Advanced demand fulfillment option

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With advanced demand fulfillment option, you can do the following:

• Specify demand fulfillment methods (purchase, transfer, assembly).
• Specify demand fulfillment schemes.
• Set inventory level control parameters for a warehouse and individually for each product by different warehouses.
• Set inventory level control parameters for a group of product items and warehouses.
• Generate different orders according to demand fulfillment parameters (purchase orders, transfer orders, etc).

Demand fulfillment parameters for product items are specified within workplaces:

• Set up inventory level control — allows you to specify demand fulfillment methods and corresponding inventory level control parameters.
• Set up demand fulfillment methods — allows you to specify demand fulfillment methods and packaging for ordered goods.

Scenario of demand fulfillment at a warehouse:

• Set up inventory level control:
  • Specify product items for which inventory level must be controlled.
  • Set fulfillment methods and inventory level control parameters for product items.
• Set up demand fulfillment methods:
  • Set supply scheme for a warehouse.
  • Link the supply scheme for a warehouse to product items.
• Generate orders by demands according to the specified settings.

Inventory level control parameters

To generate optimal inventory level at warehouses, there are different demand fulfillment methods and corresponding inventory level control parameters.

Supply method is a strategy according to which demands are fulfilled to control stock balance and fulfill shipment orders.

There are different supply methods to fulfill demands from inventory:

• Min – Max
• Calculation by standard
• Calculation by statistics

These supply methods allow you to maintain inventory at a minimum required balance level.

If you use the above mentioned methods, your main supply task is as follows:

• When ordering By schedule, determine purchase volume for the earliest delivery to fulfill demands for the covered period until the next delivery.
• When ordering By order point, determine delivery date (order date) by inventory e, when "order point" is reached.

Min – Max supply method

If goods consumption statistics is not kept in the applied solution, it is recommended that you use the Min – Max supply method. This method allows you to control inventory level at a warehouse according to the required minimum balance.

If you use this method, safety stock and sales statistics are not considered when analyzing the order point.

Inventory level control by using the Min – Max supply method is maintained according to the certain parameters (parameters are specified manually):

• Maximum inventory is goods quantity at a warehouse right after inventory replenishment.
• Minimum inventory is goods quantity at a warehouse upon reaching which it is necessary to generate an order.

Demand for goods order will arise if warehouse balance is less than or equal to the minimum balance. When inventory is decreased to the minimum value, the application offers you to order goods quantity equal to the required maximum inventory.

Example

In the diagram, you can see examples of calculating goods quantity which is recommended to be ordered for replenishing inventory by using the Min – Max supply method.

Values of inventory level control parameters are specified manually based on Demand fulfillment method parameters.

Calculations by using the Min – Max supply method are shown in table 4.1.

Table 4.1

	By order point	By schedule
Demand fulfillment method parameters
Delivery time	Specified manually as agreed with supplier
Covered period	Specified manually. The longer the period, the rarer and larger deliveries	Time period between delivery dates: The earliest delivery date / Next delivery date. Dates are specified manually as agreed with supplier
Inventory level control parameters
Min inventory	Specified manually. Goods quantity required for Delivery time
Max inventory	Specified manually. Goods quantity required for Covered period
Order calculation by the application
Order date	Current date if: Balance* ≤ Min inventory	The earliest delivery date - Delivery time
Quantity to order	Max inventory - Expected receipts**	{(Max inventory - Expected receipts**) - (Balance* - Min inventory)}
Delivery date	Order date + Delivery time	The earliest delivery date

Calculation by standard supply method

If it is required to control inventory level at a warehouse according to the goods consumption rate per day, it is recommended that you use Calculation by standard supply method.

If you use the Calculation by standard method, inventory outflow is forecasted according to the daily consumption rate.

Inventory level control by using the Calculation by standard method is maintained according to inventory level control parameters:

• Consumption rate per day is goods quantity consumed per one day.
• Minimum inventory is goods quantity at a warehouse upon reaching which it is necessary to generate an order.
• Maximum inventory is goods quantity at a warehouse right after inventory replenishment.
• Safety stock is a part of minimum inventory which is set manually. Remaining part of the minimum inventory is calculated automatically by consumption rate for delivery period.

