Stock transport orders between plants

[Former Member]

Folks,

I have two plants say P1, P2.

P1 do not have any stock but has a forecast of 100 for Material M1.

P2 has a stock of 100 but do not have an forseen forecast/demand for Material M1.

Material M1 is internally produced and production time is say, 20 days.

When SNP Huerstics is executed, my expectation is to see a Stock Transport order from Plant 2 to Plant 1 for a quantity of 100 instead of creating a planned order for 100 at Plant 1. Can this be handled

just by defining a T-Lane with higher priority between P2 to P1 as compared to the priority for in-house production PPM/PDS in P1?

However what happens in those situatons when there is no stock in P2? Does the Planned order gets created in P2 rather than creating in P1 (where there is actual requirement).

One more Q: Does the materials in this scenario always should have procurement type as internal , even though if it can be procured through a STO ? cant it have a procurement type as Internal and External ?

Any ideas/suggestions/experiences guys ?

[Former Member · Accepted solution]

Hi,

You want to give first preference to existing stock wherever its lying ..may be at plant P1 or plant P2. Once this stock is consumed then only system should try to create new receipt element.I understand this is your requirement.

CTM:

I am not sure about SNP heuristic. But one can acheive this using CTM with " Search Startegy:. In Search Startegy you can decide which receipt category should be utilised first.

Definition of Search Strategy is...

Search Strategy

Specifies the sequence in which CTM planning is to consume categorized receipts and supplies.

One can define Search Strategy and then In CTM profile on tabpage " Supplies" it has to be maintained.

SNP Heuristic:

For product M1 your procurment type is " X" and priority/cost in TLane from P1 to P2 is lower than priority/cost maintained in PPM.

Lets assume that SNP heuristic respects this and during planning run to to meet demand at plant P1 it will give preference to TLane and create Stock Transport Order from P2 to P1. But when situation is changed and you dont have any stock at P2 then also due to preference given to TLane , stock tarsnport order will be created from P1 to P2 and at P2 production plan will be generated.

rgds

Nil

[Former Member · Accepted solution]

Hi,

As nil has explained the system behavior if you will try to configure the system for SNP Heuristics. You can achieve the desired results with SNP Optimizer by proper cost modelling. With proper cost modelling, you can make system check for the stock at a connected location and create a STR if the same is there else the location itself can produce it.

So it will be better if you will go for SNP Optimizer or as Nil said for CTM as the expected behaviour seems to be difficult from SNP Heuristics...

Regards,

Manjit

[Former Member · Accepted solution]

Is there any alternative approach to overcome this situation by using any BADI's or enhancements in Hueristics ? By using BADI we want the system to create Planned order in Plant P1 when there is no stock found in Plant 2, and not create a planned order in Plant 2.

Nil,

I was looking at Search Strategies in CTM and had observed that the standard categories are

*1. Excesss

2. Normal

3. Produce*

So If I create a search strategy, say SS, with Sequence/Category as 1, 2 & 3 then how does the system behave ? Does it consume EXCESS stock first,, NORMAL ( what does system do in this scenario)?? and then PRODUCE necessary stock quantities ?

PS : As the system allows to literally create a supply categorization with any descripton AA, BB or C, how does the system actually know what is excess, normal & produce ? Are these categories linked to somother parametrs elsewhere? Hope I am being clear here !

What is the scope of search strategy ? Is it applicable to all the plants, DC's in a SCM in CTM ?

Manjit,

Could you please elaborate on the cost modelling which you are mentioning about ?Say if I have a higher priority T-Lane but cost is more than PPM/PDS, does the system always produce internally rather than creating STO? What are the parameters that needs to be configured for the optimizer to create a STO from P2 to P1 if stock exist and create a Planned order otherwise.

Thanks

[Former Member · Accepted solution]

Hi,

1) Please create "CTM Supply Categories".Transaction is /sapapo/supcat.

Here u create your own Supply Categories with your own nomenclature as given below:

Supply Category Supp. CaAt. Description

1 Stock

2 Planned Orders

3 Purchase Requisition

2) Next step is to create Supply Categorisation Profile.Transaction is /sapapo/ctmscpr.

here uy define your own profile and choose for option" ATP Categories' Skip option " Supply Limit".

