Quota Arrangement in Heuristic - how to fix this odd behavior

[Former Member]

I create QA for internal 70% and external procurement 30%. Max lot size in product master is 500 for lot sizing EX and procurement type X.

When I enter a demand for 100, the system create a purchase req for 30 but instead of creating one snp plannned order, it is creating two as follows:

70% of remaining 70 = 49 and the rest (70-49) = 21 both using the same PPM 1. I think the system is coming to PPM source of supply and first reads 70% quota against it then does the above calc.

My expectation is 30 for external and one order for 70 for inhouse.

If I remove the max lot size I get the expected result.

But this does not sound logical.

QA:

external proc: 30%

inhouse production: 70% PPM 1

for a demand qty  of 600, i get a preq for 180 but the remaining 420 is again split as 350 and 70 for the same start finish dates and the PPM 1.

Any ideas?

Here is the 'original scenario'.

I am trying to model make/buy using Heuristic. I can produced a max of 500 per week, above that I want to auto-generate a PR on a vendor.

If you know of a most efficient method to accomplish this using background processing with least subsequent interaction, please let me know.

[rajkj]

Hi,

The SNP planned order split might be due to available capacity, please check the capacity requirements based on the PPM but not based on the QA percentage. It is quite evident from your example with demand quantity 600.

As you mentioned, you want to first use in-house procurement and go for external procurement only if demand exceeds the in-house supply capacity. In that case, don't use QA but manage with procurement priorities.

Please check the following links on source of supply determination and ranking for details.

http://help.sap.com/saphelp_scm50/helpdata/EN/da/8df3128121304a8dc1eef961a6d3a8/content.htm

http://help.sap.com/saphelp_scm50/helpdata/EN/47/37934e7ff19d4cb3b7084291a8259a/content.htm

Thanks,
Rajesh

[Former Member]

I have sufficient capacity to produce 500 per week.

The split is happening even for demand of 100 as I mentioned in my post.

Demand = 100. Ext proc 30, in house prod via two orders 49 and 21.

I have not done any cap. leveling after the infinite  heuristics planning run.

Thanks for the links but I had already review the info - it does not offer means to split the supply automatically other than via QA.

Regardless, what do you recommend for my scenario other than manual capacity leveling and subsequent manual intervention. I know it will be a piece of cake for CTM and Optimizer .

[rajkj]

I guess there is a disconnect. I wanted to convey that SNP planning calendar (Location's production calendar or Resource's calendar based on the global SNP settings) would have limited the available capacity for that time bucket (day or week). Due to this reason, there is a split in SNP planned order. It is definitely not due to quota arrangement.

For instance, assume your plant is not operating on Sunday and you are using daily buckets, but there is demand on Sunday as well. The location heuristic will generate 2 orders in Saturday daily bucket. One order will cover the Saturday's demand and the other will cover demand for Sunday (but the receipt date will still be that of Saturday's).

I hope this explains your first query related to SNP planned order (based on PPM) split.

With respect to your objective i.e. demand split between external and in-house procurement based on in-house capacity constraint can be managed better with optimizer. SNP heuristics definitely not a right candidate and CTM may not be feasible or I might be wrong.

Thanks,
Rajesh

[Former Member]

Rajesh,

I agree that Heuristic isn't going to solve this problem effectively. I was trying to see if anything could be done to ease the planning effort if a client chooses to implement it.

However, I still think the behavior to split is odd.

Heuristic is infinite planning so it can't be the capacity constraint.

Second, if I plan for 100 I get 49 and 21.

If I plan for 600 in the same bucket, I get 350 and 70.

This means its not the capacity issue because it scheduling one order for 350 but in the first case it is splitting an order of 70. I also notice capacity leveling is giving incorrect error. I think it's a system patch issue than anything else.

Thanks for your insights.