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.
Note
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.