Non Stocking SFG and Forward Consumption

[ebrahim_bhika]

Hi Experts

I have question with regards to non stocking of an SFG and Forward consumption of the excess SFG. The scenario is that a Certain SFG can not be stored and must be converted into the relevant finished goods within the same period of production. Will setting the Inventory Holding Policy of the SFG to 1 ensure that the optimizer generates planned production for the future periods since the Batch size of the SFG is more than the current weeks requirements. If yes will the additional requirements of the future periods be allocated based ABC code or split equally. I have attached a table below giving a visual example.

In the Table above we have an SFG with a Min as well as an incremental lot size of 5000, assume capacity also only allows production of 5000, there are 3 products made using this SFG with a 1 to 1 ratio, the total demand for week 31 is 4200 and an SFG production of 5000 will take place to meet the demand, will the optimizer automatically include Planned production for week 32 to consume the remaining 800 units either equally or based on ABC code.

Regards

Ebrahim

[ebrahim_bhika · Accepted solution]

Hi

After doing some research and testing within the system I can confirm that setting the Non- Stocking indicator to 1 for the SFG semi finished good (SFG) does indeed push the entire batch into Finished (FG) production. Within the images below we see that before a batch size and indicator were assigned, SFG(IBP-101-2) was produced the week prior to the FG (IBP-100) requirement following the FG demand and converted to FG when required. When a batch size of 500 as well as a non stocking indicator was assigned to the SFG, the full batch of 500 was converted into FG and where there are multiples FG's-(IBP-100 and IBP-110) converted into FG based on future demand split

Production Plan Pre Batch size and indicator:

Production Plan Post Batch size Without Non- Stock indicator:

Production Plan Post Batch size With Non- indicator for 2 Finished goods: