Model Resource Constraints based on Component Allocation

[Former Member]

Scenario

Component C1 is procured from external vendors and received at manufacturing location. C1 can be used to process a semi-finished product (SFG1) as well as finished product (FG1). The twist here is that, semi-finished product is a key component for finished product

Diagrammatic representation of bill of material of FG1

Both, SFG1 and FG1, are processed in-house.

C1 component availability is constrained based on supply agreements which is finalized during the yearly budget process. Business will allocate X units of C1 to manufacture SFG1 during the yearly budget process. This allocation will not only constraint throughput of SFG1 but also FG1.

Business Requirement

Constraint the throughput of SFG1 based on allocated supply of C1.

Solution

Configured resource availability based on net available machine hours and multiplied it by flow rate.

Flow Rate is the per hour quantity of C1 flowing into to resource to process SFG1.

Available Capacity

Location	Resource	Key Figure	May 2015
L1	R1	Available Machine Hours (A)	336
		Maintenance Hours (B)	36
		Net Available Hours (C = A – B)	300
		Flow Rate (D)	150
		Available Capacity [CAPASUPPLY] (E = C*D)	45000

Available Capacity is the allocated quantity of C1 to SFG1. We are using the allocation quantity as a resource constraint.

Capacity Consumption

Location	Resource	Source ID	Key Figure	May 2015
L1	R1	L1_SFG1	Capacity Consumption [PCAPACONSUMPTION]	3

Capacity consumption is 3 (same as bill of material COMPONENTCOEFFICIENT) as 3 units of C1 process into 1 unit of SFG1. PCAPACONSUMPTION reads from COMPONENTCOEFFICIENT key figure.

Alternate Solution - I could not find a way to constraint the supply of C1 for SFG1 through bill of material (production source item) of SFG1.

Hope this helps.