Defining the Firm, Trade-Off, and Planning Zones
Use
Rolling delivery schedules created under scheduling agreements are divided into different time zones indicating the degree to which the lines of the schedule are binding. You can define the following time zones:
The schedule lines within this zone count as firm and thus as fully binding. If you cancel a schedule line that falls within the firm zone, the vendor is entitled to charge you with both production costs and the costs of procuring input materials incurred by him as a result of the cancellation.
This is the "semi-firm" zone, giving the vendor the go-ahead to procure necessary input materials to manufacture the item ordered. If you cancel a schedule line within this semi-firm zone, the vendor is only entitled to charge you the material costs. Schedule lines falling within this time zone are thus less binding that those falling within the firm zone.
All schedule lines that lie beyond the first two zones (that is, delivery is tentatively scheduled for quite a long way into the future) fall within the planning zone.
The firm and trade-off zones are printed out in the schedule for the user’s information. For each schedule line that falls within a certain zone, it is assumed that the relevant material is procured in accordance with the conditions that apply to this zone (e.g. schedule lines falling within the firm zone are fully binding).
You can specify whether Materials Planning may change schedule lines that fall within the firm or trade-off zones.
Activities
If the firm zone is to cover one month, enter the value 30 (days) in the Firm zone field. If the trade-off zone ends one month after the firm zone, enter the value 60 in the Trade-off zone field.