SECTION 1 SCM TEMPLATE WORKFLOW 2000 i2 Technologies Inc 3 SCM Template Workflow Release 4 2 1 Copyright 2000 i2 Technologies Inc This notice is intended as a precaution against inadvertent publication and does not imply any waiver of confidentiality Information in this document is subject to change without notice No part of this document may be reproduced or transmitted in any form or by any means electronic or mechanical including photocopying recording or information storage or retrieval systems for any purpose without the express written permission of i2 Technologies Inc The software and or database described in this document are furnished under a license agreement or nondisclosure agreement It is against the law to copy the software on any medium except as specifically allowed in the license or nondisclosure agreement If software or documentation is to be used by the federal government the following statement is applicable In accordance with FAR 52 227 19 Commercial Computer Software Restricted Rights the following applies This software is Unpublished rights reserved under the copyright laws of the United States The text and drawings set forth in this document are the exclusive property of i2 Technologies Inc Unless otherwise noted all names of companies products street addresses and persons contained in the scenarios are designed solely to document the use of i2 Technologies Inc products The brand names and product names used in this manual are the trademarks registered trademarks service marks or trade names of their respective owners i2 Technologies Inc is not associated with any product or vendor mentioned in this publication unless otherwise noted The following trademarks and service marks are the property of i2 Technologies Inc EDGE OF INSTABILITY i2 TECHNOLOGIES ORB NETWORK PLANET and RESULTS DRIVEN METHODOLOGY The following registered trademarks are the property of i2 Technologies Inc GLOBAL SUPPLY CHAIN MANAGEMENT i2 i2 TECHNOLOGIES and design TRADEMATRIX TRADEMATRIX and design and RhythmLink February 2000 Document ID HiTech 4 2 SCM Template Workflow Document Version V 1 0 Document Title HiTech 4 2 SCM Template Workflow Document Revision Draft 1 Revision Date 3 February 2000 Document Reference Primary Author s SCM Team Krishnan Subramanian Jatin Bindal Abhay Singhal Comments Contents SCM PROCESSES OVERVIEW SCM PROCESSES DEMAND PLANNING DEMAND FORECASTING Top Down Forecasting Bottom Up Forecasting Life Cycle Planning New Product Introductions and Phase In Phase Out Event Planning Consensus Forecast Attach Rate Forecasting Dependent Demand Forecasting in Configure to Order environments DEMAND COLLABORATION Flex Limit Planning FORECAST NETTING Forecast Extraction MASTER PLANNING SUPPLY PLANNING Enterprise Planning Inventory Planning Enterprise planning Long term capacity planning Enterprise planning Long term material planning Facility Planning Supply plan for enterprise managed components Collaboration Planning for Enterprise and Factory Managed Components Procurement Collaboration Collaboration Planning with Transportation Providers Transportation Collaboration ALLOCATION PLANNING DEMAND FULFILLMENT ORDER PROMISING Promising new orders Configure to Order CTO Orders Build to Order BTO Orders ORDER PLANNING Factory Planning Transportation Planning SCM Processes Overview The following figure briefly describes the solution architecture for the core processes that constitute the SCM solution 2000 i2 Technologies Inc 5 Forecast SCM Functional Workflow Demand Planning Forecast Netting Order Promising Master Planning Order Planning Supply Allocation Netted Forecast Allocations New Orders Promise Information Demand Planning Supply Planning Demand Fulfillment Allocation Planning copy Latest Available To Promise Supply Plan Order Creation Demand Collaboration Procurement Collaboration Backlog orders SCM Processes The SCM template as a whole performs the following functions 1 Demand Planning Forecasting and demand collaboration Sales forecasts are generated using various statistical models and customer collaboration 2 Master Planning Long term and medium term master planning for material as well as capacity Master planning can be done at both the enterprise level for critical shared components and the factory level In addition decisions relating to material procurement and capacity outsourcingof materials from suppliers or capacity outsourcing decisions can be made 3 Allocation Planning Reserving product supply for channel partners or customers based on pre specified rules Also managing the supply so that orders that have already been promised can be fulfilled in the best possible manner on the promised dates and in the promised quantities 4 Order Promising Promising a date and quantity to customer orders These promises are made looking at the projected supply In addition sourcing decisions are also made here after considering such variables as lead time product cost shipping cost etc 5 Order Planning Det