Why SNP Heuristics creates Planned order more than the demand?

[Former Member]

Dear Experts,

Our business owner has executed the SNP Heuristics in a location where he has been executing SNP-Optimiser. We have observed in certain case, the Heursitcs has created planned orders more than the demand.

Other information:

Demand type - Distribution demand

The product master info

Lot size: Lot for lot, Min/max lot -100,000

GR processing time - 6 days

PDS batch size-100,000

Heuristics executed on 23.06.2011

Demad flow patern

26.06.2011 41,580-

27.06.2011 8,880-

28.06.2011 3,420-

29.06.2011 8,460-

05.07.2011 19,680-

15.07.2011 56,160-

25.07.2011 28,680-

05.08.2011 42,240-

15.08.2011 8,940-

25.08.2011 32,880-

Planned orders created

order no-1, qty 100,000, start date 17.06.2011 , available on 23.06.2011

order no-2, qty 100,000, start date 17.06.2011 available on 23.06.2011

Question:

While the demand for the whole June 2011 is falling below 60,000, why it should create two orders of tot qty 200,000?

It should have created one order of 100,000 on this date.

Thanks in advance

Regards

Elumalai.P

[Former Member]

Hi,

Can you also provide details of what is your planning horizon? and what is the total demand for this horizon? so, that we can derive the total demand being considered by Heuristic.

Thanks,

Regards,

Sandeep Kumar.S

[Former Member]

Do you have any Safety Stokc or Target Stock Level Methods defined?

Also what periodicity are you planning the SNP heuristics against?

Regards

Ian

[Former Member]

Hi Ian/Sandeep,

No safety stk / target stk level for the product in question

We are wroking on 180 days planning horizon

The total demd for the whole horizon is 571,020. details are

26.06.2011 41,580-

27.06.2011 8,880-

28.06.2011 3,420-

29.06.2011 8,460-

05.07.2011 19,680-

15.07.2011 56,160-

25.07.2011 28,680-

05.08.2011 42,240-

15.08.2011 8,940-

25.08.2011 32,880-

15.09.2011 99,360-

15.10.2011 109,200-

15.11.2011 83,400-

15.12.2011 28,140-

It has planed 200,000 i.e 2 batches of 100,000 each in buckets 21-30th June, 1st -10 Aug & 1st Oct to 31st Oct

The planning book design: The planning bucket is 10 days for the 1st 3 monhs i.e from June to Aug '2011

remaining 4 months are in monthly bucket

We carryout the planning once in 10 days

Thanks

Elumalai.P

[Former Member]

Hi Elumali,

You have mentioned about lot size, which is Lot size: Lot for lot, Min/max lot -100,000

But, how much is Min and how much is Max you have maintained?

If you have maintained MIN lot size as 100,000 then kindly remove it, CIF the info to SCM and run again.

Thanks,

Regards,

Sandeep Kumar.S

[Former Member]

Hi Sandeep,

We need the min lot size as the batch size of manufacturng oder should be in multiples of 100,000.

[Former Member]

Hi Elumali,

If you specify Min and Max lot size same value then its terms as Fixed lot size and system always create Plan Order for that Qty only.

If they want to produce and have inventory for some period then its ok. In this sitsuation try to see is periodic Lot size like weekly or monthly you can specify. In this case system will see the demand for whole week or month and try to create planned order.

But even in this situation you will produce more then the demand qty.

Thanks,

Amit

[Former Member]

Hi Amit,

It is o.k if Heuristics creates one order of 100,000 due to min order qty. Why it is creating 2 orders of 100,000 each on the same date?

[Former Member]

Hi,

I suspect that the factory is having a holiday in between 23/06 and 05/07. That is the reason why it is creating during the week of 23/06. Can you check regarding the holiday?

Thank

Mani Suresh

[Former Member]

Dear All,

SAP has advised us to apply the notes 1312308 and 1235518

The problem is resolved after applying these nots

Thanks for your inputs as well

Regards

Elumalai.P