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Safety stock SZ method for selected orders

Former Member
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Hi team,

we are use safety stock method "SZ" i.e. safety days supply from location product master.

Our network is such that Mfg plant supplies to 5 different plant. Business requirment is that saftetydays <safety stock> to be maintained at Mfg plant level.

Also we wish system to consider the safety days supply for demsnd from 4 depots & expect that for 5th depot safet days supply shall not be considerd.

How do we exclude demands from particular depot for safety stock planning?

Has anybody came across such requiremnt

Request you all to share the  possible way out to handle this scenarion

Thanks,

MK

Accepted Solutions (0)

Answers (1)

Answers (1)

rajkj
Active Contributor
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Hi MK,

If you use SNP heuristics, the following procedure might help.

1. Use an additional key figure to capture the distribution demand which is not to be considered.

  • This additional key figure is need not to be aggregated or disaggregated
  • Use dependent objects such as destination location and other filters to populate only required information in the data view
  • Set the key figure value as 1 (or some known value)

2. Update the standard macro (Safety stock/rounding/target stock) to put a condition to exclude the distribution demand from Total demand for a given time bucket where the custom key figure value is 1.

3. Execute SNP heuristics twice

  • first with all the 4 depots for which distribution demand needs to be considered
  • second time with the 5th depot alone for which the demand need not to be considered

Thanks,

Rajesh

Former Member
0 Kudos

Hi Rajesh,

Thanks a lot for detailed quality reply & regret the delay form my end.

Your reply is very much useful for us.

Let me explain my requirement in more detail , which is missing in original reply.

We are having network Depot < --Hub <-- Mfg Plant

this mfg Plant also acts as Hub for Some of the depots i.e. it directly supplies to few close Depots, As Depots <-- Mfg Plant

We are using SZ method & business wants to maintain safety stock at only Hub Locations & not dpets. Hence Saftey days need to be maintained at Hub as well as Mfg plant. so for the depots which are directly supplied by Mfg plant, saftety stock works well, where as in another place where Depots are supplied by Hub, we are landing in excess safety stock as we are maintaining safty days at hub as well as Mfg plant & which is not desired. We want to exclude the stock transfer from Hub to Mfg plant for Safety stock calculation as Saftey stock is already maintained at hub level.

Also since there are multiple Hub & Mfg plants, which Hub to be excluded dpepends upon the mfg plant & it is not a fix Hub which is to be excluded for all safety stock calculation.

Hence can you please explain, how do we buile this dynmic rule for exclusion of Hub based on Mfg plant.

Thanks a lot.

Mk

rajkj
Active Contributor
0 Kudos

Hi MK,

Thanks for the details and it helped to improve my understanding of the problem. The following network scenario is really complicated and can't be met with standard configuration.

Prod1-Plant1 ---> Prod1-Hub1 ---> Prod1-Depot1

Prod1-Plant1 --> Prod1-Depot2

I am thinking of an alternative and hope it might work. Please check the following procedure.

1. Add a time series key figure to your planning area, planning book, and data view (if you have a provision, ignore this step)

2. Define a new version (replica of your active version 000) using t.code /n/sapapo/mvm

3. Execute version copy from version 000 to new version selecting only required master data i.e. location and product

4. Create time series objects for your planning area for this new version using t.code /n/sapapo/msdp_admin

5. Use a simple macro to copy the distribution demand at source to your time series key figure

6. Use t.code /n/sapapo/tscopy to copy data from version 000 to new version. Please check the following screenshot for details on filters. It allows you to copy distribution demand copied to time series key figure selectively.

7. Use t.code /n/sapapo/tscopy again to copy the data back from new version to version 000. This time using only location and product filters.

8. Use another macro to reduce total demand

    Aux. Row element (Reduced Total Demand) = Row Element(Total Demand) - Row element(Your time series KF)

9. Touch Safety Stk/Reorder Point/Targt Stock Lvl macro to update Safety Stock step. Replace the area element 'Total Demand' with aux area element 'Reduced Total Demand'.

The whole procedure is about how to reduce the distribution demand at plant by demands from hub locations.

Thanks,
Rajesh

Former Member
0 Kudos

Hi Rajesh,

Really sorry for delay in repply from my end.

I really appreciate the efforts form your end.

Here I wish to mention @ one of the process decribed in your solution about copying simulation version back to 000 active version, which is really difficult & non advisable in production scenarion.

Alternatively, I am trying the same with custom macro & getting activated with the help of Badi for this purpose. It is raw stage & will share the same once completed.

Thanks,

Mangesh Kulkarni