Generate Supply Plans Using DRP
After you set up Distribution Resource Planning (DRP), you can generate supply plans incorporating Distribution Resource Planning settings into demand planning and order generation. You do this by using the Plan Through Distribution Network setting on the Generate Item Supply Plan page. With this setting, NetSuite examines the Bill of Distribution for appropriate items to determine sourcing for orders. For more information, see Creating Item Supply Plans.
Distribution Resource Planning is part of Time-Phased Planning which is no longer supported. This functionality has been replaced by Planning Rules in Supply Planning (MRP).
When you generate supply plans with this setting, NetSuite considers availability and lead times for all required assemblies and components across the network. The ultimate goal of filling a retail store order requires considering purchasing components from a vendor, warehousing and factory processing, and transit times.
When generating supply plans, NetSuite checks the Bill of Distribution to determine the source location for the transfer. This is true if the following options are set on the item record:
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The replenishment method is set to Time Phased.
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A distribution network and category are selected.
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The location has a Supply Type of Transfer
When these criteria are met, NetSuite generates transfer orders as indicated by the Bill of Distribution.
In the preceding example, demand is met working backward using the following steps:
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A forecast of finished goods is established at a Retail Store.
The finished good is received at the Retail Store.
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A transfer order of finished goods is created from Warehouse One to the Retail Store.
Warehouse One transfers the finished good to the Retail Store.
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A transfer order of finished goods is created from the Factory to Warehouse One.
The Factory transfers the finished good to Warehouse One.
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A work order of finished goods is created in the Factory.
The Factory manufactures the finished good.
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Dependent demand of a component generates a transfer order from Warehouse Two to the Factory.
Warehouse Two transfers the component item to the Factory.
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A purchase order is created for the component to the Vendor.
The Vendor ships the component item to Warehouse Two.
If at any stage in the process a components is selected, NetSuite re-evaluates the demand supply across the entire network and modifies orders accordingly. When the netting calculation requires new supply and the new supply is a transfer, NetSuite does the following:
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If the required transfer is within one subsidiary, NetSuite creates an unapproved transfer order.
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If the required transfer is across multiple subsidiaries, NetSuite creates an unapproved intercompany transfer order.
Transfer order creation using Distribution Resource Planning respects applicable demand time fences and planning time fences. For more information, see Time Fences.
If supply plan generation cannot be completed quickly, the job calculations are queued and the results will display on a status page.
After NetSuite generates supply plans, you can view individual plans that detail transfer orders that have been generated for items. The transfer orders identify the source location for the transfer, quantity to be transferred and expected receipt date.
After supply plans are verified you can place the orders.
To create the orders, you must use the order items page or mass create work order page. See Creating Orders from Supply Plans.