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Does shrinkage factor also affect transfer orders? — Cloud Customer Connect
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Does shrinkage factor also affect transfer orders?

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Summary:

Does the shrinkage factor also affect transfer orders?

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We have defined the shrinkage factor for Items in the item master. I can see that Supply Chain Planning inflated the quantities of the Planned Orders but this happens in the MFG org. The sales order demand is fulfilled from the DC which is a different inventory org in the system. My question is as follows:

Let's say the forecast is 100 Units. If the shrinkage factor is 0.8, the planned order start quantity becomes 125 (100/(1-0.8)) even though the ordered qty is 100.

If say the demand at the DC is 100 units, the system is going to create a transfer order to transfer these 100 units from MFG org to DC.

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