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CTM over planning via Day's Supply

Former Member
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Hi All,

Does anyone have any theories on why SNP (CTM) would be overplan with respect to Day's Supply? For example, we have maintained a Safety Day's Supply of 18 but sometimes the Day's Supply will hit 70 days and is rarely around the 18 days that I would expect. If we use standard heuristics then the day's supply is usually the same as the Safety Days Supply. Any suggestions would be appreciated.

Thanks,

Paul

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Answers (5)

Answers (5)

Former Member
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Hello,

are you checking coverage in the Planning book? Then have a look whether you have orders in the past (initial bucket), as these are usually taken into account in the Stock on Hand balance in Planning Book. However, depending on your CTM settings, orders in the past could not be taken into account in your CTM run.

Kind regards.

Former Member
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Here are the answers to your questions:

1. What is the level of planning ( how many levels) i.e customer -Warehouse - Plant:: 2 levels - Vendor and Plant

2. Where are you getting the level of stock as 80 days as against 18 days maintained:: This is held against the Day's Supply key figure.

3. What is the exact demand rules: What do you mean by Demand Rules

4. Are you using any demand aggregation mehotd: Yes - 'Activate Time-based aggregation' and 'Aggregate Demands and Receipts from Different ATP categories"

5. Are you running deployemnt & TLB after that. - No

6. DO you have any fixed receipts in the past - no

Regards,

Paul

Former Member
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Hi Paul

Have you found out why CTM is overplanning against the Day's supply maintained.

Even i happen to face a similar situation.

Please share the theory / reason why it behaves like this.

Your response would be very helpful.

thanks

Joe

Former Member
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Joe,

No, we were not able to resolve this issue. Due to the numerous changes in our supply chain since we implmented CTM, we are investigating Heuristics.

Good luck!

Paul

Former Member
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Dear Paul,

Great that you have already tried all these things. Just for my clarification can you tell the exact scenario for a product.

1. What is the level of planning ( how many levels) i.e customer -Warehouse - Plant - Vendor

2. Where are you getting the level of stock as 80 days as against 18 days maintained.

3. What is the exact demand rules

4. Are you using any demand aggregation mehotd.

5. Are you also running deployemnt & TLB after that.

6. DO you have any fixed receipts in the past .

- Regards

Virender

Former Member
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Some quick points

1.Check scheduling direction is Backwards in planning strategiies tab

2.in Master data settings tab tick mark all igone master data tabs and observe behaviour. If correct then

use elimination method to narrow down to the parameter.

3.Try Restricting the planning through Order creation frame and maximum earliness of an order.

4. Ther is a standard problem in CTM for multilevel lot size problem. Check its because of that Try to put lot for lot.

If the results are still not upto the mark then you can elaborate your query a little more for me to

understand better. Then we ll see how we can solve the problem

-Regards

Virender S Thakur

Former Member
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Hi Virender,

Thank you for the suggestions. I have tried all of these before but none of them changed the outcome descibed in this post. What other details are you looking for that may be useful in undeerstanding this issue?

Regards,

Paul

Former Member
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Dear Paul

CTM plans according to the planning direction and the Demand prioritization profile maintianed. Check the following.

1. Planning direction is forwards scheduling or backwards ( should be backwards)

2. Demand prioritization rules

if you are using date prioritization with product priority or othrs too .... then what the system will do is go by priority and might exceed the SS days norm.

this is how

lets say you have Date priority followed by product priority

First the system will make an internal table in which it ll assign to it all demands bucket wise and then sort them product priority wise. lets say you have products A- 1st priority, B - 2nd ,C- 3rd.

capacity of each bucket is of 10

if the demand in a bucket is 4,4,4 for ABC then the production would be 4 of A, 4 of B and 2 of C. the unfullfilled 2 of C will be put by the system to the previous bucket to be fullfilled. This way the system will push the Product to previous bucket and fulfill it first as it is of a higher date. but on the other hand the safety stock level of the product will be shown higher than maintined as the demand was not fullfilled in the same bucket as desired but in the previous bucket.

- regards

Virender

Former Member
0 Kudos

Hi Virender,

Thank you for your response. However, capacity is not an issue for us as we are not up against any capacity limitations. Even when I run CTM with 'Plan All resources Infinitely', we get a high Day's Supply Calculation. There are a number of products where Day's Supply significantly exceeds Safety Day's Supply but there is no good explanation as to why? For example we have one material with a Safety Day' Supply of 18 but the Day's Supply will sometime exceed 88 days. This is strange to me and I don't understand why this is driven so high?

Do you have any other recommendations?

Regards,

Paul