<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/wh/onlinemanual/000435" xml:lang="en">
   <Header>
      <Title>Demand netting, demand prioritizing, and assigning
		quantities</Title>
      <Keyword type="header" order="d1e2622384">
         <Level1>DMS session</Level1>
         <Level2>demand netting</Level2>
      </Keyword>
      <Keyword type="header" order="d1e2622389">
         <Level1>Demand netting</Level1>
         <Level2>DMS session</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <List>
         <ListIntro>The following example explains:</ListIntro>
         <ListItem>The basic demand netting logic and the results for the <Link href="/baanerp/wh/inh/whinh6130m000" role="session">Direct Material Supply Distribution (whinh6130m000)</Link> session.</ListItem>
         <ListItem>The assignment, according to <Link href="/baanerp/wh/onlinemanual/000425#prio_rules" role="manual" Update="No">priority rules</Link>, of the received quantity or
		  the on-hand inventory to demand.</ListItem>
      </List>
   </AimSection>
   <ExampleSection ID="example_1">
      <SectionTitle>Example 1: Netting and the results for the DMS
		session</SectionTitle>
      <Paragraph>In the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session, the following settings apply to item X and
		warehouses WH1, WH2, and WH3:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <THEAD noTR="1">
            <TR no="1" isLast="true">
               <TD width="148" rowspan="1" colspan="1">Parameter</TD>
               <TD width="179" rowspan="1" colspan="1">WH1</TD>
               <TD width="102" rowspan="1" colspan="1">WH2</TD>
               <TD width="87" rowspan="1" colspan="1">WH3</TD>
            </TR>
         </THEAD>
         <TBODY noTR="3">
            <TR no="1" isLast="false">
               <TD width="148" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsp" role="manual">DMS Supplied</GUIRef>
               </TD>
               <TD width="179" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/tc/domains/yesno#yes" role="option">Yes</GUIRef>
               </TD>
               <TD width="102" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/tc/domains/yesno#yes" role="option">Yes</GUIRef>
               </TD>
               <TD width="87" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/tc/domains/yesno#no" role="option">No</GUIRef>
               </TD>
            </TR>
            <TR no="2" isLast="false">
               <TD width="148" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsr" role="manual">DMS upon Receipt</GUIRef>
               </TD>
               <TD width="179" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/domains/wmd.dmsr#interactive" role="option">Interactive</GUIRef>/ <GUIRef href="/baanerp/wh/domains/wmd.dmsr#manual" role="option">Manual</GUIRef>
               </TD>
               <TD width="102" rowspan="1" colspan="1">Irrelevant</TD>
               <TD width="87" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/domains/wmd.dmsr#no" role="option">No</GUIRef>
               </TD>
            </TR>
            <TR no="3" isLast="true">
               <TD width="148" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsi" role="manual">DMS on Inventory</GUIRef>
               </TD>
               <TD width="179" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/domains/wmd.dmsi#rec.and.outb" role="option">Receipt and Outbound</GUIRef>
               </TD>
               <TD width="102" rowspan="1" colspan="1">Irrelevant</TD>
               <TD width="87" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/tc/domains/yesno#no" role="option">No</GUIRef>
               </TD>
            </TR>
         </TBODY>
      </TABLE>
      <List>
         <ListTitle>Assumptions</ListTitle>
         <ListItem>
            <Link href="/baanerp/wh/onlinemanual/000425#demand_type" role="manual" Update="No">DMS demand type</Link>, <Link href="/baanerp/wh/onlinemanual/000425#planning_horizon" role="manual"
                  Update="No">DMS planning horizon</Link>, and <Link href="/baanerp/wh/glossary/glossary#000459" role="glossary" Update="No">warehouse supply structures</Link> are not taken
		  into account.</ListItem>
         <ListItem>No cross-dock orders or outbound advice in process.</ListItem>
         <ListItem>
            <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsi" role="manual">DMS on Inventory</GUIRef> is preferred above the received quantity ( <Link href="/baanerp/wh/onlinemanual/000431" role="manual">Force cross-docking range</Link> is not set).</ListItem>
         <ListItem>Minimum order quantity of 10 pieces.</ListItem>
         <ListItem>At most, one planned order per day is created (Order interval
		  is one day).</ListItem>
      </List>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="302" width="680"
                   SRC="../images/wh_inh_dms_cluster_and_transactions.gif"
                   alt="[...]"/>
         <FigCaption>Warehouses and transactions</FigCaption>
      </Figure>
      <Paragraph>The previous figure shows three warehouses in a cluster, and
		transactions for item X. Warehouses WH1 and WH2 are DMS supplied, whereas
		warehouse WH3 is not.</Paragraph>
      <Paragraph>
         <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> totals all transactions of the three warehouses and sees, for
		example, an inventory of three pieces (total of the warehouses). All
		transactions are sorted on date, and the planned stock is calculated, see the
		following figure. Note that transfers T1 and T2 are both skipped, because these
		move goods within a cluster, so the net result is 0. The <GUIRef href="/baanerp/cp/rrp/cprrp1210m000" role="session">Generate Order Planning (cprrp1210m000)</GUIRef> session must create planned supply orders
		whenever the planned stock drops below zero or below the safety
		stock.</Paragraph>
      <Paragraph>
         <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> creates five planned purchase orders. The first planned order
		at 10/4/2005 is planned one day before the requirement date of sales order S1.
