Supply Assignment Run (ARun) with Back Order Processing (BOP)
For Overview of Supply Assignment (ARun), refer blog.
This blog explains how to execute Supply Assignment through BOP Variant. For more details on Back Order Processing (BOP), refer documentation.
- Check the Pre-requisites mentioned here.
- User must have roles SAP_BR_ORDER_FULFILLMNT_MNGR and SAP_BR_ORDER_FULFILLMNT_MNGR_R
In a Make to Stock business, where there is a huge demand for a product, below are some of the key business requirements where supply assignment helps to achieve them:
- Customers’ Orders need to be prioritized based on the business requirements
- Once product availability is committed to customers, the committed dates and units must be preserved
- Allocate on hand inventory based on certain priorities (such as manufacturing date, shelf life, storage location, etc.)
- Allocate future receipts (Purchase Orders, Inbound Deliveries, Production Orders) to demand and reserve the supply for deliveries
- Ensure minimum % of the ordered quantity is met so that customer is satisfied, and also multiple shipments can be avoided
In this example, let us take 4 Customer Orders which has 100 units each. There are 3 batches in the system with 100 units each.
Below are the configuration/setup required to carry out supply assignment.
- Supply Assignment Rule:
From S/4 HANA 2020, it is mandatory to configure Supply Assignment Rule, and this will be maintained in BOP Variant.
Go to Fiori App, ‘Configure Supply Assignment Rule’ and create a new rule.
Note: In this example, we enter a supply sort rule which sorts the supply based on the shelf-life expiry date.
- BOP Segment:
Go to Fiori app, Configure BOP Segment.
Create a new BOP Segment and maintain the desired selection and sorting criteria for requirements. (In this example, we use delivery priority and requested delivery date).
- BOP Variant:
Go to Fiori app, Configure BOP Variant.
Create a new BOP Variant. Select Execution Method as ‘Supply Assignment’. Enter the Supply Assignment Rule.
Execute Supply Assignment
Click on ‘Run’ in BOP Variant. You can also use ‘Schedule BOP Variant’ Fiori app to schedule the execution of BOP Variant.
The Results of Supply Assignment can be seen in multiple places such as Insight to Action (ARUNITA), Monitor Supply Assignment Runs, Monitor Supply Assignment Demand, Supply Demand Overview (Flexible Analysis), etc.
For instance, go to Fiori app, Monitor Supply Assignment Runs. Here you can see the details of the requirements and assignments.
In this example, Supply Assignment was executed in sequential mode. It is also possible to execute a proportional supply distribution in Supply Assignment which will be covered in next blog.
Please share your comments/questions/thoughts on this, if you find this is a valid fit for your requirement.