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requirements ascertainment (SCM-APO)

Advanced Planning and Optimization (SCM-APO)

Term used in make-to-order planning. Requirements are planned at customer level in Demand Planning. These requirements could originate from outline agreements with the customer. However, before the requirements are procured or produced, the customer is obliged to ascertain them by issuing a purchase order, which enters the system as a sales order.

This process must usually occur within a fixed period, the requirements ascertainment horizon. After this period has elapsed, the remaining demand is deleted in PP/DS, so that these planned orders that resulted from these requirements are not converted to production orders.

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