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Planning Strategy for co-product

former_member616023
Participant
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Hi Expert,

We would like to know which strategy is suited for co-product

Regards

Nitin Desai

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rupesh_brahmankar
Active Contributor

Hello,

Why do you need a planning strategy for co-product? What is the business requirement behind it?

Ideally, there should not be a planning strategy for a coproduct, as it produce along with another finished good.

We do not plan the coproduct however we used to plan corresponding finish good and that finish good needs a planning strategy.

Best Regards,

R.Brahmankar

former_member616023
Participant
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Hi Brahmankar,

We have Business scenario where individual products are categorized as different Grades

But when we receive Forecast it would be on higher level or when we have sales then it is quite possible that we might sell lower grade material

We need to model system wherein demand for lower grade gets pass on to higher grade

Lower grade are part of higher grade BoM

Ex. Grade A : Grade B :: 1:2

Grade A demand is 100 Pc which means if we produce 100 Pc then we might expect 50 Pc of Grade B

Grade B demand is 100 Pc then we need produce additional 50 Pc of Grade A

We would have forecast for both Grades and Sales process

Regards

Nitin D