SECTION 1SCM TEMPLATE WORKFLOWSCM Template WorkflowRelease 4.2.1Copyright 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 tobe 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 Unpublishedrights 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 associatedwith 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, 2000Document ID: HiTech 4.2 SCM Template WorkflowDocument Version:V 1.0Document Title:HiTech 4.2 SCM Template WorkflowDocument Revision:Draft 1Revision Date:3 February, 2000Document Reference:.Primary Author(s):SCM Team Krishnan Subramanian, Jatin Bindal, Abhay SinghalComments:ContentsSCM PROCESSES OVERVIEWSCM ProcessesDEMAND PLANNINGDemand ForecastingTop-Down ForecastingBottom-Up ForecastingLife Cycle Planning New Product Introductions and Phase-In/Phase-OutEvent PlanningConsensus ForecastAttach-Rate Forecasting/Dependent Demand Forecasting in Configure-to-Order environmentsDemand CollaborationFlex Limit PlanningForecast NettingForecast ExtractionMASTER PLANNINGSupply PlanningEnterprise Planning: Inventory PlanningEnterprise planning: Long term capacity planningEnterprise planning: Long term material planningFacility Planning: Supply plan for enterprise managed componentsCollaboration Planning for Enterprise and Factory Managed Components Procurement CollaborationCollaboration Planning with Transportation Providers - Transportation CollaborationAllocation PlanningDEMAND FULFILLMENTOrder PromisingPromising new ordersConfigure to Order (CTO) OrdersBuild to Order (BTO) OrdersOrder PlanningFactory PlanningTransportation PlanningSCM Processes OverviewThe following figure briefly describes the solution architecture for the core processes that constitute the SCM solution. SCM ProcessesThe 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 outsourcing 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: Detailed order planning encompassing multiple factories. In addition detailed transportation planning is also done which can handle such complex requirements as merging two shipments from different locations dur