Daily consumption rate is specified manually by users. Maximum and minimum inventory are calculated individually for a product and automatically according to the specified daily consumption rate.

Minimum inventory is calculated for the order fulfillment period — goods quantity that fulfills goods demand for delivery period. Maximum inventory is calculated for the covered period — goods quantity that fulfills goods demand for this period (parameters specified for a demand fulfillment method are counted).

If you use this method, you can generate an order when the current stock balance (minus the safety stock) is enough for no more than order fulfillment period by the specified supply method.

When inventory is decreased to the minimum quantity required for delivery time, the application offers you to order quantity that is equal to the maximum inventory required for the covered period.

Quantity to order by this method is calculated in a way that goods are enough for the specified supply period or till the specified date. Quantity of goods that needs to be fulfilled is calculated as average daily consumption multiplied by the number of days until the next delivery or number of days in the covered period (it depends on the settings specified in the supply method). You can calculate goods quantity using formulas:

Maximum inventory = Consumption rate per day * Covered period (number of days from the earliest delivery to the next delivery) + Safety stock

Minimum inventory = Consumption rate per day * Number of days until next delivery + Safety stock

Example

In the diagram, you can see examples of calculating goods quantity which is recommended to be ordered for replenishing inventory by using the "Calculation by standard" method.

Minimum and maximum inventory are calculated based on Demand fulfillment method parameters.

Calculations by using the Calculation by standard supply method are shown in table 4.2.

Table 4.2

	By order point	By schedule
Demand fulfillment method parameters
Delivery time	Specified manually as agreed with supplier
Covered period	Specified manually. The longer the period, the rarer and larger deliveries	Time period between delivery dates: The earliest delivery date / Next delivery date. Dates are specified manually as agreed with supplier
Inventory level control parameters
Consumption rate per day	Specified manually. Expert evaluation, average daily consumption
Safety stock	Specified manually. Expert evaluation of possible consumption variance from standard or increase in consumption due to failure of delivery period
Min inventory	Consumption rate per day * Delivery time + Safety stock
Max inventory	Consumption rate per day * Covered period + Safety stock
Order calculation by the application
Order date	Current date if: Balance* ≤ Min inventory	The earliest delivery date - Delivery time
Quantity to order	Max inventory - Expected receipts**	Max inventory - (Balance* - Min inventory)
Delivery date	Order date + Delivery time	The earliest delivery date

If the current balance is in the range of: Min inventory - Safety stock / Min inventory, the application calculates the quantity To order = Max inventory (for the covered period) + Safety stock. Demand fulfillment method parameters and inventory level control parameters are specified and calculated according to table 4.2.

Calculation by statistics supply method

If outflow statistics is known and variance of calculated consumption is small in different days, it is recommended that you use Calculation by statistics demand fulfillment method.

This method uses accumulated goods consumption statistics. Inventory outflow is forecasted according to the average daily consumption calculated by statistics.

If using the Calculation by statistics supply method, product inventory level control parameters are calculated individually:

• Average daily consumption is goods quantity consumed per one day.
• Minimum inventory is goods quantity at a warehouse upon reaching which it is necessary to generate an order.
• Maximum inventory is goods quantity at a warehouse right after inventory replenishment.

With the Calculation by statistics supply method, you can specify additional inventory level control parameter — Safety stock which allows you to cover extraordinary demand (compared to calculated statistics) and fulfill inventory level control for product items in case of inventory replenishment time delay.

Average daily consumption is calculated according to the specified settings of average daily consumption calculation by statistics of previous periods. Average daily consumption is calculated by the following methods:

• Scheduled job according to the configured schedule.
• Background job if the scheduled job is unavailable. Calculation is performed if filter by warehouse is set in the Set up inventory level control workplace.

