Run BOP on VMI orders generated from APO

[Former Member]

Hi,

We are implementing a VMI solution using APO 7.0.

Do any of you know how we can run a BOP on the VMI orders generated from APO? At the moment the run fails due to the order category EK.

Any experience what so ever?

Looking forward to hearing from you

Brian

[Former Member]

Brian,

??? you want to reschedule the confirmations of your customer's sales orders? I doubt that he will go along with that theory....

Best Regards,

DB49

[Former Member]

Yes, we want to have VMI orders become a part of our daily rescheduling, to make sure that we treat our customers orders according to the priority rules we have setup.

i.e. a VMI customer has a priority 1 but does not get anthing confirmed, but durring a normal rescheduling, the priority 1 customer would get a confirmed quantity. This is why we want VMI orders to become a part of the reschedule.

[Former Member]

Brian,

In VMI, the orders represent the confirmations that your customer made to his customers. They just exist in your system because he has chosen to share them with you. You in turn are responsible only for replenishing stock according to agreement you have with him. You do not have the authoriity to change his orders.

You can, of course, ask him to change these orders. This is not compatible, though, with BOP.

Best Regards,

DB49

[Former Member]

Hi DB49,

I disagree with you.

In our VMI setup, we are the vendor, and we manage our customers stock.

This means that we make the order proposals from us to the customer. And these orders need to be a part of our rescheduling in order to have our customer orders prioritized.

Br Brian

[Former Member]

Brian,

Of course you are the Vendor. Of course you manage the customer's stock.

However, you do not manage the customer's customers.

The order proposals of which you speak are replenishment ('supply') orders, not demand. BOP only reschedules demand, it does not touch supply.

Best Regards,

DB49

[Former Member]

Brian

Take a look at SCM release restrictions. For example, OSS Note 1413545 - Implementation recommendations for SCM 2007. SAP has explained why BOP does not work in a VMI scenario.

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Back Order Processing (BOP) doesn't consider VMI-Orders in standard

The Back Order Processing doesn't consider VMI-Orders. This orders can't be selected but are treaded as competitive demands.

VMI Scenario doesn't include an ATP Check in standard

The standard VMI Scenario doesn't include an ATP check. VMI-Orders represent from the planning view no customer order but stock tansfer orders between two locations. If a VMI Order is created in APO, dates and quantities are calculated either by deployment or TLB. After transfering the VMI orders into the R/3 Execution system the APO results shouldn't be re-planned again. Therefore, VMI-Sales Order will be created as external confirmed TLB orders and sent back to APO 1:1 via key-completion without being checked again (no ATP-Check) and allocations are neither checked nor adjusted in standard. It is possible to use ATP Check while creating VMI Sales Orders in R/3 by implementing a modification in R/3 Inbound. This modification would remove the external confirmation status. Be aware of that you need to take care about special cases that could effect results.

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Rishi Menon