Example: Influence of Confirmations on Materials Planning

The following graphic shows how the data from vendor confirmations influences Materials Planning:

The data from the PO dated July 22 is communicated to the vendor and the materials planning system.

In the order acknowledgment dated July 26, the vendor confirms a quantity of only 90 pc for item 1 (representing a variance from the PO quantity). The desired delivery date is confirmed for both PO items.

Materials Planning then expects available quantities of only 90 pc for item 1 and 10 kg for item 2 on the desired delivery date.

The inbound delivery recorded against the shipping notification of August 27 causes Materials Planning to correct the quantity of 90 pc for item 1 to 100 pc and to revise the delivery date for both items to one day later (August 31).

Updating of Data in Materials Planning

The following graphic shows how the information from the PO and the different kinds of vendor confirmation influences materials planning and control:

Materials Planning initially assumes that delivery will be in accordance with the data in the delivery schedule (in this case, that 200 large steel bolts will be delivered on July 31).

The vendor’s order acknowledgment causes Materials Planning to change the delivery date from July 31 to July 28.

Subsequently, a loading confirmation is received. This has no influence on the existing information in the materials planning and control system, because loading confirmations are defined in Customizing as "not relevant to materials planning".

The next MRP-relevant confirmation received from the vendor is a shipping notification, advising shipment of 90 steel bolts on August 3.

Materials Planning then assumes that of the 200 ordered bolts, 90 will be available on August 3, but that the remaining 110 will already be available on July 28 - as assumed since the receipt of the order acknowledgment.

A subsequent shipping notification confirms 110 bolts for August 4. This means that Materials Planning will replace the date July 28 from the order acknowledgment. It will now assume that 90 bolts will be delivered on August 3, and the remaining 110 on August 4.