Stock of component not used by CTM to do immediate partial fulfillment of demand of finished good

[Former Member]

Hi Experts,

Demand is generated for FG1 at DC1 and supply( inhouse produced) is generated at PLANT1. Component C1 is used to produce FG1 at PLANT1. ratio of FG1 to C1 is 1:1. PPM is very basic with one operation & activity. Transportation  time is 1 day from PLANT1 to DC1.Component C1 is procured at PLANT1 from VENDOR1. Lead time  to procure from VENDOR1 is  long say 3 months. In global CTM custmomizing , late  and early demand fulfillment  is allowed and shortages are also allowed.

FG1 has forecast of 100 EA in immediate bucket say tomorrow. There is available stock( CC) of 20 EA for C1 at PLANT1. Ideally, CTM should use available stock of C1 to partially fulfill demand in immediate buckets. But its triggering fresh procurement of 80 EA of C1 from VENDIOR1  with a lead time of @ 3 months. Its combining  stock of 20 EA + PR of 80 EA and creating  a receipt element  for FG1 at DC1 much later( after  3 months).

I have tried few options like max earliness in product master, options in CTM profiles- a) Transport receipt elements Individually b) Store Transport & Prod Receipts at Destination locations. But  CTM is not using stock of C1 to do partil fullment of d emand in immediate bucket.

Could you please  share what can be done to achieve it? is it related to missing SAP note/ CTM planning parameter?

When I split 100 forecast in two parts - 20 EA + 80 EA. Then  CTM does use stock of C1 immediately.

Thanks!

[Former Member]

Hi Nilesh,

Did you tried to work with Supply Consumption? This is available in the Special Strategies of CTM profile. 

Also, in the Supplies tab did you check the boxe Stock is available.

Thanks, Marius

Supply Consumption

Use

If you select this checkbox, the system uses the available (not deleted by the deletion step of
CTM) supply in all paths of the supply chain before creating new supply
elements on the same level. Available supply is used up level by level in the
supply chain. In-house production is also considered as existing supply if
components have available supply.

In case the demand can only be partially fulfilled by consuming existing supply in the lower priority
path, the system creates supply elements only for the remaining, unfulfilled quantity in the primary path.

Dependencies

Note that this function applies to the entire supply network. This means that if you select the
checkbox, the system performs a search for available supply elements in a
consistent manner level by level in the supply network, and you cannot restrict
this behavior to specific locations or specific levels of the supply chain.

Also, you cannot select primary demand (or any dependent parameter as, for example, lead time) for
which supply consumption should apply.

[Former Member]

Hi Dogboy,

In the given example, lot size and safety stock parameters are removed in location-product masters/TLanes of FG1 and C1 to make it a simple  scenario. Thanks.

Hi Marius,

Option of Supply Consumption looks good for the subject issue. I missed to tell about APO version. Client is using SCM 5.0 and I do not see option of Supply Consumption in STRATEGIES tab page of CTM profile in this version.

Thanks for your advice though.

Apology for delay in replies to both of you.

Nilesh

[Former Member]

Nilesh,

What are your lot sizing strategies for FG1 and C1?

Best Regards,

DB49