<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000135" xml:lang="en">
   <Header>
      <Title>To generate critical material requirements</Title>
      <Keyword type="header" order="d1e193456">
         <Level1>Critical material requirements</Level1>
      </Keyword>
      <Keyword type="header" order="d1e193459">
         <Level1>Rough material requirements</Level1>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>When a <Link href="/baanerp/cp/glossary/glossary#000018" role="glossary">production plan</Link> is generated, the critical components
      needed to carry out this production plan are recorded as <Link href="/baanerp/cp/glossary/glossary#000130" role="glossary">critical material requirements</Link>. In the <GUIRef href="/baanerp/cp/rmp/cprmp2101m000" role="session">Item Master Plan (cprmp2101m000)</GUIRef> session, these requirements are visible as <Link href="/baanerp/cp/glossary/glossary#000119" role="glossary">dependent material demand</Link>.</Paragraph>
      <List>
         <ListIntro>A component is considered a critical material for the
        production of an item if the following conditions are met:</ListIntro>
         <ListItem>The component appears in
        the item's <Link href="/baanerp/ti/glossary/glossary#000081" role="glossary" Update="No">bill of critical materials (BCM)</Link> (see the <GUIRef href="/baanerp/cp/rpd/cprpd3120m000" role="session">Bill of Critical Materials (cprpd3120m000)</GUIRef> session).</ListItem>
         <ListItem>The first date with
        capacity of the plan period in which the planned supply falls (or, no such date
        exists, the first day of the plan period), must fall between the effective date
        and the expiry date recorded for the critical component in the item's BCM.</ListItem>
      </List>
      <Paragraph>As a rule, critical
      material requirements are generated when you update an item master plan (refer
      to the topic <Link href="/baanerp/cp/onlinemanual/000086" role="manual">To maintain an item master plan</Link>. (When you use the <GUIRef href="/baanerp/cp/rpd/cprpd4200m000" role="session">Initialize, Roll, and Update Scenario (cprpd4200m000)</GUIRef> session, however, you can disable
      the generation of requirements.)</Paragraph>
      <Paragraph>Because the production
      process obviously takes time, the planning of a critical material requirement
      must fall sometime before the planned supply of the end item. Assuming that the
      supply of the end item is evenly distributed over the plan period, the material
      requirement is shifted back in the past with the <Link href="/baanerp/ti/glossary/glossary#LeadTimeOffs_ti" role="glossary">lead-time offset</Link> recorded in the BCM of the
      end item.</Paragraph>
      <GeneralSection>
         <SectionTitle>Offsetting logic BCM</SectionTitle>
         <Paragraph>LN takes into
        account the parent / component relation when it calculates <Link href="/baanerp/cp/glossary/glossary#000074" role="glossary">dependent demand</Link> for critical items. As a result, LN plans a multiple of the <Link href="/baanerp/ti/glossary/glossary#000081" role="glossary">bill of critical materials</Link> (BCM) quantity in each <Link href="/baanerp/cp/glossary/glossary#000109" role="glossary">plan period</Link>. The advantage is that you do not have to
        wait until the <Link href="/baanerp/cp/glossary/glossary#000018" role="glossary">production plan</Link> of all the periods over which the
        dependent demand is spread, is executed.</Paragraph>
         <List>
            <ListIntro>The offsetting process to plan critical components is as
          follows:</ListIntro>
            <ListItem>Create a production
          plan for the parent item.</ListItem>
            <ListItem>Offset the lead time
          of the parent item to the plan periods, and divide the amount of the forecasted
          demand over the available plan periods.</ListItem>
            <ListItem>Round the forecasted
          demand to the parent unit set according to the unit set that you defined for
          the parent item in the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> session.</ListItem>
            <ListItem>Multiply each BCM
          quantity of critical components of the parent item.</ListItem>
            <ListItem>Round the (critical)
          dependent demand according to the component unit set.</ListItem>
         </List>
         <List>
            <ListItem>The start date for
          the critical material requirement is computed as the start date of the plan
          period minus the lead-time offset (in working days).</ListItem>
            <ListItem>Likewise, the end
          date of the requirement is computed as the end date of the plan period minus
          the lead-time offset (in working days).</ListItem>
            <ListItem>The period comprised
          by the start date and the end date of the material requirement can overlap with
          more than one plan period. In that case, the required quantity is distributed
          over these plan periods in proportion to the available capacity (according to
          the company calendar) in each plan period.</ListItem>
            <ListItem>For each combination
          of originating plan period and required plan period, a separate critical
          material requirement is recorded.</ListItem>
         </List>
         <Paragraph>You can view the
        critical material requirements in the <GUIRef href="/baanerp/cp/rmp/cprmp2505m000" role="session">Critical Material Requirements (cprmp2505m000)</GUIRef> session. The origin of critical material
        requirements is displayed in the <GUIRef href="/baanerp/cp/rmp/cprmp2505m000" role="session">Critical Material Requirements (cprmp2505m000)</GUIRef> session.</Paragraph>
      </GeneralSection>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>To guarantee that
        dependent demand explosions of critical items are allocated to the correct
        warehouse, a warehouse must be specified on the BCM line. LN automatically
        enters the warehouse specified for the item on the BOM line in the <GUIRef href="/baanerp/ti/bom/tibom1110m000" role="session">Bill of Material (tibom1110m000)</GUIRef> session, or the warehouse specified for the item in
        the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session if no warehouse is specified on the
        BOM line. <Link href="/baanerp/tc/onlinemanual/tc" role="manual">
               <GUIRef href="/baanerp/tc" role="package">Common</GUIRef>
            </Link> explodes the ATP and
        the dependent demand of a main item to plan items that have the same cluster as
        the warehouse you specified on the bill of critical materials of the main item.</Paragraph>
      </Note>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000327" role="manual">To generate critical requirements</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000086" role="manual">To maintain an item master plan</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000134" role="manual">To generate critical capacity requirements</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>