Coping w/ Insufficient Coverage of Components (SAP Library

Coping w/ Insufficient Coverage of Components

If demand is higher than planned (in other words, sales order quantities exceed planned independent requirements quantities, this scenario applies.

The scenario below follows on from Sample Scenario: Strategy 40, but also applies to all planning strategies that use planned independent requirements.

Process Flow

A sales order with a quantity of 75 pieces is entered. 10 pieces remain in stock, but they are not allocated.

Only a quantity up to the stock quantity can be confirmed. The entire quantity, however, is passed on to MRP. After entry of the sales order and after an MRP run, the stock/requirements list looks like this:

Date	MRP element	MRP element data	Received/ required quantity	Available quantity
<today>	Stock			100
<today>	Order	328/010/01	90 -	10
<today>	Order	326/010/01	75 -	65 -
<t + rlt>	PlOrd.	1234/Stck	65	0
<reqdat2>	PlOrd.	1235/Stck	35	35
<reqdat2>	IndReq	VSF	35 -	0
<reqdat3>	PlOrd.	1236/Stck	100	100
<reqdat3>	IndReq	VSF	100 -	0

The stock/requirements list and the total requirements list (Demand Management ® Evaluations ® Display total requirements) show the allocation. The combined order quantity of 165 pieces has been allocated to two planned independent requirements; it has totally consumed the first requirement, which was on <reqdat1> and has partly consumed the next requirement of <reqdat2>. The first requirement is no longer visible in the stock/requirements list. It is, however, still visible in the total requirements list.

Requirements type

Date

Allocated quantity

Total quantity

VSF

300

<reqdat1>

100

100

CREQ

<order date>

90

CREQ

<order date>

10

<reqdat2>

100

65

CREQ

<order date>

65

<reqdat3>

100

Result

Suggestions for coping with insufficient coverage

You may choose to set up the consumption parameters in the material master on the MRP screen. Check to see whether the fields Consumption mode, Bwd consumption, Fwd consumption contain entries. If these fields are empty, default values are taken from the MRP group parameters in Customizing. If these fields are filled in the material master, however, they override the MRP group parameters.
It is advisable to review all sales orders that could not be confirmed. You can do this by using the backorder functionality in Sales and Distribution under Sales ® Environment ® Backorders ® Rescheduling ® Execute. If you run the report in test mode (place an X in the Simulate field), it will provide you with a log which lists all unconfirmed sales orders. You could use this list as the basis for discussions between the sales and production departments to decide how to proceed.

One option would be to postpone the order (or some schedule lines of it).
Another option would be to increase production if it is still possible.

In both cases, you must repeat the availability check for the orders.
Backorder processing is the most efficient way of confirming multiple sales orders.

Requirements type	Date	Allocated quantity	Total quantity
VSF			300
	<reqdat1>		100
		100
CREQ	<order date>	90
CREQ	<order date>	10
	<reqdat2>		100
		65
CREQ	<order date>	65
	<reqdat3>		100