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Planning Considerations
Planning Considerations
MAC-PAC requires you to have one balance type that is used exclusively for manufacturing (the on-hand balance type). This balance type has On-Hand Balance Type flag = Y, Order Planning flag = Y, and Distribution flag = N. Although you can have only one balance type where the On-Hand flag = Y, you can set up additional balance types where the Order Planning flag = Y and the Distribution flag = N.
You are not required to have any balance types available for distribution. However, inventory reservation can only be performed for distribution inventory. Consequently, you will want to define at least one balance type with Distribution flag = Y if you are using Order Processing. If you create at least one balance type where the Distribution flag = Y, you must decide whether distribution balance types are also available for planning. If you set the Order Planning flag on the balance type to N, manufacturing and distribution balances will be completely segregated. If you set the flag to Order Planning flag to Y, distribution balances will be planned by the MS and RP modules.
The way you set up the balance type flags influences how you set up the Available for Planning and Sales Order Planning flags in the system. The most typical combinations are shown in the following figure.
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Plant/Warehouse Description File Flags
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Available for Planning Flag
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Sales Order Planning Flag
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Segregation of Manufacturing and Distribution -
If an end item is a component and is in the distribution balance, the planning modules will not be able to see or use it.
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N
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Y
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N
Because distribution inventory at manufacturing warehouse is not available for planning, inventory at the distribution warehouse should not be available for planning either.
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N
Because distribution inventory is not available to meet demand, sales orders sourced from that inventory should not be considered as demand in the planning modules
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The planning modules can use available distribution balances at manufacturing warehouses for manufacturing purposes. However, manufacturing cannot use balances at the distribution warehouse.
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Y
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Y
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N
Although distribution inventory at the manufacturing warehouse can be used for manufacturing purposes as necessary, inventory at the distribution warehouse should be used exclusively to meet customer demand.
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N
MAC-PAC will not plan for orders sourced from distribution inventory at the manufacturing warehouse. However, any inventory reserved for customer sales orders will be subtracted from the quantity available for planning, to avoid double-counting the inventory.
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Distribution warehouse is used as a staging ground for manufacturing purposes.
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Y
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Y
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Y
Inventory at the distribution warehouse can be used for manufacturing as necessary. Master Scheduling and Requirements Planning will plan for this use of the inventory.
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Y
Because MS and RP are planning for the use of the inventory in manufacturing, they should have visibility into all sources of demand at the manufacturing warehouse. Sales orders sourced from distribution inventory at the manufacturing warehouse will be included in MS/RP demand.
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Possible Combinations of Balance Type Flags and Warehouse Description Options