PPM - Procurement priority

We are exploring Capacity leveling with optimization method. from the SAP help documentation, it is understood that Optimizer generates the cost based on the procurement priority maintained in the cost.
Excerpt from SAP Help:
"Optimization-Based Capacity Leveling
The system considers the alternative resources according to the
procurement priority of the PPMs or PDS. The system automatically
converts this priority into costs, so that PPMs or PDS with higher
priorities are considered first. The costs of the original resource are
defined by the system as lower than the costs of the alternative
resources, so that this resource always has the highest priority for
the
optimizer and so that the system uses it completely first."
Base on the info, we setup the PPM master data.In my scenario, we have a product that can be produced on 5 different work centers so i created 5 PPM and assigned different proc priority codes like 1, 5, 10, 15, 20. PPM with priority code 1 is primary resource and rest are alternative.
Expectation was that when CL-OPT is run, Optimizer would generate costs as per the priority codes where 1 is higher priority so lowest cost and rest would be incremental higher cost.Which would drive the leveling of the resource load.
But the fact is optimizer created lower cost 250 for priority 1 PPM and 500 for rest of the PPMs.
I would like to understand, is this the correct behavior as it does not align with the SAP help document and we are not able to get appropriate results.
Regards,
Harshil Desai

If you have ERTMS as the sorting criterion, then it is the create date. Otherwise it is purely random. Dont bet on alphabetical as I have sometimes observed to the contrary.

Similar Messages

Procurement Priority in SNP run

Folks
What is the significance of Procurement Priority in a T-Lane ?. Say, if I have two T-lanes for the same product and location combination with different Procurement Priorities, what effect would this have in SNP hueristic run.
From the help I read that, SNP takes Procurement Priority field into account if automatic cost generation is used, and have set the Procurement Priority of PPMs/PDS or Procurement Priority of Transportation Lanes indicator in the SNP or deployment optimization profile.
In which screen exactly is this Procurement Priority of Transportation Lanes indicator set in SNP ?
Thanks

What is the significance of Procurement Priority in a T-Lane ?. Say, if I have two T-lanes for the same product and location combination with different Procurement Priorities, what effect would this have in SNP hueristic
The system uses the procurement priorities of the sources of supply with zero being highest priority.
From the help I read that, SNP takes Procurement Priority field into account if automatic cost generation is used, and have set the Procurement Priority of PPMs/PDS or Procurement Priority of Transportation Lanes indicator in the SNP or deployment optimization profile
If the priorities are the same, a source of supply with low costs takes precedence over a source with high costs. The costs might consist of transportation and procurement costs. The system determines the costs automatically in source determination.
If the priorities and the costs are the same, in-house production takes precedence over external procurement.
SNP optimizer basically determines the most cost-efficient solution, its sourcing decisions are also cost-based, which means the optimizer does not take into account procurement priorities
Deployment determines the destination locations to which the product stock is to be distributed. Therefore, deployment only considers transportation lanes as sources. So,deployment optimizer generally decides which source locations to distribute available product stock to and which means of transport to use, based on the lowest total costs and by considering all restrictions (such as transport capacity) In doing so, the system may also take detours into consideration.
In which screen exactly is this Procurement Priority of Transportation Lanes indicator set in SNP
In the Tcode /SAPAPO/SCC_TL1-->Product Procurement, you set the Procurement Priority.

Switch between SNP-PPM and SNP-PDS

Hi,
In APO I have both SNP-PPM and SNP-PDS, but right now I am having some trouble with the bucket time from the PDS so I am trying to temporarly change my PDS to PPM.
My query is:
- Is there a way in APO to make the SNP-PPM the default production model over theSNP- PDS?
I was searching for some kind of documentation on this topic and I found that I should change the priority for the PDS throught the PDS_MAINT transaccion in ECC, is this the only way to do it?
Thank you in advance,
Fernando

