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<ManualTopic ID="/baanerp/wh/onlinemanual/000425" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">DMS and demand</Title>
		<Keyword><Level1>DMS</Level1>
			<Level2>demand</Level2>
		</Keyword>
		<Keyword><Level1>DMS</Level1>
			<Level2>destination warehouse</Level2>
		</Keyword>
		<Keyword><Level1>DMS</Level1>
			<Level2>supply warehouse</Level2>
		</Keyword>
		<Keyword><Level1>Demand</Level1>
			<Level2>DMS</Level2>
		</Keyword>
		<Keyword><Level1>Destination warehouse</Level1>
			<Level2>DMS</Level2>
		</Keyword>
		<Keyword><Level1>Supply warehouse</Level1>
			<Level2>DMS</Level2>
		</Keyword>
		<Keyword><Level1>DMS</Level1>
			<Level2>planning horizon</Level2>
		</Keyword>
		<Keyword><Level1>Demand</Level1>
			<Level2>prioritizing</Level2>
		</Keyword>
	</Header>
	<AimSection><List><ListIntro>To determine and prioritize demand, SSA ERP will consider the following:</ListIntro>
			<ListItem><Link href="#warehouse_item" role="internal" Update="No">Warehouse-item combination</Link>
			</ListItem>
			<ListItem><Link href="#planning_horizon" role="internal" Update="No">DMS planning horizon</Link>
			</ListItem>
			<ListItem><Link href="#demand_type" role="internal" Update="No">DMS demand type</Link>
			</ListItem>
			<ListItem><Link href="#prio_rules" role="internal" Update="No">Priority rules</Link>
			</ListItem>
		</List>
	</AimSection>
	<GeneralSection ID="warehouse_item"><SectionTitle>Warehouse-item combination</SectionTitle>
		<Paragraph>DMS can only be run for a warehouse-item combination for which the <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsp" role="formfield">DMS Supplied</GUIRef> check box is selected and one of the <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsr" role="formfield">DMS upon Receipt</GUIRef>/ <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsi" role="formfield">DMS on Inventory</GUIRef> options is set.</Paragraph>
		<Paragraph>If you run DMS for a supply warehouse, SSA ERP only considers demand from other (destination) warehouses that are <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsp" role="formfield">DMS Supplied</GUIRef>, and that have a relationship with the supply warehouse, as defined in the <GUIRef href="/baanerp/wh/inh/whinh6140m000" role="session">Warehouse Supply Structures (whinh6140m000)</GUIRef> session.</Paragraph>
		<Paragraph>For more information, refer to <Link href="/baanerp/wh/onlinemanual/000427" role="manual">Warehouse supply structures</Link>.</Paragraph>
	</GeneralSection>
	<GeneralSection ID="planning_horizon"><SectionTitle>DMS planning horizon</SectionTitle>
		<Paragraph>The planning horizon of the <Emphasis>destination</Emphasis> warehouse-item as defined in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session, determines demand that is taken into account when DMS is run in a <Emphasis>supply</Emphasis> warehouse. Demand for a date beyond the planning horizon is ignored.</Paragraph>
		<List><ListIntro>In the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000" role="session">Warehouses (whwmd2500m000)</GUIRef> and <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> sessions, you can define two planning horizons for the destination warehouse:</ListIntro>
			<ListItem><GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmph" role="formfield">DMS upon Receipt Planning Horizon</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dphi" role="formfield">DMS on Inventory Planning Horizon</GUIRef>
			</ListItem>
		</List>
		<Paragraph>If the DMS planning horizon for destination warehouse WH2 and item X is 90 days, demand up to 90 days will be considered for that DMS-supplied warehouse, regardless of any DMS planning horizon settings for supply warehouses.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<List><ListItem>The planning horizon of the <Emphasis>destination</Emphasis> warehouse-item determines the planning horizon that will be considered for a DMS run in the supply warehouse.</ListItem>
				<ListItem>During a DMS run the warehouse calendars are taken into account for the planning horizon.</ListItem>
				<ListItem>If DMS planning horizons are (too) short, a lot of stock can end up in the supply warehouse.</ListItem>
			</List>
		</Note>
	</GeneralSection>
	<GeneralSection ID="demand_type"><SectionTitle>DMS demand type</SectionTitle>
		<List><ListIntro>For DMS, the type of demand from <Emphasis>destination</Emphasis> warehouses can be taken into account. For this purpose, you can define two demand-type parameters in the <GUIRef href="/baanerp/wh/wmd/whwmd2500m000" role="session">Warehouses (whwmd2500m000)</GUIRef> and <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> sessions:</ListIntro>
