CTM planning related conceptual questions

[Former Member]

In an attempt to understand the CTM functionality for master planning I have the following questions

1.In real implementation where is the safety stock planning done by the standard methods and the where are the service levels considered.

2.when is the lot for lot/fixed lot/reorder point and by periods?

3.when is the planning mode strategy like the replan all orders or orders with fix pegging used. is it based on the replenishment lead times of the products?

4.when is the delete only the un firmed orders used?

I understand that it is industry specific but an explanation with reference to the industry would be helpful. idea is to understand the business logic behind this configuration.

[srinivas_krishnamoorthy · Accepted solution]

1. In my knowledge service levels (based on leadtime variablities) are relevant for doing reorder point planning through safety stock planning. This run can be following CTM run. I am not clear about the first part of the question - can you elaborate? CTM does only specific safety stock methods. It does not do time phased quantity based safety stock planning.

2. CTM does do simple lot of lot/fixed lot or reorder point planning. I am not sure about time dependent planning.

3. Typically when you are running CTM planning for different scopes that have overlaps, one may want to do some kind of non-regenrative planning. Replan all is used when you want CTM to destroy all planned orders inside leadtime horizons. Or it may be useful to run for the entire network

4. You may use the option if it is important to respect the existing orders in the system and when you want the solved to plan only incrementally. This may be useful if you do not intend to confront the planners with completely new plans everytime.

[Former Member · Accepted solution]

thanks for the reply:

1.My questions was that in which business scenario would u use the standard safety stock methods and in which scenario would u be using the service levels for safety stock planning

2.What is the meaning of the non regenerative planning can u please elaborate

regarding the lot size strategy the question that I had was the same as to under which 3.Business scenario would you be using the lot for lot and fixed lot size and reorder point method

Thanks

[srinivas_krishnamoorthy · Accepted solution]

typically service level based Safety Stock planning would be used in situations where replenishment leadtimes are variables. there could be SLAs with the supplier as well. standard Safety stock planning would be used under relatively static conditions of leadtimes. One would use days' of cover in situation where net requirements could be varying a lot with time. One could also use quantity based static Safety stock quantity, in situations where the product has high volume net requirements. One could use time-phased quantity safety stock/days' of supply where conditions are dynamic throughout the year in terms of demand and supply.

Regenerative planning is to do planning from scratch by getting rid of all unconfirmed and confirmed planned orders/requisitions. Non regenrative planning would be doing incremental supply planning based on increased/decreased demand.

Lot for lot will be used when the planned order quantities do not have any size restrictions. so they may go from a certain min lot size to a max lot size. So there is just one planned order to meet the demand. In fixed lot size, there are possibilities of multiple planned orders of same size to meet the demand. Reorder point method will mean that planned orders get created when stock and scheduled receipts fall short of an expected level of projected stock.