The following documents are used in the average daily consumption calculation:

• Internal goods consumption
• Sale adjustment
• Goods shortage slip
• Damage slip
• Transfer of raw materials to toller
• Write off goods shortages
• Goods damage
• Goods misgrading
• Goods issue note
• Sales of goods and services
• Goods assembly
• Retail sales report
• Cash receipt
• Transfer to material provider

Sales for the period are reduced by using the documents:

• Return of raw materials from toller
• Return of goods from customer
• Refund receipt

To customize statistics calculation of average daily consumption, click More — Customize consumption statistics calculation within the Set up inventory level control workplace.

You can calculate average daily consumption by:

• Warehouse consumption — all warehouse workdays are counted when goods consumption is recorded from the warehouse.
• Warehouse sales — only warehouse workdays are counted when goods are sold and can be sold (goods are in stock).

Average daily consumption of goods is calculated using this formula:

Average daily consumption = Sales from warehouse (Warehouse consumption) / Number of warehouse workdays in the period.

When calculating average daily consumption, days of "incomplete sales"/"incomplete outflow" are not counted. This means that average daily consumption is calculated without including zero balance as of the beginning and end of the day. The following conditions are met during the calculation:

• Start balance in stock > 0 (as of the beginning of the day)
• Closing balance in stock > 0 (as of the end of the day).

If there is balance as of the beginning and end of the day, then balance of that day is counted whether or not there was a sale (warehouse consumption).

If there is no balance at the beginning of the day or the item is out of stock at the end of the day, such day and sales of this day are not counted in the statistics.

Zero balance as of the beginning and end of the day can significantly distort statistics. For example, if goods are sold within a month: "how much bought, so much sold, same day"—in this case, you can use planned purchase by the "pushing" scheme.

If the Sales from warehouse mode is selected, you can calculate average daily consumption for distribution centers. Distribution center is a warehouse specified as a demand fulfillment source for a specific product at another warehouse.

For a distribution center, sales from all warehouses are counted for which it is specified as a demand fulfillment method.

Consumption statistics calculation allows you to determine the best-selling goods based on data of average daily consumption and variance thereof. This can help you select a demand fulfillment method. For example, if goods are sold consistently (variance of average daily consumption is small), you can use the Calculation by statistics supply method. If goods are sold inconsistently, it is recommended that you use the Min – Max or Calculation by standard supply methods.

Based on average daily consumption, the maximum and the minimum inventory are calculated automatically for a product. The minimum inventory is calculated for the order fulfillment period, the maximum inventory is calculated for the covered period.

If you use this method, you can generate an order when the current stock balance (minus the safety stock) is enough for no more than order fulfillment period by the specified supply method. Quantity to order by this method is calculated in a way that goods are enough for the specified supply period or till the specified date.

When inventory is decreased to the minimum quantity required for inventory replenishment time, it is recommended that you order the maximum goods quantity for the covered period.

Minimum and maximum inventory are calculated based on Demand fulfillment method parameters.

Calculations by using the Calculation by statistics supply method are shown in table 4.2.

Example of calculating average daily consumption of goods if advanced demand fulfillment option is used

Source data:

• Period to calculate average daily consumption: 09/01/2017 — 09/30/2017.
• Sales/consumption for period 09/01/2017 — 09/30/2017: 30 items.
• Number of workdays of the warehouse over the period for which average daily goods consumption is calculated: 22.

To calculate average daily consumption for the "Rack (standard)" product, inventory level control parameters are specified:

• The Calculation by statistics inventory level control method is selected (within the Set up inventory level control workplace).
• Period and number of periods for which warehouse sales/outflows statistics is gathered (Period — "Month", Number of periods — "1"). To do so, in the Set up inventory level control workplace, click More — Customize consumption statistics calculation, and then use the Customize average daily consumption calculation form. Statistics for calculating average daily consumption of goods is gathered for the previous month in which sales are registered.

When calculating average daily consumption of goods, days of sales for which there is a zero balance (as of the beginning and/or end of the day) and sales/outflows for these dates are not counted (see the diagram below):

• 09/01/17 with consumption of 0 items (Start balance = 0)
• 09/22/17 with consumption of 8 items (Closing balance = 0)
• 09/25/17 with consumption of 0 items (Start balance = 0)

The Goods in warehouses list report contains information on stock balance to calculate average daily consumption for.

