Preserving Inventory and Supplies for Short-term Demands

This topic applies to APS.

In some situations, demands may consume inventory and planned supplies earlier than necessary, causing shorter-term demands (for example, demands planned using Get ATP/CTP) to be late.

For manufactured, purchased items, you can use safety stock, as well as the Time Fence Rule for the item.

A time fence rule determines a boundary of time for preventing longer-term demands from consuming inventory and supplies. Demands due later than the time fence cannot deplete available inventory and supplies below a preservation level, which is based on the item's Safety Stock level.

Valid Time Fence Rules are:

• Lead Time: The length of the time fence is defined by the end item's lead time (Fixed Lead Time + (Variable Lead Time x order quantity)). If a PCAL shift is defined, the system calculates lead time according to that shift. Otherwise, it calculates lead time using 24 hours x 7 days a week. Select this option if the time to replenish this item's quantity should be represented only by the end item lead time.
• Accumulated Lead Time: The length of the time fence is defined by the accumulated lead time for the end item + the lead times for all of its component items. If a PCAL shift is defined, the system calculates lead time according to that shift. Otherwise, it calculates lead time using 24 hours x 7 days a week. Select this option if the time to replenish this item's quantity should include the lead times of all the components (that is, the components may not typically be available).
• Specific Value: The length of the time fence is defined by the value in the Time Fence Value field (in days). The system calculates lead time using 24 hours x 7 days a week.