Network vs Location Heuristic

[Former Member]

Hello all:

I have a general question regarding what the difference is between a Network and Location Heuristic and when each should be used.  We run DP and SNP only (no PPDS, no Boms, no Routings).

This is a background on our situation.  Our German location plans warehouses around the world EXCEPT for the US.  We started using SNP in the US, running a Location Heuristic once a month and planners update the Production Plan while doing capacity analysis.  We have found that the Germany Heuristic (they run a Network Hueristic) is overwriting our US plants Production Plan and Distribution Receipts Plan each night.  We would like them to block our plants in their heuristic, but they have said they cannot do that in the Network Heuristic and they are reluctant to switch to a Location Heuristic and exclude our plants because they aren't sure if it will produce the same results.

Any advice on the difference between the 2 heuristics and when one should be used over the other and whether switching from Network to Location would cause an issue for them?

Best Regards,

Andrea

[aparna_ranganathan · Accepted solution]

Andrea

As the name implies , location heuristic is specific to the location in question whereas network heuristic generates the plan for all branches belonging to that product.  Take an example Prouct A - locations L1,L2,L3. Lets say L1 supplies L2 and L3.

If you run a network heuristic on product A , it will generate the plan at L2 and L3 first and will then plan location L1.  That is it can recognize the network structure and plan accordingly .

If you run a location heuristic , then you have to make sure you run location heuristics for L2 and L2 first and then run it for L1. Otherwise your plan is not going to be correct.

The German branch can switch from network to location heuristic - but they have to run multiple variants in the correct order . Setting up the variants is a one time activity and may be difficult if you have a complex network. But they will get the same results . That should not be an issue.

The other way to solve this problem is for the US branch to delete the results of the German branch ,run location heuristics at the required locations and save the results to an excel or something and work on it for the rest of the month.

Thanks

Aparna

[rajkj]

Hi Andrea,

If the order volume is manageable, the US planners can use standard functionality such as order firming or fixing in the data view or through mass processing using t.code /sapapo/rrp4. These firmed orders will not be altered by German heuristics.

If you always use the system proposed source of supply (PDS/PPM or transportation lane), then you can backup the final receipts (planned orders and purchase req/STR) quantities to any time series key figures and restore them through simple macros.

Thanks,

Rajesh

[sourabh_jain66]

Hi Andrea,

Looking at your situation i am unable to understand, what is the need to run different hueristics at Germany and US.

If your german branch is already running network hueristics, then it should plan for US location as well.

If you can kind of centralize the process, will reduce the duplication of work done.

If german branch is running SNP multiple times in a month and US wants to run it for once a month, then at the start of the month or whatever time you run the planning run, take a version copy and refer the plan in same for rest of the month for US location.

If for some reasons you are not able to follow the same, then expert Aparna has already suggested the way ahead.

Please let me know if you have any more questions here.

Rgds

Sourabh