## Working with Planning Bill Forecasts

This chapter provides an overview of planning bill forecasts, lists prerequisites, and discusses how to:

- Generate planning bill forecasts.

- Set processing options for MRP/MPS Requirements Planning (R3482).

### Understanding Planning Bill Forecasts

This section discusses:

- Planning bills.

- Planning bill forecasts.

- Exploding the forecast to the item level.

#### Planning Bills

Planning bills are groups of items in a bill of material format that reflect how an item is sold rather than how an item is built. Planning bills enable you to account for the variety of possible options and features that might be included as components in a saleable end item.

#### Planning Bill Forecasts

After setting up a planning bill, you can generate a planning bill forecast to help you plan configurations for end products. The MRP/MPS Requirements Planning program (R3482) reads the detail forecast for the selected parent planning bill items and explodes it to create a forecast for the planning bill components for the same time periods.

You can use a planning bill to configure a hypothetical average parent item that is not manufactured, but represents the components which are needed to satisfy demand for all the combinations of options and features that you expect to sell. For example, if the sales history indicates that 60 percent of all the bikes you sell are 10 speed bikes and 40 percent are 15 speed bikes, the planning bill includes an average parent bike that is neither a 10 speed bike nor a 15 speed bike, but a hybrid bike that is 60 percent 10 speed bike and 40 percent 15 speed bike.

Use planning bills during master scheduling or material planning. You can forecast with a planning bill to determine component demand within Master Production Schedule (MPS), Material Requirements Planning (MRP), and Distribution Requirements Planning (DRP) in the JD Edwards EnterpriseOne Requirements Planning system.

Document Types for MRP/MPS Requirements Planning (R3482)

When you select a forecast type to use with a planning bill, you must also enter the type code for this forecast as a forecast type to be read. This action enables the system to read the forecast and explode it down to the component level. You can specify up to five forecast types to be read in a sequence that you specify.

Example: Average Parent Item

The sales history indicates that 60 percent of the bikes that you sell are 10 speed bikes and 40 percent are 15 speed bikes. Of the 10 speed bikes, 70 percent are blue and 30 percent are green. Of the 15 speed bikes, 80 percent are blue and 20 percent are green. You use these percentages to configure an average parent item.

The average parent bike will be:

- 60 percent 10 speed.

- 40 percent 15 speed.

- 42 percent blue 10 speed (70 percent of 60 percent).

- 18 percent green 10 speed (30 percent of 60 percent).

- 32 percent blue 15 speed (80 percent of 40 percent).

- 8 percent green 15 speed (20 percent of 40 percent).

You decide to manufacture or purchase at these percentages.

Summary forecasts are more accurate than detail forecasts. For example, a forecast for the total number of bikes that will sell in the next year is more accurate than a forecast for blue 10 speed bikes that will sell in the next year.

The forecast is based upon total bike sales history. This forecast is the summary forecast. The option percentages produce a production (or purchase) forecast for each of the options. This forecast is the detail forecast.

#### Exploding the Forecast to the Item Level

You use the planning bill to explode a forecast for the total number of products down to the level of the specific combination of options and features that are included in each saleable end item.

As you set up a planning bill, you designate each level of the item hierarchy end item level as an average parent with a planning code of 4. You designate the saleable end items as components of the phantom parents with a planning code of 5.

As you generate the planning bill forecast, you use processing options to designate a forecast type to be read as input and a forecast type to be calculated for the components. You also designate the calculated forecast type as the second type to be read so that it can be exploded down through each level of the hierarchy until the forecast is applied to the saleable end items.

Example: Exploding the Forecast

You use a planning bill to configure an average parent item that represents total bike sales. This average parent bike represents the top level of the item hierarchy and is configured as follows:

- 60 percent 10 speed bike.

- 40 percent 15 speed bike.

Because bikes with both the 10 speed and 15 speed options can be further divided into blue and green bikes, both the total of all 10 speed bikes and the total of all 15 speed bikes are represented by average parent bikes on the second level of the item hierarchy. These average parents are configured as follows:

- 10 speed bikes:

  - 70 percent blue

  - 30 percent green

- 15 speed bikes:

  - 80 percent blue

  - 20 percent green

The system enables you to process multiple parent items as in this example. You use planning code 4 to designate each of the phantom products on the two higher levels of the hierarchy (total bikes on the top level, and total 10 speed bikes and total 15 speed bikes on the second level) as parent items. You use planning code 5 to designate the end item bikes (for example, blue 15 speed bikes) on the bottom level as components of the phantom parent items.

