EIDX Replenishment Scenario III
Embedded Release, Version 1.0
Business Overview
Embedded release is a form of replenishment that combines
uses a modified planning forecast, called material release schedule,
and eliminates the need for transmission of discrete releases against
blanket orders.
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. Forecast becomes firm release within negotiated
lead-time or buyer explicitly marks requirements as "released".
Releases are thus "embedded" within forecast. When the
supplier detects that requirement is marked as "released"
or falls within the negotiated lead time, the supplier processes
the requirement as if a discrete release had been received. Enables
theoretical zero lead-time, zero inventory, and electronic Kanban
strategies. Conducive to an environment where releases are more
frequent than weekly.
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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 replenishment
plan 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 the current blanket order covers
the replenishment, the buyer can "release" the requirement
systematically. A discrete release will not be generated; instead,
the requirement will be marked as "released" in the
Material Release Schedule. |
| 5. |
Buyer generates material release schedule to
sends to supplier. Material release schedule is typically regenerated
weekly. Any changes/exceptions from a previous run are factored
into the new generation of the material release schedule. The
seller responds to the material release schedule 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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