		The second planned order for 10 pieces is enough to supply sales orders S2 and
		S3, and so on. All planned orders are created for the default warehouse of the <Link href="/baanerp/ti/glossary/glossary#PlanItems_ti" role="glossary">plan item</Link>, in this case warehouse WH1.</Paragraph>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="302" width="680"
                   SRC="../images/wh_inh_dms_planned_supply_orders.gif"
                   alt="[...]"/>
         <FigCaption>Generation of planned supply orders</FigCaption>
      </Figure>
      <Paragraph>DMS is triggered when the first planned purchase order is
		released to <GUIRef href="/baanerp/td/pur" role="module">Purchase Control</GUIRef> and received in <GUIRef href="/baanerp/wh" role="package">Warehousing</GUIRef> as purchase order P1.</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <TBODY noTR="4">
            <TR no="1" isLast="false">
               <TD width="171" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/inh/whinh6130m000#supply.item" role="manual">Item</GUIRef>
               </TD>
               <TD width="86" rowspan="1" colspan="1">X</TD>
            </TR>
            <TR no="2" isLast="false">
               <TD width="171" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/inh/whinh6130m000#supply.warehouse" role="manual">Warehouse</GUIRef>
               </TD>
               <TD width="86" rowspan="1" colspan="1">WH1</TD>
            </TR>
            <TR no="3" isLast="false">
               <TD width="171" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/inh/whinh3512m200#whinh312.qrec" role="manual">Received Quantity</GUIRef>
               </TD>
               <TD width="86" rowspan="1" colspan="1">10
				pcs.</TD>
            </TR>
            <TR no="4" isLast="true">
               <TD width="171" rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/inh/whinh6130m000#onhand.quan" role="manual">On Hand Quantity</GUIRef>
               </TD>
               <TD width="86" rowspan="1" colspan="1">2 pcs.</TD>
            </TR>
         </TBODY>
      </TABLE>
      <Paragraph>After receiving the goods, distribution in the DMS session is as
		follows:</Paragraph>
      <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
         <THEAD noTR="1">
            <TR no="1" isLast="true">
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/wmd/whwmd2540m000#whwmd240.prio" role="manual">Priority</GUIRef>
               </TD>
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/wmd/whwmd2450m000#date.t" role="manual">Date</GUIRef>
               </TD>
               <TD rowspan="1" colspan="1">Demand</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">WH</TD>
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/inh/whinh6151m000#whinh651.shtg" role="manual">Shortage</GUIRef>
               </TD>
               <TD width="132" rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/inh/whinh6130m000#assigned.rec.inv" role="manual">Assigned Received Quantity</GUIRef>
               </TD>
               <TD width="130" rowspan="1" colspan="1">Assigned Inventory</TD>
               <TD width="130" rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/inh/whinh6130m000#cd.order.number" role="manual">Cross-dock Orders</GUIRef>
               </TD>
            </TR>
         </THEAD>
         <TBODY noTR="6">
            <TR no="1" isLast="false">
               <TD rowspan="1" colspan="1">104</TD>
               <TD rowspan="1" colspan="1">12-4-2005</TD>
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/domains/inh.oorg#sales" role="option">Sales</GUIRef> S2</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">1</TD>
               <TD valign="middle" align="right" rowspan="1" colspan="1">5</TD>
               <TH valign="middle" align="right" width="132" rowspan="1" colspan="1">3</TH>
               <TH valign="middle" align="right" width="130" rowspan="1" colspan="1">2</TH>
               <TD width="130" valign="middle" align="right" rowspan="1" colspan="1"> </TD>
