Procurement priorities in SNP heuristics

Hi
Here is a scenario in which i need some help. A product can be procured from two vendors A and B. So we have transportation lanes set up for those two vendors .
The requirement is to keep procuring from A until the capacity of A is met. Once A's capacity is fully used (say if A can only supply 100 EA a month we want to procure the 100 EA from him ) we want to start procuring from B .  How can this be achived with SNP heuristics ? We do not want to run CTM or optimizer.
I do understand that  we can set up procurement priorities in the transportation lane , but then how do we check the capacity of A and once it is fulfilled how do we divert the orders to B ?
Thanks
Saradha

Hi Aparna,
Since the planning is happening in APO, this can be acheived by maintaining quota in R3 and as well as using C5 user exit of publication type (APO outbound).
What you need to do is maintain quota in R3 with quantity limitation in R3 for first vendor and then for second vendor with infinity. You need to have both transportation lanes in APO with equal priority.
Once you have Heuristic run and then C5, now here you should write th logic to look at the quota in R3 and then add the source to the PRs until it reaches the max quantity and then assign the second vendor to the rest of the PRs within the month.
This works, we have similar scenario, but ther is no second vendor, so the next PRs will be without source.
OR
You can have inound quota maintained in APO with an average percentage of supply from the first endor and then remaining from the second vendor within the month. This percentages can be vary month to month. This is simpler, but you need to have rough cut supply extimation of the first vendor.
Hope this works
Thanks
Venkat DR

Similar Messages

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    Hi All,
    can anyone please let me know, what exactly is the difference between SNP and PPDS Heu. ???
    Thanks in advance,
    Prasad.

    Hi Prasad,
    1) SNP heuristic:-
    The heuristic is used as part of a repair-based planning process consisting of the heuristic, capacity leveling, and deployment. The heuristic run processes each planning location sequentially and determines sourcing requirements. The heuristic processing groups all demands for a given product at a location into one demand for the bucket. The heuristic run determines valid sources of supply and corresponding quantity based on pre-defined percentages for each source of supply (quota arrangements), or procurement priorities for transportation lanes and production process models (PPMs) or production data structures (PDS). The demands are then passed through the supply chain to calculate a plan. However, this plan is not necessarily feasible. The planner can then use capacity leveling to adjust the plan and formulate a feasible plan.
    2) PPDS Heuristic:-
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    In PP/DS, a heuristic is a planning function that executes planning for selected objects (products, resources, operations, or line networks, depending on the planning focus). The heuristic does this using a particular heuristic-specific procedure.
    there are heuristics with which you can execute multilevel planning according to low-level codes for selected products, or with which you can schedule operations on selected resources in a specific sequence.
    Regards
    R. Senthil Mareeswaran.

  • Difference between SNP heuristics,Optimizer and CTM

    Dear Friends,
    can any one explain me what are the basic difference in SNP planning methods
    1) SNP heuristics
    2)Optimzer
    3)CTM
    when should we use these  method in SNP , is all the methods are used in SNP impelemtation ?
    just give me some idea about it
    Thanks & Regards
    Raj

    Hi Rajkumar,
                      Please find the difference among three
    Comparison of the Planning Methods
    you use optimization-based planning or CTM planning if one of the following conditions applies to you:
    ·        Your business environment is subject to strict constraints (for example, you must take into account production capacities, transportation capacities, storage capacities, and/or handling capacities)
    ·        You have alternative production locations and sources of supply (locations, production process models, and external procurement relationships)
    ·        You can decide between early production and late production
    ·        You share resources, meaning that multiple products are produced simultaneously on the one resource
    We recommend that you use heuristic-based planning or CTM planning if any of the following conditions apply:
    ·        You wish to plan on an infinite basis (meaning that you do not wish to consider capacities) for the medium to long-term horizon (heuristic).
    ·        You wish to take into account predefined quota arrangements; for sources of supply, for instance (heuristic or CTM).
    ·        You wish to plan or fulfill demands on the basis of priorities (CTM).
    Optimization-Based Planning :
    http://help.sap.com/saphelp_scm2007/helpdata/en/09/707b37db6bcd66e10000009b38f889/content.htm
    The SNP optimizer offers cost-based planning. This means that it searches through all feasible plans in an attempt to find the most cost-effective (in terms of total costs). Total costs refers to the following:
    ·        Production, procurement, storage, and transportation costs
    ·        Costs for increasing the production capacity, storage capacity, transportation capacity, and handling capacity
    ·        Costs for violating (falling below) the safety stock level
    ·        Costs for late delivery
    ·        Stockout costs
    Heuristic-Based Planning
    http://help.sap.com/saphelp_scm2007/helpdata/en/a1/b60b4b2fc211d3b6270000e82de178/content.htm
    The heuristic is used as part of a repair-based planning process consisting of the heuristic, capacity leveling, and deployment. The heuristic run processes each planning location sequentially and determines sourcing requirements. The heuristic processing groups all demands for a given product at a location into one demand for the bucket. The heuristic run determines valid sources of supply and corresponding quantity based on pre-defined percentages for each source of supply (quota arrangements), or procurement priorities for transportation lanes and production process models (PPMs) or production data structures (PDS). The demands are then passed through the supply chain to calculate a plan. However, this plan is not necessarily feasible. The planner can then use capacity leveling to adjust the plan and formulate a feasible plan.
    Capable-to-Match (CTM)
    http://help.sap.com/saphelp_scm2007/helpdata/en/c4/986c39b768ca2fe10000000a114084/frameset.htm
    With this function, you can execute a multi-level, finite planning of the demands in your supply chain. Unlike the Supply Network Planning (SNP) optimizer that executes cost-based planning, CTM planning uses a heuristic procedure. In other words, CTM does not optimize the costs. Instead, you can use priorities, for example, to influence the sequence of demands and the selection of the procurement alternatives. CTM planning does not consider the individual production and distribution levels one after the other, such as the classic MRP run, but considers them at the same time. This guarantees that CTM planning generates a plan that can be executed on schedule.
    Hope these details will resolve your queries
    Regards,
    Santosh Kumar Mishra

