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<ManualTopic ID="/baanerp/cp/onlinemanual/000160" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To select internal suppliers</Title>
		<Keyword><Level1>select internal suppliers</Level1>
		</Keyword>
		<Keyword><Level1>supply</Level1>
		</Keyword>
	</Header>
	<GeneralSection><SectionTitle>Introduction</SectionTitle>
		<List><ListIntro>Distribution planning in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> handles the generation and planning of distribution orders. You can use distribution orders to:</ListIntro>
			<ListItem>Transfer goods between <Link href="/baanerp/tc/glossary/glossary#Cluster.tc" role="glossary">clusters</Link> within a <Link href="/baanerp/tc/glossary/glossary#000046" role="glossary">logistical site</Link>.</ListItem>
			<ListItem>Transfer goods between sites.</ListItem>
			<ListItem>Transfer one item into another item.</ListItem>
		</List>
		<List><ListIntro>Distribution planning is very similar to purchase planning. The main differences are:</ListIntro>
			<ListItem>Distribution planning is based on the <Link href="/baanerp/cp/glossary/glossary#000005" role="glossary">supplying relationships</Link>, while purchase planning is based on item-supplier information.</ListItem>
			<ListItem>Distribution planning always works with planned orders (also in <Link href="/baanerp/cp/glossary/glossary#000059" role="glossary">master planning</Link> ).</ListItem>
		</List>
	</GeneralSection>
	<GeneralSection><SectionTitle>Supply strategies</SectionTitle>
		<List><ListIntro>Distribution planning chooses between alternative suppliers and distributes volumes over these suppliers on the basis of the parameters defined in the following sessions:</ListIntro>
			<ListItem><GUIRef href="/baanerp/cp/rpd/cprpd7120m000" role="session">Supply Strategy (cprpd7120m000)</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/cp/rpd/cprpd7130m000" role="session">Supplying Relationships (cprpd7130m000)</GUIRef>
			</ListItem>
		</List>
		<Paragraph>Distribution planning uses <Link href="/baanerp/cp/glossary/glossary#000105" role="glossary">supply strategies</Link> with supply type <GUIRef href="/baanerp/cp/domains/rpd.act.sour#distribution" role="enum">Distribution</GUIRef>.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<List><ListIntro>If a plan item has no valid supply strategy, SSA ERP uses the following values by default:</ListIntro>
				<ListItem><Link href="/baanerp/cp/glossary/glossary#000107" role="glossary">Priority rule</Link>: <GUIRef href="/baanerp/cp/domains/rpd.ispr#priority" role="enum">Priority</GUIRef>
				</ListItem>
				<ListItem><Link href="/baanerp/cp/glossary/glossary#000108" role="glossary">Allocation rule</Link>: <GUIRef href="/baanerp/cp/domains/com.diru#percentage" role="enum">Percentage</GUIRef>
				</ListItem>
			</List>
		</Note>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>If SSA ERP cannot find a valid supplying relationship to fulfill a requirement at a certain moment, SSA ERP tries to fulfill the required demand with the other supply sources following the <Link href="/baanerp/td/glossary/glossary#SourciRule.td" role="glossary">sourcing rules</Link> that you defined for the <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link> in the <GUIRef href="/baanerp/cp/rpd/cprpd7110m000" role="session">Sourcing Strategy (cprpd7110m000)</GUIRef> session. If SSA ERP still cannot fulfill the required demand, SSA ERP generates a signal.</Paragraph>
		</Note>
	</GeneralSection>
	<ProcedureSection><SectionTitle>Procedure</SectionTitle>
		<ProcIntro><ProcedureList><ListIntro>The supply planning carries out the following steps for each required plan item:</ListIntro>
				<ListItem>Determine the requirements.</ListItem>
				<ListItem>Determine the source of supply (production, purchase, or distribution).</ListItem>
				<ListItem>Put the supplying relationships in order of preference.</ListItem>
				<ListItem>Determine delivery date by supplying relationship.</ListItem>
				<ListItem>Determine the volume by supplying relationship.</ListItem>
			</ProcedureList>
		</ProcIntro>
		<Steps><Step><StepTitle>Determine the requirements.</StepTitle>
				<Paragraph>The master planning engine or the order planning engine determines the required volume and the requirements date.</Paragraph>
			</Step>
			<Step><StepTitle>Determine the source of supply (production, purchase, or distribution).</StepTitle>
				<Paragraph>SSA ERP determines how much of the requirements is covered by distribution orders on the basis of the <Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategy</Link>. See <Link href="/baanerp/cp/onlinemanual/000158" role="manual">Sourcing strategies</Link>.</Paragraph>
			</Step>
			<Step><StepTitle>Put the supplying relationships in order of preference.</StepTitle>
				<Paragraph>SSA ERP orders the supplying relationships in accordance with the priority rule that is effective on the requirements date. Define the priority rule in the <GUIRef href="/baanerp/cp/rpd/cprpd7120m000" role="session">Supply Strategy (cprpd7120m000)</GUIRef> session.</Paragraph>
			</Step>
			<Step><StepTitle>Determine delivery date by supplying relationship.</StepTitle>
				<Paragraph>SSA ERP uses various calendars to determine the finish date (delivery date) and the start date (order date). See <Link href="/baanerp/cp/onlinemanual/000161" role="manual">To compute supply lead-times</Link>.</Paragraph>
			</Step>
			<Step><StepTitle>Determine the volume by supplying relationship.</StepTitle>
				<Paragraph>SSA ERP distributes the required volume over the supplying relationships in the order calculated in step 3. SSA ERP generates distribution orders for each planned volume.</Paragraph>
				<Paragraph>This step is carried out in multiple phases. If, after a phase, not all requirements are covered SSA ERP proceeds with the next phase.</Paragraph>
				<Paragraph>For an overview of these phases, refer to online manual topic <Link href="/baanerp/cp/onlinemanual/000349" role="manual">Internal-supplier selection (procedure)</Link>.</Paragraph>
			</Step>
		</Steps>
	</ProcedureSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000305" role="manual">Supply planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000059" role="manual">To compute distribution order quantities</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000060" role="manual">Lot sizing</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000349" role="manual">Internal-supplier selection (procedure)</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000161" role="manual">To compute supply lead-times</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
