CTM planning offers several supplementary supply control techniques in addition to the SS and SDS planning. CTM planning is demand driven, where the supply plan is created with respect to the requirement date. When planning in the
back-ward scheduling mode, CTM will create the supply as close to the demand date as possible. When planning in a multilocation supply chain network with capacity constraints, supply build up at certain locations can be undesirable. To balance the inventory across the supply chain network, the CTM Store Transport and Prod.
at Destination Location function and the Execute Supply Distribution after CTM run function can be used. It’s important to understand that the CTM techniques offer very limited functions as compared to more advanced functions offered in SAP SCM (deployment, TLB). Additional functions such as minimum build (MB) in CTM can be used to generate the minimum supplies irrespective of the demand situation.
Store Transport at Destination Location 5.3.1
In backward scheduling mode, CTM will create the supply plan in a multilocation supply chain network, as shown in Figure 5.27. The demand of 100 units at the distribution center (DC) is fulfilled by the stock transfer order with the receipt date close to the demand date. The distribution requirement at the production plant can be fulfilled much earlier than the required date due to capacity constraints. In this case, the planned order is scheduled according to the available capacity, and the produced quantity is stored at the plant. The produced quantity is shipped at a much later time to ensure that the product arrives at the DC in time.
This solution meets the just-in-time requirement for the DC but isn’t optimal for production plant due to high storage costs. In this scenario, you want to produce and ship the product immediately from the production plant. The produce and ship strategy can be applied in CTM using the Store Transport and Prod. Substi-tution Receipts at Destination Location setting. Using this technique, CTM will schedule the transport and substitution orders as close as possible with the sup-plies to minimize the storage costs at all levels of the supply chain. The produce and ship strategy is shown in Figure 5.27. The produce and ship strategy is similar to using the maximum pegging length (MPL) constraint of 0 seconds at the pro-duction plant. The main difference is that the MPL constraint is applied as a hard constraint for the demand, whereas the Store Transport and Prod. Substitution Receipts at Destination Location setting is applied as a soft constraint. CTM will try to produce and ship as early as possible.
PR
Store Transport and Prod. Substitution at Destination Location Figure 5.27
If multiple planned orders or firmed supplies are used for fulfilling the distribution requirement, then the latest supply limits the earliest ship date for the transport order. This method is useful for situations where you want to combine the pro-duction quantity into one transport order. On the other hand, due to high storage costs, you want to ship the individual planned orders or firmed supplies immedi-ately. In this scenario, CTM will create individual transfer orders for each of the planned orders and supplies. The techniques can be enabled using the Transport Receipts Elements Individually setting available in the Further Strategies tab of the CTM profile. As shown in Figure 5.28, when the Store Transport and Prod.
Receipts at Destination Location setting is combined with the Transport Receipts Elements Individually setting, CTM will produce and immediately ship the prod-ucts individually.
The produce and ship immediately strategy is applied to all levels of the supply chain and for all products planned in the CTM profi le. For certain SC Models that include warehouse for the raw materials, it isn’t optimal to ship the raw materials immediately to the production plant. Similarly, the produce and ship strategy isn’t optimal for all location products planned in the CTM profi le.
Supply Distribution 5.3.2
The Supply Distribution function in CTM is used to transfer excess inventory to the succeeding locations of the supply chain. CTM supply distribution (SD) offers very restricted functions as compared to the SNP deployment function. As shown in Figure 5.29, the CTM SD function can be started using the Transaction /SAPAPO/CTM10 or using the SAP Easy Access menu Advanced Planning and Optimization • Multilevel Supply and Demand Matching • Planning • Supply Distribution.
CTM Supply Distribution Figure 5.29
CTM SD is executed only for a single level; that is, the transfer of unrestricted-use receipts or supplies is created for one location at a time. The stock transfer orders are created using the transport lanes between locations. All of the transport lanes used for SD must have outbound quota values from the source location to the des-tination location. The available supplies selected for distribution are split
accord-ing to the outbound quota for the each of the destination locations. All individual supplies are aggregated using the daily buckets before distributing the supplies.
If the time-phased quota is used, then the supply availability date is used for selecting the appropriate interval. The stock transfer order is scheduled using the forward scheduling mode from the supply available date. Until SAP SCM 5.0, CTM SD doesn’t consider the transport lot size, GR/GI time, or transport and handling resources. Scheduling of stock transfer orders for SD considers only the shipping, transport, and receiving calendars. SD isn’t supported for the subcontracting trans-portation lanes.
In the SAP SCM 5.1, the CTM SD function is enhanced to consider transport lot size, GR/GI time, and transport and handling resources similar to the scheduling of normal transfer orders. As shown in Figure 5.30, the CTM SD function itself can be started from the CTM profi le under the Supply Distribution tab. Using the Execute Supply Distribution after CTM run setting, the SD is started immediately after the CTM run in both the online and batch mode. The Allow Multiple Dis-tribution setting can be used to combine residual supplies when planning with transport lot sizes.
CTM Supply Distribution Function in SAP SCM 5.1 Figure 5.30
Minimum Build of Supply 5.3.3
Another important technique used for supply control in CTM is the minimum build (MB) planning function. The MB planning function is available in CTM start-ing from SAP SCM 5.1. This function is used mainly in the high-tech industries, where the contract manufacturers expect a constant production irrespective of the
demand. To use the production capacities optimally and constantly, the MB quan-tity is agreed with the manufacturer. CTM will create the planned orders to fulfill the MB requirements even if there are no demands. If the normal demand exists, then the MB supplies can be used for satisfying the normal demands.
The MB function is enabled in the CTM profile using the Plan Min. Receipts Quan-tity setting available in the Further Strategies tab of the CTM profile. The MB values are maintained using the SNP planning area time-series key figure. The time-series function Minimum Receipt Quantity (see Figure 5.31) is used to select the planning area key figure similar to the selection of time-phased SS and SDS as described in the earlier sections. When planning with production lot sizes or capacity constraint the production quantity may be smaller or larger than the required MB quantity. Using the Balance Surplus and Shortfall Quantity setting, you can transfer the excess or shortfall quantity of the current bucket to the next bucket. Based on the MB bucket size, CTM limits the time frame for order creation for the MB quantity.
CTM Minimum Build for Production Available in SAP SCM 5.1 Figure 5.31
Summary 5.4
In this chapter, you learned about the various safety stock (SS) planning techniques available in CTM. You now understand the advantages and disadvantages of each of the planning modes. The configuration settings required for SS planning using SS quantity and safety lead time is explained in detail. Planning for time-varying SS is very complex, and you learned different options available in CTM to plan for time-varying SS. You also learned the CTM virtual demand calculation process.
Additional supply control techniques using supply distribution (SD) and minimum build (MB) are introduced in the next chapter. These functions are available in SAP SCM 5.1.
In the next chapter, you’ll learn about the advanced planning techniques that are available in CTM. You’ll also learn about requirement strategies and planning with hierarchies.
ment strategies is explained in detail. Supply chain planning processes within a plant are also introduced in this chapter.