Demand Planning Across Multi Location using Transfer Orders

Setup the Locations as below: (Setup > Company > Locations > New)
--DP - Selling Location
--DP - Manufacturing Location 1
--DP - Manufacturing Location 2

Setup the Items as below: (Lists > Accounting > Items > New)

DP Main Assembly Item (Assembly/BOM)
--DP - Level 1 Member Item (Inventory Item) 
--DP - Level 1 Sub Assembly Item (Assembly/BOM) 
----DP - Level 2 Member Item (Inventory Item)
 

DP Main Assembly Item (Assembly/BOM):
--DP - Selling Location > Demand Source: Forecast from Demand Plan
--DP - Manufacturing Location 1 > Demand Source: Entered and Planned Orders
--DP - Manufacturing Location 2 > Demand Source: Forecast from Demand Plan

DP - Level 1 Member Item (Inventory Item) 
--DP - Selling Location > Demand Source: Forecast from Demand Plan
--DP - Manufacturing Location 1 > Demand Source: Entered and Planned Orders
--DP - Manufacturing Location 2 > Demand Source: Forecast from Demand Plan
 

DP - Level 1 Sub Assembly Item (Assembly/BOM)
--DP - Selling Location > Demand Source: Forecast from Demand Plan
--DP - Manufacturing Location 1 > Demand Source: Entered and Planned Orders
--DP - Manufacturing Location 2 > Demand Source: Forecast from Demand Plan

DP - Level 2 Member Item (Inventory Item)
--DP - Selling Location > Demand Source: Forecast from Demand Plan
--DP - Manufacturing Location 1 > Demand Source: Entered and Planned Orders
--DP - Manufacturing Location 2 > Demand Source: Entered and Planned Orders
 

Step 1: Create Item Demand Plan for Main Assembly on DP - Selling Location.

Navigate to Transactions > Demand Planning > Item Demand Plans > New.
Location: DP - Selling Location
Item: DP Main Assembly Item (Assembly/BOM)
Start Date: 1/1/2013 > Quantity: 100 up to Start Date: 12/1/2013 > Quantity: 1200. Each month, we increased the quantity by 100 units. Feb 2013: 200, Mar 2013: 300 and so on.
 

Step 2: Create Supply Plan for Main Assembly on DP - Selling Location.

Navigate to Transactions > Demand Planning > Generate Item Supply Plan.
Location: DP - Selling Location
End Date: 4/1/2013
Mark DP Main Assembly Item > Click Submit.
Item Supply Plan shows that we should manufacture based on the item demand plan.

Step 3: The Supply Plan created on Step 2 will have to be manufactured on DP - Manufacturing Location 1. Create Transfer Orders based on the Supply Plan of Main Assembly on DP - Selling Location.

Navigate to Transactions > Inventory > Enter Transfer Orders.
Copy the Date and Quantity suggested in the Item Supply Plan.
From Location: DP - Manufacturing Location 1
To Location: DP - Selling Location
Jan 2013: 100, Feb 2013: 200, Mar 2013: 300 and Apr 2013: 400

Step 4: Update the Item Supply Plan for Main Assembly on DP - Selling Location.
Navigate to Transactions > Demand Planning > Generate Item Supply Plan.
Location: DP - Selling Location
End Date: 4/1/2013
Mark DP Main Assembly Item > Click Submit.

At this point, the Demand is already passed on to DP - Manufacturing Location 1 and Supply Plan for Main Assembly on DP - Selling Location shows zero.

Step 5: Create the Supply Plan for Main Assembly on DP - Manufacturing Location 1.
Navigate to Transactions > Demand Planning > Generate Item Supply Plan.
Location: DP - Manufacturing Location 1
End Date: 4/1/2013
Mark DP Main Assembly Item > Click Submit.
Item Supply Plan shows that we should manufacture based on the Entered and Planned Orders (Transfer Orders created on Step 3). The Supply Plan for the Member Items are automatically created since the Demand Source for DP - Manufacturing Location 1 is Entered and Planned Orders.

Step 6: DP - Level 2 Member Item will have to be Purchased on DP - Manufacturing Location 2. Create Transfer Orders based on the Supply Plan of DP - Level 2 Member Item on DP - Manufacturing Location 1.
Navigate to Transactions > Inventory > Enter Transfer Orders.
Copy the Date and Quantity suggested in the Item Supply Plan.
From Location: DP - Manufacturing Location 2
To Location: DP - Manufacturing Location 2
Jan 2013: 100, Feb 2013: 200, Mar 2013: 300 and Apr 2013: 400

Step 7: Update the Item Supply Plan for  DP - Level 2 Member Item on DP - Manufacturing Location 1.
Navigate to Transactions > Demand Planning > Generate Item Supply Plan.
Location: DP - Manufacturing Location 1
End Date: 4/1/2013
Mark DP - Level 2 Member Item > Click Submit.
Updated Item Supply Plan shows zero. At this point, the Demand is already passed on to DP - Manufacturing Location 2.
 

Step 8: Create the Supply Plan for DP - Level 2 Member Item on DP - Manufacturing Location 2.
Navigate to Transactions > Demand Planning > Generate Item Supply Plan.
Location: DP - Manufacturing Location 2
End Date: 4/1/2013
Mark DP - Level 2 Member Item > Click Submit.
Item Supply Plan shows that we should purchase based on the Entered and Planned Orders (Transfer Orders created on Step 6). Jan 2013: 100, Feb 2013: 200, Mar 2013: 300 and Apr 2013: 400

Note: Enhancement 227858 is logged for the ability to Process Demand Planning across all location