Average daily consumption is calculated as follows: Average daily consumption = Sales from warehouse (Warehouse consumption) / Number of warehouse workdays for the period = (7 + 10 + 5)/18 = 22 / 18 = 1,222 items.

The calculation results of average daily consumption of goods are shown in the Demand fulfillment parameters form. To view the results, click Calculation by statistics (demand fulfillment method name) within the Generate orders by demands workplace (step 3).

Demand fulfillment modes by shipment orders

Demand fulfillment by shipment orders is provided in the following modes:

• Supply from stock. If shipment orders are supplied from stock, then all available goods and expected goods receipts are counted during calculation:
  • To control inventory level: Balance = All balance, Orders to receive = All orders to receive
  • To fulfill shipment orders: Supplied = Available balance + Available from orders to receive + To order
• Supply regardless of inventory level control. If shipment orders are supplied regardless of inventory level control, available stock and expected receipts are counted. When calculating balance and expected receipts, quantity of goods reserved at the warehouse and allocated to delivery orders is counted:
  • To control inventory level: Balance = Available balance, Orders to receive =Available from orders to receive.
  • To fulfill shipment orders: Supplied = 0

Demand fulfillment mode by shipment orders is defined by the Demands of shipment orders setting in the Inventory level control parameters form. To access this form, in the Set up inventory level control workplace, click Fill in — Inventory level control.

Shipment order fulfillment mode is considered when calculating quantity of goods to order for demand fulfillment by current shipment orders within the Generate orders by demands workplace.

Setting up inventory level control

You can set up inventory level control in the Set up inventory level control workplace. To enter the workplace, click the link of the same name from the product or warehouse profile (or click Warehouse and delivery – Demand fulfillment).

You can also set up inventory level control within the Generate orders by demands workplace by clicking the Configure inventory level control link.

You can add goods and calculate recommendations if the filter by warehouse is set.

There are two modes to set up inventory level control:

• Valid parameters — goods for which inventory level must be controlled are added, inventory level control methods and parameters of a specific method are selected.
• Edit recommendations — the application automatically provides recommendations that allow you to decide whether to control inventory level at the warehouse by specific product items. Edit recommendations of inventory level control parameters are calculated by the following methods:
  • Scheduled job according to the configured schedule.
  • Background job if the scheduled job is unavailable. Calculation is performed if you set a filter by warehouse in the Set up inventory level control workplace.

In the Set up inventory level control form list, you can see goods and package by which inventory level is controlled at warehouses.

To fill in the list of goods by which inventory level at the warehouse must be controlled, you can use one of the following methods (Add goods button):

• Standard goods selection data processor.
• Goods selection by any parameters (price groups, product groups, availability at the warehouse, etc).
• Data import from an external file of arbitrary format. When importing from file, you can specify the minimum and the maximum inventory for product items.

When you add goods, the Min – Max demand fulfillment method is selected and the Supply from stock demand fulfillment mode is set for these goods by default.

To select a demand fulfillment method, shipment order fulfillment mode, and set up inventory level control parameters, open the Inventory level control parameters form by clicking Fill in — Inventory level control button in the Set up inventory level control form.

You can specify inventory level control parameters for several selected items at the same time.

There are advanced options within inventory level control workplace:

• Merge product items into arbitrary groups of controlled inventory (for example, combine product by sales stability, inventory turnover, demand level, sales volume, etc). To do so, click Grouping — Group. Grouping simplifies inventory level control parameters setting and allows you to specify common inventory level control parameters for a large number of products. There are no restrictions on naming a group. Inventory level control parameters specified for a group will apply to all product items of this group located in different warehouses.
• Transfer product items from one inventory level control group to another. To do so, click Grouping — Transfer to group.
• Exclude product items from inventory level control group. To do so, click Grouping — Exclude from group.

