Stock consumption scenario in IBP Supply

[former_member1363065]

Hi,

We have a scenario in IBP where we have three levels of Finished products (lets say FG1 - Highest, FG2 - 2nd highest and FG3 - 3rd highest)

Below is the BOM structure for three levels of FG's.

1. FG1 BOM (Produced on Resource 1)

BOM1 (Source id - 1) - FG2, Component1, Component2.

BOM2 (Source id - 2) - FG3, Component1, Component2, Component3.

2. FG2 BOM (Produced on Resouce 1)

BOM1 (Source id - 1) - FG3, Component1.

3. FG3 BOM (Produced on Resource 2)

BOM1 (Source id - 1) - Component1, Component2, Component3, Component4.

We are doing Supply planning in IBP at day level. If system produces FG1 on Source id - 1 then it can produce 3 units per day and if system produces FG1 on source id - 2 then it can produce 2 units per day.

Now the business requirement is such that -

1. If there is demand on FG1 and FG2's stock is not there then system should always produce on source id- 2.

Example - Lets say there is a demand of 10 on FG1. Stock at FG2 is 0. System will create production receipts as 2 units per day on source id -2. (2, 2, 2, 2, 2)

2. If there is demand on FG1 and FG2's stock is there then system should consume FG2's stock on source id - 1 and transfer the dependent demand on the components that are used in source id - 1.

Example - Lets say there is a demand of 10 on FG1. Stock at FG2 is 5. System will first consume FG2's stock and will create two receipts elements like this (3, 2) because it can create max 3 units per day on source id - 1. The remaining 5 units of demand should be fulfilled on source id - 2 like this (2, 2, 1)

We have mapped this requirement in IBP Optimizer through diff costs but we are not getting desired results. We are using costs like non delivery, late delivery, production cost and inv holding cost. If the demand is small (in a range of 10-50) it can be managed but for higher demands either stock consumption fails or late delivery fails. So basically we are not able to handle this through cost. Is there any other way through which we can handle this requirement.

[lingaiahvanam · Accepted solution]

Hi,

It is difficult to manage this case with cost (production,inventory and non & late delivery).

The only way is manual scheduling during supply planning cycle by supply planner or production planner. I would suggest raising this requirement in IBP influence portal https://influence.sap.com/IBP.

Best Regards,

Lingaiah