Hi ,
SNP heuristics planning source determination gives first preference to Quota arrangement.
You may include PDS as a source of supply in the inbound quota arrangement of the product.
There is a BADI BAdI /SAPAPO/PWB_SOS to modify the content and the sequence of the sources of supply in the ranking list.
The normal ranking list for SNP source determonation is as below:
Quota arrangements
Procurement priority
Procurement costs
Procurement type
There are two other BADIs releveant as below:
u2022 /SAPAPO/CURTO_SNP ) Enhancements When Creating an SNP PDS (R/3) (Generation)
u2022 /SAPAPO/CULLRTOSNP ) Change SNP/CTM Production Data Structure Data (Generation)
Hope this gives some options.
Regards
Datta

SNP PPM Selection Criteria

Hi Experts,
I would be really glad if you could help me regarding this issue.
I have 2 Materials with 2 SNP PPMS. The SNP PPMS were generated by converting PPDS PPMS which was cifed from R/3. The production versions in R/3 has the same validity date.
Lets say for Material A:
- It has 2 production versions and 2 SNP PPMs
- PRD1 and PRD2
- when I had run the SNP location heuristic it had selected PRD1.
Material B
- It has 2 production versions and 2 SNP PPMS
- PRD1 and PRD2
- when I had run the SNP location heuristic it had selected PRD2.
May I kindly ask therefore how PPMs are selected by the APO system in the case of SNP PPMs running SNP location Heuristic? Unless I understand the process, I cannot still create alternative PPMs. I cannot always assign manually the Procurement Priority of all the PPMs generated.
I am really hoping you'd help me regarding this issue.
Thank you so much.
Sincerely Yours,
Ria
Edited by: Ria Montealto on Jul 31, 2008 10:16 AM

Hello ,
As you must be aware the basis for selection of ppm are 'quota arrangment' ,'procurement priority' ,'costs(multilevel cost)' ,'procurement type' .
Kindly refer to following link for more detailed information and how this ranking list can be changed. "http://help.sap.com/saphelp_scm2007/helpdata/en/1c/4d7a375f0dbc7fe10000009b38f8cf/frameset.htm ".
Also if all the parameters are same , it will refer to nomenclature of the ppm as the ppm name contains the version number ciffed from r/3.
For example, if there are versions "0001 " and "0002 " in r/3 and these versions are ciffed to APO to create ppm .
The snp hueristics will select the ppm of prod. version 0001 .
Thanks & Regards
Abhijit S Nakhwa

CTM and Dependent Demand purchase Requisitions

Hello Gurus,
We have a business situation where there are 2 plants which can produce a finished product from a single input product. It is much less expensive for us to transport the finished product than the input product. We want CTM to force the plant with the supply of input product to produce the product and send it if that plant has capacity - only transporting the input product to the demand plant if there is no capacity at the supply plant.
Plant A Demand 100 units of Product X
Plant B Supply of 100 units of Product Y which can be used to create Product O
PPMs for creation of Product at both plants.
Desired outcome:
If Plant B has open capacity to create Product X prior to due date, Plant B creates Supply of Product X from Product Y and transports Product X.
If Plant B does not have open capacity to create Product X prior to due date, Plant B sends Product Y to Plant A which creates Product X.
The supply may be at Plant A or Plant B so the scenario must be able to work in either direction.
Currently, when CTM runs, it see the demand at Plant B and creates a planned order there, creating a purchase Requisition for the dependent demand.
Is there a solution for this?
Many thanks in advance,
Sarah

