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Replenishment Scenario 2 - Classic Material Release, Version 1.0 
Status:  Provisional Ratification by Committee November 2000.
Recast of Pre-2000 Version C Order Models (Balloted and Ratified by Membership, November 1996) and Version A Forecast Models and (Balloted and Ratified by Membership, August 1997)

Process Activities

Special Notes:                   

 


Activity Diagram (See also Narrative):

 


Narrative (see also Graphic):

Step Description
1. The buyer run Material Requirements Planning (MRP) process. Buyer nets MRP data to generate a planning forecast and determine whether replenishment is required during the current planning cycle.
2. If replenishment is required, buyer first has to determine if the blanket order can cover the requirements. If the blanket order is for a fixed quantity or dollars, the quantity-left-to-receive or dollars-left-to-receive must exceed the quantity or dollar value of the replenishment quantity. If the blanket order is for a fixed date range, the buyer must ensure that the blanket order is not about to expire. If the blanket order will not cover the replenishment, buyer must invoke Order Model 3 - Blanket Order, Forecast-based, to either change the existing Blanket Order, or generate a new Blanket Order.
3. If the blanket order will not cover the replenishment, buyer must invoke Order Model 2 - Blanket Order, to either change the existing Blanket Order, or generate a new Blanket Order.
4. If buyer determines that replenishment is required during the current planning cycle, buyer invokes Order Model 3A - Release Against Blanket Purchase Order, Buyer-Managed.
5. Buyer generates planning forecast to send to supplier per Forecast/Planning Model 1. Planning Forecast is typically regenerated weekly. Any changes/exceptions from a previous run are factored into the new generation of the planning forecast.  The seller responds to the forecast if needed.
6. Prepare for the next MRP run. If there are changes arising out of a supplier's response to a forecast, they are dealt with during this activity, then the next generation of the forecast starts again with 'Process MRP.'

Last updated 05 January 2003