Short & sweet: Planned value distribution

The planned value distribution function in an ERP system is the mechanism for converting a forecast value to a more detailed time scale.

When forecasting demand, it makes sense to work with monthly forecast values in the majority of cases and for a variety of reasons. Parts planning, on the other hand, is based on the daily level. Monthly plan requirements must therefore be broken down into daily plan requirements. However, it does not always make sense to distribute a monthly plan requirement evenly over all working days of a month. For items that are typically only requested once a week, every 14 days or even once a month, this would give a false picture of demand behavior.

This breakdown can be controlled in detail in an ERP system using the plan distribution mechanism.

Our tip:Defining the planned value distribution for articles statically often makes no sense, as the demand behavior of an article can change again and again. A dynamic planned value distribution that constantly adapts to the current item-specific demand behavior makes more sense. Such a dynamic planned value distribution can be achieved, for example, by an MRP rule that controls the variant of the planned value distribution depending on the WMQ classification of an article.

Further information on this topic can be found here:

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

Talk to us!

We are there for you personally and will be happy to advise you individually on our services and solutions.