Equivalent R/3 Process for Heuristics and Deployment

[Former Member]

Hello Gurus,

Please let me know the difference between Heuristics(APO) and MRP run in R/3?

And what is the equivalent process followed in R/3 for Deployment?

Thanks,

Siva.

[Former Member · Accepted solution]

Hi Siva,

The heuristic run processes each planning location sequentially and determines sourcing requirements. The heuristic processing groups all demands for a given product at a location into one demand for the bucket.

The heuristic run determines valid sources of supply and corresponding quantity based on pre-defined percentages for each source of supply (quota arrangements), or procurement priorities for transportation lanes and production process models (PPMs) or production data structures (PDS). The demands are then passed through the supply chain to calculate a plan.

However, this plan is not necessarily feasible. The planner can then use capacity leveling to adjust the plan and formulate a feasible plan. It means the output of heuristic is considering infinite capacity into consideration.

Deployment in R/3

By performing a deployment run, you can take appropriate action when either a requirements shortage or surplus is calculated as a result of DRP runs at different time intervals. Deployment uses algorithms for fair share distribution when a requirements shortage is detected and push distribution when a requirements surplus is detected.

DRP plans the quantities to deliver in the medium- and long-term. If production performed based on data obtained from DRP, and if forecasts prove correct, it would be sufficient simply to implement the plan in order to distribute inventories efficiently. In reality, this rarely happens. The delivery proposals to be generated in the short term as part of deployment must be adapted to the current situation. Deployment cannot be based on the original plan. It must include optimized distribution based on stock levels, definite stock receipts, and current sales orders. Deployment lets you offset delivery recommendations against the DRP plan to avoid duplications.

The process flow will be

Process Flow

1) You set the deployment strategy in MRP 4 of the material master record. Select the fair share rule you want the system to use when demand is greater than supply. Select the push distribution logic (pull, push, or pull/push) to indicate the distribution method you want the system to use when supply is greater than demand. Also, you select the number days for the deployment horizon (push horizon)enter the number of days for which the system considers the ATD quantity and any additional quantity produced. Any quantity produced beyond the push horizon is not considered in the deployment calculation.

2) You perform the deployment run for one material or a plant, or total planning.

3) You calculate the safety stock based on sales history.

4) The system determines if the purchase requisitions and transportation requirements within the deployment (push) horizon can be shipped according to plan.

If the purchase requisitions and transportation requirements can be shipped according to plan, confirm the shipment. If they cannot be shipped according to plan, the system uses the strategies you defined in MRP 4 of the material master record.

Result of deployment run

The result of the deployment run is a list of confirmed transport requisitions (for example, a purchase order). The transport requisitions can be processed in the same way that deliveries are processed.

Regards

R. Senthil Mareeswaran.

[Former Member · Accepted solution]

Hi Senthil,

Thx for ur explanation.

Regards,

Siva.

[Former Member]

Hi Siva,

Heuristics in APO is rule-based infinite capacity planning whereas MRP in R/3 is material requirement planning which produces results based on real-time planning. In both the cases, the output type are planned orders and purchase requisitions but the output quantity, date and time varies with different set of heuristics that we perform based on user defined settings. APO provides advanced features which are of user friendly, interactive planning wherein multiple changes can be performed in heuristics which will affect the business environment.

In R/3, the MRP run provides purchase requisitons & planned orders. Based on the procurement type, the purchase requisitions will be converted into stock transfer orders wherever stocks are available and this is how we deploy stocks. In APO, the heuristics yields purchase requisitions. For external procurement items, against the stocks, the STRs will get converted into STOs based on deployment & TLB.

Hope this helps to clarify your queries

Regards

R. Senthil Mareeswaran.

[Former Member]

Hi Senthil,

Thanks for your reply.

Can you please let me know what is rule-based infinite capacity planning?

How is the delpoyment confirmation happens in R/3?

Regards,

Siva.