Dynamic Adjustments

Over time conditions placed on the buffered parts might change. I.e., introduction of new suppliers or components, changes in the manufacturing process and/or methods. To handle these new conditions the buffer levels might have to be adjusted. Mainly there are four types of adjustments.

Adjustment Type Description Option
Recalculated Adjustments In order to handle variability over time ADU can be recalculated based on a rolling horizon. ADU is calculated based on historical issues. Two types of adjustments can be done:

Calculated ADU: Calculated based on the historical issues for a long rolling horizon.

ADU Alert Quantity: Calculated based on the historical issues for a short rolling horizon.

 

This needs to be set up in the Inventory Part Planning Data/Buffer Part Attributes. Use Calculated ADU or ADU Alert Quantity in Operation ADU Source.

Perform Calculate Historical Average Daily Usage to calculate above defined values.

Forecasted Adjustments Forecasted Adjustments affect inventory positions by raising or lowering buffer levels and their corresponding zones at certain points in time. This manipulation occurs through adjusting ADU to a historically proven or planned positions based on an approved business case.

Forecast adjustments are commonly used for situations such as seasonality, product ramp up and ramp down.
This needs to be set up in Inventory Part Planning Data/Buffer Part Attributes. Use Forecasted ADU in the Operation ADU Source.

Perform MRP to calculate above defined value.

Planned Adjustments Planned Adjustments can be used to define adjustments to different buffer part attributes over a specified time period. It automatically adjusts the Operational ADU by applying a factor to Operational ADU source. Adjustments can be applied to Unprotected lead time and Buffer zones as well.

A planned adjustment is useful for ramp up and ramp downs caused by product introduction, product deletion and product transition. It can be connected to a buffered part or a buffer profile.
Define the buffer adjustment in Buffer Part Attributes Adjustments and connect this to either a buffer profile in Buffer Profiles or a buffered part in Inventory Part Planning Data/Buffer Part Attributes.
Manual Adjustments By analyzing the results of the Calculated ADU, Forecasted ADU or the ADU Alert Quantity you can manually adjust the ADU. This option is given to facilitate flexibility to adjust zones according to the manually adjusted ADU. This needs to be set up in the Inventory Part Planning Data/Buffer Part Attributes. Use Manual in Operation ADU Source.