Planning Hierarchy - Exercises
IMPORTANT |
It is extremely important that you set up and work within your own
site to maintain your data integrity. If you work within any other
site, you will compromise your own exercise data as well as the data of
other students. Predictable exercise results require that your data be
isolated in your own site. |
Basic Data Setup
Purchase/Inventory/Sales Part
Purpose: The purpose of this exercise is to create part
data entries necessary for running the reordering functionality.
Windows:
New Part Assistant
- Create a number of parts as both purchased, inventory, and sales part by using the
New Part Assistant. Part should belong to the same company but could have
different sites.
- The parts created should use different groupings like asset class,
commodity group and could also have different primary suppliers.
- If the planning hierarchy should be used for ABC/Frequency/Lifecycle
level one needs to create transactions in previous periods and run the
background job for classification.
General exercise for
Purchased
Part
General exercise for
Stored Sales
Part
Main Exercise
Purpose: The purpose of this exercise is to show you how
to set up planning hierarchy and how to review the impact on inventory part.
Windows:
Basic Data for Planning Hierarchy
Inventory Part/Planning/General
Inventory Part/Planning/Order Point
The planning parameters used for calculating safety stock, order point and
lot size should be controlled on different groupings of inventory parts.
- Open the
Basic Data for Planning Hierarchy window. Note that
values on the company level are required as these represent the last level of
the hierarchy.
- For created inventory parts verify that values for planning parameters
from hierarchy on
General and
Order Point tabs
in the
Inventory Part/Planning window all have
the source from company and use those values.
- Open the
Asset Class tab in the
Basic Data for
Planning Hierarchy window and create values for asset class in both
the
General and the
Order Point tab. Use some of
the asset classes created and used on your parts. Note that it is not necessary
to change all values. You could for instance have values for ordering cost
and inventory interest(%) to be fetched from company and then have different
values for service rate(%) depending on the asset class used on the inventory
part.
- Check inventory parts again to verify that values for a specific asset
class are actually used on the individual inventory part. Service rate(%)
can be checked on Inventory Part/Planning/General
- Continue to test and verify different settings on different levels of the
planning hierarchy and that it updates the inventory part. If
ABC/Frequency/Lifecycle classification is used make sure that they are
updated. Check that values are picked from the right priority. Values
defined lower down in the hierarchy should be used before values higher up.
For example values from site should be used before company.
- Finally open a inventory part, Inventory Part/Planning/General
or Order Point
tab and make changes directly on that part. Verify that this value is
used as operational value and that the source in inventory part. This
represents the lowest level in the planning hierarchy.