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  Demand Horizon and Planning Horizon in Optimization

Definition

Planning and demand period in which shipments are to take place. You define the demand and planning horizon as part of the optimization profile for the component Transportation Planning/Vehicle Scheduling (TP/VS) . To execute planning in TP/VS , you must define both of these horizons.

Use

Demand Horizon

The following figure shows how the demand horizon is defined:

The demand horizon specifies which orders (for example, sales orders and purchase orders) and deliveries are included in planning. The system chooses all orders and deliveries whose requested delivery date lies within the demand horizon. You can also specify that the system is select the orders and deliveries based on the material availability date.

You can define the demand horizon as fixed or relative:

  • Fixed : You define the demand horizon precisely by defining a start and end date and a start and end time.

  • Relative : You do not define the demand horizon with precise dates and times, but specify instead a duration in days starting from the current date. The system then automatically determines the start and end date and the start and end time.

    If the demand horizon is not to start on the current date, but instead at a later time, you can define an offset.

    According to this, the relative demand horizon is defined as follows:

    Start of demand horizon = current date + defined offset

    End of demand horizon = current date + defined offset + defined duration of demand horizon

Planning Horizon

The following figure shows how the planning horizon is defined:

The planning horizon contains information about when shipments are scheduled.

You can define the planning horizon as fixed or relative:

  • Fixed : You define the planning horizon precisely by defining a start and end date and a start and end time.

  • Relative : You do not define the planning horizon with precise dates and times, but specify instead a duration in days starting from the current date. The system then automatically determines the start and end date and the start and end time.

    If the planning horizon is not to start on the current date, but instead at a later time, you can define an offset.

    The relative planning horizon must not lie in the past.

    In the case of the relative planning horizon, you can specify the time zone in which the horizon is to be calculated.

    According to this, the relative planning horizon is defined as follows:

    Start of planning horizon = current date + defined offset

    End of planning horizon = current date + defined offset + defined duration of planning horizon