SNP

[Former Member]

Dear Friends

I have a query. In the Supply chain model for SNP we say that SNP produces distribution plan and purchase req / planned orders.

The distribution plan is ok - transferring the products from one location to another in the supply chain.

Iam not quiet clear on the purchase req / planned orders.

When the definition says purchase req / planned orders not able to get against whom these are created after the planning run takes place. What is it referring to - FG or FG components or both ?

Scenario's -

Normal Scenario for planned order -

If we talk about the FG and it is an internal produced part in a plant , then the forecast ( demand ) creates a receipt element ( planned order ) in the plant.

This planned order created in APO is then CIF'ed to R/3.

Scenario for Pur req ? -

Under what condition will Pur req be created ?

If we talk about the FG and it is an external procured part in a plant , then the forecast ( demand ) should create a receipt element ( purchase req ) in the plant.

But in this case , the FG will have external procurement indicator both in the Distribution center and Plant ....seems a bit unusual here.

Please advise.

Regards

KK

[Former Member]

KK,

Under what condition will Pur req be created ?

When the product is to be procured externally.  The main two scenarios are 1. From an external vendor, or 2. From another Plant.

If we talk about the FG and it is an external procured part in a plant , then the forecast ( demand ) should create a receipt element ( purchase req ) in the plant.

Yes.

But in this case , the FG will have external procurement indicator both in the Distribution center and Plant ....seems a bit unusual here.

It is not very unusual.  A plant can serve many purposes, it does not have to be limited to Manufacturing.  Consider the situation where the company's business is to stock and sell a product line.  Some of the product line could be manufactured internally, and some of the product line could be procured from Vendors (Trading Goods).

Best Regards,

DB49