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Time horizon of Demand "Item Lead Time" in Replenishment planning

in Supply Chain Planning and Collaboration 5 comments

Hi,

We are using Min-Max Policy Planning, with Safety Stock as SL based. For Average Daily Demand, we are using Forecast. Now Min qty is calculated as Demand During Lead Time + Safety Stock.

In the plan scope definition under Supply , General tab we see an option Time Horizon for Demand and it has values of Item Lead Time and None. We would like to use Item Lead Time as it will consider forward looking demand within lead time and generates replenishment schedule. But the problem is already Min qty has Demand During Lead Time and on top of it this is also calculating Demand During Lead Time and making PAB higher.

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