Supply Model

This document describes how to set up and use supply models, and how to use them as part of the global capacity-to-promise (CTP) concept.

Using supply models - outline

A supply model is a set of rules for automatically identifying and proposing alternative ways to supply a specific demand from an internal or external customer. The model consists of lines, each line representing a priority level and containing up to three company-defined criteria that in combination with the item quantity trigger the automatic selection of a specific internal or external supplier. M3 Business Engine checks for stock based on the supply model lines, one by one, in the prioritized order. The search ends when the criteria for a specific line result in a matching internal warehouse or supplier.

You can use supply models in the following cases:

A company can have many supply models to cover all cases depending on the order type or just one supply model. Using several supply models can reduce the complexity of setting up one overall supply model. The company might also want to use a specific supply model for simulations in 'Supply Model. Simulate' (OIS340) or for test purposes.

Example

For example, let us say that you want M3 Business Engine to check for a warehouse or supplier with the requested item quantity in the following order:

  1. Check whether the current warehouse has the item in stock in sufficient quantity.

  2. Check a warehouse nearby for the item quantity.

  3. Check the warehouse functioning as distribution center supplying other warehouses.

  4. Check availability at a specific manufacturing unit.

  5. Check for an item that could replace the item requested.

  6. Check whether the company could purchase the item quantity the regular way within the requested time.

  7. If none of the previous steps result in a match, create a rush order for a rush delivery.

In our example, each one of these steps represents a line in a supply model.

Separate procedures depending on type of order

There are two procedures for using supply models:

In the first procedure M3 Business Engine proposes a supply model that will be used for the CO, but you can also enter the supply model manually. The supply model to use for all order lines is stated in the order header. As part of the CO line entry, M3 Business Engine will display 'Supply Alternative Management' (CTS100), enabling you to review and, if necessary, change the sourcing for that individual line. In the other procedure, M3 Business Engine proposes a supply model and its consequences in 'Supply Model Availability' (CTS200) after the CO is created. The company can combine these alternative procedures and choose one or the other depending on order type.

Since the supply-model-based sourcing for WOs is always done in (CTS200) after the order is created, the order type determines which supply model to use. The supply model itself is not stored in the WO header. In (CTS200) you can review the entire order before manually checking availability and sourcing. This order overview is particularly useful when you need to create rush orders; see the Rush Orders and Supply Models section below. (CTS200) offers many function keys and related options to help you source the demand in an optimal way.

Company policy determines whether the user entering the order also does the final availability check and determines sourcing or whether another department does the sourcing in (CTS200).

Automatic proposal of supply model

M3 Business Engine can be set up to select a matching supply model automatically in one of the following two ways, as described in detail in the Setup for Supply Models section:

Setup for supply models

Set up your supply models as described in the following steps.

Analyze

  1. Define and prioritize the types of values to use as search criteria when M3 Business Engine searches for a matching supplier for a specific order line.

    For example, you might want a combination of the customer's postal code and the item group to result in the selection of an alternative warehouse in a region nearby and in the routing of items belonging to a certain item group to another warehouse. (The latter can be useful if these items are only stored centrally or are always purchased.)

  2. Identify the specific values - the exact customer numbers, postal codes, item groups, etc. - for M3 Business Engine to check for in order of priority.

  3. Decide whether to retrieve the supply model from a fixed source, such as from the customer address, or whether to use a combination of dynamic selection criteria together to trigger the selection of a specific supply model.

Create supply models

  1. Create supply models, starting with the header and its basic data in 'Supply Model. Open' (MMS056), panels B and E.

  2. In 'Generic Object Control Table. Open' (CMS017/E), which is then automatically displayed, enter the type of values (control objects) that will be available to use as search criteria in the final supply model.

    For a list of available control objects, see below. You can define up to ten combinations of up to three control objects each. The sequence number you assign each combination represents the order of priority for that specific combination. Each combination will represent a line in the final supply model. M3 Business Engine will search for warehouses or suppliers in the order indicated by the sequence number until it finds a match.

