<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000487" xml:lang="en">
   <Header>
      <Title>VMI planning based on inventory levels</Title>
      <Keyword type="header" order="d1e170664">
         <Level1>VMI planning based on minimum inventory levels</Level1>
      </Keyword>
      <Keyword type="header" order="d1e170667">
         <Level1>VMI</Level1>
         <Level2>planning based on minimum inventory levels</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>This topic describes how a <Link href="/baanerp/cp/glossary/glossary#000466" role="glossary">VMI supplier</Link> can plan the supply for a customer based on
		the agreed <Link href="/baanerp/tc/glossary/glossary#000512" role="glossary">minimum inventory level</Link>.</Paragraph>
   </AimSection>
   <GeneralSection>
      <Paragraph>For an introduction to the various planning methods, refer to <Link href="/baanerp/cp/onlinemanual/000483" role="manual">Planning methods (VMI)</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>General planning procedure</SectionTitle>
      <Paragraph>If the VMI planning is based on the agreed <Link href="/baanerp/tc/glossary/glossary#000512" role="glossary">minimum inventory level</Link>, you do not send your customer <Link href="/baanerp/cp/glossary/glossary#000461" role="glossary">confirmed-supply messages</Link>. The planning and the
		replenishment process are entirely based on the <Link href="/baanerp/wh/glossary/glossary#000476" role="glossary">inventory levels</Link> at the customer's warehouse. If the
		inventory level drops below the effective minimum inventory level, the supplier
		supplies the customer. Optionally, you can also take a maximum inventory level
		into account.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Specification of the inventory level</SectionTitle>
      <List>
         <ListIntro>You can use the following methods to determine the inventory
		  level:</ListIntro>
         <ListItem>A fixed level specified in the item data.</ListItem>
         <ListItem>A fixed level agreed between the supplier and
		  customer.</ListItem>
         <ListItem>A time-phased level, agreed between the supplier and
		  customer.</ListItem>
         <ListItem>A time-phased level, based on a forecast that the customer
		  sends to the supplier.</ListItem>
      </List>
      <Paragraph>For further details, refer to <Link href="/baanerp/cp/onlinemanual/000488" role="manual">To specify the minimum and maximum inventory</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Parameter setting</SectionTitle>
      <Paragraph>To specify this planning method, define an appropriate <Link href="/baanerp/tc/glossary/glossary#000500" role="glossary">terms and conditions agreement</Link> on the <GUIRef href="/baanerp/tc/trm/tctrm1620m000" role="session">Terms and Conditions Line (tctrm1620m000)</GUIRef> session's <GUIRef href="/baanerp/tc/trm/tctrm2151m000#tctrm110.plng" role="groupbox">Planning</GUIRef> tab.</Paragraph>
      <Paragraph>Use the following settings:</Paragraph>
      <GeneralSection>
         <TABLE cellpadding="4" cellspacing="1" borderstyle="default"
                space-and-orientation="indented-estimated">
            <TBODY noTR="6">
               <TR no="1" isLast="false">
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.rfsp" role="formfield">Responsible for Supply Planning</Link>
                  </TD>
                  <TD valign="top" rowspan="1" colspan="1">=</TD>
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <GUIRef href="/baanerp/tc/domains/yesno#yes" role="option">Yes</GUIRef>
                  </TD>
               </TR>
               <TR no="2" isLast="false">
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.frfc" role="formfield">Forecast received from Customer</Link>
                  </TD>
                  <TD valign="top" rowspan="1" colspan="1">=</TD>
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <GUIRef href="/baanerp/tc/domains/yesno#yes" role="option">Yes</GUIRef> or <GUIRef href="/baanerp/tc/domains/yesno#no" role="option">No</GUIRef>
                  </TD>
               </TR>
               <TR no="3" isLast="false">
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.umml" role="formfield">Use Min-Max Inventory Levels</Link>
                  </TD>
                  <TD valign="top" rowspan="1" colspan="1">=</TD>
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <GUIRef href="/baanerp/tc/domains/umml#minimum.levels" role="option">Minimum Levels</GUIRef>, <GUIRef href="/baanerp/tc/domains/umml#maximum.levels" role="option">Maximum Levels</GUIRef>, or <GUIRef href="/baanerp/tc/domains/umml#min.and.max" role="option">Minimum and Maximum Levels</GUIRef>
                  </TD>
               </TR>
               <TR no="4" isLast="false">
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.cnsp" role="formfield">Confirm Supply</Link>
                  </TD>
                  <TD valign="top" rowspan="1" colspan="1">=</TD>
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <GUIRef href="/baanerp/tc/domains/yesno#no" role="option">No</GUIRef>
                  </TD>
               </TR>
               <TR no="5" isLast="false">
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.rpbo" role="formfield">Replenishment Based On</Link>
                  </TD>
                  <TD valign="top" rowspan="1" colspan="1">=</TD>
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <GUIRef href="/baanerp/tc/domains/rpbo#inventory.level" role="option">Inventory Level</GUIRef>
                  </TD>
               </TR>
               <TR no="6" isLast="true">
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <Link href="/baanerp/tc/trm/tctrm1135m000#tctrm135.plbo" role="formfield">Planning Based On</Link>
                  </TD>
                  <TD valign="top" rowspan="1" colspan="1">=</TD>
                  <TD valign="top" rowspan="1" colspan="1"> 
                     <GUIRef href="/baanerp/tc/domains/rpbo#inventory.level" role="option">Inventory Level</GUIRef>
                  </TD>
               </TR>
            </TBODY>
         </TABLE>
      </GeneralSection>
      <Note>
         <SectionTitle> Note</SectionTitle>
         <Paragraph>If you set the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.rpbo" role="manual">Replenishment Based On</GUIRef> field to <GUIRef href="/baanerp/tc/domains/rpbo#inventory.level" role="option">Inventory Level</GUIRef>, LN also
		  sets the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.plbo" role="manual">Planning Based On</GUIRef> field to the fixed value of <GUIRef href="/baanerp/tc/domains/rpbo#inventory.level" role="option">Inventory Level</GUIRef>.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle> Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000470" role="manual">Supply planning by supplier</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000478" role="manual">How to set up confirmed forecast (supplier side)</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000476" role="manual">To work with minimum and maximum inventory</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000488" role="manual">To specify the minimum and maximum inventory</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>