Supply targets and exceptions

An exception identifies the affected planning entity and period, the anomaly type, severity, detected quantity difference, assignee and status. The type can point to a large variance, trend break, accuracy drift, missing history, capacity mismatch, out-of-stock history, launch miss or promotion underperformance. Demand Planner investigates the evidence and records resolution notes. Demand Planning Manager decides which findings belong in the S&OP discussion.

What-if scenarios branch from a base cycle and keep assumptions, type, estimated quantity and revenue impact, status and affected entities. They let the group compare a promotion shift, launch slip, channel change or capacity constraint while preserving the base cycle. A reviewed scenario can inform a recorded meeting decision. Its impact is an assumption to discuss, not a substitute for the published plan.

• Triage the anomaly. Use severity, type, affected periods and assigned owner to decide which exceptions need review now.
• Test an alternative. Record scenario assumptions and affected entities before discussing a change to the cycle.
• Review the target. Compare safety stock by item and location with lead time, service level, forecast variability and computed date.

Agree how exceptions are assigned and what evidence is needed to resolve or accept one. A resolved issue should have notes explaining the cause and decision. For safety stock, agree the target service level and lead time source for each item-location pair. The target record has a computed date and an optional published-to-inventory date, so the team can distinguish a reviewed calculation from an outbound handoff.

The inventory team should agree how targets are transferred into its own process. Keep a stable item identifier and a valid location value. If lead time or service level changes, review the target again before sending it onward. The demand team should also agree whether a severe exception changes the current cycle or becomes an item for the next one.

A high-severity capacity mismatch appears for a West retail planning entity next month. Demand Planner reviews the forecast period and the exception assignment. Operations Lead supplies a constrained contribution. Demand Planning Manager compares a capacity scenario with the existing final position, then records any change in an S&OP decision linked to that entity. The exception’s resolution notes explain the outcome.

For the same item, review a target for the Seattle location. Check its service level, lead time, forecast standard deviation and computed date against the cycle. The inventory handoff should identify the exact item and location and retain the publication date when the target is sent.

• Open exceptions — Unresolved anomalies grouped by type, severity and planning entity.
• My exceptions — Assigned investigations and their current status.
• Item-location safety targets — Computed reorder and safety stock values for inventory review.

Use exception to decision and consensus to publication.