Upstream Rules in Supply Chain

This document describes how to set up and use upstream functionality.

Upstream rules are set up in 'Upstream Rules. Open' (RPS380).

Upstream changes of a supply chain

Prerequisites

The upstream functionality is controlled via several parameters in the 'Supply Chain Policy. Open' (CRS709) where the triggering of an upstream change is defined. Such as, if a receipt should be a trigger, or if only a higher quantity, a lower quantity, or both, should be triggers.

You can also define the order in which the supply chain should be affected by the upstream change. That is, either by order priority or by planning date. This is useful if there are several supply chains connected to, for example, one PO.

The last set of parameters are the tolerances set in (RSP380). These tolerances finally decide if an upstream change should be done and how big the change can be.

Workflow

The upstream functionality is activated when finish marks the confirmation of a PO (PPS250/260/270) and/or when finish marking at put away of a supply order. When upstream changes are activated on the supply chain policy and the quantity change is within tolerances in (RPS380), the supply chain is adjusted according to the confirmed/received quantity. The change is propagated up to the top level of the supply chain and then, at the top level, the supply chain is regenerated according to the new quantity. The normal rules at generation also apply here, that is, only proposals are changed, released orders are not changed etc.

If the received quantity is outside of the tolerances set in (RP380) then firstly the supply chains are adjusted up to the maximum or minimum tolerance. If there is still a quantity left to be distributed, a message is sent to the user responsible for the received item, informing them that a shortage or excess of material exists. Any excess material is put into stock.

When that user receives the message, they can decide what to do with the excess/shortage quantity. If they want to use the excess/shortage quantity on specific supply chains, they can enter that supply chain in the 'Supply Chain Header. Open' (RPS200), and manually adjust the supply chain quantity on the E-panel. That is, regenerate the supply chain with a new manually set quantity. They could decide not to implement the excess quantity but use it for other supply chains.

If a shortage quantity exists and the user does not want to decrease an existing supply chain, the MRP generates a proposal for the missing quantity, which can be manually pre-allocated to the supply chain having the shortage, or automatically pre-allocated at, for example, release.

Since a top level supply chain CO involves a customer, no automatic changes of the CO quantity occur. This must be done manually. However, all levels below the CO are affected by the upstream change. As the top level CO is not changed, the supply chain must be over pre-allocated or over allocated at the level in order to reflect the real need.

Top level DO quantities are always adjusted automatically to reflect the real quantity on the receiving warehouse.

Note that the tolerance percentage is checked at the top level and the changed quantity is compared with the order line quantity. This means that if the CO line quantity is manually changed to reflect the upstream quantity, this new CO line quantity is used as a comparison at the next upstream change. This is also true for top level DOs as they are always changed automatically.

If supply chains are stretched over warehouse or facility levels and you do not want automatic upstream changes through the whole supply chain, you must ensure that separate supply chains are used for each warehouse. To do this, set the DO item with a supply chain policy on both the sending and the receiving warehouses, but set the supply chain policy on the receiving warehouse at the lowest level. In that case, there is one supply chain number on warehouse 1 and one supply chain on warehouse 2, linked together by a pre-allocation. When an upstream change is performed on warehouse 2, only that supply chain changes.

Upstream examples

Example 1

At put away of a PO 225 pieces are received instead of 200.

These are connected to two supply chains of 100 pieces each.

Supply chain 1 has a tolerance of 10% and so can be increased to 110 pieces.

Supply chain 2 has a tolerance of 20% and so can be increased to 115 pieces.

No excess or shortage quantity exists, so no manual interaction is needed.

Example 2

At put away of a PO 150 pieces are received instead of 200.

These are connected to two supply chains of 100 pieces each.

Supply chain 1 has a 10% tolerance and so can be decreased to 90 pieces.

Supply chain 2 has a 20% tolerance and so can be decreased to 80 pieces.

This results in a shortage, so a PO proposal is generated for 20 pieces (90 + 80 – 150 = 20).

