Supply chain modeling of subcontraction process using SNP

[former_member225637]

Dear Experts,

I am in the phase of designing my supply chain business process in APO

We have two plants

Plant u2013 A (manufacturing )

Plant u2013 B (distribution center)

Subcontractors - for Plant A

Subcon-1

Subcon-2

Subcon-3

Subcon-4

Subcon-5

Subcon-6

Subcon-7

Demand planning /forecast is done on the basis of

Customer

Products

And Plant

When forecast is done in demand planning an send to SNP , system must give planned order on the basis of available capacity , low cost of production of the my subcontractor ,I believe I need to use SNP optimization

Does SNP Optimizer can serve my requirement

Also how do I need to define my subcontractor either as DC location or just a MRP area

Please do not hesitate to ask more details if you are not clear my requirement

Thanks & Regard

Raj

[Former Member · Accepted solution]

Hi Raju,

The Optimizer should serve your requirement as it considers the capacity constraints and can be used for finite planning. Regarding subcontracting location , you can map it as either a DC location or a Subcontractor location. Better way would be to map it as a subcontracting location. Mapping it as just MRP area would not serve as you want it to consider during the finite planning runs for optimizer.

Let me know if it helps

Regards

Gaurav Mathur

[Former Member]

Hi Raj,

I think the SNP optimizer does not support Capacity Constraining. It certainly takes into account the cost. You might want to try the CTM engine for Capacity based planning.

Regards,

Mani