CTM and Dependent Demand purchase Requisitions

[Former Member]

Hello Gurus,

We have a business situation where there are 2 plants which can produce a finished product from a single input product. It is much less expensive for us to transport the finished product than the input product. We want CTM to force the plant with the supply of input product to produce the product and send it if that plant has capacity - only transporting the input product to the demand plant if there is no capacity at the supply plant.

Plant A Demand 100 units of Product X

Plant B Supply of 100 units of Product Y which can be used to create Product O

PPMs for creation of Product at both plants.

Desired outcome:

If Plant B has open capacity to create Product X prior to due date, Plant B creates Supply of Product X from Product Y and transports Product X.

If Plant B does not have open capacity to create Product X prior to due date, Plant B sends Product Y to Plant A which creates Product X.

The supply may be at Plant A or Plant B so the scenario must be able to work in either direction.

Currently, when CTM runs, it see the demand at Plant B and creates a planned order there, creating a purchase Requisition for the dependent demand.

Is there a solution for this?

Many thanks in advance,

Sarah

[Former Member · Accepted solution]

HI Sarah

i have been following your thread but i am getting a ittle confused with a few things. Tell me if i am interpreting it right

Your Network Is Plant C -(500KM)-Plant B- (1000KM)- Plant A

You have FG X which requires SFG Y.

The demand comes on Plant B for X.

Procurement Priority for FG is higher from Plant C than from Plant A.

Product Y has some demand of its own on Plant A.

When you run CTM it is creating A Purchase req on plant C and to fulfill it first checking the stock at plant C if its not sufficient

it is creating planned orders.

When the BOM of X is exploding it is creating a dependent demand of Y.

If the above things are true i have the following questions

1.The Product Y can be procured by Plant C from How many locations ?? is it only plant A or more

2. IS it that procduct Y is ignoring the stock lying at plant C and creating PR onto Plant A.

3. If product Y has demand of Y in the from of STR and Forecast you want to fulfill the forecast demand first ??

- Regards

Virender

[Privete_member__1217577 · Accepted solution]

Hi Sarah,

Let me put in other words.

You want to produce the FG in the same plant where there is stock first. Only if there is no capacity the you would like to allow stock transfer of input material between Plant A and Plant C.

If I am correct then this should be the solution, according to me

1. First CTM Profile / Run should not have the TL between Plant A and Plant C. By this, we are restricting the Stock Transfer between Plant A and Plant C. Hence all the input material stock available at plant will be consumed first

2. Second CTM run should have TL which we have excluded earlier. Also mark Do not delete any order. Hence if there is still any demand unfulfilled because of capacity constraint then STR will be created for input aterial and FG will be produced at right plant

I am proposing this only considering the example you mentioned here. There must be some constrained which may not allow you to exclude the TL as mentioned above. If you have any other constraint and could not use above solution then please let that be known.

Hope this help

Pavan Sarda

[Former Member · Accepted solution]

Hi Virender,

(My replies are in UPPERCASE)

The scenario you discribe is very close -

You have FG X which requires SFG Y.

The demand comes on Plant B for X.

Procurement Priority for FG is higher from Plant C than from Plant A.

THE ABOVE IS TRUE

Product Y has some demand of its own on Plant A.

THIS IS NOT TRUE, BUT IT IS NOT A SIGNIFICANT FACTOR

hen you run CTM it is creating A Purchase req on plant C and to fulfill it first checking the stock at plant C if its not sufficient

it is creating planned orders.

When the BOM of X is exploding it is creating a dependent demand of Y.

THIS IS TRUE

IN ADDITION - SUPPLY OF PRODUCT Y IS AT PLANT A

1.The Product Y can be procured by Plant C from How many locations ?? is it only plant A or more

IT IS FROM MANY PLANTS.

2. IS it that procduct Y is ignoring the stock lying at plant C and creating PR onto Plant A.

NO, THERE IS NO STOCK AT PLANT C

3. If product Y has demand of Y in the from of STR and Forecast you want to fulfill the forecast demand first ??

THE ONLY DEMAND IS STR

OUR PROBLEM IS THAT WE DO NOT KNOW FROM CTM RUN TO CTM RUN, WHERE OUR STOCK OF X OR STOCK OF Y WILL BE. WE NEED CTM TO DYNAMICALLY DETERMINE THE BEST SOURCE BY THE PRIORITIES OF THE TLANES AND PPMS.

BECAUSE PLANT C IS CLOSER TO PLANT B, CTM LOOKS TO IT FIRST AS A PROCUREMENT SOURCE. WE NEED CTM TO LOOK AT THE COMBINED PRIORITIES OF PRODUCT X AND PRODUCT Y BEFORE DETERMINING WHERE TO CREATE A PLANNED ORDER.

[Former Member · Accepted solution]

Hi Pavan,

I am testing this scenario. It seems to be working.

I was using this solution to solve another problem and did not think to apply it to this problem.

I will continue testing and let you know how the testing comes out.

thank you very much.

Sarah

[Former Member · Accepted solution]

Hello again Pavan,

I tested this issue by turning off the tlanes. Unfortunately, with the tlanes turned off, the site which holds the dependent demand supply cannot satisfy the demand so it does not create the Supply.

It would work if I could only turn off the product group of the dependent demand in the tlane, but CTM does not allow tlane exclusion for product groups.

I am wondering if I could create a job to block the product group of dependent demand in the tlane and run that job as a step in the CTM process, turning back on the dependent demand product group in the tlane after running CTM without it.

Sarah

[Privete_member__1217577 · Accepted solution]

Hi Sarah,

As I mentioned earlier, we should have two step CTM run. In first step, we should exclude the TL between the PLANT A and C. and in second step we will include back and hence whatever demand we could not plan ealier will be planned now.

If I am not addressing the real issue decribe above then please help me explain the issue with some example. I';ll appreciate it

Thanks

Pavan Sarda

[Former Member]

I have done some further testing of the system and have found that I can further clarify my question.

consider 3 production plants situated roughly in a line with PLANTA located 1000 KM east of PLANTB and PLANTB located 500 KM east of PLANTC. Because PLANTC is nearer to PLANTB, the transportation lane procurement priority for PLANTC to PLANTB is lower than PLANTA to PLANTB (making PLANTC the first to be considered at a procurement source for PLANTB)

We have demand for a finished product at PLANTB. We can create the finished material at PLANTA or PLANTC. PLANTA has the input material in stock for creating the finished material.

When CTM makes its planning run, it looks at the PLANTB demand and determines that PLANTC is the correct procurement source for the finished material. It looks for the finished material at PLANTC and can't find it, so it creates a Planned Order to create the finished material. In order to do that, it pulls dependent demand from PLANTA.

The result is that we are moving input material west 1500 KM to PLANTC and then moving the finished material east 500 KM to PLANTB.

We have set our priority for moving input material very high, so it should be the last resort to move.

It appears that CTM is looking at the priority of the finished material only when determining procurement source. Is there any setting I can make to the system so that it will look at both the dependent demand priority and the finished material priority when determining procurement source?

Alternately, is there a way to mark the ATP group EB as not being available during a specific CTM run (without removing the dependent material from the TLANE)?

Ideallly, we'd like to be able to move the dependent material to another plant if the capacity at the plant it is currently in is too full.

thanks in advance for any advice,

Sarah