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Ds Ns Demand Planning

The document discusses NetSuite's demand planning module which helps companies predict inventory needs based on historical data or forecasts. It allows defining multiple inventory locations, calculates demand and supply plans, and generates purchase orders, transfer orders, and work orders to fulfill needs.

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vkumaransgai
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20 views4 pages

Ds Ns Demand Planning

The document discusses NetSuite's demand planning module which helps companies predict inventory needs based on historical data or forecasts. It allows defining multiple inventory locations, calculates demand and supply plans, and generates purchase orders, transfer orders, and work orders to fulfill needs.

Uploaded by

vkumaransgai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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NETSUITE DEMAND PLANNING

Reducing Inventory, Increasing Turns, Reducing Lead Times

NetSuite was built to support the


Key Benefits
needs of product-based businesses
• Optimize inventory levels.
from its beginning and today offers a
• Increase turns.
variety of native features, functions and
• Reduce costs with order consolidation.
processes to help these businesses to
• Simplify the ordering process.
have the right materials available—at
• Workflow approvals.
the right time—in the right place.
One of these key features is our
native demand planning module that
is specifically designed to provide the
user with the ability to predict required
inventory based on historical demand
or sales forecasts. This innovative tool
offers the right balance of powerful
functionality and ease-of-use to help you
manage your inventory more efficiently.

www.netsuite.com
Multi-Location Inventory are over-ridden in the location sublist. This
One of the key features that NetSuite delivers defines the item as being available to demand
is the ability to easily define multiple inventory planning, establishes an alternate source
locations with real-time visibility. Locations item (if you are trying to plan a new item
can be organized hierarchically, and for global with no sales history) and establishes which
businesses the country can be defined. During Distribution Network and Category it might
the planning process, the system can be set belong to if you are using our DRP functionality.
up to automatically create transfer orders
between locations where necessary.

Multi-Location Inventory
Item Setup

System Setup
Demand Planning and Distribution Resource On the Location sublist is where you will find
Planning need to be enabled in your account a lot of additional planning parameters that
in order to be available to users and there are affect either how demand is evaluated or how
a number of other settings that affect how the the planned orders are generated.
system behaves. These settings include:
• Safety Stock
• Let Sizing Method
• Fixed Lot Size
• Supply Planning Periods
System Setup • Supply Type
• Demand Source
Item Setup
One of the most critical areas to the planning • Forward and Backward Consumption Days
process is defining the parameters that affect • Demand & Planning Time Fences
each item. The settings that are found in the • Reschedule In/Out Days
Inventory Management section of the item
apply to the item as a whole unless they

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Page 2
Generate
Calculate Calculate Generate
Demand Approve
Demand Supply Supply Plans
Plans

The Demand Planning Process

The Demand Planning Process Demand Plans


Now that the items have been set up as Once the demand plans have been
desired, the system can evaluate demand generated, the user can easily modify
and present it in a number of ways. The them to include any known exceptions.
menu structure is laid out in a way that shows This essentially becomes your MPS.
the process to calculate demand, review
Supply Plans
the demand plans and edit where required,
Now that the demand plans have been
generate the supply plans, review and edit
generated and edited, creating the supply
those and finally generate planned Purchase
plans is a simple one-click process using
Orders, Transfer Orders and Work Orders as
the item settings to control how the orders
desired. Note that the system can be set up
are created. Depending on some parameters
to generate actual transactions and skip the
and approval workflows, the system will either
planned orders if desired.
generate planned, firm or released orders.
Available Planning Methods
• Linear Regression – Use previous demand
to project future inventory based on the
ordinary-least-square regression method.
• Moving Average – Use the moving average
of historical demand to calculate the overall
average stock level needed, and then project
future stock levels using that overall average.
Supply Plans
• Seasonal Average – Use previous demand
to examine the seasonal trend of inventory Planning Action Messages
flow, and then project a similar seasonal NetSuite can also generate planning
trend for future stock levels. messages to assist the user in making the
• Sales Forecast – When using NetSuite for right decisions and optimize inventory levels
your sales operations, this option uses where appropriate.
forward looking sales forecast data (such
as opportunities, estimates, etc.) to project
inventory demand.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. Page 3
Gross Requirements Inquiry
The Gross Requirements Inquiry provides
an overview of the progressive supply and
demand cycle by listing quantities required
and quantities supplied on each transaction
date listed. Each transaction and date is listed
along with the more-on-hand or less-on-hand
quantity of the transaction, as well as the
resulting total quantity on hand for the item. Gross Requirements Inquiry

Order Execution
The result of the planning process simplifies
the process of creating purchase orders,
transfer orders and work orders for the user
and they can be notified in a number of
ways when they have to do something—this
includes:
• Reminders
• Email alerts Order Execution

• Saved searches
• Scheduled reports
Executing these from the Order Items or Mass
Create WO screens is a simple as checking a
box beside the orders you want to create and
hitting a button.

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

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