Supply Chain Policy

This document explains how to set up a Supply Chain Policy in 'Supply Chain Policy. Open' (CRS709).

The Supply Chain Policy controls the behavior of the creation and changes of the supply chain.

The following tables shows the parameters to be set:

Program ID/Panel Field The field indicates...
CRS709/E Order link type

… which type of link to use when generating a supply chain and whether allocation should be performed according to the pre-allocated quantity, or according to the allocation type on the item warehouse record.

Alternatives:

1 = Pre-allocation link with automatic allocation according to the pre-allocated quantity at stock receipt.

2 = Pre-allocation link with automatic allocation according to the allocation type on the item warehouse record. Use option 2 when you want the pre-allocated quantity to be, for example, soft allocated at receipt.

CRS709/E Create in batch

… if planned orders should be created/updated interactively or in batch.

Select the check box if planned orders should be created/updated in batch.

CRS709/E Stop supply chain explosion

… indicates if the supply chain will continue or will stop the creation of the acquisition order for the demand.

Alternatives:

0 = Always creates supply order for the demand.

1 = Does not create supply order but finds an existing order to link in the chain. Can find manually or automatically depending on the ‘Link existing orders’ setup.

2 = Same as alternative 1 if the demand is triggered by customer order or distribution order. If the demand is a demand order, it has a continuous explosion. Recommended ‘Link existing orders’ setup is 2.

CRS709/E Link existing order

… whether the supply chain automatically creates a new proposal, or if non-allocated quantities for existing proposals/orders are used.

Alternatives:

0 = No. New proposals are always generated by the supply chain.

1 = Manually. The supply chain never generates any new proposals. Instead, existing proposals /orders can later be manually pre-allocated to the supply chain.

2 = Automatic. The supply chain never generates any new proposals. Instead, existing proposals /orders are automatically pre-allocated to the supply chain (if an unallocated quantity exists).

Note:

You usually enter value 1 or 2 when you have a supply chain where you want Material Requirement Planning (MRP) to plan and lot size the lowest level, but still want to connect to a supply chain later.

CRS709/E Automatically find supply chain

… if releasing a supply proposal on the lowest level of a supply chain should trigger an automatic search to find existing supply chains to connect to.

This option is only valid when ‘Link existing orders’ is set to 1 or 2.

This can be useful when the lowest supply level is planned via MRP and forecast. Later, the customer order arrives, and supply chains are created. When the actual releasing of an existing supply proposal takes place, it automatically tries to find one or several supply chains to connect to.

CRS709/E FIFO link

… how a demand connected to a supply chain should find existing supply order proposals.

Select the check box if supply orders are considered first, and if not enough, supply proposals are considered. The search order is that earliest supply order is selected first.

If you do not select the check box, supply proposals are considered first, and if not enough, supply orders are considered. The search order is that the latest supply proposal is selected first.

Note:

This field is only valid if the ‘Link existing orders’ parameter is set to 2. Also, be aware that this parameter is considered only when creating a supply chain.

CRS709/E Multiple order links

… whether an item connected to a supply chain should be able to use existing supply orders/proposals that do not cover the required supply chain quantity.

Select the check box if the demand quantity can be sourced from several supply proposals /orders.

If you do not select the check box, then the entire demand quantity must be sourced from only one supply order /proposal.

Note:

This parameter is only valid if the ‘Link existing orders’ parameter is set to 2. Also, be aware that this parameter is only used when creating a chain.

CRS709/E Safety time control

… whether the supply chain should consider safety time when automatically connecting supply orders. Safety time in this context is the time before the actual demand date that a supply order should be completed.

Respecting safety time can be useful if the supplier does not always keep their delivery times.

Alternatives:

0 = Respect safety time

1 = Respect safety time for proposals only

2 = Do not respect the safety time.

Example:

A supply order due on Friday has two days safety time. A supply chain is created and generates a demand for that Friday. If alternative 0 is selected, the supply order is not included in the supply chain. If alternative 1 is selected, the supply order proposal is not included in the supply chain, but a released supply chain will be included. If alternative 2 is selected, the order is included in the supply chain.

