Difference Between Standard Procedure and Minimum Lateness CTM

[former_member906762]

Hello Gurus,

Can anyone please explain an example for the difference of the Standard procedure and keeping lateness to minimum in Late demand fulfillment . What is the downside if i use standard procedure instead of Minimum lateness.

Regards,

Nick

[Former Member]

Hi Nick

I am not sure about your scenario but I would also first perform netting run where all your firmed supplies get pegged to respective demand. You have different options like horizon or backward/forward way of netting to assure all your firmed supply get consumed. You can run multiple netting runs with different options to assure you don´t end up in the scenario which has been mentioned by Rahul.

Once you are through with Netting runs, you can execute the planning run.

As Rahul mentioned, please test the different scenario´s to understand and validate the business requirement.

Thanks

Amol

[kenneth_snyder]

CTM  does not distinguish between firmed supplies.  CTM deletes all existing supply elements before it solves the demands.  So everything remaining is "fixed" but will create new supply to meet demand on time regardless of any pre existing supply elements.

[RahulHanda]

Hi Nick,

To best of knowledge (and you can even test), in case of standard procedure CTM first tries to use firmed supplies and then create supply proposal accordingly. This means if you demand in September and firmed supply is in October it will first try to use this and will create rest (if required) thereafter. In this case you next un-firmed supply can't be before firmed supply.

In case of Minimum Lateness, it will create un-firmed supplies in September itself to meet demand if your lead time allows. It will not wait for October supply keeping minimum lateness.

I would suggest you to create above scenario and check the results.

Regards

Rahul