Using Source Matrices

For operations planning, the item source matrix defines the nature of supply and demand relationships for end items. It identifies the marketing sites that generate sales forecasts. It also defines how the operations plan calculation distributes global production demands to supply sites.

Item source matrices resemble single-level DRP source networks. The source matrix consists of one or more marketing sites. Each marketing site, in turn, has one or more supply sites. Each supply site has a percentage that specifies how much of the item’s global production demand it contributes.

See Source Networks.

The source matrix for item 0711 has three marketing sites that generate sales forecasts—London, Geneva, and Paris. London has two supply sites—Dublin, which supplies 50% of London’s production demand, and Milan, which supplies 50%. Geneva and Paris each have one supply site, Milan, which supplies 100% of their production demands.

Note: For better tracking of requirements between sites, multisite companies should use Operations Plan together with DRP. DRP generates intersite requests that identify the marketing sites that originated the demands.

See Managing Intersite Requests.

To include an item in the operations plan, you must set up a source matrix for it. The same site can be both a marketing site and a supply site (set supply percent to 100%).

If you use DRP, the operations planning source matrix relationships for marketing and supply sites must mirror the DRP source networks.

To set up source matrices, use Source Matrix Maintenance (33.5.13).

Enter the code for the marketing site. A marketing site is any site that generates sales forecasts. Examples include sales offices and distribution centers. An item can have multiple marketing sites in its source matrix.

Enter the code for the supply site. A supply site is any site that provides inventory to a marketing site. For manufactured items, the factory is typically the supply site. For purchased items, the purchasing site is the supply site. In a source matrix, a marketing site can have multiple supply sites.

Enter the start date for using this source matrix in operations planning. To use the source matrix to calculate this week’s operations plan, you must set the start date to the previous Monday or earlier.

Enter the end date for using this record in operations planning, or leave it blank.

Enter the percentage of the marketing site’s production requirement provided by this supply site. If the marketing site and supply site are the same, enter 100.0%. The system does not verify that the percentages for a marketing site’s supply sites total 100.0%.

Enter the transportation code (if any) for inventory the supply site provides to the marketing site. Record this if needed for reference.

Enter the transportation lead time (if any) for inventory the supply site provides to the marketing site. Record this if needed for reference.

Use two programs to view source matrix data:

• Source Matrix Inquiry (33.5.14) shows marketing and supply site relationships by item.

• Source Matrix Report (33.5.15) is similar, but you can specify ranges of items, sites, and effectivity dates.