When an item is replenished through multiple locations, use a two-step planning process:

1. Can the demand be supplied from another location?
2. What must be purchased after the transfers are considered?

Keeping these stages separate makes the planning results easier to review and clearly distinguishes internal transfers from external purchases.

Example

One item has four Stockkeeping Units:

• SKU 1: Replenishment System = Transfer; supplied from SKU 4’s location
• SKU 2: Replenishment System = Transfer; supplied from SKU 4’s location
• SKU 3: Replenishment System = Transfer; supplied from SKU 4’s location
• SKU 4: Replenishment System = Purchase

Demand forecasts exist for SKU 1, SKU 2, and SKU 3. SKU 4 has no direct forecast because its demand is created by the transfer orders supplying the other locations.

Step 1: Plan the transfers

In order to keep a clear distinction of actions, a separate Transfer batch could be created. This keeps transfer proposals separate from purchase proposals. You can configure a separate transfer planning batch in Enhanced Planning Worksheet User Preferences, accessible via the “User Preferences” action from the Enhanced Planning Worksheet.

1. Open the Enhanced Planning Worksheet using the transfer batch.
2. Select Calculate Purchase Plan.
3. Set Plan replenishment for to Transfer Only.
4. Select the Batch you wish to populate, as noted this could be a dedicated Transfer Batch.
5. Run the calculation.
6. Review the proposed transfers for SKU 1, SKU 2, and SKU 3.

7. Select Carry Out Action Message to create the transfer orders.

The transfer orders now represent actual demand against SKU 4’s supplying location.

The first planning question is: “Can I take this inventory from somewhere else?”

Step 2: Plan the purchases

After the transfer orders have been created, calculate the remaining purchase requirements.

Use Calculate Purchase Plan when:

• Purchase demand should be simplified and consolidated.
• A single combined purchase quantity is preferred.
• Detailed demand dates and order tracking are not required.

Open the purchase batch, select Calculate Purchase Plan, and set Plan replenishment for to Non-Transfer Only or Purchase And Transfer Only, as appropriate.

In this example, the calculation produces one purchase proposal for SKU 4 based on the demand from the three transfer orders.

For more information on how the Enhanced Planning Worksheet “Calculate Purchase Plan” works refer to https://kb.dmsiworks.com/knowledge-base/how-does-the-planning-worksheet-purchase-plan-calculate-the-amount-to-purchase/

Use Calculate Regenerative Plan when:

• Demand must be planned by individual requirement date.
• Multi-level or date-sensitive planning is required.
• Purchase requirements should not be consolidated by the simplified Purchase Plan calculation.

From the Enhanced Planning Worksheet, select Calculate Regenerative Plan and apply the appropriate item and location filters.

The second planning question is: “After using available inventory from other locations, what do I need to purchase?”

Why two calculations are required

Calculate Purchase Plan does not use newly proposed transfer worksheet lines as demand at the supplying location during the same calculation. The transfer proposals must first be carried out into transfer orders. A second planning calculation can then recognize those transfer orders as demand and calculate the related purchase requirement.