Preq problem

[Former Member]

Hi Experts,

May I ask for your help regarding an issue in my DC. The purchase requisition created are more than, so much bigger, than the stock transfer reservation or the demand.

Hoping for your reply.

Sincerely yours,

Ria

[Former Member · Accepted solution]

Ria,

You need to check the Lot Size strategy defined in the product Master.If minimum Lot Size is greater than the demand qty,then requisition will be for minimum Lot Size Qty.

Hope it helps.

Thukral

[Former Member]

Hi Manjit,

We are using Heuristic for both snp and ppds. An order is created in the subcontracting location, and a stock transfer reservation and preq will then be created in the distribution center. However, there is a huge amount of Preq created. Say a demand is made for 3000 pcs, however a preq is created with a quantity of 700000pcs.

The difference is so huge.

Thanks a lot.

Sincerely Yours,

Ria

[Former Member]

Hi Ria,

Please check the following in Lot Size Tab of product-loc master:

1. Lot Size procedure, it should be Lot-for-Lot for orders=demand scenario.

2. Minimum Lot Size defined in the material master and that defined in the TLane(if at all defined).

3. Rounding Value, the system rounds the procurement quantity up to a multiple of this value.

Also, check the calender defined at the location/ Transportation Lane as it is possible, the system is preponing several shipments because of Non working days defined in the calenders.

Hope this resolves the issue...

Regards,

Manjit.

[Former Member]

please check if you have fixed lot size maintained in the product master and also the rounding value.and also check if it the same case for all the products at that location

[Former Member]

Hi Ria,

Besides Lot size setting,rounding value as mentioned above, please check your safety stock and safety stock method on Lot size tab in /SAPAPO/MAT1.

Also check if you have defined any :Targ.Stk Lvl Methd on Lot size tab in /SAPAPO/MAT1.

Manish

[Former Member]

Hi Experts,

Many thanks for your replies.

When I checked the master data:

1. Lot size procedure is Lot for Lot

2. Minimum Lot size and Rounding Value are the same which is 3000

3. Targ.Stk Lvl Methd is not maintained

However, the Purchase Requistions created is 314 times the Rounding Value which is 942,000. While the demand quantity is only 3000. The purchase requisition created is really very huge compared to the demand.

Thank you and hoping so much for your help.

Sincerely yours,

Ria

[Former Member]

Hi Ria,

I hope you have also checked:

- the Safety Stock(Quantity/days) maintained in the Product master

- Lot size if maintained in the Transportation Lane and

- the Calender assigned to Plant and TLane.

Also i doubt if there is some pending unfulfilled demand. You can check if there is any Supply shortage featuring before the said demand of 3000 in the planning book and data view used for Heuristics. And how much is the proposed stock after the supply planned of 942,000.

Regards,

Manjit

[Former Member]

please check if the Preq is created by the system or by any user. I suggest you to delete the order and execute SNP again and check if the system is creating the same qty

[Former Member]

Hi Ria,

Nice to see your Post one more time.

1) I would like to know that are you planning for subcontractor's capacity also?

2) Are there any future reqmts. as well for same material? I mean in my Project we plan for next 13 weeks.

3) If Future demand is there & You are planning using Heuristic then, Whenever capacity is available system tries to match it with supply so that could be the reason for Much bigger PR Qnty.

Though SNP heuristic Does not support Pegging, I would suggest you to Go through /SAPAPO/RRP3 transaction & reqest you to anylize results there. This transaction provides good anylisis tool for reviewing your planning results.

Hope it helps you.........& Solve your problem this time (Unlike last time)..........

Regards,

Hardik

[Former Member]

Hi Experts,

Thanks for all your help.

The problem is already solved. There are 2 sources of supply which is defined in the transportation lane,which means 2 transportation lanes from prod to dc is maintained for this material which causes the doubling of orders whenever i run heuristic. So each time i run heuristic, 3000 is added to the order. Now I have deleted the other transportation lane and the error is already fixed.

Many thanks.

Sincerely yours,

Ria

[Former Member]

Hi Ria,

Nice to hear that the issue is resolved. I would like to know, why was the system creating orders 314 times of the demand?

Also even if you have defined several Sources of supply, system should not create orders from all sources resulting in supply n times more then the demand.

Regards,

Manjit

[Former Member]

Hi Manjit,

I am not sure why 314 times, but two different sources causes the location heuristic to ignores existing orders, undeleting existing orders and replan the orders again and again and again.

Thank you.

Sincerely yours,

Ria

[Former Member]

Hi Ria,

SNP Heuristics will always consider the existing fixed orders. So if a DC has a demand of 100 units and is linked to 2 sources of supply, the supply from both the sources clubbed together can never be greater then the demand(if all other factors viz. safety stock, target stock level etc are 0).

Also, system first checks the stock available and the fixed supplies planned earlier and the Net-off quantity is procured. For e.g. If you have a stock of 25 units and a fixed supply of 25 units then system only procures 50 units and not the entire 100 units.

If the system is behaving the way you said then it appears as if there is something wrong.

Regards,

Manjit

[Former Member]

Hi Ria,

I would like to know which Planning Tool (SNP Heuristics, Optimizer etc.) are you using. and what is the scenario? I mean the distribution centers linked to other distribution centers or/and manufacturing location.

Regards,

Manjit