CTM Forecast Demand (FC) and Stock (CC) supply

[Former Member]

Hi Gurus,

We are testing a simple CTM scenario with FC as our Demand and CC as our stock.

We have 2 plants and 1 product.

Material Availability Date is our Demand Prioritization. Both of our demands have the same Date - a month from the current date.

We have Procurement Prioritization set up for both PPMs and Tlanes.

My problem is this:

At both the locations the Supply (CC) is less than the demand (FC). When we run CTM, the first demand signal is taking the stock from the second location - even though there is demand at that location that needs the stock. The first demand signal is not fulfilled and the second is not fulfilled, but we have an unnecessary Purchase Requisition created to partially fulfill the first demand.

Shouldn't CTM ignore the second location as a source of supply since the location has demand against it's existing stock? What can I do to prevent CTM from using stock at a location which has demand of it's own?

thanks in advance,

sarah

[Former Member · Accepted solution]

Our problem is that in this time of year, demand cannot be met at either location. We need to wait for input for PPM to arrive before we can expect demand to be fulfilled at either location. We have set our priorities to be PPM at plant before PurReq, so it looks to PPM first and then PurReq.

I am hoping for no purchase reqs to be made and alerts to be made for shortage.

Can I do this using supply search strategy? We don't have one set up yet, but I can set one up if it will keep stock at lower priority from being used when that location also has demand for the stock.

It doesn't make sense to me, from a business sense, for CTM to create a purchase req when demand won't be met and greater shortage made at the source location. Our real issue is that neither location/prod has priority so we want CTM to recognize that moving stock from a location that needs it is just an additional expense to us.

[Former Member · Accepted solution]

Hi Sarah,

In the CTM Profile under Demand Prioritization, did you maintain only MBDAT criteria as prioritization sequence or you maintain other criteria along with MBDAT.If maintain please let me know.

We are also facing the same issue but we find that in ATPCAT which is special sorting STO have higher priority than demand so it fulfil the demand of other location, though there is stock.

Thanks,

Dipankar

[Former Member · Accepted solution]

Hello Dipankar,

Thank you for your response. I apologize for not answering sooner - I was testing ATP priroritization.

We only have MBDAT as our demand prioritization. I tested with ATP categories but was not able to resolve the issue.

I have noticed that the issue only happens when there are PPMs assigned to the model.

IE:

Model A (all demands are for same date)

LOC A supply 100 units of product X, supply of 30 units of product Z

LOC B supply 100 units of product X, supply of 30 units of product Z

LOC A demand 200 units of product X, demand of 40 units for product Z

LOC B demand 200 units of product X, demand of 40 units for product Z

Tlanes maintained between locations for Product X and Product Z

NO PURCHASE REQS CREATED

Model B (all demands are for same date)

LOC A supply 100 units of product X, supply of 1000 units of product Z

LOC B supply 100 units of product X, supply of 1000 units of product Z

LOC A demand 200 units of product X, demand of 40 units for product Z

LOC B demand 200 units of product X, demand of 40 units for product Z

Tlanes maintained between locations for Product X.

PPM maintained at LOC A to create Product Z (output) from Product X (input)

PURCHASE REQ CREATED FOR PRODUCT X FROM LOC B TO LOC A.

PLANNED ORDER CREATED FOR PRODUCT Y FROM PRODUCT X AT LOC A

I am not able to figure out why the purchase requisition is created when LOC B has demand of its own. I am not able to figure out why the purchase requisition is only created when PPMs are in the model.

Best Regards,

Sarah

[Privete_member__1217577 · Accepted solution]

Hi Sarah,

From your first post what I assume is your requirement is to consume the existing stock with the demand in same location. And if there is surplus stock after fulfilling demand in same location then that stock can be consumed by other location.

With assumption that my understanding is correct, I would like to go with multiple CTM run

First CTM run.

Do not select any transportation lane in your master data selection. This way, all your stock will be consumed by demand in same location

Second CTM run.

Do not delete any order and plan only orders without fixed pegging. And also include transportation lane in your Master Data selection. This way, all your existing pegging will remain unchanged and surplus stock available in one location can be consumbed by another location.

Hope this way you can address your issue.

Thanks

Pavan Sarda

[Former Member]

Thank you for your thoughtful response Pavan,

Unfortunately all of our plants are production plants and our stock can be found at any of them depending on the year and season.

I am working with the Demand priority fields to gain some efficiencies in our planning runs.

Regards and thanks again,

Sarah

[Former Member]

Thank you Pavan!

This solution worked well! I have also discovered that if I select Planning Mode 'Orders without Pegging' on the Planning Strategies tab of the Strategies tab of CTM, and select pegging typ 'Fixed Pegging' that this supply (supply dynamically pegged to a demand) will not be consumed by other demands.

Thanks to all the gurus who helped me solve this.

Sarah

[pavan_verma2]

Hi Sarah,

My apologies for not replying earlier

I know that issue is resolved now .. but I have one suggestion.

It looks like from your description that location X is a Distribution centre and location Y is a manufacturing Plant.

product A has a demand of 100 at location x and 150 at location y on same date.

Location X has a stock of 50 and location Yof 25.

When CTM runs, Location X takes 25 units of stock from Location Y. This leaves location X

with 75 units of (100 of stock and 25 from purchasereq). Location Y has 0 units.

what if you make product priority 1 of product A at location Y (SNP2 tab), product priority of A at location X can be blank.

and in the CTM profile on Demands tab make MATPRIO as first field ascending , MBDAT ascending as second field.

Strategies: Planning mode = Replan all orders , Pegging type = Fixed

Regards,

Pavan Verma

[Former Member]

If this is the planning situation

product A has a demand of 100 at location x and 150 at location y on same date.

Location X has a stock of 50 and location Yof 25.

If u have only demand prioritisation of availability date and the following setting

For loc X prod A For loc Y prod A

Search startegy Search strategy

1. stock 1. stock

2. source of supply 2. source of supply

priority 1 PPM of A priority 1 PPM

2 Tlane to Y 2 Tlane

if the demand date isascending i.e future date to have higher priority

for location x demand of 100 will net off with stock of 50 then try to produce the rest 50 in the PPM available at X

if capacity is only of 20 then it will produce planned order of 20 and then raise a pr of 30 on Y.

Similarily prod A at Y will be planned out of 150 + the demand 30 comming from location X on it.

hope this gives u soe idea

Regards

..........V

[Former Member]

Hello and thanks for responding!

Yes, this is the scenario:

product A has a demand of 100 at location x and 150 at location y on same date.

Location X has a stock of 50 and location Yof 25.

When CTM runs, Location X takes 25 units of stock from Location Y. This leaves location X with 75 units of (100 of stock and 25 from purchasereq). Location Y has 0 units.

Neither location has demand fulfilled. Location is short 25 and now location Y is short 150.

Purchase Req doesn't add value.

Shouldn't CTM see that location Y has demand also and not take it's stock?

S

[Former Member]

Dear Sarah

didnt quite get the scenario, is it

product A has a demand of 100 at location x and 150 at location y on same date.

Location X has a stock of 50 and location Yof 25.

when ur running CTM whats happening ??