            </TR>
            <TR no="2" isLast="false">
               <TD rowspan="1" colspan="1">106</TD>
               <TD rowspan="1" colspan="1">14-4-2005</TD>
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/domains/inh.oorg#sales" role="option">Sales</GUIRef> S4</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">2</TD>
               <TD valign="middle" align="right" rowspan="1" colspan="1">9</TD>
               <TH valign="middle" align="right" width="132" rowspan="1" colspan="1">7</TH>
               <TD valign="middle" align="right" width="130" rowspan="1" colspan="1"> </TD>
               <TD width="130" valign="middle" align="right" rowspan="1" colspan="1"> </TD>
            </TR>
            <TR no="3" isLast="false">
               <TD rowspan="1" colspan="1">203</TD>
               <TD rowspan="1" colspan="1">10-4-2005</TD>
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/domains/inh.oorg#sales" role="option">Sales</GUIRef> S1</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">1</TD>
               <TD valign="middle" align="right" rowspan="1" colspan="1">10</TD>
               <TD valign="middle" align="right" width="132" rowspan="1" colspan="1"> </TD>
               <TD valign="middle" align="right" width="130" rowspan="1" colspan="1"> </TD>
               <TD width="130" valign="middle" align="right" rowspan="1" colspan="1"> </TD>
            </TR>
            <TR no="4" isLast="false">
               <TD rowspan="1" colspan="1">205</TD>
               <TD rowspan="1" colspan="1">13-4-2005</TD>
               <TD rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/domains/inh.oorg#sales" role="option">Sales</GUIRef> S3</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">2</TD>
               <TD valign="middle" align="right" rowspan="1" colspan="1">5</TD>
               <TD valign="middle" align="right" width="132" rowspan="1" colspan="1"> </TD>
               <TD valign="middle" align="right" width="130" rowspan="1" colspan="1"> </TD>
               <TD width="130" valign="middle" align="right" rowspan="1" colspan="1"> </TD>
            </TR>
            <TR no="5" isLast="false">
               <TD rowspan="1" colspan="1">212</TD>
               <TD rowspan="1" colspan="1">15-4-2005</TD>
               <TD rowspan="1" colspan="1"> 
                  <GUIRef href="/baanerp/wh/domains/inh.oorg#transfer" role="option">Transfer</GUIRef> T2</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">1</TD>
               <TD valign="middle" align="right" rowspan="1" colspan="1">5</TD>
               <TD valign="middle" align="right" width="132" rowspan="1" colspan="1"> </TD>
               <TD valign="middle" align="right" width="130" rowspan="1" colspan="1"> </TD>
               <TD width="130" valign="middle" align="right" rowspan="1" colspan="1"> </TD>
            </TR>
            <TR no="6" isLast="true">
               <TD rowspan="1" colspan="1">500</TD>
               <TD rowspan="1" colspan="1">20-4-2005</TD>
               <TD rowspan="1" colspan="1">
                  <GUIRef href="/baanerp/wh/domains/wmd.dmdt#forecast" role="option">Forecast</GUIRef> F1</TD>
               <TD valign="middle" align="center" rowspan="1" colspan="1">2</TD>
               <TD valign="middle" align="right" rowspan="1" colspan="1">20</TD>
               <TD valign="middle" align="right" width="132" rowspan="1" colspan="1"> </TD>
               <TD valign="middle" align="right" width="130" rowspan="1" colspan="1"> </TD>
               <TD width="130" valign="middle" align="right" rowspan="1" colspan="1"> </TD>
            </TR>
         </TBODY>
      </TABLE>
   </ExampleSection>
   <GeneralSection>
      <Paragraph>Orders (Sales S5 and SFC M1) of warehouse WH3 are ignored,
		because this warehouse has the <GUIRef href="/baanerp/wh/wmd/whwmd2100s000#whwmd200.dmsp" role="manual">DMS Supplied</GUIRef> check box cleared. However, TPOP on WH3 did plan a warehouse
		transfer from WH1 to WH3, and this transfer T2 is considered as demand on WH1.
