Balancing Supply and Demand with M3 SCP

This document describes the process for supply chain optimization where M3 Business Engine (BE) interacts with M3 Supply Chain Planner (M3 SCP). Data from BE is imported into M3 SCP as a basis for a supply chain model. This model is used in optimization and simulation in M3 SCP. When the work in M3 SCP is finished, the result may be exported back to M3 BE. The data from M3 SCP will only affect the operational planning in BE when it is implemented.

Outcome

The process results in tactical plans, consisting of sourcing rules, updated master demand schedule (MDS), and inventory buildup, where decisions have been made for solving problems related to not meeting demand. Refer to See Also section for related documents.

The tactical plan created in M3 SCP is used to adjust data in BE. This data is used for subsequent distribution and production planning activities on an order/item level.

The following tables in BE are updated:

  • Supply chain transfer (MSCTRA)
  • M3 SCP version (MM3 SCPHE)
  • Sourcing rules (MSCSOR)
  • Item sourcing rules (MITSOR)
  • Master demand schedules (MSCMDS)
  • Forecasting (MITAFO)
  • M3 SCP inventory buildup (MSCBSS)
  • Inventory buildup (MITBSS)
  • Node coordinates (MNOMAS).

Before you start

  • A Supply Chain Planning (SCP) Model must have been enabled. Data has to be created in BE in the form of an M3 SCP version when working with BE and M3 SCP. You can also use M3 SCP as a stand-alone planning tool, but then you have to maintain the data in M3 SCP. You can also choose to import some of the data from BE and create the rest in M3 SCP.
  • The dataset connected to the M3 SCP version must have node ID and M3 SCP item group/item number (depending on the aggregation level selected) as the first two key fields.
  • You must have sufficient knowledge of how the supply chain is structured.

Follow These Steps

  1. Activate M3 SCP Version

    You activate the M3 SCP version by using option 20=Activate in 'M3 SCP Version. Open' (SPS100). All data needed for the optimization in M3 SCP is then aggregated and stored in the MSCTRA table. Note that large amounts of data from various parts of M3 BE are retrieved to the M3 SCP version, which may take some time depending on the size of the supply chain. Thus you should not perform the activation when the system is busy with other jobs.

    When you activate the M3 SCP, the status is updated to 20 and the date and time for the activation are displayed.

    The following data is aggregated in the M3 SCP version:

    • Node
    • Node Distribution Relation
    • Node Delivery Method
    • SCP Item Group or item numbers
    • Data from the system calendar
    • Supplier data (data related to each purchase node, such as supplier capacity and purchase price)
    • Supply node data (data related to each supply node, such as projected on-hand balance per node-M3 SCP item group)
    • MDS demand
    • Sales data (data related to each sales node, such as sales price and demand from sales budgets/sales forecasts)
    • Bills of material
    • Resources
    • Resource capacity
    • M3 SCP settings from 'Settings - Supply Chain Planner' (SPS701)
    • Period type information (period start date and end date)
    • Reversed bill of material (only allowed when running M3 SCP at the item level).

    The MSCTRA table is divided in different transfer categories for the different data types.

  2. Balancing Supply and Demand with M3 SCP

    When the data has been aggregated in the M3 SCP version in BE, you can import it into M3 SCP. Use the API program (SPS100MI) (M3 SCP versions) to select the M3 SCP version to import. API program (SPS101MI) (M3 SCP basic data) is used to import basic data from BE to M3 SCP.

    In M3 SCP, you create a model database for the supply chain. The optimization process consists of the following steps:

    • Analysis
    • Decision making
    • Simulations.

    When you have approved the plan created in M3 SCP, you export the result to BE. You use (SPS101MI) to return the data to M3 BE. There is also an API program, (SPS020MI), for updating the virtual and geographical node coordinates in M3 BE. These coordinates are set on the geographical and virtual maps in M3 SCP.

  3. Establishing and Implementing Tactical Plan

    The optimization in M3 SCP results in a tactical plan that may be implemented in BE. The tactical plan consists of sourcing rules, master demand schedules and inventory buildup plans. These are exported to three different M3 SCP version categories: SOR, MDS and INV in 'M3 SCP Version. Open' (SPS100).

    The subprocess for each output type consists of the following steps:

    • Monitor and change
    • Disaggregate
    • Monitor
    • Implement.

    You may first check the result from M3 SCP. Records can be deleted or changed and new records can be created. You then disaggregate the records from the node-M3 SCP item group/item level to the item/warehouse level.

    After a second check, you implement the sourcing rules in 'Item. Define Sourcing Rule' (RPS090). Demand records (MDS) are transferred to 'Manual Forecast/MDS. Open' (FCS350) and inventory buildup is implemented in 'Safety Stock. Open Time Phased' (RPS040).

Related topics