requires
the establishment of the blanket purchase order. Releases against
a blanket order have less overhead associated with them than standalone
(discrete) purchase orders.
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Process Activity Diagram
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Narrative
| Step |
Description |
| 1. |
The buyer run Material Requirements
Planning (MRP) process. Buyer nets MRP data to generate a planning
forecast and determine whether replenishment is required during
the current planning cycle. |
| 2. |
If replenishment is required, buyer
first has to determine if the blanket order can cover the requirements.
If the blanket order is for a fixed quantity or dollars, the
quantity-left-to-receive or dollars-left-to-receive must exceed
the quantity or dollar value of the replenishment quantity.
If the blanket order is for a fixed date range, the buyer must
ensure that the blanket order is not about to expire. If the
blanket order will not cover the replenishment, buyer must invoke
Order Model 3 - Blanket Order, Forecast-based, to either change
the existing Blanket Order, or generate a new Blanket Order. |
| 3. |
If the blanket order will not cover
the replenishment, buyer must invoke Order Model 2 - Blanket
Order, to either change the existing Blanket Order, or generate
a new Blanket Order. |
| 4. |
If buyer determines that replenishment
is required during the current planning cycle, buyer invokes
Order Model 3A - Release Against Blanket Purchase Order, Buyer-Managed. |
| 5. |
Buyer generates a planning forecast to send to
supplier per Forecast/Planning Model 1. A planning forecast
is typically regenerated weekly. Any changes/exceptions from
a previous run are factored into the new generation of the planning
forecast. The seller responds to the forecast if needed. |
| 6. |
Prepare for the next MRP run. If there are changes
arising out of a supplier's response to a forecast, they are
dealt with during this activity, then the next generation of
the forecast starts again with 'Process MRP.' |
Implementation Options
- Order Models
- Forecast/Planning Models
Data Requirements for Replenishment Scenarios
- Data Requirements for Order Components
- Data Requirements for Release Components
- Data Requirements for Forecast (Schedule) Components
Business Documents Used in Replenishment Processes
- Business Documents for Order Components
- Business Documents for Release Components
- Discrete Releases
- Releases Embedded in Forecasts
- Business Documents for Forecast (Schedule) Components
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