Pushed/Pulled Production Planning
Please help me provide a good solution for this problem:
My client has some intercontinental DCs, and his only production site is located in South America. Great part of production is transferred weekly to EU and US, and it takes usually 5-6 weeks to arrive once the goods are there, they send it to the customers all long the month. Each SKU has a flat consumption along the month.
The manufacturing process is complex, it has many restrictions due the nature of the products ( chemicals) and because of that they define the production schedule once in a month and follow that program statically. Also each product in the mix just can be done once in the month.
Recently they started the S&OP process and now they want to put the forecast inside ECC.
Usually when we work with forecast, we use desegregation
of the monthly/family forecast into smaller buckets ( daily/weeks) and sku and then with that requirements we use MPS/MRP to generate the planned orders to fulfill the plan.
The S&OP take into consideration the capacity and doesnt allow goals that are overcapacity in the planned bucket.
In other organizations that Ive worked, the production process may have overcapacity situations in the certain moments of the short period, but overall they can handle, because they are flexible to change production orders along the month.
Here the production process is the constrain in the supply chain, and they push the goods to the DC as soon as it get ready to ship.
Now that they got the S&OP process we need to plan the transfers. It means that I cant transfer just anything as soon as it get ready. I need to know if I will have planned demand in order to keep my stock goal at the DCs.
The standard MPS/MPS method is the pulled one, it means that once I have desegregated my demand in weeks/SKU( plain demand along the month), I will have requisition transfers docs for each week/SKU. The problem is that I cant fulfill this transfer plan, because due to the production constrains, I cant produce each product once in a week, but just once in a month.
If I use the MPS/MRP approach the plan will be unfeasible and some user will need to change the plan manually ( so theres no point to let the system plan).
I was considering use the JIT/KANBAN planning that its the pushed plan we have in ECC, but these methods are used to short leadtimes and firm demand ( such as production or sales orders ) and thats clearly not the case. I cannot start the transfer planning just when my stock reach some level. I need to start it when my project stock ( actual stock + transfer time ) reaches certain level.
Any Ideas for how can I handle that?