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Embedded Release is a Form of Replenishment that combines uses a modified Planning Forecast, called Material Release Schedule, and eliminates the need for transmission of Discrete Releases Against Blanket Orders.
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. Forecast becomes firm release within negotiated lead-time or buyer explicitly marks requirements as "released". Releases are thus "embedded" within forecast. When the supplier detects that requirement is marked as "released" or falls within the negotiated lead time, the supplier processes the requirement as if a discrete release had been received. Enables theoretical zero lead-time, zero inventory, and electronic Kanban strategies. Conducive to an environment where releases are more frequent than weekly.
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