Recurring quantity contracts

[Former Member]

Dear gurus,

I need to configure a specific quantity contract that ensures availability for the customer of a specific quantity.

The aim is to keep a certain quantity of stock in the warehouse ready for the customer to call off (batch is already assigned to the customer).

Everytime the customer does a call off, Planning department would trigger a production order to meet the quantity described in the contract.

Business case:

1. A quantity contract is placed for 1.000 KG with validity 01.01 - 31.12.

2. Planning department sees a requirement of 1000 Kg and manufacture 1000 KG.

3. Customer calls off 800 KG

4. After goods isssue, planning department sees a requirement of 800 Kg and manufacture 800 KG.

5. Stock assigned to customer is again 1000 KG.

6. Customer does a call off of 900 KG.

7. After goods isssue, planning department sees a requirement of 900 Kg and manufacture 900 KG.

8. Stock assigned to customer is again 1000 KG.

Comments:

Modifying MRP settings is not an option: various customer can order the same product in different moments in time.

A Contract of 1000 KG means that 1000 need always to be available for customer to collect.

Contract quantities might be exceeded during the life of the contract: a customer might do 4 call offs of 500 kg each and contract is of 1000 KG.

Answers are appreciated!

[Former Member]

Hello Shiva,

unfortunately MRP and safety stock is not an option: the stock needs to be assigned to a customer.

This way the customer will set a difference between those customers with agreement (that can call off stock) and those without agreement that need to wait until goods are imported.

What we have in mind is a kind of contract that triggers a requirement everytime that the stock assigned to the customer gets shipped.

[Shiva_Ram]

Then as you mentioned try using quantity contract functionality for each customer.

Regards,

[Former Member]

Hi,

the difference between the standard usage of contracts and my question is the quantity.

In standard SAP: when the quantity of the contract is reached, the system does not allow place additional call off orders.

In other words:

Standard SAP:

Contract: 1000 KG:

Call off 1: 600 KG: OK.

Call off 2: 400 KG: OK

Call off 3: 200 KG: not allowed because the total quantity has been reached.

Requirement is:

Contract: 1000 KG:

Call off 1: 600 KG: OK.

Replenishment of 600 to have 1000 KG available for customer.

Call off 2: 400 KG: OK

Replenishment of 400 to have 1000 KG available for customer.

Call off 3: 200 KG.

Replenishment of 200 to have 1000 KG available for customer.

[Shiva_Ram]

Modifying MRP settings is not an option:

Not sure why MRP settings can't be used in this scenario, but did you think about using safety stock functionality in the MRP views? Based on past consumptions by different customers, average consumption can be calculated and that value can be maintained in the safety stock field. Whenever, the stock in plant goes below safety stock, MRP can trigger production orders automatically. To include safety stock in the availability check, in t.code OVZ9, include safety stock can be checked.

Regards,