Heuristic Planning 

Purpose

The heuristic is used as part of a repair-based planning process consisting of the Heuristic, Capacity Leveling, and Deployment. The Heuristic processes each planning location sequentially and determines sourcing requirements. The Heuristic processing lumps all requirements for a given material in the location into one requirement for the period. The Heuristic run determines valid sources and quantity based on pre-defined percentages for each source (quota arrangements), or procurement priorities for transportation lanes (see Source Determination). Requirements are then passed through the supply chain to calculate a plan. This plan is not necessarily feasible however. The planner can then use capacity leveling to adjust the plan and formulate a feasible plan.

The key figures that the Heuristic is based on, and the planning period are determined by the Planning Book. Macros can also be used to define how you want to calculate general key figures like Total Demand and Warehouse Stock, or product-specific key figures like Safety Stock, Reorder Points and Target Stock Levels (for more information see Advanced Macros and SNP Functions.

 

Process Flow

  1. Perform an Heuristic run.
  2. Level capacity.
  3. Run deployment.
  4. Run TLB.

Processing of the Heuristic Run

The Heuristic plans all distribution requirements for all locations in the distribution network before exploding the BOM and processing dependent demand in the production locations. The system explodes the BOM only when you choose the Multi-level Heuristic run.

Factors Considered in Processing

Other Considerations