on 01-21-2012 5:21 PM
Our client does not want to stock inventory at either the DC or the Manufacturing Plant. They receive a Sales Order at the DC and the ATP check is set up to check Stock at the DC (likely none); inbound Stock Transport Orders (likely none) and then resort to the Replenishment Lead time.
The Replenishment Lead time for externally procured materials (F) with Special Procurement key (STO it in from the manufacturing plant) is the Planned Delivery Time in the Material Master. The problem is the Planned Delivery time is just the 5 days it takes to get the stock from the manufacturing plant to the DC. If the Manufacturing plant has no inventory (which is very likely since we don't maintain PIRs to stock it prior) we will promise the customer delivery in 5 days which is much too soon.
We cannot inflate the Planned Delivery time to be the 5 days of transit plus the 30 days of total procurement and manufacturing time at the manufacturing plant because then the MRP signal will tell the manufacturing plant to buy and make much too soon.
They don't want to ship goods directly from the manufacturing plant; they must be shipped from the DC.
I realize that this is not a good business process but is there a solution for this?
Edited by: AnnHustis on Jan 21, 2012 6:26 PM
Edited by: AnnHustis on Jan 21, 2012 6:35 PM
Ann,
This is a common practice, and I don't think that the business process is unreasonable.
1. Remove the special procurement key from the RWHS Material Master
2. Change Material Master in the RWHS to X procurement.
3. Set your RWHS Material Master 'Total Replenishment Lead time'
Next step assumes that the company codes are the same between RWHS and Manufacturing Plant.
4. Create Purchase Info Record for the RWHS material, that points to the vendor of the Manufacturing plant
5. Create quota arrangement in which 100 percent of the quota comes from the Manufacturing Plant Purchase Info Record, and is MRP relevant
6. Insert a step after the RWHS MRP run where the Planned orders are immediately converted to Purchase requisitions.
Business process:
a. Sales order is entered. ATP checks RWHS stock and excess inbound.
b. If inadequate supply, then ATP confirms to Total Replenishment Lead time (and not planned delivery time).
c. MRP runs; creates a planned order for the shortage.
d. New step in MRP job converts the Planned order to a Purchase req. Purchase req is sourced via the quota arrangement
e. Purchase Req requirement (Manufacturing plant) is offset by the Planned delivery time to accommodate transit duration.
f. Purchase req demand now places a requirement on the Manufacturing plant, with dates and quantities that will support the Sales order in the RWHS.
g. Convert the Purchase Req to a STO once the stock appears in the Manufacturing Plant.
Best Regards,
DB49
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Thanks very much for your reply, DB.
Both plants are within the same company code; therefore there isn't a Vendor master for the Manufacturing plant; therefore no opportunity to create Vendor/Material info records.
Or are you saying, create a Vendor master for the manufacturing plant anyway?
We did use your solution for our Intercompany scenario and it works perfectly!
Ann,
It is a bit odd that you wouldn't already have a vendor assigned to the Manufacturing plant, if you are already doing intercompany (and not intracompany) orders with the Manufacturing plant being a source. No matter, the answer is yes, create a vendor and assign to the plant. This will be the same vendor that will be used for intercompany orders as well.
Best Regards,
DB49
Kiru,
This solution presumes both Planning and Availability checking being performed in ECC; with my recommendation SCM is irrelevant. I have never tried this using either SCM planning or SCM GATP.
That being said, I believe you could probably do something similar with ATP in either ECC or SCM; and Planning through Deployment. I believe Quota arrangements must be created in SCM. I would say give it a try. Please let me know your results.
Best Regards,
DB49
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