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Former Member

Pulling future requirement ahead due to supply constraint

Hi,

I have following scenario:

Raw material Supply and finished product demand follows inverse curve, i.e., say for example raw material supply is more during Mar-July time frame whereas demand for finished product is more during say Sept - Jan time frame.

Raw material have short shelf life..so generally we produce for Sept-Jan requirement during Mar-July time frame and store the product to meet demand during Sepr-Jan time frame.

Question:

In APO, when I am doing long term planning, using SNP, let me know how I can pull planned orders (to meet demand during Sept-Jan) close to raw material supply, say sometime during Mar-July.

Let me know if anybody has come across this scenario and has any inputs.

Thanks

Sharad

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4 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Aug 14, 2009 at 10:36 AM

    Hi Sharad,

    Indeed SNP will be able to help you in this case, which is a quite common issue.

    Basically what you need to do:

    + have your forecast reaady long enough in advance

    + Be able to constraint your supply (scheduling agreement, collaboration planning, resource with limited capacity...)

    + Run a contrain plan (CTM or optimiser)

    Let's say for example you define a produciton resource on your supplier location, open only between march and july, and have you forecast ready for one year or more. Then, with a relevant cost maintained - e.g produciton cost, transport cost, sotrage cost, safety penatly...) the optimiser will map your available resource with your demand...

    Does it helps?

    Thanks and Regards

    Julien

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    • Former Member Former Member

      Hi Sharad,

      Yes you are right that CTM can do the pegging. And as per your requirement, you can use CTM with early demand fulfillment option.You can maintain this in Global setting of CTM by using /N/SAPAPO/CTMCUST under tab Demand-Dependant Constraint where you can maintain early demand fulfillment as 999 days(max.) so that it will consider early demand with the supply available.

      Hope it will help.

      Thanks,

      Dipankar

  • author's profile photo Former Member
    Former Member
    Posted on Aug 15, 2009 at 09:35 AM

    Hi Sharad,

    My client had a similar requirement like this. what i suggested them to do was use safety stock strategy SZ which will pull the demand by the number of days that are maintained in the product master.

    although this may not be a correct way to do it, this master data maintenance suits the requirement.

    let me know if this helps.

    Rgds, Sandeep

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 25, 2009 at 07:30 PM

    I do not know if you can use the planning related intervals (If you use PPDS and you convert the SNP orders to PPDS)

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 26, 2009 at 02:08 PM

    Dipankar,

    Since Sharad i looking SNP, my response was probably not in line with what he wanted.

    But so far as PPDS is concerned, it can be used with CTM and i have seen companies using it for long term planning as well. It depends on the scenario whether you want it or not.

    Kedar

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