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APO CTM - Procurement priority

Former Member
0 Kudos

Hi All,

I have the following scenario.

One Factory called FactoryA

Two Suppliers, SupplierA and SupplierB.

SupplierB has stock of 1000 lying with it.

There is a demand at FactoryA of 1000

SupplierA has higher procurement priority than SupplierB

When I run CTM, Pur Reqs are created at FactoryA for procuring from SupplierA where planned order is created which results in late fulfilment of demand at FactoryA.

Even though there is stock lying at SupplierB, it is ignored just because it has lower procurement priority.

In the global settings for late demand fulfillment, we have allowable late demand fulfillment to be set at 999 days.

Can there be a solution for such a scenario where priority is overridden to first use the existing stock in lower priority supplier and then, if needed, create planned orders at the higher priority supplier? Looking for some urgent help.

Thanks in advance

Ehsan Ahmed

Accepted Solutions (1)

Accepted Solutions (1)

srinivas_krishnamoorthy
Active Contributor
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Did you try using supply categorization as well, where you can specify to use stock in the supply network first ?

CTM always comes up with first feasible solution. So in your case if there are no resource constraints in the higher procurement priority source location, then CTM will continue to source it from there instead of using existing stock from other location. I am hoping the supply categorization trick should work in your case. Let us know what you find out.

Former Member
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Hi Srini,

Thanks a lot. The problem is solved by using categorization profile and search strategy.

Regards

Ehsan Ahmed

Answers (1)

Answers (1)

kenneth_snyder
Active Contributor
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Ehsan,

Something else must be wrong... CTM will search all valid sources of supply to meed the demand on time regardless of whether you allow lateness or not.

allowing lateness "permits" the demand to be satisfied late but CTM still tries to satisfy demand on time if possible.

Supply categorization will not help in this scenario.

Supply categorization only allows you to "keep" some inventory at a certain location then produce the remainder.

Ken Snyder