For a product with accounting by characteristics, you can see the "common to all characteristics" setting displayed in the set up inventory level control form. It allows you to specify individual inventory level control parameters for a product characteristic. To do so, click Grouping — Set individual parameters for characteristics.

To delete inventory level control parameters for a specific product characteristic, click Grouping — Remove individual parameters for characteristics. In this case, inventory level control parameters common to all characteristics will be applied to the product.

There are different data view modes for inventory level control settings (click More — View mode). The List mode provides a convenient product items search.

If it is not reasonable to control inventory level of a product item, you can exclude it from controlled inventory. To do so, click More — Exclude from controlled inventory.

Order against order supply method

If you want to fulfill demands for a product against shipment orders, you can use the Order against order demand fulfillment method.

Goods fulfillment against orders is marked by the least demand in current assets and low probability of surplus inventory.

If you use this method, inventory level control parameters are not specified.

Calculations by "Order against order" strategy are displayed in table 4.3.

Table 4.3

	By order point	By schedule
Demand fulfillment method parameters
Delivery time	Specified manually as agreed with supplier
Covered period	Specified manually. The longer the period, the rarer and larger deliveries	Time period between delivery dates: The earliest delivery date / Next delivery date Dates are specified manually as agreed with supplier
Order calculation by the application
Order date	Current date	The earliest delivery date - Delivery time
Quantity to order	Quantity required against shipment order for the covered period	Quantity required against shipment order until the next delivery date
Delivery date	Order date + Delivery time	The earliest delivery date

Demand fulfillment methods

Demand fulfillment method is a group of parameters whose setting depends on goods delivery capability and according to which demand fulfillment orders are generated.

Demand fulfillment methods are registered in the Warehouse and delivery — Settings and catalogs — Demand fulfillment — Demand fulfillment methods list.

The list contains all supply method options which are used in the enterprise. You can specify summarized supply methods (purchase from supplier, transfer, etc.), and then specify specific data at the stage of demand generation. If goods delivery conditions are known in advance (supplier, agreement, fulfillment period, etc.), then you can record these conditions in the demand fulfillment method profile.

Demand fulfillment method parameters

The following parameters are specified in the Demand fulfillment method form:

• Supply type that determines how demand for a product at the warehouse is fulfilled (purchase, transfer, production, production by toller, assembly/disassembly).
• Order fulfillment period.
• Order generation rule that determines when the application should recommend goods to order (order when the order point is reached/order on schedule).

Supply type determines which orders should be generated using this supply method: purchase order, goods transfer order, assembly (disassembly) order, production order, tolling order.

You can use the following demand fulfillment methods:

• Purchase — demands are fulfilled by purchasing goods from supplier. They will be automatically substituted into Purchase order documents generated by this demand fulfillment method.
• Transfer — a product is delivered to a warehouse by goods transfer from another warehouse. You can specify a warehouse from which goods are transferred. As a result, Transfer order and Order for materials for production documents are generated.
• Assembly/disassembly — demands are fulfilled by way of assembling new sets from components. As a result, Assembly (disassembly) order documents are generated.
• Own production — demands are fulfilled by products release. As a result, Production order documents are generated.
• Production by toller — demands are fulfilled by way of products (semi-finished products) release by a third party referred to as Toller. As a result, Tolling order documents are generated.

To indicate an order point and determine calculated minimum inventory for delivery period, use Order fulfillment period.

In the Order fulfillment period field, specify period of order fulfillment generated by this method. Order fulfillment period is calculated in workdays according to the enterprise calendar. For example, if today is Monday and the order is planned by using supply method with deadline of 7 days, while Saturday and Sunday are days off by enterprise calendar, then order receipt will be scheduled for the next Wednesday after 7 workdays. Order fulfillment period is counted when calculating the earliest day of goods receipt by order and allows you to determine the earliest possible date for goods transfer, sets assembly date, the earliest date for products (works) release and date of possible receipt of products. You can specify order fulfillment period in the field which is assigned a specific name depending on the specified demand fulfillment method.

In the demand fulfillment method form, you can specify an order generation rule which allows you to determine when the application should recommend goods to order by specific method (purchase, transfer, etc).

