Planned Order Qty is not correct. Item with shrinkage rate and in a Contract Manufacturing Org

Summary:

Planned Order Qty is not correct. An item with shrinkage rate and in a Contract Manufacturing Org

Content (required):

We are using the Shrinkage rate on an item and expecting the Quantity on Planned Orders to be increased in response to a forecast as opposed to a scenario when there is no shrinkage rate defined.

I am seeing that Planning has not inflated or bumped up the quantities of the planned orders in response to the shrinkage rate.

Mind you we are doing this in a Contract Manufacturing Organization.

While I am expecting the planned order quantity to be inflated, please confirm if the application is working as expected or if it is not and we need to fix it.