CTM - Supply Distribution

[Former Member]

Dear All,

I am trying to use the concept of Supply Distribution in CTM to transfer surplus receipts and stocks from the supplier location to the factory location. I am unable to find any success in this as there excess stocks lying at the supplier location even after Supply Distribution Run (/SAPAPO/CTM10). Can anybody throw some light on this?

Thanks in advance

Ehsan Ahmed

[srinivas_krishnamoorthy · Accepted solution]

I dont think Supply Distribution is the feature you should be looking at.

Under strategies tab of CTM profile, special strategies sub-tab there are two checkboxes - one for "Stock transfer to destination location" and the other for "Transport receipts individually". Keep those check boxes ON.

With this it should be possible to transfer the surplus receipts to destination.

[kenneth_snyder]

You don't need to run supply distribution.

if the demand for 800 requires a supply of 1000 then the setting suggested earlier:

"Stock transfer to destination location" should result in the total order being sent to the factory.

I will test in my system, but we use this setting successfully.

Ken Snyder

[Former Member]

Well Srini.....have tried your suggestion but it does not work.

I have demands of 200, 200, 200 and 800 at the factory and production takes place at supplier to meet these demands

With your settings incorporated....the system does a production run of 1000 tons and sends the 1000 tons to the factory to meet the first two demand and keeps excess stock of 600 tons at factory. This 600 tons is used to meet the 3rd demand of 200 ton and keep excess of 400 tons at factory. To meet the last demand of 800 tons, the system triggers a production run of 1000 tons at supplier and sends only 400 tons to factory and keeps excess of 400 tons at supplier.

Without your settings incorporated....the system does a production run of 1000 tons and sends only 400 tons to the factory to meet the first two demand and keeps excess stock of 600 tons at supplier. This 600 tons at supplier is used to meet the 3rd demand of 200 ton and keep excess of 400 tons at supplier. To meet the last demand of 800 tons, the system triggers a production run of 1000 tons at supplier to have total stock of 1000+400 = 1400 out of which only 800 tons is sent to factory and excess of 400 tons is kept at supplier.

So the end result is that in both models, there is still excess stock of 400 tons at supplier after the second production run in supplier which does not meet our business requirement. The only difference is that there is excess stock at supplier after both production runs in our model but with your settings, there is excess stock at supplier only after second production run at supplier.

Kenneth, The business requirement is that suppose the supplier has a minimum production lot of 1000 ton and the demand from the factory locations are only 200 ton then after CTM run, there would be excess stock at the supplier of 800 ton. Now this 800 ton should also be dispatched to the factory locations as per the quota or priority so that no excess stock is lying at the supplier location.

[srinivas_krishnamoorthy]

Quick Check: If your CTM time stream has daily denomination, I am hoping you are checking the results in daily time bucket profile in planning book. Weekly will show misleading results. The absolute exact check of whether the setting works or not can be found in pegging overview tab in Product view. The reasons for desired results still not coming may be due to various calendars in the locations.

In your example below, please give the brief of "wait time" of supplies at the supplying location (under stock in hand) with and without the setting for each of the 4 demands. You can easily calculate this info from product view.

[kenneth_snyder]

Not sure about your business requirements.

Are you talking about satisfying demand from alternative location which is not priority 1.

Remember, ctm is order based planning based upon priorities (quotas).

So are you wanting supply at location B to satisfy the demand when location A has available capacity/materials and location A has higher priority?

This is not easy.

You may have to have a separate run in CTM and disable procurement and production.

Ken snyder