Initially the application offers to order the quantity of goods based on the current balance, and then offers to order goods based on the delivery schedule, i. e. on certain days which depends on frequency of work with a supplier, or necessity to create an order of a certain volume accumulating the demand.

You can select the following order generation rules:

• Order when the order point is reached — calendar delivery dates are not known in advance. Determine a date by which the order must be generated to fulfill demands on time (to prevent inventory depletion). Product items are added to the order if their calculated start date of fulfillment matches the current date. Order point is determined based on the current balance, the minimum inventory and safety stock. The application offers you to order a product by which orders must be generated today (to fulfill demand for products by current orders timely or considering suggested consumption and current warehouse balance). Quantity to order is determined as demand for the covered period:

• To limit the period demands of which must be included in the order, use the Covered period field. The period is calculated in days (according to the warehouse work schedule) from the earliest day of possible supply against the order. Covered period for goods is calculated by warehouse workdays and by enterprise workdays for product items with the Work product type. For example, delivery by supply method can be made on Wednesday, 07/01/2015. If the covered period is 10 days and Saturday and Sunday are days off, then sales order with shipment date 07/11/2015 will fall within the covered period.
• To provide extra time for the order fulfillment period, use the Guaranteed shipment period field. Guaranteed shipment date is used to calculate scheduled shipment date of unsupplied order items. As a rule, guaranteed shipment date is set to more than enough against the order fulfillment period. You can see calculated shipment dates of orders to supply in the demand fulfillment method.
  • Order by schedule is fixed calendar delivery dates. Goods are delivered on previously known dates. It is planned to generate orders regularly on fixed dates according to delivery schedule and warehouse work schedule. The order includes all demands from the current date to the next delivery date. Quantity to order is calculated in a way that goods are enough until the next delivery date (or until the maximum inventory specified manually, in the Min – Max supply method. When creating a supply method, specify the earliest delivery date. Further delivery dates are updated in the workplace for order generation by demands (step 2). Date when an order must be generated for the earliest delivery will be calculated according to the specified order fulfillment period and enterprise calendar. After the order is generated, the next delivery date will be counted as the earliest delivery date. You can specify the next delivery date at the moment of the next order generation. When ordering by schedule until the next delivery date, goods quantity to order will be calculated by the number of warehouse workdays.

In both cases, if the Min – Max method is used, quantity to order is not calculated by days. It is offered to use the fixed quantity specified in the maximum inventory of supply method.

If using the Calculation by standard, Calculation by statistics methods, quantity to order is calculated for the period from delivery date of the order. Demand for orders planned for shipment is counted by all unshipped orders with shipment date till the end of the supply period. If demand for orders exceeds the calculated by statistics (standard) value, you will be offered to order quantity which is required for shipment against orders.

Example

Usage restrictions of demand fulfillment methods

You can set usage restrictions for planning parameters that are specified in the demand fulfillment method profile.

Restrictions are set in the demand fulfillment method profile on the Usage restriction tab.

There are different usage restrictions of planning parameters depending on the demand fulfillment method (purchase, transfer, assembly (disassembly), own production, production by toller).

If demands are fulfilled by purchasing from a certain supplier, then With one supplier mode is used. It allows you to specify a supplier for whom this demands fulfillment method is used. You can also specify agreement for work with supplier and price type according to which goods are purchased. Planning parameters of this supply method are also applied to orders from only one supplier.

If planning parameters of this supply method are applied to orders from different suppliers, then With multiple suppliers mode is used.

If demands at the warehouse are fulfilled by goods transfer from only one warehouse, then For work with one warehouse mode is used which allows you to specify a warehouse for which this supply method is used.

If demand fulfillment method is used to operate with several warehouses, select the For work with several warehouses mode. Planning parameters of this supply method are also applied to transfer from different warehouses.