Note: In contrast to a theoretical supply chain, in which goods flow from the supplier downstream to the customer, we define the demand order as the top level because this is the starting point from which we generate the supply chain. Therefore, a change to a top-level order such as a customer order can trigger a downstream effect on supplying orders, while a change to a bottom-level order such as a purchase order can trigger an upstream change on demand orders.

Example 3

There is a supply chain of 100 pieces with a 10% tolerance.

PO confirmed with a quantity of 75 pieces and finish marked.

Supply chain created of 90 pieces (100 – 10%) but as the PO is only 75 pieces, a new PO proposal of 15 is created.

If you reverse the transaction, the upstream functionality considers this as an increase of 25 pieces (100 – 75). So, the supply chain tries to increase to 115 pieces (90 + 25) but the tolerance says 110 (100 + 10%). This means that the supply chain ends at 100 pieces, and since the PO was for 100 pieces, a new PO proposal of 10 pieces is created.

The supply chain needs to be manually adjusted to the correct quantity.

The following table shows the parameters to be set:

Program ID/Panel Field The field indicates...
RPS380/E Start value 1

… the first valid value to be compared to the contents of a control object. If the contents are greater than or equal to this start value, the record is accepted.

If there are several start values, the one that is the closest lowest value is valid.

Example:

You have item number as the control object, and have set start value = A100, A200, and A300. If the content of the control object is A150, the record with start value = A100 is accepted. If the content of the control object is A375, the record with start value = A300 is accepted.

RPS380/E Start value 2

… the first valid value to be compared to the contents of a control object. If the contents are greater than or equal to this start value, the record is accepted.

If there are several start values, the one that is the closest lowest value is valid.

Example:

You have item number as the control object, and have set start value = A100, A200, and A300. If the content of the control object is A150, the record with start value = A100 is accepted. If the content of the control object is A375, the record with start value = A300 is accepted.

RPS380/E Start value 3

… the first valid value to be compared to the contents of a control object. If the contents are greater than or equal to this start value, the record is accepted.

If there are several start values, the one that is the closest lowest value is valid.

Example:

You have item number as the control object, and have set start value = A100, A200, and A300. If the content of the control object is A150, the record with start value = A100 is accepted. If the content of the control object is A375, the record with start value = A300 is accepted.

RPS380/E From date

… the start date of the version.

The date must not overlap with other version records. Validation is performed to ensure that conditions are met.

RPS380/E Upstream changes

… if the quantity changes at put away on lower levels should affect the upstream supply chain orders.

If the check box is selected, the quantity changes on lower levels are propagated upstream in the supply chain according to the sourcing tolerance fields in (RPS380).

RPS380/E Sourcing tolerance -

… the allowed tolerance percentage for when a decrease in quantity at put away should be propagated upstream in the supply chain.

If it is left blank, no upstream changes occur.

If the value entered is greater than 0%, only a decrease in quantity within the tolerance is propagated upstream.

Note:

Top level customer orders are not changed automatically.

RPS380/E Sourcing tolerance +

… the allowed tolerance percentage for when an increase in quantity at put away should be propagated upstream in the supply chain.

If it is left blank, no upstream changes occur.

If the value entered is greater than 0%, only an increase in quantity within the tolerance is propagated upstream.

Note:

Top level customer orders are not changed automatically.

RPS380/E Upstream date changes

… indicates if date changes at put-away, or MO rescheduling on lower fields, should affect the upstream supply chain orders.

If the check box is selected, then date changes on lower levels affect dates upstream in the supply chain, according to the date tolerance fields in (RPS380).

RPS380/E Date tolerance -

… indicates the allowed tolerance (in days) for how an early date change at put-away should be propagated upstream in the supply chain.

Only a date change within the tolerance range is propagated up to the top level of the SCO. Outside of the tolerance, only the levels below the top level are changed. If this field is left blank, no upstream change takes place on the top level.

RPS380/E Date tolerance +

… indicates the allowed tolerance (in days) for how a delayed date change at put-away should be propagated upstream in the supply chain.

Only a date change within the tolerance range is propagated up to the top level of the SCO. Outside of the tolerance, only the levels below the top level are changed. If this field is left blank, no upstream change takes place on the top level.

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