question about Supply chain network model

[former_member687629]

Hi experts,

I am wondering if the following supply model can let time-series based planning heuristic run properly. Here is the SC model: there is a customer and two locations(plant and DC). But the location DC is not connected with supplier due to out customer's request.

Q1: Based on the demand of customer and stock situation, does the heuristic properly calculate the amount of product/resource that the DC should get from other location? (If the amount is calculated, I would add manual adjustment…)

Q2: I know that there is an attribute called LOCATIONTYPE that defines the type of location(DC/Plant/and so on). Is my understanding right that whatever the value of LOCATIONTYPE of the warehouse mentioned below is, it does not influence whole planning(I assume, for instance, if a value of LOCATIONTYPE of a location is set “PLANT”, it does not meant the location needs the sourcing location. In other words, I assume the value of LOCATIONTYPE is just String. )

Best Regards,

Kenta Kono

[mkorndoerfer · Accepted solution]

Hi Kenta,

I didn't understand your 1st question Q1 very well. Could you please explain it in different words?
All demands are propagated by the heuristic in an upstream direction based on the sourcing quotas defined.

For Q2, if you set thIS attribute LOCTYPE (it's not LOCATIONTYPE, but only LOCTYPE) to 'V', then the S&OP operators will treat this location as a vendor. This is an alternative way of external sources of supply (U-rule) to model vendors. Any other values are ignored by the operators.
You may refer to the SAP Help Portal Location.

This configuration has some limitations though, like not being able to use the key figures ADJUSTEDRECEIPT and MINRECEIPT, for example.

Best regards,
Matheus

[former_member687629 · Accepted solution]

Hi Matheus,

Thank you for your comment. I understood well your answer for Q2.

Regarding Q1, As long as I know(I saw this web page), heuristic calculates the demand of customers(=customer 0017100001) and decides how much product should be transferred from the upstream location(=location:DC 1720) to customer. Then heuristic also calculates how much product should be transferred from an upstream location(=location:DC 1710) to a downstream location=(location: Plant 1720) while considering inventory target or projected stock KF….

But I am wondering what would happen if the supply chain connection is cut off(that is Location 1720 and Location 1710 are not connected due to the setting of SOURELOCATION.) My assumption on regard this point is that heuristic DOES repeat this calculation from the customer to an upstream location as long as possible without error when it runs(= heuristic calculates how much products should be produced in location 1710). I wanted to make sure my assumption is correct or not by asking Q1 in the former question. I hope my intention is well conveyed to you. But if not plz tell me. Thx and best regards, Kenta Kono

[mkorndoerfer · Accepted solution]

Hi Kenta,

If there's no link between DC 1720 and plant 1710, that is, no t-lane, no demand at all will be passed to 1710 - the demand propagation will stop at DC 1720. Also, if DC 1720 doesn't have a production source there, it can only avoid negative stock if it has stock on hand or inventory correction throughout the planning horizon.

Could you please clarify why you don't want to have a t-lane between DC 1720 and plant 1710?

Best regards,
Matheus