Planning Parameters

Overview of the planning parameters for an item at a location

The planning parameters provide the ability to define the inventory strategy per item at a location. Within EZplan, there are two sets of planning parameters. One for distribution planning (shipping goods within your network) and production planning. The parameters are similar, but the way to tell them apart is the prefix of the paramater: distribution vs production.

"Production" Planning Parameters

Planning Parameters for a "production" item@location. This is accessed via the Supply and Demand page.

Parameters for item@locations that have a location of type of PRODUCTION or SUPPLIER

Parameter	Description
On Hand Inventory	This isn't a parameter as much as it is defining the starting or beggining inventory for the item@location. Depending on your implementation, this data is updated via and interface or manually.
Production Coverage Days	When the projected inventory is gonig to dip into safety stock, the first thing the algorithm needs to calculate is how much should this plan cover. This will look out into the future and add up the amount of demand is planned across the number of days defined with this parameter.
Production Minimum Qty	This defines the smallest amount of production for any one run. This is used to round the amount that is calculated in the Production Coverage Days.
Production Lock End Date	You have the ability to "lock out" the supply planning algorithm from creating any new production plans between your start date and the date you define here.
Production Lock Duration Days	Similar to Production Lock End Date, you define a period of time to prevent the supply planning algorithm from creating any new production plans between the start date and the start date + this Production Lock Duration Days parameter. This is rolling parameter where as the Production Lock End Date is a date that will come and past.
Safety Stock Coverage Days	This defines the amount of forward demand to have on hand at any point in the planning horizon. This will sum the demand over the number of days specified here and set that to the safety stock for the given day. It follows the demand curve.
Safety Stock Coverage Qty	This defines the lowest amount of safety stock to have at any point in time during the planning horizon. This can work in conjunction with the Safety Stock Coverage Days. This sets the "floor" for your safety stock. The planned safety stock will never go below the amount set here.
Net Demand Option	When there is the existence of sales orders and a sales plan on the same day, this defines how to handle that situation. "Daily Max" takes the number that is bigger; the sales plan or the sales order. When this is set to "Off", it adds the two numbers together for that day's demand.
Ignore Sales Plan Days	The duration that the sales plan should be ignored. In some cases you do not want to consider the sales plan and you only want to consider demand to be sales orders. Typically, this is set to an order lead time that you may have.
Is Plannable	This essentially turns off the supply planning algorithm. When this is set and you run the supply planning algorithm, it will delete any non-firm planned requirements and it will not create any recommendations.

Illustration of an inventory curve to help show how these planning parameters impact the inventory

"Distribution" Planning Parameters

Parameters for item@locations that have a location of type of DISTRIBUTION

Parameter	Description
On Hand Inventory	This isn't a parameter as much as it is defining the starting or beggining inventory for the item@location. Depending on your implementation, this data is updated via and interface or manually.
Distribution Coverage Days	When the projected inventory is gonig to dip into safety stock, the first thing the algorithm needs to calculate is how much should this plan cover. This will look out into the future and add up the amount of demand is planned across the number of days defined with this parameter.
Distribution Minimum Qty	This defines the smallest amount of distribution for any one run. This is used to round the amount that is calculated in the Distribution Coverage Days.
Distribution Lock End Date	You have the ability to "lock out" the supply planning algorithm from creating any new distribution plans between your start date and the date you define here.
Distribution Lock Duration Days	Similar to Distribution Lock End Date, you define a period of time to prevent the supply planning algorithm from creating any new distribution plans between the start date and the start date + this Distribution Lock Duration Days parameter. This is rolling parameter where as the Distributiontion Lock End Date is a date that will come and past.
Safety Stock Coverage Days	This defines the amount of forward demand to have on hand at any point in the planning horizon. This will sum the demand over the number of days specified here and set that to the safety stock for the given day. It follows the demand curve.
Safety Stock Coverage Qty	This defines the lowest amount of safety stock to have at any point in time during the planning horizon. This can work in conjunction with the Safety Stock Coverage Days. This sets the "floor" for your safety stock. The planned safety stock will never go below the amount set here.
Net Demand Option	When there is the existence of sales orders and a sales plan on the same day, this defines how to handle that situation. "Daily Max" takes the number that is bigger; the sales plan or the sales order. When this is set to "Off", it adds the two numbers together for that day's demand.
Ignore Sales Plan Days	The duration that the sales plan should be ignored. In some cases you do not want to consider the sales plan and you only want to consider demand to be sales orders. Typically, this is set to an order lead time that you may have.
Is Plannable	This essentially turns off the supply planning algorithm. When this is set and you run the supply planning algorithm, it will delete any non-firm planned requirements and it will not create any recommendations.