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vendor capacity constraints

Former Member
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Hi Gurus,

can anybody please throw some ideas in this scenario. we have a PFM (HAWA material type). now we buy this material from vendor. and there is a restriction at the vendor, as this vendor cannot produce more than a certain quantity in a given month.

For example, the lead time on the material is 10 weeks. So starting from week 10, the vendor can supply 5000EA per week., so when the sales order is being entered we want SAP to cosnider this and promise accoridngly.

In other wordss if sales order is being entered today for a date in week 10, the sales order cannot be more than 5000EA, if the customer is asking for 6000EA, then SAP should say 5000 in week 10 and 1000EA in week 11.

how can we achieve this.

Note: Based on my initial reading and research it sounds like the product allocations functionality on the sales side can help us achieve this. I have tried to maintain all the settings required in our sandbox system to map this scenario. But when i'm running the availability check on the sales order, i cannot see the product alloc check as was exaplained in SAP help. can someboy throw some ideas on how to achieve this.

Thanks

Anusha

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Answers (3)

Answers (3)

Former Member
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Hello

From the purchasing side, I can tell you what we've done in the past....Not sure if this fully meets what's being asked for here, but we have usedSAP standard quota arrangement functionality for this purpose... Within quota arrangements, it allows you to define a "max release quantity" for a particular material/vendor combination, as well as a period for which the release quantity is available for (week, month, or pp calendar)... As demand comes in, these orders fill up the quota until the max quantity is reached, in which then you could either define another vendor to procure from for the remaining material amounts, OR you could have it generate a PR vs SA which could be an indicator to the buyer that the max quantity has been reached for those orders

 

For example:

 

I have a quota arrangement setup with a max release of 500, with a week period (note that a source list is also being maintained to generate the releases)

I have a demand out there for 1000

Run MRP and the following results in a SA for the max quantity (500), and a PR for the remaining amount ( 500 with no vendor assigned)

 

Because the "weekly" period is defined in the quota arrangement, any demand that exceeds the max release within that week will generate a PR until the following week (... This could also be given to another vendor via SA if need )

Weekly

Or you can sent it up for a monthly period which results in only one SA being generated

There is also a third option called PP calendar but I'm not 100% sure how that works... but if you know what the vendorapproximate max quantity release/capacity is by week or even month, you possible could use this functionality to continue to fill up orders via SA until the max quantity is reached, in which then a PR could be generated giving the buyer notice that the max quantity has been reached ( or again, we could just allocate that demand automatically to another vendor on another SA or a PR)

Not sure if this would meet the sale side requirements , but it is all readily available/Standard SAP on purchasing side... down side would be remembering to setup/maintain the quota arrangement, and also activating the quota arrangement field in the material master.

Former Member
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Hi James,

thanks so much for your detailed resposne on how you worked this out on your side.

To make waters dirtier and dirtier, these are the two primary scnearios around which our solution will have to be built.

Scenario1: the PFM (HAWA material type) sold to customers on sales orders is the major wiin that we are kinda hoping for. we sell PFM separately on sales order.

Scenario2: The dependent requirements from production that we get on the PFM is another scenario. we use PFM mateiral on another product in production.

To make thigns difficutl, the sales director says that he does nto want any kind of product allocation, in other words, he does not want to restrict by sales org, customer, division, customer grioup and anything like that. He still wants to keep this as open as possible .

so now i'm kinda looking for a two pieced solution

solution1: it will look at the total qty availble at vendor in a given period for PFM and then propose accordingly on when the next quantity can be available

solution2: dependent requirements coming from production process on the PFM

thanks for your input though, i will keep working

Thanks

Anusha

Former Member
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Anusha,

Product allocation is a common tool to support your requirement.

For a configuration guide, check out

http://scn.sap.com/docs/DOC-22686

Best regards,

DB49

Former Member
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Dear Dogboy,

Thanks  you for your reply. I'm looking into product allocations currently, but its involving so many scenarios from CSR side., before i ventured too deep in this area with flexible planning  (this iswhere all the config is for product allocation) also i was wondering if scheduling agreements and/or contracts on the purchasing side can be used to support my requirement.

Thanks

anusha

Former Member
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Anusha,

Product Allocation does not intrinsically involve "...so many scenarios from CSR side.".  The only characteristic you have mentioned up until now is 'Material'.  Other (Sales related) characteristics needn't be included in your infostructure.

With respect to your last question, I suggest that if you want more info about Purchasing type functionality, you post your question in an MM forum, such as http://scn.sap.com/community/erp/logistics-mm

Best Regards,

DB49

Former Member
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Thanks again Dogboy for the reply. I looked at the ordering pattern on the five critical mateirals that have this capacity issue at the vendor and here is what i found.

                Matl                       Soldto Count                      Total Qty Sold

                 A                          30 soldtos                    30673 EA

             B                                 41 soldtos                    405167 EA

            C                                6 soldtos                     3917 EA

            D                                6 soldtos                     4113 EA

            E                                28 soldtos                    18706 EA

I was thinking around this, on how possibly can the solution be designed, i mean in terms of do we jus go after the percentage split at distribution channel only, sales org only or material and customer combination etc. this was the throught process behind the scenarios that i talked about from the CSR side.

Anusha

Former Member
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Anusha,

This last post is not consistent with your original requirement. 

In other words if sales order is being entered today for a date in week 10, the sales order cannot be more than 5000EA, if the customer is asking for 6000EA, then SAP should say 5000 in week 10 and 1000EA in week 11.

You merely stated you had a vendor limitation, by part number. 

Now you are adding that you wish to take this 'capacity limited' part number, and somehow develop logic of 'how much of the limited part number should each customer get'.  Your original scenario implied that your requirement was '5000 of the limited part number to be sold per week; and you didn't care which customer gets them'.  Which is it?

If you wish to allocate by some type of sales grouping (e.g., customer, sales org, dist channel, etc etc), then I can't give you the logic - that info has to come from the sales and marketing group in your company.  If you wish to establish allocation only by part number, then sales grouping characteristics are irrelevant, and you shouldn't use them.  The ONLY characteristic that you manage is Material.

Best Regards,

DB49

former_member184701
Active Contributor
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dear,

do you use / run MRP ?

regards,