You assign user-defined codes (UDCs) to additional forecast types that you want to include in the processing options which were not supplied with the system. For this forecast, you plan to use forecast types that you have defined and assigned to codes 13 and 16. You designate 16 in processing options as the forecast type to be read as input for the top level parent item and 13 as the forecast type to be created for calculating the forecast for the components.

The system reads the forecast for total bike sales as determined by forecast type 16 and assigns a percentage of the total forecast to each of the portions of the total on the next level of the hierarchy (total 10 speed and total 15 speed sales).

These percentages are based on feature planned percents. Feature planned percents are the percentage of total products that include features that differentiate some products in the total from others. You define the feature planned percent on the Enter/Change Bill - Enter Bill of Material Information form. In this example, the feature planned percents are 60 percent for the 10 speed feature and 40 percent for the 15 speed feature.

The system then calculates a forecast that is based on forecast type 13 which it applies to the next level. You also designate 13 as the second forecast type to be read as input so that the system reads the forecast for the second level, which it then applies to the saleable end items (blue and green 10 speed bikes and blue and green 15 speed bikes).

The system reads forecast type 16 and calculates a type 13 forecast of 20,000 total bikes. The system then reads the forecast and explodes it down the hierarchy to the end item level as follows:

- 60 percent of the 20,000 total bikes equals 12,000 10 speed bikes.

- 40 percent of the 20,000 total bikes equals 8,000 15 speed bikes.

- 70 percent of the 12,000 10 speed bikes (42 percent of total bike sales) equals 8,400 blue 10 speed bikes.

- 30 percent of the 12,000 10 speed bikes (18 percent of total bike sales) equals 3,600 green 10 speed bikes.

- 80 percent of the 8,000 15 speed bikes (32 percent of total bike sales) equals 6,400 blue 15 speed bikes.

- 20 percent of the 8,000 15 speed bikes (8 percent of total bike sales) equals 1,600 green 15 speed bikes.

See Also

Working with Multilevel Master Schedules

Setting Up Bills of Material

### Prerequisites

Before you complete the tasks in this section:

- Enter a planning bill.

- Run the Forecast Revisions program (P3460) manually to add the forecast for the parent item.

### Generating Planning Bill Forecasts

Select Single Site Periodic Planning Operations (G3422), MPS Regeneration.

### Setting Processing Options for MRP/MPS Requirements Planning (R3482)

Processing options enable you to specify the default processing for programs and reports.

For programs, you can specify options such as the default values for specific transactions, whether fields appear on a form, and the version of the program that you want to run.

For reports, processing options enable you to specify the information that appears on reports. For example, you set a processing option to include the fiscal year or the number of aging days on a report.

Do not modify JD Edwards EnterpriseOne demo versions, which are identified by ZJDE or XJDE prefixes. Copy these versions or create new versions to change any values, including the version number, version title, prompting options, security, and processing options.

Horizon

1. Generation Start Date | Specify the date the program uses to start the planning process. This date is also the beginning of the planning horizon.
2. Past Due Periods | Enter a value. The program includes supply and demand from this number of periods prior to the Generation Start Date. Values are: 0: 0 periods (default) 1: 1 period 2: 2 periods
3. Planning Horizon Periods | Specify the number of planning days, weeks, and months the system uses in the planning horizon.
Number of planning days | Specify the number of days to be included in the plan. For example, when you view the time series, you see daily data for the number of planning days, then weekly data for the number of planning weeks, then monthly data for the number of planning months.
Number of planning weeks | Specify the number of weeks to be included in the plan. For example, when you view the time series, you see daily data for the number of planning days, then weekly data for the number of planning weeks, then monthly data for the number of planning months.
Number of planning months | Specify the number of months to be included in the plan. For example, when you view the time series, you see daily data for the number of planning days, then weekly data for the number of planning weeks, then monthly data for the number of planning months.

Parameters

1. Generation Mode | Enter a value to specify net change or gross regeneration. A gross regeneration includes every item specified in the data selection. A net change includes only those items in the data selection that have changed since the last time you ran the program. Values are: 1: Net change 2: Gross regeneration
2. Generation Type | Enter the type of generation the system performs. Values are: 1: Single level MPS/DRP. 2: Planning bill. 3: Multi level MPS. 4: MRP with or without MPS. 5: MRP with frozen MPS.
3. UDC Type | Specify the UDC table (system 34) that contains the list of quantity types to be calculated and written to the Time Series table (F3413). The default value is QT.
4. Version of Supply/Demand Inclusion Rules | Specify the version of supply/demand inclusion rules the program reads. These rules define the criteria used to select items for processing.

