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Former Member

Master Planning in SNP


i'm new to this forum. hope this is the right place to post my question. need to understan a bit more on SNP.

Suppose a simple supply chain with two distribution center on which we also have some safet stock requirement sourced from a factory.

Now will SNP be able to perform a master planning by taking demand from the distribution centers and solving capacity issues on the factory ? i.e. anticipating and/or delaying the demand violating the safety stock, but satisfying the demand.

If not do we need to put PP into the picture ?



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1 Answer

  • Nov 16, 2011 at 07:01 AM

    Hi Luca,

    What I understand in supply chain which you have mentioned that we have Demand Forecast coming from DC's which is fulfilled by Plant. Also we have Safety Stock at each of this DC.

    Yes, SNP will perform Supply Chain Planning and fulfill Capacity Issues.

    You will have to maintain few of below Master Data's

    1] Safety Stock for Product @ each of DC's

    2] T Lanes from Plant to DC's

    3] PPM's at Plant which will determine Capacity Usage.

    Total Demand at each DC's will be Forecast + Safety Stock.

    For Capacily issues you will have to use SNP Heuristic along with Capality Levelling or Optimiser / CTM's.

    SNP Heuristic considers Infinite Capacity at Plants and hence you need to run Capacity Levelling after Heuristic.

    If you want to use ECC alone then I suppose you will have to run MRP for DC's individually.

    Hope this clears your doubt.



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    • Former Member Former Member


      As mentioned by Sameer and continuing on the solution for this.

      in SNP you have different options to choose and design your supply chain process.

      either choose SNP heuristic with a combination of Capacity levelling (second step after heuristic run).

      Or develop/create CTM engines to calculate with the mentioned parameters/constraints to consider both distribution and capacity at the time of planning.

      or develop/create Optimizers to consider your constraints involving costs.