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Make or Purchase to Order Replenishment Due Date Buffer

At times, a planner may wish to schedule the arrival of make or purchase to order items replenishment order to arrive one or a few days before the due date of its sales orders or dependent demand requirement. This method facilitates this objective.

Required Settings

This process is applicable when an item has the following planning attributes:

  • The item must have a setting of make or purchase to order  
  • Requirement planning must be daily buckets not weekly buckets
  • There is an open customer order or dependent demand requirement to fulfill outside of the items lead time
  • There is a CRT (customer response time) value for the item that is not 0. The CRT is the value used for the order buffer and is found in the options tab within the Planning Settings section.

How it Works - Without CRT

In the example below, the item is purchase to order with a total lead time of 5 days and a CRT of 0 days.  As can be seen, since the item has inventory, the suggested order at the point where there is not enough inventory, are one to one where the replenishment is due on the same day as the requirement.

How it Works - With CRT

Now, we add 2 days as the CRT value for the item.

What happens now is that the replenishment order is scheduled to arrive two days before the order requirement is due.

Please note, that if the buffer falls on a weekend or during the lead time, the offset requirement is scheduled around the non-delivery period but after the lead time. That is why on the 23rd of January, there is a total replenishment of 13,680 due to arrive to fulfill the requirements dueing on the 24th and 25th of January.

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