Redeply stock within DCs if stock quantity is more than 90 days

[Former Member]

Hi,

I need expert help in finding solution to below scenario: 

There are 2 Distribution centers (DC) and 1 manufacturing plant.

Demand comes on a DC,

That DC should first use any stock (only if the stock is more than 90 days) on other DCs.

After consuming the extra stock from other DC, the remaining demand should be fulfilled from manufacturing plant. (i.e. PO shd be created at Mfg plant)

We are using both CTM and Heuristics engines. I understand that if we execute such scenario in CTM, CTM should always consider the stock sitting on another DC before moving to the plant. However, not sure how it will consider the condition that the stock should be more than 90 days.

I tried a couple of solutions for this, but not going through.

Any suggestions would be highly appreciated.

Thanks and regards,

Shweta

[Former Member]

Hi Shweta,

There is one parameter "Demand Selection Horizon" in APO material master relevant for CTM . It is in SNP2 tab under CTM setting .

This parameter will control how much of the demand at individual DCs will be satisfied from the supply at the DCs before it can be used to transfer to other DCs.

For example, if you set 90 days here for DC1, then system can deploy the supply from this DC to other DC if the all the demand within 90 days has already been meet.

In your tlanes, give higher priority to the lanes between the DCs and then given the priority to the lane from the plant to the DC. So if a DC has excess after meeting all its demand for the 90 days, it will be available to be deployed to other DCs otherwise CTM will use the plant to fulfill the demand.

Regards,

Mitesh

[Former Member]

Hi Mitesh.

Thankyou so much for replying on this.

Tried setting the parameter "Demand Selection Horizon" in product master. Even after giving it a value (say 4 days) it is allocating the whole available stock to the demand that comes from the other DC.

e.g.

DC1 sends demand of 20 to DC2 (start date 16).

DC2 has stock = 20.

There is another demand at DC2 (=5) at start date 17.

As per my understanding of the "Demand selection Horizon" field, CTM should use the stock for demand of 5 units before using it for demand of 20. But it is using the whole stock for the demand of 20.

I have verified CTM profile, 'Product Spec. Selection Horizon for Demands' check box is unchecked, as required.

Please advise.

Thanks and regards,

Shweta

[Former Member]

Hi Shweta,

To ensure that CTM first fulfills its own demand first and then fulfill the demand of other DCs, split the CTM run.

In the first CTM run, remove all sources of supply so that the demand for each DC will be fulfilled by its own supply. To exclude the source of supply, in your CTM profile, go to Settings tab, then Basic settings and then "Exclude Procurement Alternative". Here check all the three options so that CTM can't produce or procure anything in the first run. This will ensure that individual DC demand is fulfilled first from its own supply. The "Demand Selection Horizon" field will control how much demand at each DC will be considered to be pegged against its own supply.

In the second CTM run, run it in unpegged orders only mode so that the existing pegging relationships are not deleted. In this run you can enable all the sources of supply. So during this run, any excess available at any DC would be used to meet the demand at the other DC.

In this run, there is no need for the "Demand selection horizon" since in the first run it was already considered.

Let me know if it meets your requirements.

[Former Member]

Hi Mitesh,

Thanks for your response.

My thoughts were also going in splitting CTM profile direction But still i have 2 issues:

1)  "Demand selection horizon" Is not working for me. Not sure what is missing. CTM is also planning the demand that falls outside this horizon. Say if i give 10 days in horizon, it is consuming its own stock for 11th day demand too.

2) Say, after 1st CTM run, the stock is consumed for its own demand of 10 days from current date. (Assuming "Demand selection horizon" working fine and value = 10).

Excess stock = 5

After 2nd CTM run, Distribution demand (of quantity = 5)  is created on 5th day, so as to consume the stock.

Now, is it ensuring that the stock sitting on DC on 5th day, is sufficient for next 10 days, starting from the day of distribution demand (not from current date)?

I hope i am able to explain my problem.

Thanks and kind regards,

Shweta

[Former Member]

Hi Shweta,

The Demand Selection horizon should work. I hope you have removed the "check mark" off in the CTM profile for the product specific demand selection horizon. You can quickly check if it is working or not by clicking on "Simulation" in the demand tab and check if the demands outside the horizon is still considered.

I am not clear about your 2nd question.. With the first run, CTM is ensuring that the demand till the "demand selection horizon" is getting fulfilled by the DCs own supply.

In the second run, CTM is fulfilling demand for the other DCs based on the excess available. At that time, it is not checking anything else.It is just fulfilling the demand based on the excess available at other DCs.

Regards,

Mitesh

[former_member187488]

Hello, if you use heuristic, you can consider:

1) Customize the stock on hand macro to adapt your own logic, since heuristic wokrs basically on the supply shortage calculated by the macros.

2) Use shelf life functionality, by setting maturation time.

[Former Member]

Hi Ada,

Thank you so much for your answer.

I have a doubt, if i use maturation time, or customize the stock on hand macro, in both cases the available supply will not be available to the demand propagating from another DC for 'n' number of days. But how do we ensure that this supply should be available ( even before the 'n' days) for the demand that comes on the same DC itself.

Please let me know if i am not clear.

Thanks and kind regards,

Shweta