Finite Heuristic source of supply selection between 2 plants

[maria_lorenzo]

Hi everyone.

I have a question regarding a test scenario we are preparing on our IBP system involving Finite Heuristics.

Scenario is the following: 2 plants are producing one product that is shipped to a DC and then to multiple customers.

Objective of the scenario is that in case of customer demand higher than production resources capacity of one plant (say plant A), the remaining demand should be produced in the second plant (plant B). In case of customer demand lower than the capacity of the plant A, all the production shall be assigned to it.

I tried in setting up various KF for the Finite Heuristic run but i always obtain that instead of moving to the second plant, the system is calculating early production on the same plant (say plant A) for the excess demand.

Could you please enlight me if there is a way to make the system choose between early production or a different plant as source of supply? Or, in another way, is it possible to disable the early production logic and just transfer the exceeding demand to a second plant in the same period?

Thank you very much for your time and support.

Best Regards

Lorenzo

[former_member804657]

Hi Lorenzo,

I assume you want Plant B to be an alternate resource. Have you set up the cost (e.g. Production cost rate) for these or you are using the quota arrangement?

The production cost to produce for Product-Location-Source A must be lower than Product Location-Source B.

Hope this helps.

Best Regards,

Sittinut R.

[maria_lorenzo]

Hi Sittinut,

Thank you for your reply.

Yes, i want plant B as an alternate resource but only in the case that plant A cannot fulfill the entire demand of the period. I'm not using quota arrangement as my understanding is that the quota will be applied at any period.

I will test regarding Production cost rate.

Please let me know if you have other insights also related to early production and how to handle with it in this scenario.

Best regards,

Lorenzo