Deployment fair share rule B

[former_member566355]

hi,

I have gone through following example of fair share rule B in one of the earlier posts.

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Destination location A Dest. Location B

Demand in bucket P1 1000 1600

Available stock 200 600

Target Stck levels (as derived from safety stock levels) 800 1500

Stock required from source 1600 2500

% of target stock before deployment 25 % 40%

Stock available to deploy at production site - 1200 qty

Deployment qty as per fair share rule B 496 704

Available stock after depöloyment 696 1304

% of target stock level after deployment 87% 87%

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based on the values above, can anyone please tell me how exactly the deployment quantity 496 is calculated?

Regards,

YR

[claire_yang · Accepted solution]

Fair share rule B increases the stock on hand at all demand locations to the same percentage of the target stock level. The percentage per destination location is defined as planned stock on hand divided by the target stock level. In the event of a shortage, the system first tries to remedy the shortage in these target locations, then the system attempts to increase the stock on hans at all destination locations to the same percentate of the target stock level.

In your example, at the very beginning, the pecentage is :

Available stock / Target Stck levels (as derived from safety stock levels)

200/800 = 25%

600/1500 = 40%

You deploy 1200 to dest.location A and B. One location got 496, another location got 704:

496 + 704 = 1200

now the available stock is

496 + 200 = 696

704 + 600 = 1304

Now calculated the pecentage again:

696/800 = 87%

1304/1500 = 87%

Here you can see, now they are on same percentage of the target stock level. This is what fair share rule B does.

[former_member566355 · Accepted solution]

Hi,

I am clear of the concept of fair share rule B.

My specific query is how the quantity 496 is calculated i.e. what is the formula used to calculate this quantity for the given example.

Regards,

YR

[claire_yang · Accepted solution]

If you want to know how the system works on fair share rule B, you can check function module /SAPAPO/MSDP_FAIR_SHARE. There is no special fomula to calculate the data, it just tries to increase the stock on hand at all demand locations to the same percentage of the target stock level.

In your example, you only have 2 demand locations. It's will be very easy to calculated it manully. Suppose you need to depoly quantity x to location A, then (1200 - X) to B. You want the they are on same percentage of the target stock level, then (x + 200) / 800 = (1200 - X＋600）/ 1500, then you will get X = 496.

However, it doesn't mean such menthod works well for every example. Sometimes you also need to consider rounding procedure, and sometimes you may need to deploy to several locations. It doesn't make sence to calculate it manully. I strongly recommend you to check the function module /SAPAPO/MSDP_FAIR_SHARE if you want to know more detailed inforamtion about the logic.

[former_member266806]

Hi sap_apo1,

What clarie has written is absolutely fine. I have deduced a working formula. It is as follows:--

If Da1, Da2 .....Dan are deployed quantities in destination locations a1, a2... an

If Stka1, stka2....Stkan are actual stocks at destination locations on day of receipt of deployed quantity in locations a1, a2... an

If Tstka1, Tstka2,Tstka3.....Tskan are target stock quantities as per SS days n day of receipt of deployed quantity* in locations a1, a2... an

Then , the following formula works

(Da1Stka1)/Tstka1=(Da2Stka2)/Tstka2=...................................=(Dan+Stkan)/Tstkan

Da1Da2.......+Dan= Total quantity available to be deployed by the source location

Conditions: it takes the transportaion lane duration into account.Therefore, take into account the stk quantities on the day of recipt at destination locations.It can differ as tlane durations can be different to different destination locations.

The formula applies only when it is possible to equate the percentages. If the stock distribution is already eavily skewed to a location, and the fair share cannot bring the other locations to this level due to insufficient quantity to deploy.

Regards,

Samir Baruah