Raw Material availability Restriction, Imploding a PDS

[Former Member]

Hi Guru's,

In a fresh APO-SNP implementation we are looking for a solution for a particular scenario:

We are implementing in a Consumer product industry that have as a main restriction the basic/principal Raw Material.

As part of the DP solution, we are forecasting the Demand, and also, we are forecasting a available stock on hand in the following weeks in a daily granularity.

There are some business policies that define the priorities and penalties in order to fulfil demand of particular Distribution Centres, this policies (as penalties and priorities) are defined in order to optimise the distribution.

Then, the necessity is: to know, what products and in which qty can be manufactured based in a projected Raw Material availability. We are thinking that maybe Imploding the PDS's will be a good advance in order to reach the final solution.

Any hint, suggestion or advice will be very appreciated.

Waiting for your comments,

Regards

[rajkj]

Hi Ruben,

In Demand Planning, you can use DP-BOM to check the WIP requirements from the generated forecast of finished goods. This provides the required visibility on demand for WIP materials. The demand planner can overwrites the finished goods forecast based on WIP materials requirements in consultation with sales, customer service, and production teams so that dependent demand for WIP materials will be realistic.

In Supply Network Planning, you can apply the business critical constraints on supply side. In the current project, I used aggregate planning to collect the finished goods supply and constraints them by the availability of WIP material. This results in re-determination of  the quantities of finished goods (consider as a reverse bom). The solution is being reviewed by the business.

Thanks,
Rajesh