We always have a requirement of deployment/distribution in the supply chain process, especially for any integrated planning network ( where we don’t have any individual planning island but a network tree of planning structure) and in that case the modelling of deployment is very crucial.
Let’s have a simple overview of the network I will be discussing.
At the top layer of the supply chain sits the Central location and to the next level (2nd) all the Regional locations sit which are integrated to the central one. To the next level (3rd) there are dealers which will be mostly connected to regional location systems. So Central location system distributes to the regional systems which in turn distribute to theirs connected dealers
In this blog i will discuss how we can implement deployment in such scenarios . I will be explaining the design which we have implemented for our client and hope that reader/user will be benefited from this. As there are number of steps explaining the scope of such deployment so i will divide this blogs as per cases for better understanding.
PART 1 Overview:
Deployment is an automated process which will calculate and release the central distribution to the integrated regional locations according to network demand and supply situation.
After net requirements calculations (SNP heuristic), deployment determines which demands can be fulfilled by the existing supply. If there are insufficient quantities available to fulfill the demand, deployment makes adjustments to the plan created by the SNP run.
The deployment run generates deployment stock transfers based on the SNP stock transfers that were created during the SNP run.
The implementation first checks what product quantities are actually available at the source locations (locations where there is stock). The sum of these product quantities is known as the available-to-deploy (ATD) quantity. The system then determines how the ATD quantity is to be distributed to destination regional locations (locations where there is demand).
Scope for the deployment
- Central system and all integrated Regional systems
- Regional systems will be linked to Central using transportation lanes (Standard SAP master data)
- All products maintained at regional locations
Deployment will only change the supply to integrated Regional locations.
Trigger for Deployment:
The deployment program will either be triggered by background run or interactively.
The selection screen of our deployment mask looks like this:
Source Location will always be the Central Location.
Target Location will be the regional locations
A Planning book will be created specifically for deployment
Concept of Deployment Horizon, Bottleneck Horizon & Conversion Horizon
Conversion Horizon :
Indicated the number of days for which the replenishment orders (distribution receipts confirmed) will be converted to confirmed purchase orders.
Indicates the number of days the system considers during the deployment calculation. Within this horizon, the EOQ( Economic Order Quantity) will be reduced to Minimum Replenishment Quantity ( MOQ ). The deployment will convert distribution receipts planned to distribution receipts confirmed in this horizon.
Indicates the number of days for which the system will do the matching of ATD quantity to the demands. This horizon will mainly be used for alerting depending upon the projected stock at the end of the bottleneck horizon.
We will be discussing about the interactive deployment scenarios first. The deployment book which we created looked like this
The product – location combination will be displayed at top left of the mask. The location will always be Central Location.By clicking on Next/Previous Material, the changes in the current material should be saved.
Supersession information (if a predecessor or a successor exists) for location Central will be displayed in the deployment book. The information displayed will be whether the supersession is active, the direction of supersession and the predecessor or successor material number. Additional button called ‘Sum’ will be provided. By clicking on the ‘Sum’, the data (all deployment book key figures) for the current product and its immediate successor will be displayed together (summation) in planning book.
The planner should have the possibility to see individually, the planning of predecessor & successor by clicking on predecessor or successor button
Upper Planning Table:
• The upper planning table is a cumulated view of Central Location and all vertically integrated Regional Locations. The values in the planning bucket will be read from live cache based on the corresponding keyfigures.
Lower Planning Table:
• The lower planning table shows planning details about the Regional Location selected from upper planning table. It displays the transaction data from live Cache related to selected Regional Locationsand key figure combination.
• Selection between EOQ(Economic Order Quantity) & MOQ (Minimum Order Quantity) can be done in the below settings.
– If EOQ is ticked, demands from Regional Location should be considered with EOQ
– If EOQ is unchecked, demands from Regional Location should be considered with MOQ
– The Planner can check or uncheck Pull-In settings as per his requirement.
Based upon the settings done by planner, the deployment algorithm will be executed by clicking ‘Deploy’ button. The current deployment PR’s will be deleted first and then the deployment algorithm should be executed ( first check whether the demands in Regional Location are getting satisfied with their EOQ , if not then check with thier MOQ values). By clicking on the ‘Deploy’ button, Deployment PRs will be created.
Convert to PO and release to ERP:
• After interactive planning, the planner can click ‘Convert to PO’ to trigger conversion program for that product – location combination.
• The application will convert Deployment PR’s to Deployment PO’s and will immediately release them to R/3.
• Once the deployment PO’s are created, they will be immediately released to R/3.
• On the Central side (upper planning table), the deployment PR’s as well as deployment PO’s will be visible in key figure ‘Distribution Demand’
• On the Regional side (lower planning table), the deployment PR’s are displayed in key figure ‘Distribution Receipt Confirmed’ and deployment PO’s will be displayed in key figure ‘Distribution Receipt TLB – Confirmed’.
In the next Part, I will discuss about the technical execution of this custom Deployment.