Material Demand

Material Demand Preferences

The values on this screen directly impact the data displayed in the Material Demand Inquiry. Each time settings are modified, the Material Demand Inquiry must be refreshed to reflect changes. These settings are shared by all users.

1.  Sales Order Preferences
   • Include Sales Orders – Uncheck this option if existing sales orders should not be included when determining demand for production or purchase.
   • Include Order Type TR – The order type TR is typically used for intercompany warehouse transfers. This setting only accounts for demand from the FROM warehouse; it does not consider the TO warehouse as supply. This feature is typically used when a receiving warehouse requires stock but does not enter sales orders to drive demand.
   • Include Orders on Hold – If selected, items from sales orders marked as On Hold will be included in demand calculations for production or purchasing. 

2. Demand and Supply Days to Include – This setting determines the range of order lines (SO, PO, and Production) that are included. The system evaluates open orders that may be in the past and extends into the number of future days specified. A value of 0 ignores all future orders of that type. 
   • Sales – Evaluates the Requested Ship Date on the sales order detail line. Only sales orders with Automation Behavior = Sales Order and Order Type = FC (Forecast Order) are included.
   • Production Demand – Evaluates the Production Date of production orders with any status except Released. Production demand is based on the stock components listed on each order’s detail lines. 
   • Purchase Order – Evaluates the Requested Date on the purchase order detail line. Both Normal and Blanket purchase order types are included.
   • Production Supply – Evaluates the Production Date of production orders with any status except Released. Production supply is based on the finished goods being produced in each order.

3. Summary or Detail – A checkbox determines whether results are displayed at a warehouse detail level.
   • If unchecked, all warehouses are combined into a single line per item.
   • If checked, the inquiry displays one line per item per warehouse.

Recipe Setup Requirement

Only recipes with the Default Revision box checked are considered when calculating component demand in the inquiry. If multiple revisions exist for a recipe, only one should be designated as the default. Selecting more than one default revision will duplicate demand.

Material Demand Inquiry

This inquiry will calculate the quantities of components, subassemblies and finished goods to identify what is needed to be made or purchased. The items are not required to be part of a recipe to be included in this inquiry as it assumes all items demanded from Sales or Production need to be purchased.  Any item that is not showing a quantity in any of the columns will be excluded from the inquiry.

1. Open Order Qty – This is the quantity for any item listed on a sales order that is still an ‘Open Quantity’ or if using a FC (Forecast Order) it will use the Quantity value.  In addition, if the value shows sales demand for a Component Part, and that part is not directly put on the sales order, then this value is driven by the sales quantity times the recipe quantity needed for this item. 

Note: The sales order will typically include a Finished Good but the inquiry has been designed to explode the components of each recipe marked as the default revision. This explosion creates the needed demand for production and or purchasing for all recipe requirements including subassemblies and their component parts.

2. On Hand – Current on hand quantity excluding any quantities in a location that is defined as Not Available.  For further reference review the Inventory Summary screen.
   
   
3. Sales Demand – A calculation of Open Order Qty minus ‘On Hand’ to determine the final demand from sales.
   
   
4. Production Demand – This will use the ‘Planned Qty’ on the Stock Components tab for each component line in the production order.  These lines can represent a subassembly or a component part, it does not differentiate. The demand is using the planned quantity in the event that production order is only scheduled.  This value does not explode the components of subassemblies, each level of production order must be entered to pick-up the quantity.
   
   
5. Final Demand – This will be the greater value of either the Sales Demand or Production Demand.  It assumes that if Production Demand is greater, then the demand is covered for planned sales, and if the production demand is not yet entered then there is visibility in the demand for all levels of production.
   
   
6. Production Supply – This is the ‘Planned Qty’ that is planned to be made for a finished good or subassembly that has been entered as a production order.
    
7. Open PO – This is the Open Order Quantity (Order Qty minus On Receipts) for any purchase order line that is not completed.  The inquiry excludes Blanket PO’s but does not exclude PO’s that are On Hold. 
   
   
8. Buy Or Make – An evaluation that indicates if additional items should be produced or purchased as follows:
   

• • IF Sales Demand = Final Demand then:  Final Demand – (Production Supply + Open PO)
  • IF Production Demand = Final Demand then:  Final Demand – (On Hand + Production Supply + Open PO)

9. Base UOM – This is the stocking unit of measure of any item showing on the list.
   
   

Side Panels

While on any line of the Material Demand inquiry, actively using the side panels will provide more details about that line.  Below are the side panels available with examples.

Sales Order Component Details – Shows the detailed list of either sales orders with the item on the order or the actual orders that drive the demand of subassemblies or components to define the Open Order Qty column.

The following shows the finished good of the MILD-16OZ-CASE which is a direct open item on a sales order.

The same Open Order Qty column also shows the component of Cilantro.  The demand is driven by both the MILD-16-OZ-CASE on the sales order and the HOT SALSA BATCH which is actually a subassembly of the HOT-16-OZ-CASE that has an open quantity on a sales order.  The On Hand qty of the MILD-16-OZ-CASE of salsa will be taken into consideration before computing the demand, therefore the Open Order Qty will not match.

Production Orders in Progress – Shows the details of either the Production Demand or Production Supply columns listing which production order drives the requirement.

Purchase Order Details – Shows all purchase orders that make up the Open PO column for the item that is being purchased.  This side panel provides many insightful details about each PO that is expected to arrive including dates, costs and vendors for each purchase order. 

Recipe Details – Provides a quick glance of the default revision of the recipe for the item highlighted. 

The yellow on the HOT-SALSA BATCH on the right side of this screen shot indicates that this item is a subassembly type component. 

Component Where Used – Provides a list of the recipes this component can be found in the recipe.