I have done some further testing of the system and have found that I can further clarify my question.
consider 3 production plants situated roughly in a line with PLANTA located 1000 KM east of PLANTB and PLANTB located 500 KM east of PLANTC. Because PLANTC is nearer to PLANTB, the transportation lane procurement priority for PLANTC to PLANTB is lower than PLANTA to PLANTB (making PLANTC the first to be considered at a procurement source for PLANTB)
We have demand for a finished product at PLANTB. We can create the finished material at PLANTA or PLANTC. PLANTA has the input material in stock for creating the finished material.
When CTM makes its planning run, it looks at the PLANTB demand and determines that PLANTC is the correct procurement source for the finished material. It looks for the finished material at PLANTC and can't find it, so it creates a Planned Order to create the finished material. In order to do that, it pulls dependent demand from PLANTA.
The result is that we are moving input material west 1500 KM to PLANTC and then moving the finished material east 500 KM to PLANTB.
We have set our priority for moving input material very high, so it should be the last resort to move.
It appears that CTM is looking at the priority of the finished material only when determining procurement source. Is there any setting I can make to the system so that it will look at both the dependent demand priority and the finished material priority when determining procurement source?
Alternately, is there a way to mark the ATP group EB as not being available during a specific CTM run (without removing the dependent material from the TLANE)?
Ideallly, we'd like to be able to move the dependent material to another plant if the capacity at the plant it is currently in is too full.
thanks in advance for any advice,
Sarah

Unable to have field in selection screen of Infopackage

Hello Gurus,
I have a small problem,
I am unable to bring on field in selection screen in Infopackage,
even thou the object is ticket in DataSources selection option,
I have noted that the object is of type DEC is it something to do with,
Or is their any other way to have this object in selection screen of Infopackage,
Please help me on this,
Thanks & Regards,

Bhanu its field type is DEC thats why its not coming in selection screen in Infopackage .This is a big problem in our Development as this field is SPRIO(Procurement Priority) and we want to restrict this field with conduction SPRIO EQ 1.
Our DataSource is based on Infoset , Bhanu is it possible to restrict this Field in Infoset writing some code. As their is option in Infoset for CODE we tried this but didnt work.
or any other way to restrict this field with 1.
I really appreciate your reply.
Thanks Once again.

Issue with CIF Integration model for Transaction data

Hi Gurus,
I have activated the Integration model for PO & PReqs by location wise and i assumed that transaction data is online and we need not to re activate for any new Product / location combination got created in system.
But the issue is that every time a new material got created, we need to deactivate and activate the integration model for Transaction data to get the transaction data into APO.
Is there any way to avoid the following exercise as it is taking very long time for activation.
Please guide me as it is very urgent.
Thanks for help in advance...
Thanks & Regards,
Jagadeesh

I assume 1,60,000 location products are spread around different locations.
Rather than one Integration Model it is better to have multiple Integration Models.
For example: one for each region like North America, one for Europe, one for Asia (assuming you have countries spread across the world). Or create Intgeration Model by Country.
This way you reduce the number of Products in an Integration Model.
It is very important to have manageable set of Integration Models. Let me give an example - you have some problem hence the single Material Master Integration Model is down (inactive). At that time any PP or PDS transfer will not have the Header or COmponent products transferred to APO (in effect PDS/PPM cannot be transferred). If you are creating or converting Planned Orders they will not transfer to R/3 (as Header product is not part of active intgeration model).
But if you have country spefic or region specific Integration Model - only that country is affected not all.
In fact you should have other integration model (like PDS/PPM, Procurement Relationships, Planned / Production Orders, Sales Orders, Stocks) in same manner i.e. either Country(s) specific or group of countries by region. The risk of models getting inactive or taking too much time to activate after regeneration easily outweighs management of more number of Integration Models (compared to one Global integration model per object).
Hope this gives you some direction.
Somnath

How to configure to run SNP that creates only PReq and Stock Transfer only?

