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Forecast on manufacturing plant

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Dear Experts,

We have a supply chain model consisting of manufacturing plants connected to distribution center's via transportation lanes. Billing for all manufactured products is done at the distribution center level and in some cases also at the factory level where the product is manufactured.

For this we have created an intermediary location in the factory called BSR ( Bonded Storage Room). At this location, forecast for all products which have to be allocated at the factory level is inserted & allocation happens through Deployment/TLB.

Due to some business requirements we have been advised not to create these BSR's and hence we are facing problem to insert forecast for products to be billed at the factory level.

I tried inserting forecast (FC Reqs.) at the factory level, but on taking a heuristic every time planned orders are created instead of PurReqs which would be converted into STO's once Deployment/TLB is run.

Please advise on steps to achieve the same.

Some screenshots have been attached for your consideration.

With Regards

Harsh

Accepted Solutions (1)

Accepted Solutions (1)

m_manimaran
Active Contributor
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Hi Harsh,

If the products are manufactured in the factory, then heuristic will create planned order only.

If I understood correctly, here is your business scenario,

1. All Products are manufactured in Factory

2. Most of the sales orders are entered and delivered from DC, which gets the products stock transferred from Factory. Forecast are entered here to cover the sales done from DC

3. Some of the sales orders are entered and delivered from Factory -for which you want to have the forecast at the factory level.

Then Forecast at DC will create Purchase Requisitions, which will be later converted into STOs for getting the stock from factory.

But Forecast at factory will create Planned order - to produce and stock at the same location. When the sales order is entered at factory, this will be delivered from stock.

So, the system behavior of creating planned orders at factory is correct.

Regards,

Manimaran M.

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Dear Manimaran,

Thanks for the response...

So the bottom line from what i understand is that if forecast is entered on the Factory, system will not allocate stocks separately for this as it does in case of forecast on DC..

Please correct me if i am wrong..

With Regards,

Harsh

Former Member
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Hi Harshvardan,

See the attached link for"Consideration on Demands in a Source Location".

http://help.sap.com/saphelp_scm2007/helpdata/en/a0/640242e446c417e10000000a155106/content.htm

The problem comes with deployment sending all of the stock to the demand locations before the needs of the factory are met.  You must use several key figures from plaanning book 9ADRP_FSS and key figure "Deployment Reservation Quantity"  It still may not give you what you want but it's a start.

Best Regards,

Mike

Answers (1)

Answers (1)

Former Member
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Harsh,

Those screenshots are exactly what I would expect for factory planning.  In general, against a factory, I would expect to see planned orders, which represent the product that the factory will build.  The only purchase Reqs you would normally see would be the REQUIREMENTS generated by Purchase reqs placed on the Distribution centers that are to be supplied by the factory..

You have not described the business process you wish to use to move the product from the factory to the Distribution Centers.  Can you please elaborate?  Do you intend to wait for sales orders to be entered on the DC?  Or, will you push product to the DC without waiting for the sales orders?  What should trigger such a 'push'?

Or....?????

Best Regards,

DB49

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Dear DB49,

Thanks for the quick update...

Hope this clarification is understandable.. Our DC are located away from our Factories.. Hence we perform Deployment/TLB using Fair Share Rule B to allocate stock to respective DC based on demand on the DC... Hence all billing activities / sales orders are done/pposted at the DC..

Our new requirement is that we need to enable billing directly at our factory & hence need to reserve stock for all FC Reqs on the Factory..

Hope i have been able to clarify your doubt...

Please advice..

With Regards,

Harsh

Former Member
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Harsh,

What makes you think that the heuristic on the Factory (where materials are MANUFACTURED and not PURCHASED) should give you a Purchase Req?  Are these Trading goods?

Best Regards,

DB49

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Dear DB49,

I am aware that a heuristic on the Factory wont give me PurRqs... Let me elaborate my issue further...

I wish to enter forecast(FC Reqs) directly on the Factory. When i take a planning run at the DC's, aggregated forecast will hit the Factory & depending on availability of Stocks the Factory will allocate this stock to the respective DC's based on the Fair Share Rule that we have maintained..

My concern is whether Factory will keep stock to itself based on the forecast inserted directly at the factory level or not??

If yes, can you direct me how to go about doing the same...

With Regards,

Harsh

Former Member
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Harsh,

If yes, can you direct me how to go about doing the same...

According to your first post, you have already done so.  You entered a forecast at the factory.  The system responded by creating supply elements to cover the forecast.  Why is this not satisfactory to you?

Your DC sales orders and any DC forecasts will create demand on the DCs.  Your Deployment run will create transfer orders, which will create supply in the DCs, and also place demand on the Factory.  Your Factory Forecast will create demand on the Factory.  Your Sales orders on the factory will create demand on the factory.  All of the factory demands together (total DC requirements, Factory Sales Orders, Factory forecast) will be considered during the planning run, and will generate supply in the factory (planned orders) to cover them all.  Standard functionality, and very commonly used scenario in business.

I suggest that you model this in your sandbox.  Create a product master for one material against two Locations (DC and Factory).  Place a Sales order on the DC.  Place a Forecast on the DC.  Place a forecast on the factory.  Place a sales order on the factory.  Now run heuristics and deployment.  In five minutes you will see how the whole thing behaves.  After you see how it works, you can begin tweaking various parameters (such as the methodology of forecast consumption) to get the business results you seek,

Best Regards,

DB49