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Demand, Supply and Planning

Planning takes demand, explodes it through the structures, nets off what you have and what is already coming, and says what must be made or bought and by when.

Where to find it

Architect Panel → ERP - Operations:

  • Demand — what is required — orders, forecasts, minimum levels
  • Supply — what is already coming — purchase orders, works orders
  • Stock Policies — reorder levels and lead times per item

Netting

Requirements are not gross. Need 100, hold 30, with 20 on order, and the requirement is 50. That is why stock accuracy determines whether planning output is useful — planning against wrong stock produces wrong suggestions with complete confidence.

Lead times

Working backwards from a due date through each level's lead time produces the start dates. A component with a six-week lead time needs ordering six weeks before it is consumed, not before the finished item is due. Enter the lead times your suppliers actually achieve, not the ones they quote.

Planning suggests, it does not act

Output is a set of suggestions for a person to review and convert into real orders. Nothing is placed automatically. Treat a run producing surprising suggestions as a question about the data — usually stock, lead times or an effectivity date — rather than as an instruction.

Before you rely on it

  • Stock must be accurate, including reservations.
  • Structures must be complete and correctly dated.
  • Lead times must be realistic.
  • Open purchase orders must be recorded as supply, or planning suggests buying what is already coming.

Run it in parallel with your existing method for a cycle or two and compare before anybody acts on it.