On Hand Data

1. Include Lot Expiration Dates | Specify whether the system considers lot expiration dates when calculating on hand inventory. For example, if there are 200 units on hand with an expiration date of August 31, and you need 200 on September 1, the program does not recognize the expired lot and creates a message to order or manufacture more of the item to satisfy demand. Values are: Blank: Do not consider lot expiration dates when calculating on hand inventory. 1: Do consider lot expiration dates when calculating on hand inventory.
2. Safety Stock Decrease | Specify whether to plan based on a beginning available quantity from which the safety stock quantity has been subtracted. Values are: Blank: Do not decrease 1: Decrease
3. Receipt Routing Quantities | Specify whether quantities on a receipt routing are included in inventory calculations. In a manufacturing environment, sometimes it is necessary to establish where stock is, in order to determine whether or not it is available for immediate use.
Quantity in Transit | Specify whether quantities in-transit are included in inventory calculations. In a manufacturing environment, sometimes it is necessary to establish where stock is, in order to determine whether or not it is available for immediate use. Enter 1 if you want quantities in transit to be included in the Beginning Available calculation on the time series. Otherwise, the program includes these quantities in the In Receipt (+IR) line of the time series. The quantities are still considered available by this program. The difference is only in how you view the quantities in the time series. Values are: Blank: Do not include in on hand inventory. 1: Include in on hand inventory.
Quantity in Inspection | Specify whether quantities in inspection are included in inventory calculations. In a manufacturing environment, sometimes it is necessary to establish where stock is, in order to determine whether or not it is available for immediate use. Enter 1 if you want quantities in inspection to be included in the Beginning Available calculation. Otherwise, the program includes these quantities in the In Receipt (+IR) line of the time series. The quantities are still considered available by this program, however. The difference is only in how you view the quantities in the time series. Values are: Blank: Do not include in on hand inventory. 1: Include in on hand inventory.
User-Defined Quantity 1 | Specify whether user-defined quantities are included in inventory calculations. In a manufacturing environment, sometimes it is necessary to establish where stock is, in order to determine whether or not it is available for immediate use. Enter 1 if you want these user-defined quantities (defined on Receipt Routings Revisions in the Update Operation 1 field) to be included in the Beginning Available calculation. Otherwise, the program includes these quantities in the In Receipt (+IR) line of the time series. The quantities are still considered available by this program, however. The difference is only in how you view the quantities in the time series. Values are: Blank: Do not include in on hand inventory. 1: Include in on hand inventory.
User-Defined Quantity 2 | Specify whether user-defined quantities are included in inventory calculations. In a manufacturing environment, sometimes it is necessary to establish where stock is, in order to determine whether or not it is available for immediate use. Enter 1 if you want these user-defined quantities (defined on Receipt Routings Revisions in the Update Operation 2 field) to be included in the Beginning Available calculation. Otherwise, the program includes these quantities in the In Receipt (+IR) line of the time series. The quantities are still considered available by this program, however. The difference is only in how you view the quantities in the time series. Values are: Blank: Do not include in on hand inventory. 1: Include in on hand inventory.
4. Lot Hold Codes (up to 5) | Specify the lots to be included in the calculation of on hand inventory. You can enter a maximum of 5 lot hold codes (41/L). Values are: Blank: Include no held lots in calculation of on hand inventory. *: Include all held lots in calculation of on hand inventory.
5. Include Past Due Rates as a supply | Specify whether the system considers open quantity from rate schedules that are past due as a supply. If you enter a 1 in this processing option, the system includes these quantities in the calculation of the rate schedule unadjusted (+RSU) and the rate schedule adjusted (+RS) quantities. Values are: Blank: Do not consider past due orders as a supply. 1: Consider past due orders as a supply. Note. You can review these quantity types in the MPS Time Series program (P3413) if you have set up the past due buckets to display.

