Planning in SNP and PPDS - MTO or MTS

[former_member225637]

Dear Experts,

Here is my question hope some one already came across this ..

There is a DC - A and Plant - B

sales forecast happen 3 months in advance which mean  customer give forecast for future 3 months in this 3 months forecast 1st month is firmed sales order

so to summarize one month sales order -dependent requirement  and rest of 2 months is forecast Qty which mean rest of two months is independent requirement

so this cycle keeps goes on with time period

Now the requirement is

When sales order is created in DC-A  STR should be created and look for stock in Plant-A and definitely the production should start after receive demand from DC-A which is firmed sales order

Solution ??

1)when sales order created in DC-A snp heuristics run and create a STR in DC-A and STO in Plant  - correct me if i am wrong

2) Now PP-DS  run in Plant-A and system create a planned order for finished good for the sales order and it looks for PDS and dependent requirement happen and planned order created for semi finished-1 and semi finished-2 - correct me if i am wrong

3) if i have two sales order can PPDS heuristics combine two finished good planned order for finished good and make it one in a particular horizon like say a month

Now there is another requirement for purchasing raw material

IT is decided for raw material APO planning is not used instead ECC is used which mean mrp type XO

but they dont want to use re-order point or safety stock  instead based on the three months forecast from customer they have to procure or raise a PR before even firmed sales order comes how to handle it

Is this requirement is make to order or make to stock in SAP point of view because i see its kind of both ...

if any one came across this kind of business requirement please advise

if you need more information please try to ask me i explain in detail

Regards

Raj

[former_member244427 · Accepted solution]

Hi

You can map this as follows

1. use forecast horizon at the DC of 1 month. So the STO (planning) will be created only for the sales orders in the first month and for forecast for further horizon. For this u need to use planning with final assembly strategy 20 in APO if you are using optimizer other wise optimizer do not consider forecast horizon.

2. Your next question was if APO can club demand form 2 different sales orders in the month, yes it will club if the sales orders are for same material/product, you need to use monthly lot sizes instead of lot for lot lot sizing procedure.

3. you nex requirement is to plan for the finished product based on FG but for the SFG based on forecast for the entire horizon. For this you can play with the PPDS horizon for the FG, then you can configure to send only PPDS planned orders to ECC. now take SNP run first at the manufacturing plant it will plan for the entire horizon but the PPDS horizon and the planned orders for FG and SFG will be created and Purchase requisition for the rawmaterials will be created and it will flow to APO and raw material procurement can happen for the entire 3 months horizon. For run PPDS heurestic to plan for the 1 month production this will be for the firmed demand. only these planned orders will flow to APO and your production will happen based on these planned orders from PPDS.

The above are the basic guidelines on which you can explore and finalize the solution.

Regards

Abhishek

[former_member189901]

Hii Rajkumar,

It is Make to Order Planning.

You can say It is Make to order without Final assembly. Strategy 50.

http://help.sap.com/saphelp_46c/helpdata/en/cb/7f93f343b711d189410000e829fbbd/content.htm

Hope it'll help you...

Regards

Debashis

[former_member225637]

Dear Debashis,

Thanks but the links you gave is for ECC

can you advise how to handle this with APO instead of ECC ??

To add, in this scenario both finished and sub assemelies are produced once sales order is created

and i need to procure raw material before sales order created which is part of finished good bom and sub assembly bom

Regards

Raj

[former_member189901]

Hii Rajkumr,

The complete scenario may not happen In APO, as SNP heuristics and optimizer do not support MTO.

Find the attachment for the same.

http://help.sap.com/saphelp_SCM700_ehp02/helpdata/en/4c/c749c0d43f6a4ae10000000a42189c/frameset.htm

well the alternative way is :

Alternative 1:

You can use CTM for MTO scenarios  CTM supports both PIR and sales orders.

Because any way you need requirement for raw materials for planning in advance.

Alternative 2:

Put manual Pur req well in advance for raw materials. and you can plan in ECC or in APO, no issue.

And put the requirement as  sales order for FG in the DC or MFG plant. When the dependent requirement will created for Raw materials, it will consume from the manual PRs.

Regards

Debashis

[Former Member]

This message was moderated.

[ashutosh_saraf]

Hi Dog Boy,

               I have the following Scenario.

1. I created Reservation for the FG material from the project

2. I have created the BOM & Routing for Material A which is a FG material whose standard price is 30

3. I have Child BOM components B & C

4.I created Production Order for FG Material A for qty 1

5. I issued material B & C from movement type B & C i.e Price of B=50 & C=80 so total B+C= 130 & total material price issued is 130

6.I have set of operation cost D,E & F cost of D=20/Hrz E=10/Hr zF=30/Hr

7.I assume that I used D,E & F for 1 Hr only so Operation activity cost = D+E+F=20+10+30= 60

Total Cost On production Order = B+C+D+E+F = 50+80+20+10+30=190.

8.When I receive the Finished Material A in Stock After Confirmation then the value must be 190 for A.

Can you suggest me the process if it is correct?

Regards

Ashutosh

[Former Member]

Ashutosh,

I quote from the SCN rules of engagement (http://scn.sap.com/docs/DOC-19331😞

Avoid starting a discussion or posting a question as an unrelated comment to a blog or document, but rather post your questions as separate discussions.

I don't believe your question is relevant to this discussion.  I suggest that you create a new discussion.

Best Regards,

DB49