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)
|P203||Calculate Sourcing Plan||3||P203|
|DRP||Distribution Requirements Planning||DRP|
|MRP||Material Requirements Planning||MRP|