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Replenishment Scenario 3 - Embedded 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)

Business Overview

Special Notes:

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

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Narration   Overview (Use Case) Diagram

To be developed

Last updated 24 February 2003