CRS709/E Allocate stock

… whether the supply chain generation should try to allocate existing stock.

See Allocate Stock Parameters sections below for more information.

CRS709/E APS decision tolerance

… how a change in quantity on the top level should be exploded to lower levels for Advanced Production Planner (APP) proposals, and if the APP decisions made earlier should be kept.

The explosion setting on (MMS037/E) and (RPS999/E) normally determines if proposals with status 20 consider any product structure changes. That is, done through the MRP where re-explosion setting 2 means to re-explode APP planned proposals but keep the APP planning decisions. In the supply chain, this setting has some influence on the APP proposal management.

See the section APS Decision Tolerance Parameters below for more information.

CRS709/E Tolerance control

Select the check box if the Advance Production Planner (APP) planned proposal should be considered as a release order and therefore not be changed.

If you do not select the check box, then the APP planned proposal is removed and a new proposal is created.

See the APS tolerance field help in (CRS709) for more information.

CRS709/E Material upstream

… if a quantity difference at put away of the material would trigger an upstream quantity change of the supply chain. This is only valid when the put away is marked as finished.

Alternatives:

0 = No upstream change should be performed

1 = Only a decrease of the quantity should trigger an upstream change

2 = Only an increase in quantity should trigger an upstream change

3 = Both an increase and a decrease of quantity should trigger an upstream change

Note:

The tolerances set up on the upstream rules (RPS380/E) controls if an actual change of the supply chain is performed.

CRS709/E Upstream priority

… in what order the upstream quantity change should be performed.

Alternatives:

1 = By customer line/distribution order line priority

2 = By planning date

When the put away is finished marked, the received quantity is calculated upstream in the empty chain, to find the quantity that it corresponds to at the top level.

The top level quantity is then used for regenerating the supply chain. Since the lowest level of a supply chain can be connected to several supply chains, some sort of priority must be used to control the order and which supply chains should be regenerated.

CRS709/E Upstream date change

… indicates if an early or delayed supply should trigger an upstream date change in the supply chain. The triggering if performed when an order within a supply chain at a lower level is rescheduled. For example, a material plan rescheduling for a planned manufacturing order, a confirmation of a purchase order, a receipt of a manufacturing order etc.,)

Alternatives:

0 = No upstream change.

1 = Trigger upstream change when supply is delayed.

2 = Trigger upstream change when supply is delayed or rescheduled earlier.

The date tolerances set for the upstream rules on (RPS380/E) determine whether actual changes are made in the supply chain.

The early upstream date change function only applies for one-to-one relationships in the supply chain.

CRS709/E Date filter

… can be used as a filter for the following scenarios:

• An upstream date change should be performed.

• An APP planned proposal can be automatically moved.

If the delay of the supply order exceeds the date filter, an upstream date change is triggered. The delay of the supply order is calculated as the difference between the planning date of the demand, and the supply.

If an APP planned proposal in the supply chain must be moved, a check is made against this filter. If the planned move is greater than the filter days, the APP planned proposal is re-exploded. If the planned move is less than the filter days, the APP planned proposal is left as is.

Note that it is enough that one of either the APP quantity check, or the APP date check, is true for the proposal to be re-exploded.

CRS709/E Attribute model

… indicates the ID of an attribute model.

Attribute models are connected to items and used to set the attributes that can be connected to the item.

Allocate Stock Parameters

The following table gives more information about Allocate stock parameters:

Value Priority Activity
0 1 Reuse any existing allocations
  2 Reuse any existing pre-allocations to orders
  3 Create new proposals
1 1 Reuse any existing allocations
  2 Reuse any existing pre-allocations to orders
  3 Allocate existing stock
  4 Create new proposals
2 1 Reuse any existing allocations
  2 Reuse any existing pre-allocations to orders
  3 Allocate existing stock with respect to DTF
  4 Create new proposal

APS Decision Tolerance Parameters

The following table gives more information about APS decision tolerance parameters:

Explosion setting Action
0 or 1 APP decisions are not kept. All proposals are deleted and recreated.
2 APP decisions can be kept according to the rules below.
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