			<ListItem><GUIRef href="/baanerp/wh/wmd/whwmd2110s000#whwmd210.dmdt" role="formfield">DMS upon Receipt Demand Type</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/wh/wmd/whwmd2110s000#whwmd210.ddti" role="formfield">DMS on Inventory Demand Type</GUIRef>
			</ListItem>
		</List>
		<List><ListIntro>The following demand types exist:</ListIntro>
			<ListItem><GUIRef href="/baanerp/wh/domains/wmd.dmdt#wh.order" role="enum">Warehousing Orders</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/wh/domains/wmd.dmdt#plan.inv.trans" role="enum">Planned Inventory Transactions</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/wh/domains/wmd.dmdt#planned.order" role="enum">Planned Orders</GUIRef>
			</ListItem>
			<ListItem><GUIRef href="/baanerp/wh/domains/wmd.dmdt#forecast" role="enum">Forecast</GUIRef>
			</ListItem>
		</List>
		<Paragraph>If you select one option, any preceding options are included as well. For example, if you select <GUIRef href="/baanerp/wh/domains/wmd.dmdt#planned.order" role="enum">Planned Orders</GUIRef>, <GUIRef href="/baanerp/wh/domains/wmd.dmdt#wh.order" role="enum">Warehousing Orders</GUIRef> and <GUIRef href="/baanerp/wh/domains/wmd.dmdt#plan.inv.trans" role="enum">Planned Inventory Transactions</GUIRef> are also included.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<List><ListItem>The demand type setting of the <Emphasis>destination</Emphasis> warehouse-item determines the demand types that will be considered for a DMS run in the supply warehouse. For example, forecast demand can be considered for one warehouse and ignored for another.</ListItem>
				<ListItem>In <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>, forecast data is stored at cluster level instead of at warehouse level. The <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link> corresponding with the item has a default warehouse for the cluster. This default warehouse should correspond with the warehouse where stock for the item is stored, in case there is more supply than required to match demand.</ListItem>
				<ListItem>If you use <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> for demand forecasting, SSA Global strongly recommends that you set the DMS demand type to <GUIRef href="/baanerp/wh/domains/wmd.dmdt#forecast" role="enum">Forecast</GUIRef> for the default warehouse of the cluster. For other warehouses, you can choose the other options.</ListItem>
			</List>
		</Note>
	</GeneralSection>
	<ExampleSection ID="example"><SectionTitle>Example</SectionTitle>
		<Paragraph>The following example illustrates how the planning horizon and demand type settings determine demand to be handled by DMS when goods are received at warehouse WH1.</Paragraph>
		<Figure><FigIntro>Setup:</FigIntro>
			<HTML:IMG SRC="../images/wh_inh_dms_plan_horizon_setup.gif" height="302" width="680" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/></Figure>
		<Figure><FigIntro>Result:</FigIntro>
			<HTML:IMG SRC="../images/wh_inh_dms_plan_horizon_result.gif" height="302" width="680" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/></Figure>
		<List><ListTitle>Explanation</ListTitle>
			<ListItem>Forecast and planned orders on warehouse WH3 are ignored, whereas actual orders on WH3 are taken into account.</ListItem>
			<ListItem>Forecast on WH4 is ignored because it is outside the DMS planning horizon of WH4.</ListItem>
		</List>
	</ExampleSection>
	<GeneralSection ID="prio_rules"><SectionTitle>Priority rules</SectionTitle>
		<Paragraph>If you run DMS planning, SSA ERP assigns a priority to each demand instance. The priority is compiled based on the rules as defined in <Link href="/baanerp/wh/glossary/glossary#000457" role="glossary">planning priority rules</Link> and assigned by SSA ERP to each demand instance. Users can change these priorities when they run the <GUIRef href="/baanerp/wh/inh/whinh6130m000" role="session">Direct Material Supply Distribution (whinh6130m000)</GUIRef> session.</Paragraph>
		<Paragraph>For more information, refer to <Link href="/baanerp/wh/onlinemanual/000428" role="manual">Planning priority rules</Link>.</Paragraph>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/wh/onlinemanual/000435" role="manual">Demand netting, demand prioritizing, and assigning quantities</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/wh/onlinemanual/000436" role="manual">Netting in process cross-dock orders</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/wh/onlinemanual/000437" role="manual">Netting inventory commitments</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/wh/onlinemanual/000423" role="manual">Direct material supply (DMS)</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/wh/onlinemanual/000424" role="manual">DMS settings and master data</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/wh/onlinemanual/000426" role="manual">DMS planning and processing</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
