This article provides an overview of the demand to supply translation process that translates a translates a monthly demand plan in weekly supply plan buckets. In addition, when DRP is enabled, the translation step translates the demand to specific ship from location(s) for supply planning when DRP is enabled. This process is automatically run as part of the demand planning process.
All supply plans are executed in weekly buckets regardless of the forecast bucket size.
The translation tab is only visible when viewing an item plan within the context of its customer.
Translate Monthly Demand Plan Buckets to Weekly Supply Plan Buckets
This step is only applicable when monthly bucket demand planning is enabled. If weekly buckets are enabled, this step is not executed.
The translation step translate the monthly demand plan, if monthly buckets are used, into a weekly demand plan. That weekly demand plan is based on what calendar type is used for monthly buckets and it also includes a process that the system can calculate a distribution percentage to take that monthly forecast and redistribute it as weekly buckets based on how sales are fulfilled throughout the month. For example, if your company tends to ship more goods at the end of the month, you can have the system calculate and translate the monthly bucketed forecast into a weekly plan and have most of the demand end up in the last couple of weeks of the month.
1. If you wish to enable this option, go to utilities, system settings, and within the Sales & Operation Planning Settings choose system calculated in the "Monthly to weekly forecast split" option.
2. In addition, you need to choose "Monthly to weekly distribution calculation level." This is the level that will be used to calculate the forecast distribution percentage.
3. Finally, if DRP is enabled, you may default all demand to be supply planned from a default ship from location. Further DRP related steps are described in the DRP section below.
DRP Customer / Item Ship from Location Calculation
The other important translation step is determining the ship from location for a given customer / item relationship. By default, the system looks at the sales history of the specific item and specific customer to determine where it is shipped from. It uses that information to allocate where that the demand plan should be shipped from. In the example below, 100 percent of the demand was shipped from the Atlanta DC.
In addition, as described in the prior step, you may default all demand to be supplied from a default location.
You, as a user, have the option to shift demand to multiple locations or move 100 percent to another location. Also at times your history history may have shipped from multiple locations due to shortages or other short-term issues that required an alternate ship from locations. You may also be planning new distribution centers in the future.
In all of these cases you may change the allocation using the following three options.
Do not disable locations in Data Maintenance if there are sales tied to the location. Disabling locations with sales will prevent the revenue from flowing through to DemandCaster.
Option 1: Manually enter percent values in the box
Option 2: From the drop down, choose another location to ship from that is not the calculated location.
Option 3. Click on Change Distribution to manually enter the % values from with a start and end date. This step is helpful when you will be adding a new distribution location in the future.
After making any of the allocation option changes, click save to apply the change.
To revert any of the changes back to the calculated value, click "Revert to Statistical"
Alternate Location Designation Approach - Pareto
Another option to change multiple ship from locations at one time by customer is to use the Pareto. To define a primary ship from location:
- Go to Pareto Analysis interface
- Select "Customer level" from the drop down
- Select the customers to define a primary location (default is N/A which is the system calculated value)
- Click "Associate to location"
- Select the location to assign via the "Primary location" drop down
- Click "Save"
- Primary location will be populated
Once that's done the next step will be supply planning. The supply plan will use the items demand plan and either calculated or ship from location as the basis for its calculation.