		This is even the case if warehouse WH3 would be part of another
		cluster.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>DMS can also respond to demand outside the warehouse
		  cluster.</Paragraph>
      </Note>
      <Paragraph>Transfer T1 is to a DMS-supplied warehouse (in the same
		cluster), and therefore ignored. A transfer from WH1 to WH2 is a demand order
		to sending warehouse WH1, but is in fact a movement/shift of demand from WH2 to
		WH1, for example, a sales order in WH2. Because DMS takes the original demand
		(sales order) from WH1 into account, the warehouse transfer demand on WH2 must
		be ignored. Otherwise, DMS supplies twice for the same sales order.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>DMS ignores warehouse transfers between two DMS-supplied
		  warehouses in the same cluster.</Paragraph>
         <Paragraph>Demand orders are now sorted on priority, the lowest value
		  indicating the highest priority.</Paragraph>
         <Paragraph>Demand orders are netted against stock.</Paragraph>
      </Note>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>DMS ignores planned receipts when netting.</Paragraph>
      </Note>
      <Paragraph>The netted quantity is shown as shortage. Sales order S2
		requires five pieces. Only two pieces are on hand in warehouse WH1, which
		implies a shortage of three pieces.</Paragraph>
      <Paragraph>Similarly, sales order S4 consumes stock of warehouse WH2, and
		has a shortage of nine pieces. Note that the sales order S1 demand date
		precedes the demand date of S2, but due to lower priority, S1 does not consume
		the stock.</Paragraph>
      <Paragraph>Receipt of 10 pieces is first allocated to sales order S2, for
		thee pieces, and then the remaining seven are allocated to sales order
		S4.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <List>
            <ListItem>On-hand stock in the supply warehouse is only taken into
			 account if <GUIRef href="/baanerp/wh/wmd/whwmd4100s000#whwmd400.dmsi" role="manual">DMS on Inventory</GUIRef> is selected in the <GUIRef href="/baanerp/wh/wmd/whwmd4100s000" role="session">Item - Warehousing (whwmd4100s000)</GUIRef> session.</ListItem>
            <ListItem>On-hand stock in the destination warehouses is always taken
			 into account, irrespective of any <GUIRef href="/baanerp/wh/wmd/whwmd4100s000#whwmd400.dmsi" role="manual">DMS on Inventory</GUIRef> setting.</ListItem>
         </List>
      </Note>
      <Figure space-and-orientation="indented-estimated">
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="302" width="680"
                   SRC="../images/wh_inh_dms_generated_orders.gif"
                   alt="[...]"/>
         <FigCaption>Generated transfer orders, cross-dock orders, and outbound
		  advice</FigCaption>
      </Figure>
      <Paragraph>If the DMS proposal is accepted, the three and seven pieces must
		be shipped to the proper location.</Paragraph>
      <Paragraph>If you approve and process the DMS run, LN performs the
		following process steps:</Paragraph>
      <List>
         <ListTitle>For sales order S2:</ListTitle>
         <ListItem>Creates cross-dock order CD2 on WH1 to move the three pieces to
		  a staging location in WH1. This cross-dock order is related to sales order
		  S2.</ListItem>
         <ListItem>Creates cross-dock order line of three pieces for the
		  cross-dock order. This cross-dock order line is related to the received
		  purchase order (line) P1.</ListItem>
         <ListItem>Generates and releases outbound advice OA1 of two pieces for
		  sales order S2.</ListItem>
      </List>
      <List>
         <ListTitle>For sales order S4:</ListTitle>
         <ListItem>Creates transfer order T3 from WH1 to WH2 for seven
		  pieces.</ListItem>
         <ListItem>Creates cross-dock order CD3 on WH1 to move the seven pieces
		  to a staging location in WH1. This cross-dock order is related to the outbound
		  order line of transfer order T3.</ListItem>
         <ListItem>Creates cross-dock order line of seven pieces for cross-dock
		  order CD3. This cross-dock order line is related to the received purchase order
		  (line) P1.</ListItem>
         <ListItem>Creates second cross-dock order CD4 to move the seven pieces
		  in WH2 from receiving to staging location. Cross-dock order CD4 is related to
		  sales order S4.</ListItem>
         <ListItem>Creates cross-dock order line for cross-dock order CD4. This
		  cross-dock order line is related to the inbound order line of transfer order
		  T3.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>The second cross-dock order is only created if the order falls
		  within the time fence as defined in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session. Otherwise, the goods are inbounded
		  (IA3).</Paragraph>
      </Note>
      <Paragraph>If all procedure activities are set to <GUIRef href="/baanerp/wh/domains/wmd.dmsr#automatic" role="option">Automatic</GUIRef>, the cross-dock orders, outbound advice, and
		transfer orders are processed. Five pieces (3 + 2) end up on the staging
		location of WH1, seven pieces are cross-docked, transferred, and again
		cross-docked, to end up on the staging location of WH2.</Paragraph>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <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/000346" role="manual">Dynamic cross-docking</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000430" role="manual">Cross-docking time fence</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000431" role="manual">Force cross-docking range</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000432" role="manual">Impact of cross-docking settings</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>