Hi all,
I am very new to SCM.
Please help me on the scenario like this:
-There are 3 Distribution Centers (DC): 2400, 2500, 3800 and a Vendor: 1003.
-Each DC can take products from otherDC. But only DC 2400 can directly send purchase requisition to Vendor 1003 when no stock at all DCs.
-There is a Forecast released from Demand Planning to SNP, that is 1000 products at Distribution Center 2400.
-I will run SNP Heuristic (or Capabable to Match or Optimization) to cover this demand.
-Usually, SNP can create: Purchase Requisition, Stock transfer Requistion, and Planned Order.
                     But I only want the SNP to create Purchase Requisition and Stock Stransfer only.
The question are:
1.In which situations (tock situation,u2026) the system can create Requisition and Stock Stransfer only ?
2.I need create a new Supply Chain Model (Model) and a new Planning Version from scratch. How can I configure the system (Transportation lanes, Product Master Data, Procurement type in product masteru2026) and make it run to satisfy this scenario?
3.Do I need setting differently for each SNP method ( Heuristic, Capable to Match, Optimization)?
Thanks very much for your support.
XuanDuyen

Dear Mr. Aparna,
Thanks for your quick reply.
Now I haved created a model like the scenario with product T-F204 and can run. ( I do not use vendor 1003. I created the Plant 1000 instead). But as you said, when I run with SNP Heuristic method (Network level), the system alert:
u201C Error exist in Locationsu2019 processing sequence for product T-F204u201D
However, I search internet and found a book about CTM. It also discuss about this and the solution as below:
u201CRecursive Replenishment
When using complex supply chains, with many locations and various directional
supply routes, it can be easy to confuse a level-by-level planning tool. In certain
situations, recursive planning can occur. Recursiveness, is when the planning
algorithm is thrown into a loop (circular replenishment). Location 1000 can ship
to location 2400, and location 2400 can ship to location 1000. Situations such as
this can cause the CTM engine to terminate since it cannot find a starting point.
 The solution: Reduce to number of muximum consecutive transport order chains.
Within the CTMProfile, Settingsu2192Master Data Settings tab, planners can control
the sources of supply for External Procurement. With the parameter Maximum
Number of Consecutive Stock Transfers, you determine how many consecutive
stock transfers CTM planning can create. This value does not restrict the total
number of stock transfers for a demand. If you enter a value here, you can prevent
the system from transporting the receipts for a demand over several locations due
to the procurement priority. Also, you must have modeled the master data in such
a way that a direct stock transfer is possible if the system ignores the procurement
priority. If a direct stock transfer is not possible, CTM cannot fulfill the demand.u201D
Currently, our system runs only with Heuristic. It could not run CTM and Optimization so I could not check.
My questions are:
1.     Is the solution of the book can apply for my bi-direction transportation lanes requirement?
2.     If it is true, with my scenario, what is the best u201CMaximum Number of Consecutive Stock Transfersu201D I can set?
3.     How can I model u201Cthe master data in such a way that a direct stock transfer is possible if the system ignores the procurement priorityu201D?
Please follow the link to download the book (and view page 107 of book (page 117 of Acrobat Reader) as bellow if you want:
http://www.mediafire.com/?9clag9op3lm0iv9
Thanks very much for your help!
Xuanduyen

Planning on alternate resource

Hi Guys,
We have maintained main reource with non availability for 20 days.
But when system creates orders, it is placing on alternate resource considering this downtime on main resource.Means it is placing on the alternate resource before the downtimes maintained on the main resource.
All the resources are with mode priority A and no procurement priority (infinte scheduling)
My doubt is why it is placing on alternate resource considering the down times of main resource. Why it is not placing on the main resource after or before the downtimes.
How system knows that resource capcity is reached while planning?
Thanks,
Prash

Hii Prasanth,
The mode priority should be different for different modes , then only it comes alternate resources with lesser priority. Otherwise the order creates will be pick up random resource with having samemode priority .
As in your case it is A mode priority for all the resources. Might be it is taking alphabetically the first resource for all the orders you are creating manually . It uses GUID ...
But if your requirement is always to create on main resource , make it Mode priority A for that resource . and other alternate resource make mode priority B . and use the strategy in PP strategy to pick up only Mode priority A, with infinite scheduling... use current mode retain ....
Hope it'll give you proper result..
Regards
Debashis

