SNP Quota Arrangments

[Former Member]

Hi All,

We are using SNP Quota Arrangements and have the following situation:

Product: XXX

Lot Size: Lot of Lot

Rounding Value: 1.504,000

Maximum Lot Sixe: 1.504,000

Quota Arrangement: 10/90 split Vendor 1/ Vendor 2),

The issue here is that when heuristics is executed it does in fact respect the 90/10 split, BUT, the fact that you have specified a rounding value of 1,504 drives this to a 50/50 split.

Therefore in the example:

Requirement: 1,821

Vendor #1 - generates a PR = 1,504

Vendor #2 - generates a PR = 1,504

So it is the rounding value that creates two equal PRs of equal value because the rounding value in executed after the quota arrangements split have occurred. This may also drive up your day’s supply since you are

If it was not for the rounding value you would have the following situation:

Vendor #1 -generates a PR = 182

Vendor #2 -generates a PR = 1638

The issue here is that we want to use both a rounding value (container) and quota arrangements to drive our purchasing. If there is a small requirement we will get a suggestion from heuristics for two PRs as there are two vendors which will drive up our Days’ Supply to a level that is too high. I understand this may be the design of the SNP, but it does not really work well for us.

I see that there is a possibility to use a Requirements grouping of weekly or monthly which may work better for us (instead of Individual), but this is only available in PPDS.

Has anyone had a situation such as ours? If so what was your workaround/process. Right now we are still using both Rounding values and quota arrangements, but there is still a lot of manual work to complete after SNP heuristics has been run to bring down our Days Supply.

Warm Regards,

Paul

[claire_yang]

Hi Paul,

SNP is bucket oriented planning tool. You may consider to use large bucket in SNP planning; or use period lot size procedure. Period lot size is also supported in SNP planning, and BADI  /SAPAPO/SNP_PERIO_LS can be used. You may also consider to use a smaller rounding value.

Claire

[rajkj]

Hi Paul,

The workaround for requirements grouping is to use periodic lot size. SNP heuristics considers this value in its planning.

However, I did not understand the rationale behind setting abnormal rounding value. Probably, you need to revisit this setting based on your business context and constraints.

Thanks,
Rajesh