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Difference between Prod.PPM & a Subcontracting PPM

Guys,

I am working on the following subcontracti ng Scenario:

1. First Point to be noted "WE NOT PLANNING FOR THE COMPONENTS" . PLANNING IS DONE ONLY FOR THE FINISHED GOOD (FGI).

2. Plant will only have Componay owned Components stock (i.e for instance if an FGI reuires components 1,2 & 3 then our Company Plant will maintain stock only for 1. Therefore when a demand of 100 units of FGI comes from a DC to a plant. Based on the PPM (which has BOM in it) the plant will supply the required Quantity of component (1) Stock to the Vendor & the Vendor will mange by itself the number of components 2 & 3 & finally supply's the FGI to the Plant.

In this Scenario what kind of PPM do we have to send accross to APO plant?

Is it a Prod PPM or a Subcontracting PPM?? (This option of Prod PPM & Subcon PPM is present in the Integration model.)

Please advice.

Best regards,

KING

Former Member
Former Member replied

Hi ,

The main difference between normal and subcontracting PPM is that the subcontracting ppm is created at the vendor location in APO and creates planned order at the vendor location for generation of the dependent demand for components. In your case you only need to have component 1 in the BOM and the stock transfer to stock at subcontracting vendor for component 1 only.

As you said you can map it through the Subcontracting PPM with Vendor location in APO. There is also an alternate method in PPDS where you can create as a normal PPM without vendor location. you can refer to subcontracting in PPDS without source SAP help under crosslocation topics. But this has a constraint that if the same vendor is used by multiple plants then it is not recommended.

I would suggest you can map it through the subcontracting PPM in PPDS.

Let me know if it helps

Regards

Gaurav

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