    Note: Give the most detailed combinations a higher priority (that is, a lower sequence number) and assign the more general ones a lower priority (a higher sequence number). For example, a combination of customer (OKCUNO) and postal code (OKPONO) should have a higher priority than a line with just country (OKCSCD) as control object. Since it is time consuming to change the priority of a given combination of control objects afterwards, leave gaps in the sequence numbers to make it possible to add priorities in arrears without having to change the existing ones. For example, you could start by defining control objects on the third line and assign to it sequence number 3 and then add the next priority on the fifth line with sequence number 5.

Create supply model lines

  1. Create the supply model lines in 'Supply Model. Open Lines' (MMS059/B).

    Each line in the supply model defines where to order a certain item quantity from, depending on factors such as how the item is usually acquired (the supply source). If the supply model line states that the item is a purchased one, M3 Business Engine will create a purchase order based on a specific PO type, for example, one reserved for rush orders. The supply model line can also define a replacement item.

  2. To define a line, press Enter in (MMS059/B) to display the available priorities to work with next to the 'Priority' field.

    Each priority corresponds to a combination of control objects in (CMS017/E). For each priority, different fields are open, depending on the control objects selected. For example, the control object for item group (MMITGR) in line 4 in (CMS017) results in a field for entering a specific item group as selection criterion with priority 4 in (MMS059/B).

  3. Select a priority and enter a numeric ID for the supply model line representing a sourcing alternative - see the note below - and click Create.

    Note: Make sure to enter a sourcing alternative ID in (MMS059/B) that corresponds to the order you want M3 Business Engine to follow when searching for a sourcing alternative, since the priorities are always checked by this numeric ID. That is, the priorities for sourcing alternative ID 01 will be checked before the priorities for alternative ID 02.
  4. On the E panel, define how to proceed with this combination of values.

    For a description of the available fields, see Define Supply Model. Note that the option to have a CO line automatically created based on a supply model - activated by selecting the 'Auto option' check box in 'Supply Model. Open Lines' (MMS059/E) does not apply for orders that are sourced manually in 'Supply Model Availability' (CTS200).

Define dynamic selection of supply models

  1. Start 'Available Object Ctrl Parameters. Open' (CMS016/B) and select 'Supply Model Selection' (program CTS030) to display 'Generic Object Control Table. Open' (CMS017/B).

  2. Select Create and, on the E panel, enter the type of order for which the subsequent settings will apply: COs (order category 311) or WOs (order category 611).

  3. Enter the control objects per priority. Press Enter.

    Note: The control objects available as dynamic selection criteria differ from the ones available for the supply model lines.

    The 'Supply Model Selection Table. Open' (CTS030/B) for the selected order category is displayed. As with the supply model lines in (MMS059/B), the digits next to the 'Priority' field indicate which priority levels contain control objects in (CMS017). Each control object selected there corresponds to a separate field in (CTS030).

  4. In (CTS030/B), which is then displayed, enter the required values, click Create and, on the E panel, select the supply model to use for this combination of values. Click Next to return to the B panel and continue with the remaining priorities in the same way.

    As with the supply model lines in 'Supply Model. Open Lines' (MMS059/B), the digits next to the 'Priority' field indicate which priority levels contain control objects in (CMS017). Each control object selected there corresponds to a separate field in (CTS030).

Activate supply model logic for COs

  1. Start 'CO Type. Update Field Selection' (OIS014/E) and make the following selections for each applicable CO type:

    • To activate the use of supply models for individual CO lines during order entry, select to display the 'Supply model' field.
    • To use 'Supply Model Availability' (CTS200) to perform sourcing after entry of the entire order, select the 'Validate CTP' check box next to the 'Supply model' field. This will block the entry of a supply model in the CO header and no sourcing can be performed during order entry. The CO will also be tagged for a later alternate sourcing check.
      Note: If you leave this check box unselected, 'Supply Alternative Management' (CTS100) will be used to carry out the sourcing per order line as part of the order entry and based on the supply model entered in the CO header.
  2. Select where to retrieve the supply model to be proposed by default based on this CO type:

    Value

    Description

    [Field left blank]

    No supply model is proposed.

