Capacity Driven Order Creation in Production Planning Run

[Former Member]

Have a scenario where we want to create planned orders to fill the available capacity within a week, for a PPDS horizon of over 120 days.  The manufacturing is done regardless of demand, but the CDOC heuristics can only be called from the DSPB or the RPT.  Any ideas on how to automate this?  Currently orders are created manually and fixed. 

Production Planning Run occurs each night in batch. 

[Former Member]

Simplest way to control capacity restricted planned orders to be created, Execute PP/DS optimizer with setting on "order creation tab" with option "either "automatic location product selection" or you can create selection profile in the opti profile using option location product selection profile..

I hope this will suffice your requirement..

Regards

PK

[Former Member]

Matt,

The most common method to create planned orders in advance of sales orders (or even in lieu of sales orders) is to create a forecast.  In your case, you could create a forecast that is constrained by capacity (e.g., you create the forecast quantities such that the resultant planned orders exactly match capacity).

Best regards,

DB49.

[Former Member]

Thanks for the reply.

The issue with this is that this particular product is an intermediate material and used as a component on many other materials.  Therefore the dependent demands for the various other products would be compounding with the forecast you are suggesting and ultimately not solving the problem.

[Former Member]

Matt,

You normally solve that issue with consumption.  If you create and implement a requirements strategy for your product master whereby the forecast is consumed by the dependent requirements of the superior planned/production orders, then the overall result is a stable plan (at capacity) for your intermediate product, that is not perturbed when the superior order loads are erratic.

Speak to your local PP functional expert, he should easily be able to set up such a strategy for you.

Best Regards,

DB49

[Former Member]

Thanks again, I will look into this option.  I guess my issue is that we would still need to maintain the forecast for this product to be consistant with the capacity.  Not sure if that would ultimately be easier than just manually creating a planned order every week. 

[Former Member]

How about if you roughly estimate the FG qty based on full capacity availability per week (as suggested by DB) of the resource required in the SFG, and   let CTM or Optimizer plan the orders based on available capacity of the resource? Either you shorten the PPDS and SNP production horizons before the run to allow for order creation, and then set them back after the finite SNP run

or

you plan in advance (120+ days and as you roll forward you will have the planned order within the 120 days and eventually you will catch up.

The latter (horizon related) issue is a minor problem to solve though but the main point is in the former.

Does it make sense? I don't have immediate access to the system so I cannot simulate and confirm.

P.S: I know my quick note is just a pointer and sharing of an idea - not  detailed setup instructions.