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Fair share rule B

Former Member
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hi,

Can any one explain about fair share rule B with target stk level method 4. and how % of fullfillment calculated with respect to target stk level in destination location.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

I assume you are using safety stock also, so all the requiremnts will have two parts Forecast and Safety Stock required.

For example the requirement propagated to a source location S1 from two destination location is D1 = 100 & D2 = 130.

Now out of this for D1 50 is forecast and 50 is safety stock req and for D2 70 is forecast and 60 is safety stock.

Now S1 will first give 20 to D2 from its supply and make demands at both location equal, after that it will supply to both the location such that forecast requirement at both location remains equal.

for example if available supply is 100 it will give 20 to D1 and remaining 80 it will divide as 40 & 40 between D1 & D2.

So d1 will get 40 and D2 will get 60.

now assume if supply is 180 it will first meet demand of 50 & 70 at D1 & D2 and remaining 60 it will distribute between D1 and D2 such that the perecentage of safety stock requirement is equal i.e. x/50 = (60-x)/60.

I think you will get the bhavior if you use the above eg and try on ur system.

Thanks & Regards,

Sanjog

Former Member
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This message was moderated.

marianoc
Active Contributor
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Hi Anandharaj,

This is an old and closed thread, please make a new search and if you still have any further question open a new thread.

Thanks a lot,

Kind Regards,

Mariano

Answers (1)

Answers (1)

Former Member
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Hi Thennarasu,

The objective of fair share rule B is to raise the stock levels in all demand locations

to approximately the same percentage of target stock level.

The percentage per destination location is defined as deployment-relevant stock

(= stock on hand - SNP stock transfers) divided by the target stock level.

If there is a negative projected stock level, the system first attempts to raise the

stock level at all destination locations to zero.

The system then attempts to raise the stock level at all destination locations to the

same percentage of target stock level.

Regards

R. Senthil Mareeswaran.