    *CUS

    A supply model is retrieved from the customer in 'Customer. Open' (CRS610/G) or, for division-specific customers, from (MFS610/F).

    *SYS

    M3 Business Engine searches for a supply model in the following tables in this order: 1) customer address; 2) customer; 3) order type.

    *ADR

    A supply model is retrieved from the customer address in (OIS002/E).

    *SEL

    M3 Business Engine selects a matching supply model based on the selection table in 'Supply Model Selection Table. Open' (CTS030).

    [Company-selected supply model]

    M3 Business Engine proposes the supply model you manually enter in this field in (OIS014/E).

    Note: If the company selects to source order lines in (CTS200), you would most likely also want to cancel the standard availability-to-promise (ATP) check during order entry. You do this by clearing the 'Availability check' check box for this CO type in 'CO Type. Open' (OIS010/I).

Activate Supply Model Logic for WOs

  1. Start 'Work Order Type. Open' (MOS120/G) and select where to retrieve the supply model from by default for WOs based on this WO type:

    Value

    Description

    [Field left blank]

    Supply model functionality is not enabled.

    [Company-selected supply model]

    M3 Business Engine proposes the supply model you manually enter here.

    *CUS

    A supply model is retrieved from the customer in 'Customer. Open' (CRS610/G) or, for division-specific customers, from (MFS610/F).

    *SYS

    M3 Business Engine searches for a supply model in the following tables in this order: 1) customer address; 2) customer; 3) order type.

    *ADR

    A supply model is retrieved from the customer address in (OIS002/E).

    *SEL

    M3 Business Engine selects a matching supply model based on the selection table in 'Supply Model Selection Table. Open' (CTS030).

    M3 Business Engine searches for the customer by first checking the combination of item and serial number in 'Equipment. Open' (MMS240/G), then based on the order reference on the work order.

Update tables with supply models

Depending on your selections in the previous step, update the applicable customers and customer addresses with a supply model.

Rush orders and supply models

Sourcing is a critical step for rush orders, which are purchase orders (POs) that must be fulfilled urgently with less than normal lead time. For example, due to a machine breakdown spare parts might be needed immediately or items are needed urgently for servicing a machine and none of the division's internal warehouses have these spare parts in stock. In the former case, a rush order is based on a CO for the customer, in the latter a WO. Typically, rush orders are only used if other sourcing alternatives have failed. When you create a rush order, make sure that the selected supplier can deliver promptly and that the company is willing to pay the extra costs of such a speedy delivery.

When a demand for an item occurs, M3 Business Engine automatically checks the on-hand balance of the company's internal warehouses based on a supply model. If no stock is available, a rush order is initiated to get prompt delivery from the supplier. Usually, you place such rush orders at the warehouse that functions as the distribution center and from which items are distributed to the selling warehouse.

Technically speaking, a rush order in M3 Business Engine is a PO based on a purchase order type with the '375 Rush order' check box selected in 'PO Type. Open' (PPS095/H). The supply lead time for rush orders is automatically set to one day plus transportation time, meaning that a delivery can be made the following day from the supplier. Any transportation lead time will be added to the lead time for this one-day supply.

For the availability check, proposed sourcing and automatic generation of a PO (rush order or not), M3 Business Engine uses the supply model selected for the CO or WO during order entry, as described above. You perform the sourcing itself in 'Supply Model Availability' (CTS200), as described below.

Working with supply sourcing in (CTS200)

When you create a CO based on a CO type with the 'Validate CTP' check box selected in (OIS014/E) or a WO based on a WO type with a supply model selected in (MOS120/G), the order is automatically assigned a 'flag' (VCTP = 1). This flag enables you to filter the orders in 'Work Order. Open' (MOS100) and 'Customer Order. Open Toolbox' (OIS300) to source.

