Planning with planning product and product allocation

[former_member566355]

Hi,

The scenario is as below:-

Planning takes place at one level above the final products (i.e. we can call it planning material). Sales order comes on the final products to which the planning material is linked.

Product allocations need to be built up at the final products based on forecasts on those products.

Is it possible to build allocations at final products at the planning stage ?

Let me know if further details/clarification is required

Regards,

RS

[Former Member]

RS,

Is it possible to build allocations at final products at the planning stage ?

I don't know what this means.  Please clarify.

Product allocation can always be built against FGs. 

FYI It usually makes no sense to have any forecast against a FGs material when you are using a planning product, since the whole purpose of using a planning product is to enter the forecast against the planning product, and NOT the FGs.

Regardless, you can enter a product allocation against any characteristic that is contained in the sales order, including the planning product, or the FGs product, or any other data item that can be reliably placed into the Sales order ATP interface.

The most common scenario with planning products is to select your check instructions such that allocation is first, then forecast (of the planning material).  Use a 'proposed strategy' of 40 (Planning product) in the Product master (similar to strategy 63 in ERP).  In this case, allocation is first checked, then ATP against forecast of the planning material.  Consumption of the Planning Product forecast by the FGs sales orders reduces availability of the FGs product.

Best Regards,

DB49

[former_member566355]

Hi DB49,

Thanks for the reply. Let me elaborate the scenario further.

In a normal case where no planning product comes into picture the forecast (say on customer as location) is on the final products. Planning run takes place to create production plan. Say deployment is used to build customer (customer is one of the chars) wise allocations for the final products.

So deployment plays major role in building up customer wise allocations and against the allocations, checking will take place when a sales order is placed.

But in case of planning product, forecast is on planning product and allocations needs to be built up on final products. So this is where my query is placed.

How the deployment is going to take place if there is no (producion) plan at final product level. So how the final product wise allocation building will take place in this case?

Regards,

RS

[Former Member]

RS,

Allocation is unrelated to the production plan as far as the system is concerned.  Only data that exists in the sales orders themselves can be used for allocation.  I don't understand your business process when you state "Say deployment is used to build customer (customer is one of the chars) wise allocations for the final products."

You create product allocation based upon your business requirements.  The logic that you use is up to you.  If you choose to use your FGs forecasts to generate your allocations, it seems to me that you are doing the same job twice, but I suppose you have a reason for this.

Anyway, if your business process is to create allocation based upon FGs forecast, I suppose you could use sales history or other methods to disaggregate your Planning Product forecast into multiple FGs forecasts. Alternatively, you could allocate against Planning Materials.  I personally wouldn't take either of these steps without first knowing the complete list of all business requirements, and the complete existing ATP solution.  It sounds to me like there may be some logical flaws in your allocation process.

Best Regards,

DB49

[former_member566355]

Hi DB,

As you rightly said, production is unrelated to allocation. In our case we are trying to transform the production plan, which is based on forecast, into product allocations through deployment (based on stock and receipt elements). The reason for this is that the production plan is 'constrained' where as forecast quanitities can be more than production capapcities.

So with 'planning material' this process becomes a little complex as to have synchornization between planning and product allocations.

Awaiting your inputs..

RS

[Former Member]

RS,

I have no inputs that meet all of your requirements.  There is no FGs production plan for Planning materials, they are not produced.  I suggest that you turn off allocation for these materials.  Constrain the forecast itself for these materials to avoid overcommitting your capacities; then ATP against the constrained forecast in lieu of allocation.

Best Regards,

DB49