Overview
Supplier Constraints establishes lead times, minimum quantities, and ordering frequencies for specific item-supplier relationships. Supplier Constraints are essential for generating realistic order suggestions and calculating accurate delivery timelines in the Supply Planner.
Purpose
Supplier Constraints enable the system to:
Calculate realistic delivery dates based on supplier lead times
Enforce minimum and incremental order quantities (MOQ and IOQ)
Control ordering frequency through review periods
Generate order suggestions that respect supplier-specific constraints
Model different order types (Purchase, Production, Transfer)
Order Types
Supplier Constraints support three order types:
Purchase
Items sourced from external suppliers. Used for raw materials, components, or finished goods purchased from vendors.
Production
Items manufactured internally or at CMOs. Lead time represents the manufacturing time required.
Transfer
Items moved between internal locations within your network. Used to model inventory transfers between warehouses or distribution centers.
Constraint Parameters
Lead Time
The time it takes for an item to become available for consumption after ordering.
Deliveries are calculated by adding the lead time to the order date
Lead times can be set in days and are reflected on charts when grouped by day
In delivery view, lead times are grouped to the month level
Best practice: Align delivery lead times to when inventory actually becomes available in your operations
Minimum Order Quantity (MOQ)
The minimum quantity that must be ordered from the supplier. Orders below the MOQ will trigger an MOQ violation exception.
Incremental Order Quantity (IOQ)
The quantity increment for orders larger than the MOQ. Generally aligns with supplier batch sizes or packaging requirements. For example: If MOQ = 100 and IOQ = 50, valid order quantities are 100, 150, 200, 250, etc. Orders that don't align with IOQ constraints will trigger an IOQ violation exception.
Review Period
The frequency at which the system is allowed to generate orders for this constraint. Controls the cadence of ordering decisions based on supplier ordering schedules.
Impact on Order Suggestions
Supplier Constraints directly influence automated order suggestions:
Lead Time Offsetting
The system calculates when orders must be placed to meet demand, accounting for lead times. For example, if demand occurs in March and lead time is 2 months, the system suggests ordering in January.
Quantity Rounding
Order suggestions automatically respect MOQ and IOQ:
If calculated need is 75 units with MOQ = 100, suggestion rounds up to 100
If calculated need is 275 units with MOQ = 100 and IOQ = 50, suggestion rounds to 300
Feasibility Checking
For Production orders, the system checks component availability through the BOM structure:
Orders marked as Fulfillable (FF) if all components are available
Orders marked as Unfulfillable (UF) if component shortages exist
Exceptions
When Supplier Constraints are not met, the system flags exceptions:
MOQ Violation
When an order quantity falls below the Minimum Order Quantity constraint.
IOQ Violation
When an order quantity does not align with the Incremental Order Quantity constraint after satisfying MOQ. These exceptions appear in the Supply Planner subgrid to alert planners of constraint violations.
Required Data
See the Supplier Constraints section under Data Management for required and optional fields in uploads. Supplier Constraints can also be configured in the Supplier Constraints worksheet, under Data Management.