Consume the stock of alternative product while ordering main product

[babu_kilari4]

Hello Experts -

Following is the situation.

We have two products. Let's call it Product A and Product B. Product A groups a sum of items of Product B ( say 1:10 )

Customer can order Product A and at the same time he can order Product B. While we plan and maintain the stock at Product B - we would like to consume the stock of Product B whenever in the relevant multiples. This looks very similar to BOM setup and we could achieve this by setting up a MATP scenario.

Also, I assume the following take place in this scenario.

(1) Sales order is saved and a new planned order of type Stock is generated for the corresponding Sales order.

(2) We need the planned order to be converted into a Production Order to make it as Product A and corresponding GR quantity will fulfill the delivery ?

(3) I am assuming there would have to be "pegging" to avoid confirmation being used by some other order. Am I right ?

(4) Since the source for the Planned order is Product B, I am assuming there would be a dependent demand for Product B. Again - pegging comes into picture otherwise the same stock could be used by normal sales orders wherein the Product B is ordered directly. Am I right ?

While if I look at the above setup, it looks achievable but with bit of effort.

I was wondering if there could be any other alternative solution for this ? We have come across the concept of "Planning Material" and "Follow-up Material" concept in the MRP3 and MRP4 tabs of the material master. Does anyone know how does it work ? To the best of my knowledge I do not know of equivalent terms in GATP system. But, I would like to know your opinion ?

Looking forward to your response.

Hello - Any thoughts on the above setup ?

Thanks & Best Regards,

Babu Kilari

[Former Member · Accepted solution]

Babu,

I must be missing something.  Your high level scenario description is a very common standard SAP scenario, in both ECC planning and also in APO planning.   I don't know why you are even asking the question.  What exactly Is the problem?

(1) Sales order is saved and a new planned order of type Stock is generated for the corresponding Sales order.

OK. This is standard in a number of planning scenarios.  If you want the planned orders to be created instantly, this is standard in Assemble to Order.

(2) We need the planned order to be converted into a Production Order to make it as Product A and corresponding GR quantity will fulfill the delivery ?

OK. This is standard

(3) I am assuming there would have to be "pegging" to avoid confirmation being used by some other order. Am I right ?

???? Pegging is irrelevant, Pegging is a planning term, which usually has nothing to do with availability checking and GATP confirmations. 

You will probably need to configure your 'A' planned orders and 'A' production orders with a component availability check.  This also is standard.

(4) Since the source for the Planned order is Product B, I am assuming there would be a dependent demand for Product B.

Yes, within all of the planning engines available in APO, exploding a BOM for 'A' would generate a dependent demand for Product B.  This is standard.

Again - pegging comes into picture otherwise the same stock could be used by normal sales orders wherein the Product B is ordered directly. Am I right ?

No.  Pegging is irrelevant. 

The component availability check of the planned/production orders can be configured so as to prevent sales orders from 'stealing' the 'B' receipts intended for the planned/production orders that will be used to build 'A'; and vice versa.

 We have come across the concept of "Planning Material" and "Follow-up Material" concept in the MRP3 and MRP4 tabs of the material master. Does anyone know how does it work ? 

???? Now you are asking about an ECC topic.  Yes, lots of people know how these concepts work. These concepts both have their corollaries in the various planning methods available in APO as well.  If you are interested in becoming one of those people who know how they work, you could start by reading the extensive documentation found in help.sap.com.  There is also quite a bit of info easily available in SCN as well about these two planning topics. 

I hope you are not expecting a tutorial in planning (or ATP).  Unfortunately, SCN cannot be considered to be a suitable substitute for a 'Basic Planning' or a 'Basic ATP' classroom.

I was wondering if there could be any other alternative solution for this ?

Well, yes. There are always alternatives.  Picking from alternatives is one of the most important roles of a consultant. 

MultiLevel ATP would probably work for the ATP portion, but based upon the short list of requirements you have given, it seems like overkill to me.

To the best of my knowledge I do not know of equivalent terms in GATP system. But, I would like to know your opinion ?

That's probably because these topics are planning topics, and only peripherally related to Availability Checking (GATP).  You can plan with a Planning Material, or you can plan for Follow-up Materials, or plan with both methods at the same time; and with either/both of these planning methods, you can have either no GATP; or many different varieties of GATP.  GATP and "planning" are two different and independent things.

Best Regards & Good Luck,

DB49

[babu_kilari4 · Accepted solution]

Thank you for your time . I will take it forward from here. I have got the necessary directions and I am setting up a POC to see what works best.