| PEER Planner - DRP/Replenishment
The DRP module of PEER Planner requires a database of product information, forecasts of demand by location and inventory data by location. PEER Planner/DRP is a day-to-day planner that takes downloads of forecasted demand (weekly or monthly) to allow an inventory planner to take action immediately on problems so they do not get worse.
It is a strategic program that supports improved understanding of underlying patterns and what-if capability to test different ways of managing the inventory. While the specific features are under user control, in general, the inventory planner software automatically performs several key operations during off hours and highlights specific problem situations for detailed review - by a human planner - during normal working hours.
Time phased requirements are produced for all products, whether they are designated as being on DRP or on Reorder Point replenishment method. All methods establish a safety stock by location to ensure coverage at a specified service level (fill rate). All service levels are on an individual product line fill basis.
The safety stock calculation uses actual location forecast error and assumes a standard or average lead-time for replenishment. Starting with current national inventories, the demand forecast (Total requirements) is projected into the future. Time phased future replenishments from the source of the product (vendor or manufacturing) are matched to the forecast to project future national inventory levels. Considering standard lead-times (in weeks) to make order-on-source changes in delivery, the system adjusts source orders outside lead-time to keep national inventories between safety stock and maximum inventory levels. An inventory analyst, not the system, can only make replenishment order changes within lead-time.
The after-hours portion of the inventory planner is where the computer highlights particular products for analysis and does the routine but time intensive calculations necessary to consolidate information for the inventory planner. The scripting capability gives the user the opportunity to have various inventory management activities done by the computer on a daily, weekly, monthly or quarterly basis. The user determines the timing based on how the user sets up the processing scripts.
In common use, the system will perform the following inventory management activities after-hours: