| VMI planning based on confirmed supply |  |
| This topic describes how a VMI supplier can plan the supply for a customer based on confirmed supply. For an introduction to the various planning methods, refer to Planning methods (VMI). General planning procedure If the VMI planning is based on confirmed supply, the general planning procedure is as follows: The customer sends the supplier a forecast for the items for which the supplier handles the supply planning. Based on the forecast, the supplier generates the planned supply for these items in the form of planned orders. These planned orders are based on either the total forecast or on the confirmed part of the forecast. If necessary, the supplier can move or adjust the planned orders to create a feasible plan. The supplier converts this planned supply and any existing supply orders to confirmed supply. After optional modification, the supplier communicates the confirmed supply to the customer. The supplier uses the values of the confirmed supply to generate planned orders. Note You can skip the steps 1 through 4 and manually define the confirmed supply. In step 3 and step 5, the planner can adjust the planned supply. Parameter setting To specify this planning method, define an appropriate terms and conditions agreement on the Terms and Conditions Line (tctrm1620m000) session's Planning tab. Use the following settings:
Responsible for Supply Planning | = | Yes
Forecast received from Customer | = | Yes
Confirm Supply | = | Yes
Confirmed Supply Based On | = | Total Forecast or Confirmed Forecast
Replenishment Based On | = | Confirmed Supply, Inventory Level, or Manual
Planning Based On | = | Confirmed Supply
Note If you select the Confirm Supply check box, the Planning Based On field is set to the value Confirmed Supply and cannot be modified. Related topics Supply planning by supplier How to set up confirmed forecast (supplier side) To work with minimum and maximum inventory |