CTM planning, source of supply selection in supply network

[Former Member]

Hello,

Here's my scenario:

1 customer, 2 plants, 1 product. My product has procurement type F in Plant1 and E in Plant2.

Plant1 is closer physically to the customer location than Plant2, thus has higher procurement priority on the transportation lane (lower numerical value). Transportation lanes are not product specific (all products) and there is only 1 means of transport defined in the network globally.

My SNP PPM in Plant2 has the highest procurement priority amongst all sources (lowest numerical value).

When I run CTM, planning creates a purchase requisition in Plant1, because it's closer to the customer location, however the preferred result is that CTM selects in-house production options over external procurement at all times and creates a planned production order in Plant2.

How is this possible?

Thanks,

Baran

[Former Member]

Thank you very much people,

Using supply categorization makes sense, I will give it a shot next week. However I think that's not going to help either.

Basically what I want is for SAP to perform a make rather than buy decision taking the whole network in consideration. When all other parameters are constant and does not affect the solution it comes down to this. CTM only takes into account only the procurement priority on the transportation lanes between my customer and plants. Does not consider whether the material is produced in any of the plants.

I think the only option is to limit CTM to use stock and planned production as the only supply categories, making sure it doesn't create any purchase requisitions. This would limit me in other types customers though. Or create product specific transportation lanes at all locations.

Thanks anyway guys, any other creative ideas are more than welcome.

[srinivas_krishnamoorthy]

I am not sure but you can try one more thing. Wherever CTM needs to do a make vs buy decision, setup the proc type as X. Run CTM in two steps. In the first CTM run scope, keep the source of supply as PPM and in the second one

- remove the PPM source of supply

- plan in delta mode without getting rid of existing supply.

So essentially in the second run, the unmet demand from first CTM run (if you want to get savvy you can setup alerts for late fulfilled demand which can also be part of the second CTM run) will be considered for supply planning.

Let us know if this works for you. I think Supply Categorization should be the last resort.

[Former Member]

Hi,

Possibly there are two options:

1. Create a PPM/PDS at Plant 2 with the input material having a procurement type of 'P' at Plant 2 in the prod-loc master data and ensure Proc Prio of 2 for the PPM (assuming you are using SCM 5.0)

2. Use Supply Categorization to ensure planned orders are considered before purchase reqs.

Wonder why transportation lane priority doesn't work since we use the trans lane priority to prioritize planned order creation.

Regards

Vinod

[Former Member]

Yes I am using that value as well. The way it is is like this.

Transportation Lane: Plant1 --> Customer ProcPrio: 400

Transportation Lane: Plant2 --> Customer ProcPrio: 1000

PPM in Plant2 ProcPrio: 1

CTM takes TL priorities into account and does not perform a make vs buy decision.

[Former Member]

The CTM first tries to fulfill the demand on time. Even though your PPM has higher priority than the TLane, if the PPM cannot fulfill the demand on time then the CTM will select TLane over the PPM. Only if both sources can fulfill demand on time, the CTM will proceed to check the priorities. There are a number of other conditions too for source determination. Suggest you go through the following documentatioon:

http://help.sap.com/saphelp_scm41/helpdata/en/99/7a8e9deb08d648872bc65e720c6337/frameset.htm

[srinivas_krishnamoorthy]

Did you try using the "Procurement Priority" field present in PPM as well as Transportation Lane ? They can be used to define relative priorities to help CTM do a make vs buy decision. From what I know higher the proc priority number, lower the priority.