By selecting a related option in 'Customer Order. Open' (OIS100), (MOS100) and (OIS300), you can directly access (CTS200). There, the B panel displays all non-supplied order lines per order. This includes all order lines whose order quantity is not allocated, not pre-allocated and not order initiated (and thereby lacks an order reference number).

Order line display in (CTS200)

There are several views available in (CTS200/B) that allow you to review the order lines from various perspectives:

View

Description

1

Displays all alternatives excluding distribution chain details.

2

Displays the same information as view 1, sorted per warehouse and item.

11

Displays all alternatives as view 1 but includes the distribution chain details.

12

Displays the same information as view 11, sorted per warehouse and item.

The available-to-promise (ATP) value displayed excludes the supplied order quantity, thus differing from the ATP calculation for order lines sourced in 'Supply Alternative Management' (CTS100).

In the list view with order lines, the first two columns provide you with demand information:

The last columns in the list view provide you with supply information instead, displaying the alternate supplier proposed by the supply model and the related data.

Panel header and its filters in (CTS200)

The panel header in (CTS200/B) displays order information from the WO header or the CO header such as facility, order type used, order number, customer, and the supply model proposed. For WOs, the start date and the finish date are displayed; for COs, these dates are the same and refer to the requested delivery date in the CO header.

You can filter information in the following ways:

Manual changes possible in (CTS200)

The main purpose of using 'Supply Model Availability' (CTS200) is to make and execute decisions manually. Once you have decided how to process an order line, you have a large number of function keys and related options available for the sourcing. In the panel header, you can change the supply model with an immediate recalculation of the availability. For example, you might want to use a specific supply model for surrounding warehouses and another to expand the search for a matching warehouse that is more distantly located. In the list view with order lines, you can manually change the quantity for an order line to check the consequences of these changes. For example, you might want to reconsider the effects of using one or several specific sourcing alternatives. M3 Business Engine immediately updates the view to reflect the results of these changes when you press Enter.

Function keys and their use in (CTS200)

The following function keys are available:

F14 ('Auto Allocation')

Allocates all stock alternatives that have the proposed quantity according to the auto-allocation rules.

F15 ('Change Order')

Enables you to access (MOS101) or (OIS101) to change an order line manually. This can be necessary, for example, when the item has been replaced or you decide to use an alias instead. You make such changes manually per order line.

F16 ('Recalculate')

Recalculates the CTP, for example, when you want to see the results of a manual rescheduling of the order. Note, though, that any change of quantity you may have made manually in (CTS200) will then be lost.

F17 ('Reschedule Order')

Allows you to reschedule the order manually if a delivery cannot be made according to the requested delivery date. This function key displays either 'Work Order. Reschedule' (MOS010) or 'Customer Order. Reschedule' (OIS130), depending on the type of order. During the rescheduling, you can notify the user responsible for the order by sending an application message. This message has application message type 128 and is set up in 'Settings - Application Messages' (CRS424). It states: 'Order number [x] has been rescheduled by user [y]'.

You might find it helpful to use joint delivery codes for COs, since this enables you to identify the planning date for the most problematic order line and to reschedule it with all other order lines automatically being adjusted. After that, you can review the results again in (CTS200) and create supply orders.

F18 ('Additional Info')

Opens 'Additional Order Information' (ATS200), where you can enter your own comments about the order. See the section Entry of Additional Order Information.

F19 ('Generate Supply Orders')

Generates supply orders for all your order lines with the quantities and the sourcing defined in the (CTS200) list view. These supply orders differ from the ones created using the 'regular', automated supply model processing in one important aspect: the top level of the former are automatically pre-allocated whereas the latter are always order initiated at top level.

F20 ('CTP Validated')

Clears the 'flag' of the 'Validate CTP flag' once you have completed the sourcing.

