- Using Replenishment Planning
Policy Assignment Sets
A policy assignment set is a group of policy parameters that are defined for each segment of a segment group.
Policies are calculated for item-location combinations on the basis of these policy parameters. The policy assignment set can also contain policy overrides for segments and item-location combinations.
The policy assignment set is attached to a segment group. You can define multiple policy assignment sets for the segment group. However, you can specify only one policy assignment set for the segment group on the Scope tab on the Plan Options page in a replenishment plan.
The policy assignment set consists of the following:
Policy parameters
Default policy parameters
Policy parameter overrides
Item-location level policy overrides
Policy Parameters
You define policy parameters at the segment level.
This table lists the policy types that you can specify:
You specify whether you want to calculate safety stock on the basis of the days of cover or service level.
By specifying Units as the unit of measure (UOM), you ensure that the policies are static. By specifying Days as the UOM, you ensure that the policies are time-phased.
You determine whether the average daily demand should be calculated on the basis of the forecast or history.
You calculate the maximum quantity on the basis of these methods:
Days of cover: The average daily demand is multiplied by the maximum quantity days of cover specified in the policy assignment set.
Minimum plus order quantity: The minimum quantity is added to the order quantity, which is taken for an item-location combination from the Fixed Order Quantity column of the Items table. If this value is unavailable, the default order quantity specified at the segment level in the policy assignment set is used.
Minimum plus EOQ: The minimum quantity is added to the EOQ.
Default Policy Parameters
You define these default policy parameters at the segment level:
Default daily demand: This value is used when forecast or history data is unavailable at the item-location level for the calculation of the average daily demand.
Default order quantity
Default EOQ: If you specify this default, the default standard cost, default carrying cost percentage, and default ordering cost can't be specified.
Default standard cost
Default carrying cost percentage
Default ordering cost
The default order quantity, default standard cost, default carrying cost percentage, and default ordering cost are used when the corresponding values are unavailable for the item-location combination in the Items table.
Policy Parameter Overrides
You define these policy parameter overrides at the segment level:
Safety stock override
Order quantity override
Minimum override: If this value is specified, the safety stock isn't calculated, and no value is shown for the safety stock in tables.
EOQ override
Maximum override
ROP override: If this value is specified, the safety stock isn't calculated, and no value is shown for the safety stock in tables.
Use policy parameter overrides when all item-location combinations in a segment must have the same policy values. When these overrides are specified, policies aren't calculated for the item-location combinations of the segment.
Item-Location Level Policy Overrides
You define overrides at the level of individual item-location combinations, and these settings take precedence over those for the segments to which the item-location combinations belong:
Policy type
Fixed order cycle calendar
Use these policy overrides when you know what values you need for item-location combinations in your business, and you want to generate replenishment orders on the basis of these values. When these overrides are specified, inventory policies aren't calculated for the corresponding item-location combinations.
Hierarchy for Reading Policy Overrides and Item Attributes
The following hierarchy explains how policy overrides and item attributes are read during the policy calculation process:
If policy overrides are specified for item-location combinations, these values are used as the policies, and policies aren't calculated for these item-location combinations.
If policy overrides are specified for segments, these values are used as the policies for all the item-location combinations in the segments, and policies aren't calculated for these item-location combinations.
If a simulation set is assigned to the replenishment plan to which the policy assignment set is attached, the item attributes for item-location combinations are taken from the simulation set.
If values are unavailable in the simulation set, the collected item attributes are taken.
If item attributes are unavailable in the Items table, the default values specified at the segment level in the policy assignment set are used.
Related Topics
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