PDS Question

Hello Experts,
When you lock the production version in ECC then how does lock tranfer to APO in PDS? Where can we see that lock in PDS?
Can we tranfer this lock as a change transfer in APO? OR we need to tranfer it curto_create transaction?
Another thing, currently we are using curto_create transaction to transfer Production version change but when we run curto_create transaction for all plants then it fails with ITAB_DUPLICATE_KEY error. I have implemented Note 1559890 - INT-PDS: CURTO_CREATE -> runtime error ITAB_DUPLICATE_KEY but issue is still exist.
Can anyone suggest what this issue all about?
Thanks & regards
Sujay Joshi

Hi Vipul,
Thanks for your response.
I was trying to see procurement priority in PDS but I didn't find. Can you please guide me how to see priority in PDS?
Second thing, I have gone through the note you have suggested & we are planning to implement it. Do you think this note will resolve DUPLICATE KEY Error as well?
Thanks in advance.
Regards
Sujay

Pds priority

Hi,
This is a HEURISTIC SCENARIO
I have demand at a customer location C1 and it is conneced to Two manufacturing locations namely P1 and P2.
No INBLUND quota is maintained at customer location from P1 and P2 and no Tlane priorities are maintained in theTlanes from P1>C1 and also from P2->C1.
But I see that the PDS priorities are maintained differently for the Product at P1 and P2 Plants.
Will the PDS priority influece the plant to which the demand can propogate from the cutomer location.
The demand has actually got propagated to plant P2 and I see that the PDS priority as 0 in P2 and PDS priority as 1 in P1.
Kindly suggest if the PDS priorityis the deciding facor in this case or am I missing something?
Regards,
SS
Edited by: SAPSriman on Dec 8, 2011 7:13 PM

Hi Sriman,
I beg to differ with Mr Manotosh.
During the demand propagation procurement alternatives are evaluated only based on Quotas / Lane priorites/ trnasportation costs/closest source etc... PDS will not be part of procurement alternative evaluation during location heuristic at DC because the source of supply (PDS/PPM) at the sources will not be determined/exploded in this step.
Once the source is determined Quotas / Lane priorites/ transportation costs/closest source (ability to meet demand earlier) etc... then only when you run location heuristic at the determained source the PDS/PPM determination takes place again based on quota /priorities etc...
Other experts please correct me if I am wrong...
Regards,
Ashok

SNP Planned Order without PPM

Hi Gurus,
I have a small confusion, Some of my products in a Production Plant donot have a SNP PPM. and when i run network heuristic on that location product. It creates SNP Planned orders.
Just for information the product location master has procurement type E (In House Production).
Please help me out if this is a normal behavior of the system.
Thanks,
M

Default behavior is to generate Orders without a source of supply.
"If there is neither a valid transportation lane (for procurement type F; external procurement) nor valid PPM/PDS (for procurement type E; in-house production), the system creates an SNP stock transfer or SNP planned order with no reference to a source of supply. The same applies if there is no product at the source location of the transportation lane"
if you dont want planned orders there,
Try using the SDP relevance indicator for the location - product . Am not sure but you can use option 1 in it (though it sounds like it will not plan in DP too)

Procurement tab in Sales order displays two line items per material

Folks
I am not a SD guy and i have a very basic question on how to read the details in the procurement tab for a sals order.
In the Procurement tab of a Sales order, two line items per material are displayed as shown below. whats does this mean ?
Further, I had observed the below differences in the below 2 lines
1. Mat. Avail Date is 06/19/2007 for line 1 & 06/20/2007 in line 2.why r the dates different ?whats the significance?
2. Confirmed qty is 0 line 1 & 1in line 2.( when does confirmation trigger or update ? Is it upon ATP check or upon delivery ?)
3. Order qty is 1 line 1 & 0 in line 2.
Item     Material     Plant     Confirmed Qty     SU     Mat. Avial Date     SL     Req. Type          Deliv. Date     ATP Qty     Loading dt     Route     Part. Deliv/ Item     Deliv priority     Desc
10     NTE801NC     2400     0     EA     6/15/2007     CT          D     6/19/2007     0     6/15/2007     24GB03     C     98     Priority 98 (Normal)
                                1     EA     6/15/2007     CT          D     6/20/2007                   6/15/2007                    Priority 98 (Normal)
Thanks