  • SNP Heuristics is not picking up contracts as source of supply

    Hi Experts,
      I have a strange situation here. I have integrated a vendor contract with APO, which has created an external procurement relationship and a valid transportation lane. When I create a receipt element manually through /n/sapapo/rrp3, the source of supply is determined rightly to this vendor and receipt is created.....but when I run location SNP heuristics interactively, system generates receipt element without any reference to this source of supply. Expectation is creation of receipt element with reference to vendor and contract...
    System release is SCM 5.1 with ECC 6
    Am I missing something?....please let me have your inputs...
    Thanks and regards,
    Raghav

    Hi Aparna,
       Thank you for your response.
    I have checked the note, but it is applicable till SCM 500 SP 13. Our's is SCM 5.1 and this is inclusive I suppose. As per the SAP SCM standard documentation, external procurement relationship between vendor and receiving plant can be created through following 3 docuements:
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    2. Scheduling agreement
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    Additionally, as per documentation, even source list between plant and vendors can be integrated by enabling the same through R/3 transaction 'CIFPUCUST01'.
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    Thanks and regards,
    Raghav

  • 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.

  • Difference between SNP Heuristics and PP/DS Heuristics

    Dear Friends,
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    Hi Raj,
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  • Lead Time Calculation in SNP Heuristics

    Dear All,
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    Hi,
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  • Replenishment upto max. stock level during SNP heuristics run.

    Hi Experts,
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    Dear Jayprakash ,
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    If still it is not working plz let me know what other settings you are maintaining probably we will find a way out .
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  • Some Purchase Requistions are not being replanned during SNP Heuristics

    Hi All,
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    Regards,
    Rumi

    Rumi,
    we faced a ismilar issue and figured out that the issue was due to the change in MoT for the Preq. The earlier Preqs were created with MoT 'Ship' which was then changed to 'Plane'. When we ran the heuristic the Preqs created with Ship were not recreated. This is a standard SAP APO behaviour.
    I am sure that after deleting these preqs all subsequent runs would be working fine for you.
    Nxet time if it happens consider what I have said, it could be a possible reason.
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  • SNP heuristics and optimiser using transport lane validity dates

    I am using APO SNP 5.1.
    In particular I am trying to use the SNP heuristics and optimiser for supply planning.
    Can anyone confirm whether transport lane validity dates are respected by (a) SNP heuristics and (b) SNP optimiser, ie no transport requisitions will be created during times when the transport lane is not 'open' in terms of validity dates.
    Thanks for any advice on this...

    Hi,
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    Umesh

  • Availability Date calculation in SNP Heuristics

    Dear Experts,
    I am using weekly bucket profile. In the SNP PPM, period factor is set as 0. Lets say I create a PIR on date 09.11.2010 which is Tuesday.
    If I run Location Heuristics, it should schedule the Planned Order on 08.11.2010 12:00. But system is scheduling it on 11.11.2010 23:59:59 i.e. Thrusday. No matter on which day I create the PIR, it somehow always schedules it on Thrusday. Please help to understand how it is happening.
    (Though it should not matter here but Location-Product data also has period factor as 0)
    Regards
    Rinju
    Edited by: Rinju Mukherjee on Sep 27, 2010 7:38 PM

    Hello Micky and Amol,
    Thanks for your response. It seems F1 help for field 'Period factor' is not correct. Anyway, if system is taking 0.5, I have further two questions:
    Then it should be scheduled in the middle i.e. Monday + 2.5 = Wednesday. Why is it scheduling on Thrusday.
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  • Late Demand Fulfillment with SNP Heuristics