Forecasting

1. Forecast Types Used ( up to 5 ) | Define which forecast quantities created by which forecast type are included in the planning process. Forecasts are a source of demand. You can create forecasts using 12 different forecast types (34/DF) within the JD Edwards EnterpriseOne Forecasting system. One is considered the Best Fit (BF) type compared to an item's history of demand. Enter multiple values with no spaces, for example 0102BF.
2. Forecast Type For Planning Bills/Forecast Consumption By Customer | Specify the forecast type (UDC 34/DF) that the system uses to create forecasts for components when you explode generation type 2 planning bills. This value must equal that of the Forecast Types Used processing option for this functionality. This functionality is for future use. When Forecast Consumption Logic is set to 2, Forecast Consumption by Customer, this processing option specifies the forecast type (34/DF) that is used to create a forecast for the actual daily demand by customer. This value cannot equal the value for the Forecast Types Used processing option for this functionality.
3. Forecast Consumption Logic | Specify whether to use forecast consumption logic during the requirements planning processing. Values are: Blank: Do not use forecast consumption. 1: Use forecast consumption. This value invokes forecast consumption logic applied to aggregate sales order and forecast quantities within the forecast consumption period for selected items with a planning fence rule equal to H. 2: Use forecast consumption by customer. This functionality will be delivered in a future release. This value invokes forecast consumption logic applied to sales order and forecast quantities for individual customers. This value must be use in conjunction with the Forecast Type for Planning Bills / Forecast Consumption by Customer.
4. Default Customer Address Relationship for Forecast Consumption by Customer | Specify the customer address book number to use when performing forecast consumption by customer. When Forecast Consumption Logic processing option is set to 2, Forecast Consumption by Customer, then this processing option specifies the customer address relationship, that is the address book number (ship to or sold to) used for calculation purposes. Values are: 1: Use ship to address book number. 2: Use sold to address book number.

Document Types

1. Purchase Orders | Specify the document type to appear as the default when you receive messages related to purchase order creation. The default value is OP.
2. Work Orders | Specify the document type to appear as the default when you receive messages related to work order creation. The default value is WO.
3. Rate Schedules | Specify the document type to appear as the default when you receive messages related to rate schedule creation. Enter the UDC 00/DT of the document type for the rate schedule that you want to use.

Lead Times

1. Purchased Item Safety Leadtime | Specify a value that the program adds to the item's level lead time to calculate the total leadtime for items with stocking type P.
2. Manufactured Item Safety Leadtime | Specify a value that the program adds to the item's level lead time to calculate the total leadtime for items with stocking type M.
3. Expedite Damper Days | Specify a value that the program uses to calculate the number of days that expedite messages are suppressed. The calculation starts on the generation start date and continues for the number of days entered in this processing option.
4. Defer Damper Days | Specify a value that the program uses to calculate the number of days that defer messages are suppressed. The calculation starts on the generation start date and continues for the number of days entered in this processing option.

