Planning with negative on-hand quantities
With master planning, when the system shows a negative on-hand quantity, it's assumed that something is out of sync with actuals. Therefore, it treats the quantity as zero (0) to prevent oversupply.
The system looks at the coverage dimension (site, warehouse, location, and so on) and then aggregates the on-hand quantities at the lowest level. If the result is negative, it assumes that the quantity is zero.
Scenario 1
Warehouse 13:
- Coverage code: Min/Max
- Minimum: 15
- Maximum: 25
- Lowest level of coverage dimension is warehouse
- On-hand quantities:
- Location 1: 20
- Location 2: -12
Total in Warehouse 13 is 8 (20 – 12), which is used as the on-hand quantity. A planned order is generated for a total of 17 items.
Scenario 2
Warehouse 13:
- Coverage code: Min/Max
- Minimum: 15
- Maximum: 25
- Lowest level of coverage dimension is warehouse
- On-hand quantities:
- Location 1: 5
- Location 2: -10
Total in Warehouse 13 is -5 (5 – 10), which is less than zero. Therefore, it's treated as zero and a planned order is generated for 25 items, which is the maximum, rather than 30, which would be generated in the built-in master planning engine.