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Aug 07, 2019 at 07:17 AM

Fair share feature of Time Series Based Supply Optimizer


Hi Folks,

While running time series based supply optimizer what we observed is, optimizer is not proportionally distributing the available supply to the demand locations in few weeks.

For example - Few products are getting more receipts and the remaining has got less receipts. In short there is no balanced kind of planning situation. (Assume that the demand is more or less same)

Our Supply chain network is as follows –

Customer --- DC --- Plant

We have four customers and every customer is mapped to one DC. So the relationship between Customer and DC is 1:1. And all these four DCs are mapped to one production plant which has one resource.

At DC we have stock on hand, in transit inventory and inventory target.

Now lets say we have 10 products for which we are running the optimizer. These 10 products are extended to 4 DCs which creates a combination of 40. Now lets say out of these 40 combinations 30 combinations have demand which is then transferred to production plant.

Production plant has resource capacity constraints.

So when we run optimizer we don’t see a proportional distribution of available supply. (Assume that there is lead time of 1 week for all combinations)

If we look at the standard COVERAGE key figure in a particular week, it shows more weeks of supply for few products and less for remaining ones.

The expectation here is to proportionally distribute the available supply so that all products within the supply chain network has proper weeks of supply (COVERAGE)

To address this issue, we started exploring the Fair share feature of time series based supply optimizer. This feature has helped us to a good extent but still there are cases where optimizer could have done proportional distribution in few weeks but it is not doing it.

We used segments for Non – Delivery and Inventory target both together.

If anyone has used fair share feature of supply optimizer, can you please share more insights on it.

Also what I read on SAP help is, we can maximum have 10 segments.

Is it for a combination of Non – Delivery, Inventory Target, Late Delivery and Inventory Holding planning features together or individually??