Calculations of Available Inventory and Demand

The following calculations are used in the Just-in-Time, Master Scheduling, and Requirements Planning modules to determine available quantities for various inquiries and reports. 

1.   For the manufacturing warehouse, all inventory balances where the Order Planning flag on the balance type is Y, are totaled.

2.   The Work in Process balance is added to the total.

3.   For the manufacturing warehouse, if any balance types are available for both planning and distribution (both Order Planning Flag and Distribution Flag = Y on the balance type), and sales orders are not considered for planning (the Sales Order Planning Flag on the Warehouse Description File is N), then the inventory quantity reserved for customer sales orders is subtracted from the total. 

4.   For every distribution warehouse associated with the plant, the Warehouse Description File is read to determine if balances at the warehouse are available for planning.  If so, any distribution balance at the warehouse is added to the total.

Demand calculations include component requirements, flow requirements, transfer orders, offset releases, part delivery point relationships, and customer sales orders.  Transfer orders are included if they have a relief code of M.  (The Sales Order Planning flag refers only to customer sales orders, not transfer orders). 

Note that Master Scheduling and Requirements Planning treat planned and unplanned orders differently.  Depending on each part's consumption code, planned orders are netted against forecast demand to determine whether actual or predicted demand is higher.  Unplanned orders are added to this net quantity to give the total demand.  Transfer requisitions and transfer orders are labeled as planned or unplanned on the multi-line and line detail screens in the Requisition Maintenance conversation and on the header and multi-line screens in the Transfer Order Maintenance conversation, respectively.  Note, however, that the relief code is still in effect--for transfer orders that are not considered for planning (relief code is not M), the Planned/Unplanned flag is irrelevant.  In other words:

·     Planned/Unplanned flag is never relevant for any orders or requisitions sourced from distribution warehouses

·     Planned/Unplanned flag is always relevant for orders and requisitions sourced from manufacturing inventory at manufacturing warehouses, if the part's consumption code warrants it.

For more information about how inventory is handled in MAC-PAC, including details about balance types, relief codes, and sales order demand calculations, refer to the Inventory Control and Order Processing User Manuals.