Demand fulfillment schemes

To describe the full cycle of goods movement of a product by enterprise, use the Warehouse and delivery — Settings and catalogs — Supply schemes list which allows you to do the following:

• Describe goods movement by all enterprise warehouses (covers all warehouses where the product is provided).
• Set up application of demand fulfillment methods at the enterprise warehouses.
• Combine product items with the same supply procedures within one or several warehouses.

Supply schemes simplify demand fulfillment parameters setting if there are a lot of warehouses and products.

To get access to demand fulfillment schemes, click Master data and settings — Master data and sections — Warehouse and delivery — Demands fulfillment — Advanced.

You can specify demand fulfillment scheme by warehouse and by stores (warehouses).

On the Warehouses tab, you can select a setup mode of demand fulfillment scheme for warehouses:

• The By formats mode allows you to set up a supply scheme for stores (warehouses) format. If the supply scheme is set up for stores format, it will be applied to all warehouses with this format. You can also set a supply method for a warehouse which differs from the supply method of the warehouse format.
• The By hierarchy mode allows you to set up supply scheme by stores (warehouses) format for a group of warehouses, and for each warehouse separately. To specify a demand fulfillment method for a warehouse group, select warehouses of the same group.

Demand fulfillment scheme parameters:

• Store (warehouse) format, or Warehouse.
• Demand fulfillment method — determines a method of demand fulfillment (for example, purchase from supplier, transfer from one warehouse to another, production, etc). To select a method, click Fill in supply method. You can select supply methods registered in the infobase. To clear a supply method, click Clear supply method.
• Supply source is determined by demand fulfillment method. For example, if demand is fulfilled by purchasing from a supplier, then any supplier can act as a source. If demand is fulfilled by goods transfer, this can be any enterprise warehouse, etc.
• Delivery period is determined in the demand fulfillment method.
• Covered period is determined in the demand fulfillment method (the Covered period field).

You can see an example of demand fulfillment scheme at the enterprise warehouses in the diagram.

You can see how many goods are supplied according to the specified supply scheme in the header of the Supply scheme form (Used for goods label).

Product and package are supplied according to the supply schemes of a warehouse. You can specify a scheme by which product/package will be supplied in the product item profile—on the Attributes tab in the Supply scheme field. Only one warehouse supply scheme can be specified for a product/package.

Demands for works are fulfilled according to the demand fulfillment method. You can specify demand fulfillment method for the Work product type in the product profile (in the Demand fulfillment method field).

A department can be included in the demand fulfillment scheme. If inventory level is controlled for a product at the warehouse which acts as a department shop storeroom, then goods are delivered to the shop from the storeroom, not from the warehouse specified for the department on the Production department tab.

Setting up demand fulfillment methods

You can set up demand fulfillment methods within the Set up demand fulfillment methods workplace. To enter the workplace, you can click the matching link from the product or warehouse profile, or from the Goods included in supply scheme report.

There are different scenarios to set up product demand fulfillment methods at a specific warehouse (within the set up demand fulfillment methods workplace available from the warehouse profile):

• General settings of product supply methods by warehouses. If a supply scheme is specified for a product, then it will be fulfilled according to the demand fulfillment method which is specified in the supply scheme. For this product, selected value of the supply scheme will be specified in the settings form of demand fulfillment method in the Supply scheme, Supply method column.
• Individual settings of supply methods at a warehouse by product. In the Set up demand fulfillment methods form, in the Supply scheme, Supply method column, demand fulfillment method value will be specified, for example Purchase from supplier. To specify individual settings for a product, click Fill in supply method for selected lines in supply method settings form.

You can individually set product packaging to round goods quantity in demand fulfillment order. To do so, click Fill in order packaging.

In the supply method settings form that is opened via the product, you can see supply methods of the scheme that cannot be edited. The list displays all enterprise warehouses.

To analyze goods included in the supply scheme and display all warehouses where these goods are supplied, use the Goods included in supply scheme report.

In the report, individual settings of demand fulfillment methods specified for a product are highlighted with blue color. From the report, you can navigate to the settings form of product demand fulfillment methods at all enterprise warehouses. To do so, double click the cell with the left or right mouse button (Go to — Change the demand fulfillment method).

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