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deployment fair share rules

Former Member
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Dear all experts,

Please tell me the detailed explanation about the Deployment  fair share rule A and B with examples.

I was already read in the SNP2 tab page with the help of F1.But i didn't understand.

Please help me about some easy examples detailed.

Dont send the help.sap.com links ....

SREEDHAR

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Answers (1)

Answers (1)

rajkj
Active Contributor
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Sreedhar,

Fair share rule A is pretty simple, it will just distribute the APD qty based on demand situation at the distribution centers.

Consider Plant A has a ATD qty of 500 for Product X as of today i..e 6/19. Assume this plant feeds 3 DCs i.e. DC1, DC2, and DC3. The demand situation at these locations are 200, 250, and 350 respectively i.e. the total demand for product X is 800 on 6/19.

DC1's share of available quantity: 500 * (200/800) = 125

DC2's share                             : 500 * (250/800) =  156.25 i.e. 156

DC3's share                             : 500 * (350/800) =  218.75 i.e. 219

Fair share rule B (proportional distribution based on target stock)

Based on the target stock method used, our DCs have a target stock of 500, 600, and 700 on 6/19. Lets also assume the physical stock at these locations are 550, 500, and 450 respectively on 6/19. The SNP stock transfers are 350, 250, and 200 respectively for the same day.

The % target stock level at each DC will be calculated as (Physical stock - SNP Stock transfer) / Target stock.

DC1's % target stock level: (550 - 350) / 500 = 40%

DC2's % target stock level: (500 - 250) / 600 = 42% approx

DC3's % target stock level: (450 - 200) / 700 = 36% approx

Plant A's ATD qty is 500. This qty needs to be distributed to all the DCs in such a way that %target stock levels will almost be same. One possible distribution could be

DC1: Distribution qty - 130, Physical Stock - 680, SNP Stock Transfer - 350, Target Stock - 500, % target stock level 66% { (680 - 350) / 500}

DC2: Distribution qty - 150, Physical Stock - 650, SNP Stock Transfer - 250, Target Stock - 600, % target stock level 66.67% { (650 - 250) / 600}

DC3: Distribution qty - 220, Physical Stock - 670, SNP Stock Transfer - 200, Target Stock - 700, % target stock level 67.14% { (670 - 200) / 700}

However, due to rounding and algorithm used, the results might vary.

Thanks,

Rajesh

Former Member
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Dear rajesh,

How did you get in fair share rule B......Dc 1: Distribution qty-130, physical stock-680?

                                                          Dc2:  Distribution qty-150, Physical stock-650?

                                                          Dc3:  Distribution qty-220, Physical stock-670?

If you explain about these.... you were very helpful to me in this field tab page.

The above explanation fair share rule A is very explained answer.But the second one B is some what confusing..

SREEDHAR

rajkj
Active Contributor
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For brevity, I did not provide the calculations for Fair Share Rule B.

I went through 3 iterations changing the distributed quantities and comparing the %target stock levels.

The objective of fair share rule B is to raise the stock levels at all demand locations to approximately the same percentage of target stock level.

1st iteration:

DC1: Distribute 125 and raise the stock level to 675 => %target stock level 65%

DC2: Distribute 175 and raise the stock level to 675 => %target stock level 70.83%

DC3: Distribute 200 and raise the stock level to 650 => % target stock level 64%

2nd iteration:

DC1: Distribute 125 and raise the stock level to 675 => %target stock level 65%

DC2: Distribute 150 and raise the stock level to 650 => %target stock level 67%

DC3: Distribute 225 and raise the stock level to 675 => % target stock level 68%

3rd iteration:

DC1: Distribute 130 and raise the stock level to 680 => %target stock level 66%

DC2: Distribute 150 and raise the stock level to 650 => %target stock level 67%

DC3: Distribute 220 and raise the stock level to 670 => % target stock level 67%

Thanks,

Rajesh

Former Member
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Dear Rajesh,

I very thank full to you such a valuable information provide to me.

And also Rajesh, Please provide me detailed information Deployment PUSH rules.....

SREEDHAR

rajkj
Active Contributor
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Sreedhar,

Before get into the following examples, pl check SAP help documentation for easy understanding with just one DC.

http://help.sap.com/saphelp_SCM700_ehp02/helpdata/en/58/6a7b372d696966e10000009b38f889/frameset.htm

Push rules usually considered when supply exceeds demand. Consider the following simple example.

The demand from DC is as follows:

  Period    :     1     2     3     4     5     6     7     8     9     10

  DC1 Dmd:    5     4     6     6     3     7     8     4     0     6

  DC2 Dmd:    4     5     7     5     4     6     9     5     4     3

Plant supply: 10   10   13   20    10   15   20    10   10    15

Pull deployment horizon:   5 days

Push deployment horizon: 3 days

Push distribution by demand: The total supply is immediately distributed without any consideration of pull deployment horizon and demand dates. In case of multiple destinations, the distribution is proportional to demands. e.g. DC1 supply for period 1 = (5/9)*10 = 6 appox.

Period        : 1        2         3    

Sup to DC1:  6(5)    4(3)     6(5)  

Sup to DC2:  4(4)    6(5)     7(6)   

Stk at plant:  0        0         0

Note: Quantities in parentheses represent the adjusted demand based on the extra quantity received in previous period.

Push distribution by Quota: The total supply is immediately distributed to destinations based on outbound quotas of the source. Again, the pull distribution horizon and demand dates are ignored. This is very much similar to above but quotas instead of demand proportions are used to distribute the supply.

Push Distribution Taking the Safety Stock Horizon into Account: (Depl. SS Push H parameter in SNP2 tab of location product master)

This rule allows to consume safety stock provided difference between demand date and deployment date is smaller than the safety stock horizon.

e.g. Safety Stock horizon - 2 days and safety stock 3

Period        : 1        2         3   

Sup to DC1:  6(5)    4(3)     5(5)   

Sup to DC2:  4(4)    6(5)     5(6) 

Sfty. stk   :  0        0         3

As you see above, for the first 2 days, safety stock is allowed to be consumed. But, for the 3rd day, demand was not fully met due to safety stock requirement. The full demand at DC2 i.e. 6 will only be confirmed in next period's deployment run.

Pull distribution: DC will pull the product from plant i.e. products are distributed according to the due date specified at the demand locations. The system does not distribute any supply to the demand source in advance of the demand date.

Period        : 1        2         3         4        5

Sup to DC1:  5        4         6        6         3

Sup to DC2:  4        5         7        5         4

Stk at plant:  1        2         2        11       14

Pull/Push Distribution: The system immediately distributes all supply to the demand locations (ignoring the demand dates specified at the demand locations) to fulfill all demands within the pull deployment horizon.

Period        : 1        2         3          4         5

Sup to DC1:  6(5)    4(3)     6(5)     13(5)     0(3)

Sup to DC2:  4(4)    6(5)     7(6)      7 (3)     0(4)  

Stk at plant:  0        0         0          0         10

Thanks,
Rajesh

Former Member
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Hi Rajesh,

Can you also please explain Horizons (stock transfer horizons,production horizons)?

It would be very helpful to us..

alok_jaiswal
Contributor
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Hi Kumar,

Since it is a old thread on different topic - request you to please open a new thread if you have any concerns.

Regards,

Alok

Former Member
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Hi Alok,

I've opened a new thread for apo deployment .

If you have any information regarding APO DEPLOYMENT HORIZONS with examples , can you please share it .

Thank you

Former Member
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HI Kumar

Please confirm what is your requirement in deployment

regards

SRS KANNAN