In distribution requirement planning, a primary source location is designated for each destination location. This source / destination relationship is based on the company's definition of the most optimal/common distribution path.
This feature provides the option to display available inventory available from designated alternate sources for fulfillment. The suggested order will still be recommended against the primary source. This feature is applicable to all Make, Buy, or Transfer fulfillment types.
Setting Up Alternate Sources
Go to Data > Data Maintenance
- Select the SKU to setup one or more alternate sources
- Click "Alternate Source."
- Click "+" to select the SKU(s) to consider as an alternate source. More than one alternate source location may be selected for a single SKU. The view only shows the SKU's not assigned as a primary location for the given SKU.
- Click "Save" to apply
You may also upload alternate sources via the Alternate Supply Sources (alternatesources.txt) file.
Los Angeles DC location is selected as an alternate source for item 71 in Atlanta DC.
Alternate Source Requirement Planning Process
During the Requirement Planning process, each SKU with a designated alternate source location will include a simple available supply calculation that calculates the amount of inventory available over the order point by location. The calculation is over the items lead time and is calculated as ((on hand - open demand + open orders) - total order point). It is done in this manner to warn users to not consume inventory from the alternate source to a point that it is unable to fulfill its own inventory requirements.
If a SKU has a requirement and it also has an alternate source(s) assigned, the suggest order line for the SKU will include the sum of availability (over order point) across locations in a new column in the planner action.
In the example below, item 71 in location Atlanta DC first suggested order has a requirement for 35,532 units with 17,000 units of supply available at its designated alternate source locations. The pop-up designates the location and its availability based on a on hand of 20,000 and total requirements at the location of 3000 units.
This quantity may be used when determining how best to fulfill the Atlanta DC requirement.
Editing and Approving Orders
The process of editing and approving orders from an alternate source follows as normal.
In the example below, we have 20,000 units available as an alternate source from Los Angeles to fulfill the requirements at Atlanta DC.
Clicking on the order quantity in the planner action opens the order dialogue.
In the supply drop-down, select the alternate source then select "approve" and OK to save the order requirement.
The availability, at the alternate source will be depleted only if the requirement is at or within the lead time of the alternate source. Since the requirement is outside of the lead time of Los Angeles, the availability remains at 20,000.
The requirement will now be visible at the alternate source and will no longer show as a requirement against the primary source.