Stock transfer and external requisition for same material

[former_member452116]

Hello

The requirement is as below.

MRO/Spare parts for preventive/breakdown maintenance are planned via Min-Max MRP and procured from vendors. These materials are common across plants. However each plant procures independently, this leads to excess inventory org.wide. So there is a requirement to first request internal stock transfer before procuring externally for managing inventory levels better.

Let me paint a scenario

Component #123 | Receiving Plant : AAA1

Regular vendor for component #123 at plant AAA1 is VENDOR1

Component #123 stock also present in plants BBB1, CCC1, DDD1

BBB1 = 30 EA

CCC1 = 40 EA

DDD1 = 30 EA

Now, Say there is a requirement for 150 for component #123 in plant AAA1

The expectation is MRP should create the following requirement elements,

Stock transfer requisition for 30 EA with supplying plant BBB1

Stock transfer requisition for 40 EA with supplyin plant CCC1

Stock transfer requisition for 30 EA with supplying plant DDD1

External Purchase requisition for 50 EA with vendor VENDOR1

To my knowledge, this is not possible via standard set up. Is there a BADI that can help achieve this requirement?

[Dominik_Tylczynski]

Hi sriramkittu169

Indeed to implement your requirement with quota management will require a core code modification to calculate quantity based on available stock in the supplying plant.

Still, why don't you review your process design as I suggested in my second response. In my opinion each plant should hold just enough stock to cover its requirements only. Therefore you shouldn't take over this stock and move it to another plant on regular basis. Also source of supply for each plant should be clearly defined either directly from an external vendor or from a specific plant that does purchases centrally for other plants.

Best regards

Dominik Tylczynski

[Dominik_Tylczynski]

Hello sriramkittu169

I understand. You may try quota arrangement and see if it helps you. Just make sure to post back the results for the benefit of SAP Community.

However I'd say quota management will not work for you. It allows to assign different sources of supply e.g. delivering plants but it will not consider the stok availability in the plants.

The more I think about your question the more I'm convinced that your process design if flawed and that's way you are having problems. Plants are planned independently by MRP, the rules of MRP planning and demand plan are maintained on plant level (I'm skipping MRP areas intentionally here). Therefore whatever stock you keep in each plant it is there to cover actual or planned requirements. Now if as in your question you move stock from plant BBB1 to plant AAA1, then you'll end up with too few stock in plant BBB1. Notice that you'll be moving stock from BBB1 that should be there to cover requirements. If you need to do that on regular basis it means that your MRP planning is wrong and you are holding to much stock. If you want to move the stock only occasionally you can as well handle that manually.

Best regards

Dominik Tylczynski

[former_member452116]

I agree with your assessment. My line of thought was to use splitting quota and influence the order quantity calculation. basically influence the number of sources and replace the system calculated quantity for these sources with stock available at supplying plant. This may be a core code modification.

[Dominik_Tylczynski]

Hello sriramkittu169

The scenario you require can't be implemented with standard MRP as you can define only one source of supply for a material in a plant. Thus MRP can only propose movement from a single plant. Maybe you could implement source plant determination with some MRP BADIs. However you'd advise against. The implementation will definitely be cumbersome if possible at all. Instead I'd make MRP not to determine the source plant, create PReq without source of supply and leave this decision to MRP controllers. That would be pretty easy for them to check stock in supplying plants and choose the one they want. Your are talking about spare parts movement so I guess it's pretty low volume environment, you don't execute those transfers too often. Thus the manual effort would not be overwhelming.

Best regards

Dominik Tylczynski

[former_member452116]

Hello Dominic

Thanks for your response. Spare parts form a big part of the business, so its considerable.

My current line of research is as below,

Try and see if Quota arrangements could help with a solution.

[Lakshmipathi]

When you post a query and give further updates, please add the content under "Comments" and not under "Answer" as you were not answering to a query but only providing additional informations as asked by the members. Also, when you add the text under Comments, it will be intimated to the person to whom you are responding whereas, if you add the text under Answer, the member will not be intimated. By the way, your above answer has been converted as comment by me.