It means 2 schedule line for that materials ,
06/19/2007 is the date on which material is requested by customer but there is not sufficient stock on that day so 0 quantity is confirmed for that day.
On 06/20/2007 material is availabe and you can start delivery to customer on 06/20/2007 and system confirms the material for 20th and it is reserved for this sales order.
Confirmation is based on your MAT ( Material availability date ), but you can revist these dates through by triggering availabilty check or Back order processing through GATP or ATP.
Manish

External Service Procurement : Queries

I have three queries regarding external Service Procurement
1) IN SERVICES Purchase order , Over delivery Tolerance and unlimited TOLERANCE can be defined at two places ,
A) in Service tab aginst each service
B) iN po LINE ITEM , DELIVERY tAB
What is the use of defining at two places and how system works , if I define 0% Overdelivery in Services but checked "Unlimited" in Delivery tab , how system will behave ?
2) If I make OverDelivery tolerance in PO Line detail->delivery Tab as ZERO , UNLIMITED automatically gets changed to YES (Flaged) ... Why it is so ? I may have cases where I dont want any Overdeliver Tolerances ?
3) In SPRO -> MM-> EXTERNAL SERVICES Mgmt -> Define Screen layout ..
we can define our screen layouts for following combinations ( as per SAP Help)
1) Object (e.g. purchase order)
2) Document type (e.g. NB)
3) Transaction code (e.g. SAP transaction ME21N)
4) Release indicator (in the standard system: B)
You can define your own field selection strings for the specified release indicator. The field selection string must be identical with the relevant release indicator.
5) Item category (e.g. D for external service or B for blanket purchase order) e.g. ME21N, "Create purchase order".
What is the priority of searching relevant Screen layout ,
like If i have defined one field (Say service number) , mandatory at Object level , Display at Document level and optional at Tocode level ... Will system show me as Display/mandatory or optional ?
Pls do reply ...
Regards
Shrey

Hi DELHI INDIA,
1) when you are creating Service PO , you may enter service no. or just a short text . And in the item level service tab you enter the detailed service list . Now when you enter the overdelivery and unlimited details at
A) in Service tab aginst each service - it is only valid for that individual service
B) iN po LINE ITEM , DELIVERY tAB - it is valid for the whole line item
But always A overrides the conditions of B.
I mean If you maintain it at A level , then it will follow the rule of A instead of B
"if I define 0% Overdelivery in Services but checked "Unlimited" in Delivery tab " the system does not allow you overdelivery . But if you have any line in services where you do not set the overdelivery limit , then for that it will take unlimited overdelivery .
2) It may be because in the item level services you have checked unlimited ( by default it is unlimited) for all the services
3)
" have defined one field (Say service number) , mandatory at Object level " - so while creating that object you have to enter the field value .eg while creating PO , vendor is mandatory3
", Display at Document level " - while creating or changing the document it wil not allow it to chane the field value as it is at display level
"optional at Tocode level " - means while executing that Tcode that field is optional , eg in MMR gross weight of a material is optional . You may or may not enter the field value.
If it does not help please elaborate it .
"Will system show me as Display/mandatory or optional ?" -- I am not getting you exacty.
Hope it helps,
Regards,
Anupam

Order Priority not transferred to PR for NON stock items

Dear GUYS
Order priority is not getting transferred to PR for Non sotck item
ideally we should get this in the source of supply in the PR as requirement priority & requirement urgency
Regards
chandrashekhar Ingole

chandrashekhar Ingole,
It may be possible to transfer the PM Priority data to the PR via [user-exit|http://pjatkin.users.btopenworld.com/documents/PMCSUserExits.pdf] :
- COZF0001: Change purchase req. for externally processed operation
- COZF0002: Change purchase req. for externally procured component
PeteA

PPM - Procurement priority

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