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Latest revision as of 19:11, 12 July 2022
The activities associated with determining a sourcing plan based on available demand and on-hand inventory, supplier scheduled deliveries and supplier contracts. This supply-demand balancing process will identify incremental supplier deliveries, excess inventory, undesired scheduled deliveries, excess contractual volumes and contractual shortages.
This process is generally highly automated and consists of two steps:
- Netting: Determine the incremental needs by deducting the inventory and current commitmwns from the demand
- Offsetting: Determine the timing of the incremental needs. This may include making recommendations to reschedule existing commitments
Alternative names include: Netting and Offsetting, MRP (Materials Requirements Planning), DRP Distribution Requirements Planning), Strategic Sourcing Plan (long term)
Planning Frequency
Cost of Goods Sold
Direct Material Costs
Hierarchy
| ID | Name | Level | x | | P2 | Plan Source | 2 | P2 |
| P203 | Calculate Sourcing Plan | 3 | P203 |
Term(s)
| ID | Name | Clear | x | | DRP | Distribution Requirements Planning | | DRP |
| MRP | Material Requirements Planning | | MRP |
Workflow
Calculate Sourcing Plan Plan Source 5120300 3 Material, Acquisition, Planning, MRP, Calculate, Requirements, Supply chain, Supply, Procurement, Purchasing, Netting, Offsetting Calculating the sourcing plan by comparing demand and supply for materials (and services)