SNP Planning

[Former Member]

Current SNP is design for plant and location level. Stock will transfer from plant to location. However, when system generates order (based one assign location demand), it is not taking account that other location may have excess stock.

I would like to redesign SNP following way: before generate order for a location, It will check each and every location (is there any excess stock), if found excess stock any other location, system will not generate order; will transfer stock from excess stock location to demand location.

All SNP expert, could you please share your thought

[Former Member]

You will be able to do this only with SNP optimizer. In Heuristics you will have to develop the logic. In SNP optimizer you can define the cost such that moving stock from a DC to location A is cheaper than producing it. SNP optimizer will consider the planning horizon & will not move the stock if it is needed in the future as moving now & producing later will cost more than just producing it now & transfering it to location A.

[aparna_ranganathan]

parves

Iam not sure about optimizer , but what you are asking cannot be achieved using standard CTM or heuristic. You need some custom logic for sure

Thanks

Aparna

[Former Member]

Hi,

For any Stock transfer to happen you need to define a Tlane between locations.

In your case you need to define a Tlane from the location where stock is excess to a loc where there is a demand. Then only stock transfer will happen.

If you are running Optimizer, system will consider the costs ( Production Vs Stock transfer Vs Storage ) and the minimum of this will be taken and accordingly either Production or stcok transfer will happen.

Thanks,

nandha

[Former Member]

Thanks for your valuable information. Could you please explain further, how we can define excess stock logic?

Example: Letu2019s assume demand is coming from location A and stock is exist location DC1, DC2, DC3.

I want to run planning, system will check, all there DC and calculate excess stock, based on excess stock qty and demand qty system will transfer the stock in the location A. if there is no excess stock exist those 3 location, then system will send the production order to factory.

How I create TL in the above situation.

Currently we have only heuristics; we havenu2019t implant CTM or optimization. Do we need to implant CTM and optimization

Thanks

Appreciate your help.

[Former Member]

Hi,

Create a Tlane in /SAPAPO/SCC_TL1 with Source location as DC1 and Destination location as A. Similarly create two Tlanes from other DC's.

Take SNP Heuristics run ( Net work or Location heuristics).

Your stocks available at the DC's will be considered in the run automatically.

Thanks,

nandha

[Former Member]

Where I will define excess stock logic.

and system will calculate excess stock and send to the demand location only

thanks

Parves

[Former Member]

Hi,

I donot know whether you require separate logic wherein you define the stock level and plan.

You can define safety days supply in the Product Master.

In SNP, the safety days' supply specifies the number of workdays over which the system has to take into account future demands when planning safety stock.

For example, if the safety days' supply is three days, the safety stock has to cover the demands for the next three workdays. The system uses the location's shipping calendar to determine the working times.

Hope this is what you are looking for.

Thanks,

nandha

[Former Member]

Hello Nanda,

Thanks. Demand during the lead time plus safety stock is the target stock level. Assume lead time is 7 days and SS is 3 days. So target stock level will be 10 days of demand. If the current stock on hand cover 11 days, thatu2019s mean 1 days excess stock exist in location DC1. (Do we need to set any customizing here to calculate excess stock?)

Same scenario also exist other DCs, DC2 have 3 days of excess stock and DC3 have 5 days excess stock. Then which DC will send the stock to demand location A

Thanks

Parves

[Former Member]

Which DC will send the excess stock to Loc A?

This further depends on the TLane cost and Duration.

The SNP Planning tool Opt, Heu, CTM will have their own way of determining the Source.

Opt: Based on the Trans Cost and Duration

Heu / CTM: Based on the Quota , Priority

Thanks,

nandha

[Former Member]

Thanks,

As I said, we have only heuristics; we did not configure optimization and CTM.

Assume I created transportation lane from location A to all DC. I havenu2019t defined any Quota or Priority. If I now run heuristics, stock transfer can be happen one DC or all DC. How can I define that system will find the excess stock location and send stock from excess stock DC. Do we need to set any customizing here to calculate excess stock?

Or do you need to configure optimization and CTM?