    Hello all,
    It is well known that SNP Heuristics does a bucket level planning and demands in each bucket are treated independent of the future bucket demands while creating the receipt elements. The receipts are created within the bucket unless there are sufficient receipts available in the past buckets that can be used.
    Now, my question is, if we can force Heuristics to have the receipts in future buckets consumed with current bucket demand and not have to create additional receipts within the current bucket during planning run.
    In a nut shell, can we influence heuristics not to plan receipts if there are fixed receipts available in future buckets?
    Please note that settings like fixed pegging, maximum lateness of receipt, and late demand fulfillment do not work for heuristics. I have tested extensively using all of these settings.
    Is there a way we can influence it to look into the future and if there are receipts available in any future bucket, say 30 days or 4 buckets ahead, in a weekly planning situation, it should not plan receipts in the current bucket and consume the receipts of future.
    If any one has done such a thing earlier and can provide pointers, that will be grateful.
    One option that came through discussions is changing standard macros to influence the way receipts are seen by heuristics during bucketed planning. Has someone explored this option? Please revert.
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    Chandra

    Hi Dieter,
    Please check if the plan order is tied to your SO (t.code /SAPAPO/CTMVIEWER or in the /SAPAPO/RRP3). Also check in CTM profile (tab Supplies) what is your settings in the supply control section (Build Up Safety Stock and Stock is available). They should be active. 
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  • Does T-Lane Duration take priority over Quota Arrangement for SNP Heuristics?

    Hi,
    I have the following scenario setup for SNP Heuristics.
    Source : S1, S2
    Destination : D0
    T-Lanes are All Product valid from years 2012 - 9999
    T-Lane : S1 -> D0 : 0hr Duration
    T-Lane : S2 -> D0 : 144 hr Duration
    Inbound Quota Arrangements at D0 - 100% to Partner Location S2 ( no quota for source S1)
    When I run Location Heuristic in Data View for a demand 2 days from current day, it is sourcing from S1 even though I have 100% Quota arrangement to source it from S2. Is this correct?
    Regards

    Hi,
    The quota has priority, so S2 should be determined.
    This is what I would do:
    I would check again than the Quota is well mainatined: check the validity period, double check the quota is 100% for S2. You could even recreate the Quota again.
    Check MAT1 for your Material in all the locations S1 & S2.
    Check that your t-lane S2 --> D0 is ok.. not blocked.
    Try to create an Transport Requisitions manually in RRP3 at location D0 and chose source S2.
    If after point 4 you can create manually teh requisition assigning S2, then something is wrong with your Quota. In this case check these threads:
    Quota arrangement not considered during snp heuristic
    Quota arrangement not considered during SNP heuristic
    Kind Regards,
    Mariano

  • Use of SNP Heuristics & Optimizer

    Folks,
    Has anyone used both Heuristics and Optimizer together within the same supply network?
    If so then how was this used e.g. Network optimization on monthly basis and location heuristics on weekly basis. Idea is to come up with a monthly optimum sourcing plan using optimizer and then resolve any location specific capacity issues using heuristics on a weekly basis.
    Is this a feasible solution?

    Hi,
    We are using both SNP Heuristics as well as Optimizer. SNP heuristic is not considering the Constraints, thats why it is required to be run where the demand and supply can be linked without any constraint. As in our case, we are doing it between Customer and C&F. For rest of the network, we are running Optimizer as several constraints are involved in different Supply chain nodes, like transportation capacity, production capacity, storage cost etc...
    We are running Optimizer on the whole network successfully which gives the results on a daily bucket considering various constraints.
    In your case, you can run Optimizer alone as it will consider the location specific capacities.
    Regards,
    Manjit

  • Diff Between PPDS and SNP heuristics

    Please anyone can explain what is difference between PPDS and SNP heuristics?
    Thanks in advance
    Prasanta saha

    Hi Prasanta,
    Please note the following differences:
    SNP Heu:
    1) Heu would plan for demands within your SNP horizon. It would never touch orders within your PPDS horizon.
    2) Orders thus created with SNP Heu are just a rough cut planned reciepts.
    3) The order created, would have a Duration in multiples of Days. Which means the least time period would be 1 day.
    4) SNP heu would refer to SNP PPM in case of a production planning situation.
    5) It would generate Reciepts which are only of type - SNP(Which are also termed as SNP Orders).
    PPDS Heu:
    1) PPDS Heu would plan for demands within your PPDS Horizon. It wouldnt plan for orders outside of your PPDS horizon.
    2) Orders thus created by the PPDS Heu are output firmed orders.
    3) The order created, may even be in seconds . Which means that PPDS heuristic would consider time period in Seconds as well.
    4) PPDS heu would refer to PPDS PPM in case of a production planning situation.
    5) The reciepts generated via PPDS heu would be of type PPDS Application Orders.
    It would be better to understand the difference if you jot the above mentioned points in a table, and then compare the serial number in SNP with the same serial number in PPDS.
    Please let me know in case you need any further information.
    Regards,
    Prasad.
    Edited by: PP-APO Consultant on Oct 21, 2011 1:13 PM

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