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APO_SPP_SR - Define Stability Rule for DRP Horizons

APO_SPP_SR - Define Stability Rule for DRP Horizons

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In this Customizing activity, you define a stability rule for distribution requirements planning (DRP) that you can assign to a location product in the location product master data on the SPP DRP tab page.

A DRP stability rule defines the conditions between the individual DRP horizons, and the activities that are allowed during the individual DRP horizons.

DRP uses this stability rule within the limited freeze horizon if an excess occurs during this period. If this is the case, DRP checks whether a planned receipt can be deexpedited further into the future so as to eliminate the excess situation.

  1. Assign an ID and a description to the stability rule.
  2. In the Deexpedite Order field, choose one of the following options:
  3. Do Not Deexpedite Order
  4. Deexpedite Order if Order Previously Expedited
  5. Always Deexpedite Order
  6. Define the parameters x% of the Sum of the Total Gross Demand and y% of Order Quantity.
These parameters are only important if you chose Each Individual Period as the procedure for order scheduling under Stability Rule DRP in the navigation tree on the left, and selected the Schedule Orders According to All Demands checkbox.
The total gross demand is the gross demand of the next 21 days.
If an excess occurs during the limited freeze horizon and an order exists on the same day as the excess, the system calculates whether the excess is greater than the comparison sizes calculated using the parameters. If so, the system reduces the order quantity by the excess quantity.
  1. If you have selected the Retain Total Order Quantity checkbox, after applying the stability rules the system checks whether the total order quantity in the limited freeze horizon was reduced. If so, the system reduces the order quantity by the excess quantity.

DRP uses this stability rule within the limited freeze horizon if shortage occurs during this period. If this is the case, DRP checks whether a planned receipt in the future can be expedited to get rid of the shortage.

  1. Assign an ID and a description to the stability rule.
  2. Select the Increase Safety Stock Proportion checkbox if you want the used percentage of the safety stock to increase from 0% to 100% for the calculation of the net demand and for order scheduling from the first period to the last period of the limited freeze horizon.
  3. If you select the Consolidated Ordering checkbox, the system considers consolidated ordering when calculating the net demand independent of the consolidated ordering checkbox on the SPP DRP tab page in the location product master data.
  4. Define x, y, and z. The system needs these parameters to check whether the following conditions are met:
The net demand of the period in which there is a shortage is greater than x% of the total gross demand of the next 21 days.
The period z lies within the limited freeze horizon. The system calculates period z by subtracting one period from z, which you defined, and adding the result to the period in which the shortage occurs.
The net demand of period z is greater than y% of the total gross demand of the next 21 days.

If these conditions are met, the system continues with expediting an order. If they are not met, the system creates an alert.

  1. Choose which of the following values you want the system to use to calculate the net demand:
  • Forecast

  • Fixed demand

  • Own safety stock

  • Safety stock at parent location

  • No supplier shutdown

  • No substitution demand of remanufactured product

  1. You must make an entry in the w% of the Sum of the Total Gross Demand field to define a period within the limited freeze horizon in which it schedules the order. To do so, it checks the unrounded net demand of all periods within the limited freeze horizon that come before the period with the shortage. The system chooses the period whose unrounded net demand is greater than w% of the total gross demand of the next 21 days.
  2. Choose which of the following values you want the system to use to schedule the order:
  • Forecast

  • Fixed demand

  • Own safety stock

  • Safety stock at parent location

  • No supplier shutdown

  • No substitution demand of remanufactured product

  • Normal EOQ period

  • Overridden EOQ period

If you want the system to use the overridden EOQ period, you must specify the value in days by which the EOQ period is overridden.
  1. You can choose whether you want the system to ignore or consider non-fixed distribution receipts for the supplier for rounding to EOQ periods.

DRP uses the stability rule for plan submission horizon (deexpedite) within the plan submission horizon if an excess occurs during this period. If this is the case, DRP checks whether a planned receipt can be deexpedited further into the future so as to eliminate the excess situation.

DRP uses the stability rule for plan submission horizon (expedite) within the plan submission horizon if a shortage occurs during this period. If this is the case, DRP checks whether a planned receipt in the future can be expedited to get rid of the shortage.

  1. Assign an ID and a description to both stability rules.
  2. For both stability rules, define at least one of the values x or y depending on your entry in the Admissibility Check field. The system needs these parameters to react to changes to the order quantity in the plan submission horizon.
  3. Depending on your entry in the Admissibility Check field, the system checks one or both of the following conditions:
  • x % of the order quantity is greater than the difference between the existing order quantity and the order quantity without stability rules.

  • y % of the total gross demand of the next 21 days is greater than the difference between the existing order quantity and the order quantity without stability rules.

If you have chosen a condition and it is met, or if you chose x% of Order Quantity or y% of Total Gross Demand in the Admissibility Check field and one of these two conditions is met, the order quantity is changed without stability rules. Otherwise the existing order quantity is kept.
NOTE:
The system only considers the entries under Stability Rule DRP -> Method for Order Scheduling and Schedule Orders According to All Demands during the limited freeze horizon.
Depending on your entry in the Admissibility Check field, if a certain condition or one of the two conditions is not met, the system leaves the existing order quantity in the period as it was before using the stability rules in the limited freeze horizon.
NOTE:
If changes occur in the plan submission horizon, the system does not take any stability rules into account for the remaining periods of the plan submission horizon.
  1. Assign an ID and a description to the DRP stability rule.
  2. Assign one of each of the stability rules described above to the DRP stability rule.
  3. Choose a method for order scheduling within the limited freeze horizon. You can choose between the following options:
  • Single Order

If you choose Single Order, in the case of a shortage the system checks the total shortage quantity within the limited freeze horizon. In exactly one period, it then generates one or more orders over the total shortage quantity or increases the quantity of the existing orders by the shortage quantity. In the case of an excess, the system reduces an order by the excess quantity. If the order quantity is less than the excess quantity, the system reduces the quantity of the next order.
  • Each Individual Period

If you choose Each Individual Period, in the case of a shortage within the limited freeze horizon, the system increases the order quantity of a period by the shortage quantity. In the case of an excess, the system reduces the order quantity within a period by the excess quantity. If the order quantity is less than the excess quantity, the system deletes the order quantity and reduces the quantity of the next order.
If you choose Each Individual Period, you can selected the Schedule Orders Acc. to All Demands (Lim. FrHor) checkbox. If you have selected the checkbox and there is an excess or shortage within the limited freeze horizon, the system replans the DRP planning horizon starting with the period with the excess or shortage, without considering stability rules.
  • No Change of Order Quantity

If you choose No Change of Order Quantity, the system does not change the order quantity, even if there is an excess or shortage.
  1. Select the Consider Change Horizoncheckbox if you want the system to consider the change horizon during planning.

It is stated in this document that the system always uses 21 days for calculating the total gross demand.

However, the system uses the value that you have specified as the scaling factor for months in Customizing for Extended Service Parts Planning under Forecasting-> Make General Settings for Demand History.






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