Performance

1. Clear F3411/F3412/F3413 Tables | Specify whether the system purges tables. If you enter 1, records in the MPS/MRP/DRP Message table (F3411), the MPS/MRP/DRP Lower Level Requirements (Pegging) table (F3412), and the MPS/MRP/DRP Summary (Time Series) (F3413) table are purged. Values are: Blank: Do not clear tables. 1: Clear tables. Warning! Use this processing option with extreme caution! Access to this program should be limited. If multiple users run this program concurrently with this processing option set to 1, a record lock error results and prevents complete processing.
2. Input B/P Where Planning Tables Will Be Cleared (input branch/plant where planning tables will be cleared) | Specify which Branch/Plant records in the MPS/MRP/DRP Message File table (F3411), the MPS/MRP/DRP Lower Level Requirements File table (F3412), and the Summary (Time Series) table (F3413) are purged. Note. This option is only valid when the Clear F3411/F3412/F3413 Tables processing option on the Performance tab is set to 1 and the Delete Branch/Plant processing option has a valid Branch/Plant. This processing option enables a preprocess purge of these tables. If this processing option is not enabled or set to Blank, the system purges records for a given Branch/Plant and Item as you plan the item. Depending on processing option combinations, these scenarios can occur. Example 1: Clear F3411/F3412/F3413 Tables processing option is set to 1. (a) Delete Branch/Plant is set to Blank. All records from the three tables will be prepurged. (b) Delete Branch/Plant contains a valid Branch/Plant number. Records for all the items that belong to M30 will be prepurged from the three tables. (c) Delete Branch/Plant contains an invalid Branch/Plant number. No records from the three tables will be prepurged from the three tables. Example 2: Clear F3411/F3412/F3413 Tables set to Blank Delete Branch/Plant is not active. No records from any of the three tables will be prepurged.
3. Initialize MPS/MRP Print Code | Specify whether the system initializes the Item Branch table (F4102). If you enter 1 in this processing option, the program initializes every record in the Item Branch table by setting the Item Display Code (MRPD) to blank. If you leave this field blank, processing time is decreased. The system will not clear the records in the Item Branch table. Regardless of how you set this processing option for each item in the data selection, the MRPD field is updated as follows: 1 if messages were not created. 2 if messages were created. The Print Master Production Schedule program (R3450) enables you to enter data selection based on the MRPD field. Values are: Blank: Do not initialize the Item Branch file. 1: Initialize the Item Branch file.
4. Messages And Time Series For Phantom Items | Specify whether the program generates messages and time series for phantom items. Values are: Blank: Do not generate 1: Generate
5. Ending Firm Order Status | Specify the work order status at which messages are no longer exploded to components. If you leave this field blank, all messages are exploded to components.
6. Extend Rate Based Adjustments | Specify whether adjustments for rate based items are exploded to components, thereby creating messages for the components. Values are: Blank: Do not extend 1: extend
7. Closed Rate Status | Enter the status of closed rates. When planning for a rate based item, the program does not consider rate orders at this status or higher.
8. Set Key Definition For Table F3411 | Specify whether the system is enabled to run multiple MRP/MPS jobs concurrently. The value that you enter specifies the range for the number of records in the MPS/MRP/DRP Message File table (F3411) and the MPS/MRP/DRP Lower Level Requirements File table (F3412) for a given run. This value must be large enough to include the number of records that will be generated for the table. For example, if you enter a value of 8 for the first run and 10 for the second run, the range of records that the system reserves for two simultaneous MRP/MPS runs would be as follows: First run: The system reserves records in the range of [1] to [1*10^8], or 1 through 100,000,000. Second run: The system reserves records in the range of [1*10^8 + 1] to [2*10 10], or 100,000,001 through 20,000,000,000. Note. The values that you enter are the exponents in the calculations. Enter a value from 7 to 14. If you do not enter a value, the system uses 10. This processing option is applicable only when a subsequent MRP/MPS job is submitted while an existing job is currently running. The number of records that the MRP/MPS Requirements Planning program (R3482) and Master Planning Schedule, Multiple Plant program (R3483) generate is based on the values that you enter in this processing option. You determine the optimum number of records that the system includes. All values should be the same for all versions. If version settings differ, the system might generate unpredictable results.
9. Set Key Definition For Table F3412 | Specify whether the system is enabled to run multiple MRP/MPS jobs concurrently. The value that you enter specifies the range for the number of records in the MPS/MRP/DRP Message File table (F3411) and the MPS/MRP/DRP Lower Level Requirements File table (F3412) for a given run. This value must be large enough to include the number of records that will be generated for the table. For example, if you enter a value of 8 for the first run and 10 for the second run, the range of records that the system reserves for two simultaneous MRP/MPS runs would be as follows: First run: The system reserves records in the range of [1] to [1*10^8], or 1 through 100,000,000. Second run: The system reserves records in the range of [1*10^8 + 1] to [2*10 10], or 100,000,001 through 20,000,000,000. Note. The values that you enter are the exponents in the calculations. Enter a value from 7 to 14. If you do not enter a value, the system uses 10. This processing option is applicable only when a subsequent MRP/MPS job is submitted while an existing job is currently running. The number of records that the MRP/MPS Requirements Planning program (R3482) and Master Planning Schedule, Multiple Plant program (R3483) generate is based on the values that you enter in this processing option. You determine the optimum number of records that the system includes. All values should be the same for all versions. If version settings differ, the system might generate unpredictable results.
10. Suppress Time Series | Specify whether the MRP/MPS Requirements Planning program (R3482) generates the time series. Values are: Blank: Generate the time series. 1: Do not generate the time series. Note. Performance improves if the system does not generate the time series.
11. Planning Control UDC Type | Specify the UDC table in system 34 that contains the list of planning control flags. The default value is PC.

Mfg Mode

1. Process Planning | Specify whether the system performs planning for process manufacturing. If you use process manufacturing, enter 1 to generate the plan based on the forecasts of the co/byproducts for the process. The program then creates messages for the process. Values are: Blank: Discrete 1: Process
2. Project Planning | Specify whether the system includes supply and demand from items that are associated with a project. Project specific items have a stocking type of P. Values are: Blank: Do not include items associated with projects. 1: Include items associated with projects.
3. Configurator Components Table | Specify whether the system processes configurator components from the Configurator Component table (F3215) and adds them to the Sales Order Detail File table (F4211) and the Work Order Parts List table (F3111). If you enter a 1 in this processing option, the system processes the items on the Configurator Component table as demand items. Blank: Do not process items from the Configurator Component table. 1: Process items from the Configurator Component table.

Parallel

1. Number of Subsystem Jobs | Specify the number of subsystems in a server. The default value is 0 (zero).
2. Pre Processing | Specify whether the system runs preprocessing during parallel processing. During preprocessing, the system checks supply and demand and plans only the items within supply and demand. Preprocessing improves performance when you run MRP and is valid only when the number of items actually planned is less than the total number of items in the data selection. Values are: Blank: The system does not run preprocessing. 1: The system runs preprocessing.