Related options and their use in (CTS200)

Some functions performed by the previously listed function keys are also available as related options at order line level.

Option 5

Displays 'Supply Model Availability' (CTS200/E) with additional details for the alternate supplier.

Option 13 ('Preallocation')

Displays 'Pre-allocation. Perform Detailed' (MWS121), where you can pre-allocate a scheduled goods receipt manually. For this option, as well as for the following options 14 and 15, (CTS200) automatically recalculates the information about the alternate supplier if you choose to auto-allocate, allocate manually or pre-allocate.

Option 14 ('Auto Allocation')

Works as function key F14 but for a specific line only without the need to involve (MMS121).

Option 15 ('Allocation')

Enables you to allocate part of the stock manually via (MMS121).

Option 16 ('Recalculate')

Recalculates the CTP for the selected order line.

Option 17 ('Expand')

This option expands the selected order line if the 'Collapse' check box was selected in the panel header.

Option 18 ('Collapse')

Collapses a previously expanded selected order line.

Option 19 ('Generate Supply Order')

Creates a supply order for the selected order line.

Option 20 ('Material Plan')

Opens the material plan in 'Material Plan. Open' (MMS080).

Option 21 ('Resource Requirement')

Opens the resource requirements in 'Resource Reqmnt. Display per Prod/Order' (RCS110).

Option 22 ('Constraining Materials/Resources')

Opens the constraints for material and operations in 'Constraining Materials and Resources. Open' (CTS110).

Option 24 ('Alias Numbers')

Opens available alias numbers in 'Item. Connect Alias Numbers' (MMS025).

Option 25 ('Related Items')

Opens related items in 'Item. Define Relations' (MMS020).

Limitations and recommendations

In the regular, automated sourcing per CO line, the sourcing is done in (CTS100) before the CO line is actually created. As a result, the CO line can be split according to the setup of the supply model used. M3 Business Engine automatically adjusts the CO line to any subsequent changes, for example, new CO lines are created if you change a warehouse. However, when you use 'Supply Model Availability' (CTS200), the CO lines or WO lines have already been created. This results in the following limitations:

Other things to keep in mind are:

Entry of additional order information

As mentioned above, function key F18 ('Additional info') opens 'Additional Order Information' (ATS200), where you can add your own comments on a specific order using one or more information groups. When you create or select a line in (ATS200), 'Attribute Value. Connect To' (ATS101) is automatically displayed for you to enter or view the information. Although parts of the functionality for attribute models have been reused to create this program, it has no connection to the regular functionality for managing attributes. Thus, no item number is displayed in (ATS101) and the order category indicated is actually a composite of the letter 'C', standing for 'CTP', followed by the first and last digit of the order category. 'C31', for example, represents 'CTP' and order category '311' (CO). Consequently, if you use order category as an object in 'Attribute Matrix. Open' (ATS020) and in 'Attribute Matrix. Enter Default Values' (ATS030), enter the order category using the very same syntax.

Note: To start using (ATS200), the following conditions must be met:

The last prerequisite above eliminates the need to manually connect an information group to the order. M3 Business Engine will then link the information group automatically to the order and initialize the attributes with their respective default values according to the attribute settings. If a default information group exists in (ATS061), it will be connected to the order in the following situations:

Control objects for supply models

The control objects available depend on whether they are used for supply model lines in (MMS059) or are used in (CTS030) as combinations of dynamic search criteria to which to connect specific supply models. In the former case, the field group containing the control objects is CRSPM in 'Field Group. Display Permitted Fields' (CRS109). In the latter, the field group is CRSPS ('Supply model selection').

Note: Some control objects carry a different meaning when applied to WOs, since the solution for supply models for WOs reuses the previously existing program logic for COs.

The following control objects are available in the CRSPS field group ('Supply model selection'):

Selection table for automatic proposal of supply model through (CTS030)

Field

Field Description

CO - Retrieved from

WO - Retrieved from

MWWHLO

Warehouse

CO header in the OOHEAD table

WO header in the MWOHED table

OKADID

Address ID

CO header

Search path: 1) The MROLOC equipment table; 2) customer.

