Frequency of Planning Run ?

[Former Member]

Hi Experts,

I have a query with respect to the frequency of planning run in APO SNP..

1. If i receive forecast from DP once a month, shoud the frequency of SNP planning run should also be month ?? What all conditions should prompt me to take the SNP planning run on weekly basis inspite of getting the forecast from DP once a month ??

2. If i take SNP planning run monthly, then what should be the frequency of Deployment and TLB runs..?? What factors should be considered before deciding on the frequency of deployment and TLB runs..?

Your inputs would be highly helpful in deciding on the frequecy of plng runs in my project..

Thanks & Regards,

Krishna

[Former Member · Accepted solution]

Hi Krishna,

The frequency of your planning run will depend on the type of ur network. You havent given any details of ur network(the Supply chain) over which the SNP run will happen.

SO, let me assume that you r dealing with a Customer,DC and Factory, basically 3-level N/W.

Now, u r releasing demand from DP once a month and that forecast is on the Customer level, then the main factor is that whether you have any business process of capturing the sales from the Customer level. If you have that, then in which frequency?

If you can decide upon the frequency of the Sales updation from the Customer level, then we come to a scenario where the Customer requirement on the next level(D.C) is getting changed depending on the frequency of the Stock updation at the customer.

If the scenario is some sort of this, then ur SNP run should be in parallel with the frequency of the Stock/Sales updation at the customer level, because fresh requirement should flow to the lower level(D.C).

This can be one factor to decide ur frequency of ur SNP run. Like this, there may be many depending upon various Business Scenarios and Ur Supply Chain.

Now, coming to the Deployment and TLB run frequency, the main point of decision will come after gathering the business requirements. The frequency of TLB can be dependent on:

a) Stock holding capacity of ur source location--if there is a scenario that ur source location is not capable of holding stocks, then the frequency of ur TLB run should increase in order to Push the Stock to the next level.

b)Suppose you have found that, the demand of one of ur D.C is very less for a month. In that case u can run Depl and Tlb for it in lesser frequency in respect to other D.C whose demand may be much more.

So in a nutshell, Ur Deployment and TLb should depend on ur Business Scenario, the Products( fast moving, medium moving..), Capacity Constraints of ur factories, ur Parameters for ur modes of transport.

I hope i am able to clarify queries to some extent.

Regards

Sunshine

[Former Member]

Hi Sunshine,

Thanks for quick reply..

We have the network as follows...

1. Branch DCs, -> Central DC -> Plants -> Raw Material WH

2. At branch DCs, we hv foreccast at loc prod level. (Not at a customer level) am receiving forecast at monthly frequency.

---

Q1 : Since i have forecast at DC at monthly level, should i also take the SNP run at monthly level.. If not, what r the other factors should i consider ??

Q2: Assume all my products will be pushed from plant to Central DC (no stock holding at plant)

Q3: Assume that only the required demand at branch DCs will be catered from Central DC,(there is stock holding at central DC)

In the above two cases, what should be the frequency of deployment and TLB runs..??

Also, does the frequency of SNP planning run, will have impact on deployment and TLB frequency runs..??

Thanks & Regards,

Krishna

[Former Member]

Hi Krishna,

Got ur requirement. Need to ask u 1 thing, STOs from ur Branch DC is created thru System?? if not then on what frequency ur sales from ur Branch DC is updated on ur system? Depending on the frequency of the sales updation for ur Branch DC, you should decide on ur SNP run frequencyi,e after ur sales updation on Branch DC.

If the system only is proposing STOs for ur Branch DC, then you can decide on the following factor:

• If there is a difference between the Deliveries proposed by the system and the actual Deliveries which has heppened, then what is to be done with the pending Qty. On what frequency those pending qtys are deleted.

now, on that basis u can decide upon the SNP run, as on every deletion of the undelivered qtys, will change the requirement of ur Branch DC over ur Central DC. On that point u should take a SNP run on ur Branch DC.

So this is one of the deciding element of ur SNP run.

Coming to the Depl and TLB

As you told that ur Factory will not hold stock, and it will deliver as soon as production will happen, then the trigger point is THE PRODUCTION PLAN on which the system will create deliveries from Factory. If the System production plan is in parallel with the actual production then you need not require a regular TLB process(may be once a week creating 7 days of STOs). But if there is a wide difference between the plan generated by system and the actual production happening then ur Deployment and TLB at factory should be more frequent. The Deployment and TLB at ur factory will be more frequent than at ur Central DC, as u want to move stocks from ur factories more faster as compared to ur Central DC.

Hope i am able to clarify ur query to some extent. If not then waiting to discuss over it.

Regards

Sunshine

[Former Member]

Hi Sunshine,

1. We are not proposing STOs for branch DC to customer. (we are not mapping any customer in APO system)

2. SOs may come at branch DC at any point of time... We have a strategy where SO will consume the forecast at branch DC.. (may be 10 days backward and forward too)

3. The frequency of pending order qty is not yet decided... they are implementing ERP and APO in one shot and they dont have any system in place earlier.

so in the above case, would the SNP run at weekly level would be appropriate..? or is it that its too frequent..??

***

Coming to deployment & TLB..

1. It seems from Plant to Central DC, i need to take run every day..??

2. from Central DC to branch DCs, the run should be once a week.. Right.?

or am i missing something over here.?

Thanks & Regards,

Krishna

[Former Member]

Hi Krishna,

Whenever SO will consume the forecast at ur Branch DC, that time u need to take a fresh SNP run on ur Branch DC so that the updated net requirement will flow to the next level. Now, if there is no fixed date of forecast consumption then atleast u need to take a call with the business so as to decide the frequency of the above stated SNP run.

Deployment and tLB---

Plant to DC---frequency depends on the difference between the prod planned proposed by system and the actual production happeing at ur plants. If they are in sync and u r sure that the system proposed plan will be followed by the Plants, then the frequency of the run need not be so frequent( it will depend upon the demand at ur Central DC, whenever it changes then u need to flow the fresh demand from ur Central DC to Plants and in turn take a SNP run on Plants as the demand has changed).

If the Prod(system) and the Production(actual) is not in sync then the frequency of the run needs to be frequent---daily or once in two days(depending for how many days u r generating STOs from plant to Central DC). If u are generating STOs for a shorter span of time then it is better to run Daily.

From Central DC to DC--This u can run once a week, but the main trigger point is ur Forecast Consumption at ur Branch DC. As, after that u again need to flow the net requirement to the Central DC. If the demand at Central DC drastically changes then in order to tackle this, its better to run Depl and Tlb at Central DC either twice a week or atleast Weekly.

This is just a raw suggestion from my side, as may be i am ignoring some valuable business requirements which can be achieved only after seeing the Business Blue Print. So u can get thru the points stated above and validate which will best suite u.

Best of Luck Dude....

Regards

Sunshine