You are defining that which ATP categories will be inculded in "Supply Categories" created by you.So this profile acts as a link between your own Supply Categories and standarad ATP Categories.

3) Define Search Strategy...Transaction is /sapapo/ctmsstrat.

Here you are defiing the sequence for Supply Categories defiend by you in step-1 . CTM should follow this sequence while fulfilling demand.

This should clarify your doubt.

Please refer below link for further details.

http://help.sap.com/saphelpscm50/helpdata/en/c8/986c39b768ca2fe10000000a114084/frameset.htm_

rgds

Nil

[Former Member]

Hi Pat,

SNP Optimizer considers several costs, Here we assign priority to products, Product-location or among different Procurement relationships using costs. You can even define several contraints as well, to name a few- Manuf. Capacity, Trans. capacity, Storage capacity etc. SNP optimizer considers the cost accross the network and tries to propose the most cost effective solution. So whatever cost/priorities you will have to maintain should be relative for the desired result. To give an example: With the cost modelling you can make the stock from P2 to be consumed first by assigning lower cost for this procurement relationship while at the same time can make manufacturing at P2 costlier so that the system proposes the Planned order on P1 and P2. There are several other costs/parameters which can be of help to you.

Do let me know if you require anything else...

Regards,

Manjit.

[Former Member]

Just think of SNP Heuristics as R/3 MRP.

Its basically the same engine.

The only difference is with APO SNP Heuristics you can modify the demand key figure and source of supply vis BADI's.

Ken Snyder

[kenneth_snyder]

CTM will NOT do it...

The search strategy is used to determine the amount of inventory utilized at a location.

Heuristics will NOT do it either.

I am not aware of any BADI that you can use. It would be difficult to program as you would have to search every possible location to see if stock is available?

Ken snyder

[Former Member]

Hi,

Answering to your point .."What is the scope of search strategy ? Is it applicable to all the plants, DC's in a SCM in CTM ? "

CTM planning happens location by location.So whatever Serach strategy you have defined , that sequecne will be followed for each location in turn.After giving a thought to this second point I think Serach Strategy wont be useful for your particular requirement.You can try below things.

CTM:

1) Procurement type of M1 shud be 'x" at P1.Maintain higher Procurment Priority in PPM at P1 than Procurement Priority in TLane from P1 to P2.I hv never tried CTM with procurement type 'X" .But it shud work.

2) 1st CTM run covering both plants P1 and P2 for stock category .In CTM profile on tabpage " Planning Scope" there is option for Supply Order Selection.You can define that 1st CTM run shud be for stock category.

This run shud check for stock at both plants shud try to consume stock first whereevr available.

3) 2nd CTM run covering P1 and P2 for category 'planned orders".Please make sure that in 2nd CTM run , results of 1st CTM run shud not be deleted. You can try with options like " "Orders without Peggging" or "Donot Delet Orders" in CTM profile-STrategies.

If you hv demand of 300 pc at P1 for a day and stock of 50pc at P2 .Production capacity at P1 and P2 is 150 /day each.

In 1st CTM run for " Stock " category stock transport order of 50 pc will get created at P2.and it will consume stock there.

In 2nd CTM run it will create planned order of 150pc at P1 and for balance 100 pc it will create stock transport order from P1 to P2 and wil create planned order of 100 pc at P2 eventually.

If logically above solution seem to be OK, pl try this and do tell me about the result.

Optimizer:

Need to define 2 PPMs at P1 and P2...lets say PPM1 and PPM2.Tlane shud be there from P! to P2.

Cost setiing shud be...

1) TLane( P1 to P2) Cost < Cost in PPM1....

This will ensure that stock available at P2 will always gets consumed first.

2) Cost in PPM1 < [ TLane( P1 to P2) Cost + Cost in PPM2 ]

This will ensure that if enough stock is not there at P2 then production at P1 will get preference.

Hope this clarifies.

rgds

Nil

[Former Member]

Hi Nil

I really appreciate your detailed reply.I am admired by your patience in putting up all that you have thought in words. I will try those and let u know how it works

However, from our client perspective, they are using only Hueristics for the time being and want the requirement (To create planned order in P1 instead of P2 after consuming any available stock at P2 when T-lane between P1 and P2 has priority over PPM1)to be fulfilled by hueristics only.

Isn't this possible at all in hueristic in any way ?

Thanks