Modeling open orders for supply run

[Former Member]

Are there any standard key figures in SAP4 planning area using which we can model situations where there are goods in transit or open purchase orders scheduled for future months and we would like those to be considered while running the optimizer algorithm?

If there is nothing standard are there any suggestions as to how to do this can be done in IBP?

Thanks,

Srikant

[pramod_mane2]

Hi Srikant,

You can use MINIMUM key figures. In case of procurement/POs you can use MINRECEIPT.

The minimum acts as lower bound for supply. You can find details in document 04_Minimum Key Figures in SAP note 2238074.

If you want to fix supply you can use Adjusted key figures.

Thanks,

Pramod

[Former Member]

Hi Pramod,

Yes, adjusted key figures can be used. The only problem is that since the same key figure is used to account for incoming supply as well as any actual adjustments being done by the planner, post supply run it will be difficult for the planner to analyze as to what changes were because of the adjustment vs. the incoming supply. But yes, from an end result perspective the output will respect the future supply receipts.

MINRECEIPT - Thanks for pointing to the SAP note. From the note(as well as your comment) it looks like the constraint is not definitive but puts a lower limit on the receipt. So, I am guessing that the algorithm may plan for a receipt higher than the value which has been provided in this key figure. This would not entirely cover my use case since my crude oil receipts are confirmed numbers and planning assuming a higher receipts would be in-correct.

However, since there is also MAXRECEIPT, what if I give the same value (or slightly incremental value) for both min and max will that not force optimizer to assume the receipt as a confirmed number or between a very narrow range?

Thanks,

Srikant

[Irmi_Kuntze]

Have you checked this link first?

http://help.sap.com/saphelp_ibp40fp01/helpdata/en/28/369155bb43292de10000000a44147b/content.htm?fram...

There are a couple of in-transit key figures described

[Former Member]

There are. But only "Initial In-transit Inventory" is an input to the algorithm and only the current month value of this key figure is considered as an input. What we are trying to model is a situation where there could be in-transit goods for different months in future and these values are considered by the algorithm as an input.

Thanks,

Srikant

[Former Member]

Hi Srikant,

There were few discussions earlier around this topic. You may take a look at the below thread-

How to Consider open past sales order in IBP fo... | SCN

In case you still have any other concern, please post some example which describe the specifics.

Thanks,

Rohit

[Former Member]

Hi Rohit,

The above thread talks about open orders from a demand perspective. However, what we are trying to explore is if there are any open purchase order for raw material which is planned for future months, can those be taken into account when doing the supply run.

Let me try to explain that with the actual use case. In oil industry, the raw material (crude oil) is purchased through future contracts and the refinery expects delivery of the crude during certain months in future. So, basically you are expecting raw material receipts in different quantities in future planning buckets (months). Now, if I want to include this information as in input when doing supply run over my planning horizon, how can that be done in IBP?

Thanks,

Srikant

[Former Member]

Hi Srikant,

i think you can use inventory correction if you are already aware about incoming receipts. It can go as an input to supply planning and will act as already existing stock which will consume the demand.

Thanks,

Rohit

[Former Member]

Thanks Rohit. The value that we provide for Inventory Correction, will only the current period value be considered by the algorithm or will it consider all the values in the planning horizon?

Thanks,

Srikant

[Former Member]

It is considered for all periods and can have negative or positive value. Only Initial inventory is considered in first period. You can see the details in link provided by Irmi above.