Time Series Supply Planning : Shortage

[revanchatraban]

Dear Experts,

We have output key figure "SHORTAGE" from the supply planning run. RDS document provides the following details about the output key figure

As mentioned above, it will be zero in Infinite Heuristic and Optimizer. So my question is in which cases shortages will calculated? I am not sure whether it will be useful in case of Finite Heuristic or when the receipts are adjusted manually?

Purpose of the understanding the key figure is we have below KPI's based on the key figure "SHORTAGE":

KPI: Supply Shortage (ABS)
KPI: Supply Shortage (Number of Location Products)
KPI: Supply Shortage (% of Total Demand)
KPI: Supply Shortage (% of Location Products)

I am planning use the above KPI's to understand unmet demand.

Thanks alot!!!

Regards,

Revan

[lingaiahvanam]

Hi,

SHORTAGE Key figure: Base planning level: Product - Location

This output key figure specifies the non-cumulative difference between the Dependent Demand and Supply key figures for a location product (that is, the total demands minus the supplied quantity). It is calculated using the following formula:

Shortage(t) = Max { (Dependent Demand(t) – Supply(t) ) ; 0 } for t = 1, …, T

After a supply plan has been calculated by the time-series-based supply planning optimizer, the shortage is always zero. This is because the optimizer doesn’t calculate the Dependent Demand key figure explicitly, but instead sets it to the same value as the Supply key figure.

If you use the supply planning heuristic, the Shortage key figure is zero in all periods as well. This is because the supply planning heuristic always attempts to satisfy the requested dependent demand, which can lead to a negative value for the projected stock. If you use the supply propagation heuristic, the Shortage key figure is equal to or greater than zero, as this heuristic provides only the available supply.

Note: Shortage is always greater than or equal to zero. The current planning algorithms do not calculate negative values.

Best Regards,

Lingaiah

[revanchatraban]

Hi Lingaiah,

Thanks for your reply. I have already put the information on how the shortage is being calculated(Please refer to the screenshot).

The additional information I am receiving is with respect to Supply Propagation. With 2005 Update, supply propagation is not available with new IBP license. Link for your reference: https://help.sap.com/viewer/298974fafe8a45008ac3f06061fa00c3/2005/en-US/83197a3284c242e0b73dc94947a2...

Still I am not completely clear on what is real usage when there is no supply propagation. As I mentioned earlier, Supply Shortage is being provided as one of the KPI in Supply Chain Control Tower.

Thanks alot!!!

Regards,

Revan C

[lingaiahvanam]

You are right Revan.

There is no usage for supply side.

Best Regards,

Lingaiah