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Function documentationPlanning Demand Fulfillment According to Multi-Level Tier Processing

 

In multi-level tier processing, the system considers demands on lower levels of the Bill of Distribution (BOD) in the appropriate tiers, and not in the tier demand over replenishment lead time. If you use multi-level tier processing, the system rolls up the priority of demands of all the levels of the BOD below child locations to child locations, and takes the priority of demands on levels below child locations into account. This means the basic deployment algorithm that looks only at two levels of the BOD stays the same, while demands on lower levels are taken into consideration.

Prerequisites

In Customizing for Advanced Planning and Optimization (APO), you have selected Multi-Level as the tier processing mode, by choosing Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Deployment Next navigation step Define Service Profile for Deployment End of the navigation path.

You have defined priority tiers and arranged them in a hierarchy in Customizing for Advanced Planning and Optimization (APO), by choosing Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Deployment Next navigation step Define Priority Tiers and Sequence Rules End of the navigation path.

Features

Tier demands of the sub-tree below a child location

  • Last period within replenishment lead time

    When determining the tier demand of a location on level n (for n > 2) the system evaluates the DRP Matrix on level n until the last period that rolls up a demand to a period that is evaluated at level n−1. For more information, see Calculating Last Period Within Replenishment Lead Time.

  • Rolling up tier demands from locations on lower levels of the BOD to the child location

    Instead of considering the dependent demands from locations on level three as demand over replenishment lead time for the corresponding location on level two (as it does in two-level tier processing), the system adds the tier demands determined for the sub-tree below the location on level n (for n ≥ 2) to the tier demand of level n. For more information, see Rolling up Tier Demands from Lower Levels of the BOD to the Child Location.

  • Calculation of tier demands of locations on levels below a child location

    For locations on level n (n > 2) the system only considers the tier demands that are covered by a rounded net demand and not by the initial stock or confirmed receipts within the evaluated periods. For more information, see Calculating Tier Demands on Levels Below a Child Location.

  • Tier demand over replenishment lead time

    When the system calculates the tier demands of tier demand over replenishment lead time for a certain location product, it does not take into consideration dependent demands (planned distribution demands).

  • Tier m+1

    All standard tiers that are not part of the m tiers defined for tier processing are considered in tier m+1. The m tier is the last tier to which tier demands are assigned.

  • Tier additional demand for rounding

    When the system calculates the demands of tier additional demand for rounding, it takes into account only the last evaluated period.

  • BAdI tier on levels > 2

    If you want to use your own priority tier, implement Business Add-In (BAdI) /SAPAPO/BADI_TIERDEF, method GET_TIER_DMD_OVER_LT_SUBTREE. In Customizing for Advanced Planning and Optimization (APO) choose Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Business Add-Ins (BAdIs) for Service Parts Planning (SPP) Next navigation step BAdIs for Deployment Next navigation step BAdI: Define Priority Tiers and Sequence Rules for Deployment End of the navigation path.

Virtual locations for consolidated ordering (VLCO)

To calculate the tier demands of a sub-tree below a virtual location for consolidated ordering, the system loops over all locations that are consolidated into the VLCO, determines the tier demands of the sub-tree below each location, and aggregates these tier demands. For more information, see Calculating Tier Demands of Virtual Locations for Consolidated Ordering. For more information on how the system calculates quantities to be deployed to VLCOs, see Determining Quantities to be Deployed to Locations of the VLCO on Level Two of the BOD.

Fair share rules

In the fair share rule for prioritized fixed demands, the system considers the not-covered prioritized fixed demands of the levels > 2 as prioritized fixed demands of the corresponding location on level two with the lowest priority. This means that the prioritized fixed demands of levels > 2 are covered after all prioritized fixed demands of levels one and two are covered.

In the fair share rule for open customer demands, the system considers the not-covered open customer demands of the levels > 2 as open customer demands of the corresponding location on level two with the lowest priority.

To use a different algorithm for the fair share logic, implement BAdI /SAPAPO/DEPL_FAIR_SHARE.

Sequence rule for fixed demands

The sequence rule for fixed demands does not consider fixed demand from the sub-tree below a location on level two.

Activities

The system carries out the same steps as in the case of two–level tier processing. For more information, see Planning Demand Fulfillment According to Two-Level Tier Processing.