Calculating Operations Plans
To calculate an item’s operations plan, you run Source Matrix Explosion (33.13.8). This program calculates global sales forecasts, target inventory levels, and production due. It distributes production due to supply sites and production lines based on the percentages you have defined in the item source matrix and site line allocations.
Example: A company defines a source matrix for an item specifying production of 50% in Dublin and 50% in Milan. Total production due of the item is 1500 cases. The Milan site defines site line allocations of 25% to Line 1 and 75% to Line 2.
Explosion Calculation summarizes the explosion calculation.
Explosion Calculation
Several factors influence how the explosion calculates production quantities and due dates:
• The explosion assumes infinite capacity.
• By default, the explosion calculates an item’s target inventory levels and production due based on upcoming sales forecasts and beginning on-hand inventory balances. However, you can set the explosion to simply consolidate manually recorded target inventory levels or even production due dates loaded from individual sites.
• You can set the explosion to adjust production due quantities based on item-site MRP order modifiers. You can also prevent the explosion from changing production due inside the item-site time fence.
• When scheduling production, the explosion automatically considers item-site lead times—safety, inspection, purchasing, and manufacturing.
• The explosion does not schedule production for non-production weeks if Move Holiday Production Backward is Yes in Operations Plan Control (33.1.24), but reschedules production backward to the Monday of the first available working week. The Control setting does not affect production scheduling for working weeks with holidays.
