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 Repair or Buy

Use

The repair or buy function in distribution requirements planning (DRP) is particularly well-suited to high-value service parts which are cheaper to repair than procure externally. If you have activated the repair or buy function for these location products, the system checks whether enough unserviceable products that could be repaired are available. Depending on this quantity, the system decides either to repair the location product or procure it externally.

If you want to completely avoid procuring a location product externally, you can bypass the repair-or-buy decision and specify for this location product that it must always be repaired.

Depending on your specifications, a location product is either repaired internally or externally by a subcontractor.

If you activated the repair-or-buy function for a location product, the location product can have the following different statuses but the product number always stays the same:

  • serviceable

    A location product has the serviceable status if it is either new or has been repaired.

  • unserviceable

    A location product has the unserviceable status if it has not yet been repaired but is scheduled for repair.

Distribution requirements planning differentiates between location products that you procure externally and location products that you repair because the delivery lead times are different (for example) and the available quantity of unserviceable products is smaller than the available quantity for external procurement.

Note Note

You cannot use the repair-or-buy function for the following location products:

End of the note.

Integration

  • You have to use a scenario for subcontracting without a source location in order to ensure that subcontracting components are planned effectively in your own plant and not by the supplier, as is the case with subcontracting with a source location. For more information about this kind of scenario, see the SAP Library for SAP Supply Chain Management under Start of the navigation path SAP Advanced Planning and Optimization (SAP APO) Next navigation step Production Planning and Detailed Scheduling (PP/DS) Next navigation step External Procurement Next navigation step Subcontracting Next navigation step Subcontracting Without Source Location in PP/DS End of the navigation path .

  • Production data structures must be present in PP/DS. In order for this to be the case, you created bills of material and routings in SAP ERP and have assigned them a production version. You transferred the production version together with the assigned bills of material and routings to SAP SCM via the Core Interface (CIF).

Prerequisites

  • You created external procurement relationships in SAP ERP for subcontracting. To do this, you selected Start of the navigation path Logistics Next navigation step Materials Management Next navigation step Purchasing Next navigation step Outline Agreement Next navigation step Contract Next navigation step Createfrom theSAP Easy Access End of the navigation path screen in SAP ERP and you created a contract of the type Subcontracting ( S ).

  • You defined location product master data in the DRP Repair or Buy area on the SPP DRP tab.

  • In the RoB: Conflict at Lot Size Rounding field in the DRP service profile, you specified how the system should behave if the rounded quantity of products to be repaired is larger than the available quantity of repairable products. For more information, see Making Repair or Buy Decisions and the Implementation Guide (IMG) for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Distribution Requirements Planning (DRP) Next navigation step Define Service Profile for DRP End of the navigation path .

Features

Repair-or-Buy Decision

If you have activated the repair-or-buy decision for a location product, the DRP checks whether you can cover demand using unserviceable products that could be repaired. To do this, DRP considers both the available quantity of unserviceable products and the returns forecast. If you can cover demand, DRP generates either planned orders for internal repair or subcontracting purchase requisitions for external repair, depending on the settings you made. If you cannot cover demand using unserviceable products that can be repaired, DRP either schedules the purchasing of these products or accepts that requirements will be covered late when repaired products are available. DRP selects the more cost-effective of the two solutions. For DRP to be able to compare the effects of each solution, you have defined penalty costs for delayed requirement coverage for each product and period. These penalty costs are fictitious costs and, although they do not accrue in reality, you can use them to specify how important it is to fulfill a demand on time.

For more information, see Making Repair or Buy Decisions .

Repair Only

If you have specified for a location product that you only want to cover demand using repaired products but it is not possible to cover the requirement in this way, DRP proceeds as follows: DRP checks if the demand could be covered in time by procuring the product in the repair or buy case. If this is the case, DRP generates the alert DRP Repair or Buy (alert type 7890).

For more information, see Repair Decision .