
Hello there!
If you're new to the world of SAP S/4HANA Cloud, Public Edition and Bill of Materials (BOM), one concept that may sound a bit complex initially, but could be tremendously beneficial to your business, is Equal Quantity Distribution. Though it might seem like a mouthful at first, understanding this principle could be the key to unlocking greater efficiency and potential in your production process.
Imagine you're planning to host a big party. You have a list (your BOM) of all the ingredients you need for your menu. Now, would it make sense to buy all of your supplies weeks in advance? Probably not. Some ingredients are perishable, others might only be needed at the time of cooking. So, you plan your shopping trips, distributing your purchases over time.
Similarly, Equal Quantity Distribution can be seen as a "smart shopping" strategy for your production process. In the context of dependent requirements and BOM, Equal Quantity Distribution is a method of scheduling the procurement or production of materials exactly when it's required during the production cycle. The demand is equally dispersed along with your chosen timeline or specific stages of your production process.
But not only production processes can benefit from Equal Quantity Distribution, also the Product Availability Check (PAC) can incorporate it when determining on which date and in which quantity a requirement (for example, a sales order item) can be fulfilled.
In a production order the demand for the components is on start date of the operation. With quantity distribution, these demands are distributed across the production runtime. Similarly, the whole supply that is created with the production order is planned at the end of the order. Following diagram depicts this:
Equal Quantity Distribution changes this by distributing supply and demand, like depicted in following diagram:
How can businesses benefit from equal quantity distribution?
The equal distribution function is available in discrete manufacturing, process manufacturing and repetitive manufacturing. You can set it basically at two places:
In addition the Equal Quantity Distribution can be set to be respected in the Available-to-Promise (ATP) by setting it in the Scope of Check. Let us have a look to a simple example in the system:
The principle of Equal Quantity Distribution in SAP S/4HANA Cloud, Public Edition can significantly improve your production process, especially when working with continuous component feed. It can also improve your order fulfillment as supplies can be considered earlier than only at the end of production.
Implementing Equal Quantity Distribution might require a shift in mindset, but the payoffs could be substantial - from reduced inventory costs to improved product quality and customer satisfaction.
So don't shy away from exploring this concept further.
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