Support for Backorders in Supply Chain Optimization (SCO) engine

Supply Planning now supports backorders when used with the Supply Chain Optimization (SCO) engine. The concept of Backorders in Supply Planning is where a sales order for which the requirement date (planned ship date) is before the start of planning horizon. This is also known as “backlog”.

Adding backorders support allows external demand to be met in a later period (time bucket) rather than losing the demand. Backorders which are not fulfilled results in lost sales.

The SCV model has been extended to support the backorders related changes in Supply Chain Optimization.

The ITEM_SALES entity has been updated to add properties backlog_allowed_flag, backlog_penalty_factor and use_forecast_flag as extended properties.

These measures are added:

  • Customer Back Order: Imported initial backorder quantity from SCV
  • Remaining Customer Back Orders: Backorder quantity over time periods (returned from SCO)
  • Allow Backorders - flag to allow (=1) or forbid (=0) backorders for a customer allocation
  • Backorders Daily Cost Factor - daily cost factor of backorders for a customer allocation

The interface service "SPLS - SCV -Import Customer Back Orders" is added to import the initial backorder quantity: Customer Back Order.

The interface service "SPLS - SCV -Import Customer Measures" is updated to import:

  • backlog_allowed_flag to Allow Backorders
  • backlog_penalty_factor to Backorders Daily Cost Factor

The extension field is used, if populated, prior to the imported core field. If the values for both the fields are null, a default value 0 is used.

These worksheets are updated:

  • Customer Allocations: Review and maintain Allow Backorders and Backorders Daily Cost Factor
  • Planned Sales: Review Customer Back Order and Remaining Customer Back Orders
Note: 
  • This feature is enabled after appending the supply planning template (spls.zip) and SCO model (ApSco.pls.zip) for this version. Importing or editing "Allow backorders" (=1) for some customer allocations and defining a backorder cost factor.
  • Additional role or privilege is not required to access this feature.