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Resource Type in Supply Chain Design Master Data

Hi all,

Appreciate if anyone can help me to understand resource type in Supply Chain Design Master Data.

There are 3 different resource types in the Supply Chain Design Master Data:

a) Equipment resource

b) Vehicle resource

c) Labor resource

For (a) and (b), we will use these if there are machines and vehicles used in production.


1) For (c), according to explanation in Help Guide, is to model employee that operates a production activity. What does this means?

2) In the factory, there are 2 production lines, Assembly 1 and Assembly 2. Both have workers working with machines to assemble part of the electronic chips. Currently I am defining both production lines as 2 Equipment Resources (tied to same cost center), and assigned Operation Supply and Make to the Resources. Inside the Operation, I maintained Activities (Produce: Test and Produce: Fix). Inside each Activity, there is a Service assigned to it.

What I am trying to achieve is to have cost allocated from 1 common cost center to both Resources via activity confirmation on the Activities (Produce: Test and Produce: Fix).

I am thinking whether Labor or Equipment resource is a better fit for my scenario.

3) Since Resource also has cost rate, what's the impact if I don't assign Service to Activities? As per understanding, system will choose Resource cost rate as a priority and value 0 is considered a priority too. System will never use Service cost rate in any condition.




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1 Answer

  • Jun 29, 2017 at 05:06 AM

    Hello Dk,

    Answer 1 : if employee is working on the assembly line/production line, Performing multiple types of services, you can create labor resource and assign those services to the labor resource.

    Answer 2 : In general all types of resource behaves the same way. It all depends who/what will perform the service and business use case.

    Answer 3 : As per the valuation strategy, Resource cost rate is given the higher priority.

    So if you have maintained resource cost rate, that cost rate will be picked up.

    For example

    Resource A : Resource cost : 100 USD

    Services : X, Y, Z

    In this case, regardless of the kind of service being performed by the resource, system will choose the resource cost 100 USD and the same will be used in follow up tasks and postings (For example material cost estimate will use resource cost)

    If you have not maintained any resource cost rate then based on the service, system will determine the service cost rate.

    For example :

    Resource A : No Resource cost

    Services :

    • X -> Cost : 50 USD
    • Y -> Cost : 75 USD
    • Z -> Cost : 100 USD

    This set up is useful when, resource cost rate varies based on the service it performs. In the production model (BoM, BoO) when labor resource A is assigned with the service X, system will consider rate 50 USD. and if the service performed is Z then 100 USD will be considered.

    I hope this will answer to your questions.



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