OOKCUN

Country

Search path: 1) Customer address; 2) customer.

Search path: 1) From the MROLOC equipment table; 2) customer address; 3) customer.

OKCSCD

Customer

CO header

Search path: 1) The MILOIN table; 2) via reference number in the WO header.

OKECAR

State

Search path: 1) Customer address; 2) customer.

Search path: 1) The MROLOC equipment table; 2) customer address; 3) customer.

OKEDES

Place

(As for OKECAR.)

(As for OKECAR.)

OKMODL

Delivery method

(As for OKECAR.)

(As for OKECAR.)

OKPONO

Postal code

(As for OKECAR.)

(As for OKECAR.)

OKSDST

District

Customer

Customer

OKTEDL

Terms of delivery

Search path: 1) Customer address; 2) customer.

Search path: 1) The MROLOC equipment table; 2) customer address; 3) customer.

OKTOWN

Town

(As for OKTEDL.)

(As for OKTEDL.)

As mentioned above, since the previous solution for using supply models for COs has been reused to include WOs, the following control objects have been partially re-interpreted to match WO terminology.

WO control objects for supply model lines

Objects

Description

WO - Retrieved from

HMOPTX

Option

Item-related, based on WO material

HMOPTY

Option

Item-related, based on WO material

HMOPTZ

Option

Item-related, based on WO material

HMSTYN

Style number

Item-related, based on WO material

MMBUAR

Business area

Item-related, based on WO material

MMCFI1

User-defined field 1 - item

Item-related, based on WO material

MMCFI3-MMCFI5

User-defined fields 3 to 5 - item

Item-related, based on WO material

MMFRE3

Statistics identity 3 - item

Item-related, based on WO material

MMFRE4

Statistics identity 4 - item

Item-related, based on WO material

MMGRP1-MMGRP5

Search groups 1 to 5

Item-related, based on WO material

MMGRTI

Group technology class

Item-related, based on WO material

MMGRTS

Distribution group technology

Item-related, based on WO material

MMHIE1-MMHIE5

Hierarchy levels 1 to 5

Item-related, based on WO material

MMITCL

Product group

Item-related, based on WO material

MMITTY

Item type

Item-related, based on WO material

MMPRGP

Procurement group

Item-related, based on WO material

MMSUNO

Supplier

Item-related, based on WO material

OAADID

Address number

Search path: 1) The MROLOC equipment table; 2) customer.

OACUNO

Customer

Search path: 1) The MILOIN table; 2) customer via the reference number in the WO header.

OAFACI

Facility

WO header

OAMODL

Delivery method

Customer

OAORTP

Customer order type

WO header

OAPROJ

Project number

WO header

OATEDL

Delivery terms

Customer

OBALUN

Alternate U/M

WO material line, production U/M

OBITNO

Item number

WO material line, material number

OBMODL

Delivery method

Customer

OBTEDL

Delivery terms

Customer

OBWHLO

Warehouse

WO material line

ODCSCD

Country

Search path: 1) Address; 2) customer.

ODECAR

State

Search path: 1) Address; 2) customer.

ODEDES

Place

Search path: 1) Address; 2) customer.

ODHAFE

Harbor or airport

Search path: 1) Address; 2) customer.

ODPONO

Postal code

Search path: 1) Address, 2) customer.

ODULZO

Unloading zone

Search path: 1) Address; 2) customer.

OKCFC0

User-defined field 10 - customer

Customer

OKCFC1-OKCFC9

User-defined fields 1 to 9 - customer

Customer

OKCSCD

Country

Customer

OKCUCL

Customer group

Customer

OKCUTP

Customer type

Customer

OKDIGC

Discount group - customer

Customer

OKFRE2

Statistics identity 2 - customer

Customer

OKSDST

District

Customer

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