Example for Consolidation 

A customer orders 100 pieces of product P1 for the requested delivery date December 10, 2004.

Settings

·        The following rules are defined:

¡        R1

The location L1 can be replaced by L2.

The consolidation location CL1 is still defined for this rule.

¡        R2

The location L1 can be replaced by L3.

The consolidation location CL2 is still defined for this rule.

·        The following quantities of P1 are available in the various locations:

¡        CL1: 20 pieces

¡        CL2: 0 pieces

¡        L1: 15 pieces

¡        L2: 10 pieces

¡        L3: 200 pieces

·        The following transportation durations are determined:

¡        CL1 and CL2 to the customer: 2 days

¡        L1 and L2 to CL1: 2 days

¡        L1 and L2 to CL2: 3 days

Process Flow for Consolidation

       1.      The system determines the rules R1 and R2.

       2.      The system evaluates R1 first.

       3.      The system determines the material availability date in location CL1 based on the requested delivery date. Since the transportation from CL1 to the customer takes 2 days, the products in CL1 must be available on December 8, 2004 at the latest.

       4.      The system checks if the product P1 in CL1 is available on December 8, 2004. The system confirms 20 pieces for this date. The system tries to confirm the remaining requirement of 80 pieces from the substitute locations L1 and L2.

       5.      The system determines the material availability date in locations L1 and L2. Since the transportation from these locations to CL1 takes 2 days, the products in L1 and L2 must be available on December 6, 2004 at the latest.

       6.      The system checks the availability of P1 in L1 and L2. The following table shows the results of the availability check and scheduling:

Location	Requested Material Availability Date	Confirmed Material Availability Date	Confirmed Quantity	Delivery Date to CL1
L1	12/06/2004	12/06/2004	15	12/08/2004
L2	12/06/2004	12/08/2004	10	12/10/2004

The system can confirm 15 pieces of P1 in L1 for December 6, 2004. They are delivered to CL1 on December 8, 2004. The system cannot confirm 10 pieces in L2 until December 8, 2004. They are delivered to CL1 on December 10, 2004.

       7.      Since only 45 pieces could be confirmed up until now (20 pieces in CL1, 15 pieces in L1, and 10 pieces in L2), the system tries to confirm the remaining requirement of 55 pieces based on the rule R2. The system first determines the material availability date in CL2 based on the requested delivery date. Since the transportation from CL2 to the customer takes 2 days, the products in CL2 must be available December 8, 2004 at the latest.

       8.      The system checks if the product P1 in CL2 is available on December 8, 2004. The system cannot confirm a quantity, since there is no stock for P1 in CL2. The system tries to confirm the remaining requirement of 55 pieces in the substitute locations L1 and L3.

       9.      The system determines the material availability date in L1 and L3. Since the transportation from L1 and L3 to CL2 takes 3 days, the products must be available in these locations on December 5, 2004 at the latest.

   10.      The system checks the availability of P1 in L1 and L3. The system then determines the date on which the products are delivered from L1 and L3 to CL2. The following table shows the results of the availability check and scheduling:

Location	Requested Material Availability Date	Confirmed Material Availability Date	Confirmed Quantity	Delivery Date to CL2
L1	12/05/2004	-	0	-
L3	12/05/2004	12/05/2004 12/08/2004	45 10	12/08/2004 12/11/2004

There is no quantity available in L1 due to the confirmation from the first rule. Therefore the system cannot confirm a quantity for P1 in L1 for December 5, 2004.

The system can confirm 45 pieces of P1 in L3 for December 5, 2004. They are delivered to CL2 on December 8, 2004. The system cannot confirm an additional 10 pieces of P3 until December 8, 2004. They are delivered to CL2 on December 11, 2004.

The requirement of 100 pieces is now fully covered.

The following table shows the date on which the customer receives the requirement, how many pieces, and from which consolidation location.

Consolidation Location	Quantity	Date of Delivery to Customer
CL1	35 10	12/10/2004 12/12/2004
CL2	45 10	12/10/2004 12/13/2004