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SECTION1SCMTEMPLATEWORKFLOW©2000i2Technologies,Inc.-3-3SCMTemplateWorkflowRelease4.2.1Copyright2000i2Technologies,Inc.Thisnoticeisintendedasaprecautionagainstinadvertentpublicationanddoesnotimplyanywaiverofconfidentiality.Informationinthisdocumentissubjecttochangewithoutnotice.Nopartofthisdocumentmaybereproducedortransmittedinanyformorbyanymeans,electronicormechanical,includingphotocopying,recording,orinformationstorageorretrievalsystems,foranypurposewithouttheexpresswrittenpermissionofi2Technologies,Inc.Thesoftwareand/ordatabasedescribedinthisdocumentarefurnishedunderalicenseagreementornondisclosureagreement.Itisagainstthelawtocopythesoftwareonanymediumexceptasspecificallyallowedinthelicenseornondisclosureagreement.Ifsoftwareordocumentationistobeusedbythefederalgovernment,thefollowingstatementisapplicable:InaccordancewithFAR52.227-19CommercialComputerSoftware—RestrictedRights,thefollowingapplies:ThissoftwareisUnpublished—rightsreservedunderthecopyrightlawsoftheUnitedStates.Thetextanddrawingssetforthinthisdocumentaretheexclusivepropertyofi2Technologies,Inc.Unlessotherwisenoted,allnamesofcompanies,products,streetaddresses,andpersonscontainedinthescenariosaredesignedsolelytodocumenttheuseofi2Technologies,Inc.products.Thebrandnamesandproductnamesusedinthismanualarethetrademarks,registeredtrademarks,servicemarksortradenamesoftheirrespectiveowners.i2Technologies,Inc.isnotassociatedwithanyproductorvendormentionedinthispublicationunlessotherwisenoted.Thefollowingtrademarksandservicemarksarethepropertyofi2Technologies,Inc.:EDGEOFINSTABILITY;i2TECHNOLOGIES;ORBNETWORK;PLANET;andRESULTSDRIVENMETHODOLOGY.Thefollowingregisteredtrademarksarethepropertyofi2Technologies,Inc.:GLOBALSUPPLYCHAINMANAGEMENT;i2;i2TECHNOLOGIESanddesign;TRADEMATRIX;TRADEMATRIXanddesign;andRhythmLink.February,2000DocumentID:HiTech4.2SCMTemplateWorkflowDocumentVersion:V1.0DocumentTitle:HiTech4.2SCMTemplateWorkflowDocumentRevision:Draft1RevisionDate:3February,2000DocumentReference:.PrimaryAuthor(s):SCMTeam–KrishnanSubramanian,JatinBindal,AbhaySinghalComments:ContentsSCMPROCESSESOVERVIEWSCMPROCESSESDEMANDPLANNINGDEMANDFORECASTINGTop-DownForecastingBottom-UpForecastingLifeCyclePlanning–NewProductIntroductionsandPhase-In/Phase-OutEventPlanningConsensusForecastAttach-RateForecasting/DependentDemandForecastinginConfigure-to-OrderenvironmentsDEMANDCOLLABORATIONFlexLimitPlanningFORECASTNETTINGForecastExtractionMASTERPLANNINGSUPPLYPLANNINGEnterprisePlanning:InventoryPlanningEnterpriseplanning:LongtermcapacityplanningEnterpriseplanning:LongtermmaterialplanningFacilityPlanning:SupplyplanforenterprisemanagedcomponentsCollaborationPlanningforEnterpriseandFactoryManagedComponents–ProcurementCollaborationCollaborationPlanningwithTransportationProviders-TransportationCollaborationALLOCATIONPLANNINGDEMANDFULFILLMENTORDERPROMISINGPromisingnewordersConfiguretoOrder(CTO)OrdersBuildtoOrder(BTO)OrdersORDERPLANNINGFactoryPlanningTransportationPlanningSCMProcessesOverviewThefollowingfigurebrieflydescribesthesolutionarchitectureforthecoreprocessesthatconstitute©2000i2Technologies,Inc.-5-5theSCMsolution.ForecastSCMFunctionalWorkflowDemandPlanningForecastNettingOrderPromisingMasterPlanningOrderPlanningSupplyAllocationNettedForecastAllocationsNewOrders,PromiseInformationDemandPlanningSupplyPlanningDemandFulfillmentAllocationPlanning[copy]LatestAvailableToPromiseSupplyPlanOrderCreationDemandCollaborationProcurementCollaborationBacklogordersSCMProcessesTheSCMtemplateasawholeperformsthefollowingfunctions:1.DemandPlanning:Forecastinganddemandcollaboration.Salesforecastsaregeneratedusingvariousstatisticalmodelsandcustomercollaboration.2.MasterPlanning:Longtermandmediumtermmasterplanningformaterialaswellascapacity.Masterplanningcanbedoneatboththeenterpriselevel(forcriticalsharedcomponents)andthefactorylevel.Inaddition,decisionsrelatingtomaterialprocurementandcapacityoutsourcingcanbemade.3.AllocationPlanning:Reservingproductsupplyforchannelpartnersorcustomersbasedonpre-specifiedrules.Also,managingthesupplysothatordersthathavealreadybeenpromisedcanbefulfilledinthebestpossiblemanner(onthepromiseddatesandinthepromisedquantities).4.OrderPromising:Promisingadateandquantitytocustomerorders.Thesepromisesaremadelookingattheprojectedsupply.Inaddition,sourcingdecisionsarealsomadehereafterconsideringsuchvariablesaslead-time,productcost,shippingcost,etc.5.OrderPlanning:Detailedorderplanningencompassingmultiplefactories.Inadditiondetailedtransportationplanningisalsodonewhichcanhandlesuchcomplexrequirementsasmergingtwoshipmentsfromdifferentlocationsduringtransit.Informationflowsseamlesslybetweenallthesefunctions.Theinputstothesystemarethestaticdata(supplychainstructure,supplierrelationships,sellerandproducthierarchies,supplierrelationships,etc),someforecastdataandactualorders.Theoutputisacomprehensiveandintelligentsupplychainplanwhichtakesallthesupplychaindeliveryprocessesintoconsiderationinordertomaximizecustomersatisfaction,atthesametimereducingorderfulfillmentleadtimesandcosts.Thescopeofthisdoc