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Prior to establishing forecasting process, buyer generates blanket PO for stated period (such as yearly). Blanket includes authorization and other terms. Buyer forecasts requirements (net of inventory), normally weekly. If replenishment is required, buyer issues weekly or daily, or JIT releases against the Blanket Order. Enables theoretical zero lead-time, zero inventory, and electronic Kanban strategies. Conducive to an environment where releases are more frequent than weekly.
There are many similarities between this business model and Replenishment Scenario 1. The major difference is that Material Release requires the establishment of the Blanket Purchase Order. Releases against a blanket order have less overhead associated with them than standalone (discrete) purchase orders.
See also Assumptions in the supporting documentation.
Overview (Use Case) Diagram Narration
Narration Overview (Use Case) Diagram
To be developed
Last updated 24 February 2003