CTM run output

[Former Member]

When we run a CTM run, what are the outputs? just demand transfer or creation of planned orders corresponding to the demand at plant too?

Example:

I have demand of 100 PCs at a DC which is sourced by two plants P1 and P2. I setup the quotas to have the plant P1 source product to DC. There is no stock at either P1 or P2.

I know if I run a Heuristic, the system creates just a purchase requisition at DC and purchase req. release (demand) at P1 and stops and I have to run another run at the plant P1 to generate a planned orders. I also have to deploy the stock from plant to DC in a deployment run.

My question is, when I run CTM, does the system just create a stock transfer at DC and purchase req. release (demand)at P1 or the system goes ahead and creates a planned order at P1 ( provided there is enough capacity at P1 resource)? Does the system deploy the product from plant to DC as well or that needs to be done through a separate deployment run?

[Former Member · Accepted solution]

Hi KA,

I would like to add my point of view to all others expert's explanations.

The CTM run will do a finite multilevel network planning in one shot if this thing is desired. For this the CTM master data must include the locations, materials, tr.lanes, PDS SNP/PPDS. In Settings you have the options to select them static or dynamic.

Also, an interesting thing is that with CTM you can do planning for just one part of the network if desired. So, you can broke your model in sub-models and do for each sub-model a separate CTM planning. This is very interesting if you have some special products (critical).

Based on your master data you can have different scenarios. I will choose this scenario:

Example without supply automatic distribution after CTM run

Master data.

1DC, 1Plant, 1 Tr.Lane with mean of transport (from DC to Plant), materials at DC+Tr.Lane + Plant, PDS at Plant 

Results after CTM run:

Level DC - based on the demand and tr.lane the system will create a P.req (with source location Plant)

Level Plant - the demand arrive at plant level via tr.lane. We take in consideration that stock is zero. Based on the production structure the BOM is exploded and SNP Pl.Orders are created for finish and semi-finished goods.

Once the products in stock you can do stock transfer through ECC or APO CTM with option Execute supply distribution.

To be able to consume the stock, in the CTM Profile the option Build Up safety stock and Stock is available have to be chosen.

Thanks.

Regards, Marius

[Former Member · Accepted solution]

Thanks every one. So the CTM run will carry the demand to plant and create planned order/purchase reqs. at the plant.

[Former Member · Accepted solution]

K,

Yes.  And not just to the plant where the FGs is manufactured; it could create also supply elements in other plants as well, if the plants exist anywhere in the supply chain for your FGs material (e.g. if you build subassemblies in other plants; or you have centralized purchasing of RM in another plant).

Best Regards,

DB49

[marianoc]

Hi KA,

As was mentioned by Dogboy, you can use CTM to provide a complete solve (from the demand to the replenishment). This includes your stock transfer requisitions between your DCs, the planned order in your manufacturing plant, etc..

Note that in the Master Data Selection profile you have a tab for in house production master data and another tab for external procurement. Here you can control the master data considered by your CTM run.

Read this article:

CTM Master Data Selection Setup - SAP Planning

Also check the CTM profile and the tab settings:

http://www.scmfocus.com/sapplanning/2008/09/18/ctm-profile/

Kind Regards,

Mariano

[Former Member]

K,

As always, it depends on the business requirements.  In most configurations for CTM, you perform the complete solve for each demand; which means the solve goes all the way from the selected demand to the end of the supply chain.  The supply chain can include multiple PDS/PPMs, for multiple materials, and also multiple transportation lanes.

CTM is usually set up so that it will select the FIRST feasible solution that it finds for each demand.  Therefore, whenever you have multiple sources for a material/location,  prioritization of each of these different sources of supply becomes an important decision.

Typically, when CTM is completed, the results are written back to livecache.  Once in livecache, they can be used, depending upon how the solve is written, by PP/DS or SNP and/or GATP (order categories).

If you decide to select demands at the Distribution Centers, then CTM will create all the supply elements to move the materials into the DCs.  Some companies instead choose to run CTM at the manufacturing sites, and then use deployment to place the stock in the DCs using their own logic.

Best Regards,

DB40

[Former Member]

Hi Dogboy

Thanks for your response. Lots of words but not sure if I get the essence directly.

"then CTM will create all the supply elements to move the materials into the DCs. "

I guess you meant that the system creates Purchase Req. at DC, then Purchase Req. Rel at Plant, then planned order at plant and finally create deployment req at the DC to satisfy the demand at the DC? No need of deployment run in this case?

"Some companies instead choose to run CTM at the manufacturing sites, and then use deployment to place the stock in the DCs using their own logic."

I guess you meant that the system stops at Purchase Req. at DC, then Purchase Req. Rel at Plant, then planned order at plant. The deployment run is a separate step create deployment req at the DC to satisfy the demand at the DC.

When we give the product at DC and Plant in master data selection, how do we control where the process stops?

[Former Member]

K,

I guess you meant that the system creates Purchase Req. at DC, then Purchase Req. Rel at Plant, then planned order at plant and finally create deployment req at the DC to satisfy the demand at the DC? No need of deployment run in this case?

Once Stock Transport Purchase Reqs that move materials from the manufacturing plants to the DCs have been created during the CTM run, you have to evaluate whether or not you even need to run deployment.  The entire supply chain can be created by CTM; right down to the Raw Materials, if you want.  You don't have to run Deployment at all, unless you have a particular reason to do so.

When deployment is desired, you typically run the deployment heuristic after the CTM run.  It is important that deployment parameters and master data are in synch with CTM parameters and master data.

When we give the product at DC and Plant in master data selection, how do we control where the process stops?

That is dependent upon the business scenario.  One way is that CTM stops where the supply chain stops; so that if CTM demand gets down to a certain level, and there is no source of supply, then CTM will stop planning.  

I guess the first question that would have to be answered is, 'why would you want the process to stop'?  How can you be sure that you actually have a feasible plan unless you plan the entire supply chain?

Best Regards,

DB49