EAD Information – A summary of the activity

You can select the stocking point of the item and set the level of Earliest Available Date (EAD) based on which the warehouse has to be specified. You can specify the item and the required unit of measure of the item. On specifying the item, you can enter the required quantity of the item for which the earliest available date is calculated using the logic mentioned below:

For each of the receipt event, the total receipt and demand quantity is identified between each receipt date. For each receipt the balance receipt quantity is calculated as the difference between the receipt quantity and demand quantity on each receipt. If the balance receipt quantity results in a negative balance (name it as X), then starting from the earliest receipt time search for the earliest receipt balance. If the earliest receipt balance is set to zero then the next earlier receipt is considered. The process is carried on until the last receipt. If the balance receipt quantity results in a positive balance (name it as Y) and if Y > ABS (X) then X = 0 and Y = Y- ABS (X). If Y<= ABS (X) then set Y = 0 and X = X+Y. On moving to the earlier receipts, if the earliest receipt balance already has a negative balance, then the receipts need not searched beyond that receipt.

You can select the EAD option as either “Single” or “Staggered” to identify the earliest available date. If option selected is “Single” and if the balance receipt quantity is greater than or equal to required quantity then the corresponding date is identified as the earliest available date. If option selected is “Staggered” then multiple balance receipt quantities are considered. The balance receipt quantity of each selected receipt is deducted from the required quantity until the required quantity is less than or equal to zero. The dates so considered are the earliest available dates. On furnishing the necessary details, you can initiate the EAD operation to display the earliest available dates for the required quantity. Let us consider the following example:     

From the above table, you can find the earliest available date for the required quantity. This can be found by calculating the total receipts and total demands on each receipt date. This is depicted as follows:

On applying the above EAD logic, a variable X is set to the negative value i.e. (-100) and a variable Y is set to the positive value i.e. (200). If Y > ABS (X) -> 200 > ABS (-100), then X = 0 and Y = Y – ABS (X) -> Y = 200 – 100 = 100.   Hence X = 0 and Y = 100 and further there are no negative values in the total list. Therefore, the quantity of 100 can be promised on “01^st August” and the next quantity of 100 can be promised on “05^th August”.

Let us consider 2 cases:

Case 1

Required Quantity: 100.Quantities on each receipt are determined. This quantity is checked between receipt dates. If the stock quantity is greater than or equal to the required quantity then the quantity is promised on the current date i.e. the Earliest Available Date. So, EAD in this case is “01-August”. You can give the required quantity on a single lot/date.

Case 2

Required Quantity: 200.Quantities on each receipt are determined. This quantity is checked between receipt dates. The stock quantity cannot be promised on single date i.e. single lot and can be promised on multiple dates i.e. staggered dates/lots. So, EAD in this case is “01-August” for 100 quantities and “05-August” for the remaining 100 quantities.