Bp COMMITTMENT DAYS

[cschwobe]

Hi

Has anyone tried to do a mod to have the branch plant commitment days by item. We have such a wide range of items that we can't determine what to set the commitment days at. Or is there anyother way to deal with this problem

thanks for any help

Carol

 

[peterban]

Hi Carol,
I am a little confused about your requirement. Why are you trying to have a
future commit by item?

Are you trying to link this into when demand feeds through into MFG or is
there something else behind this?

Peter

Peter Bannister : [email protected]
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Product Specialist

 

[cschwobe]

Re: RE: Bp COMMITTMENT DAYS

We basically have items with different lead times. If we set the commitment days at 5 and we have an item that won't be available for 3 weeks when we change the scheduled pick date to 3 weeks in the future the order it is no longer backordered but a future commit and then it doesn't show up as backordered on the acknowledgement for the customer.

If we set the commitment days at 15 and for a different item there is a future order for 2 weeks out the system back orders all new orders even though we have a production order coming in to cover the future order.

any thoughts

 

[peterban]

Re: RE: Bp COMMITTMENT DAYS

Hi Carol,
so are we in a sell through or mfg environment? Why is it such a problem to have items back ordered........
Have you thought about back to back so/wo through line type W to push scheduling through to the mfg side?

Peter

 

[cschwobe]

Re: RE: Bp COMMITTMENT DAYS

We are in a manufacturing / purchasing environment. We are a make to stock company and build to a forecast. We sell roughly 3000 items some are purchased and some are manufactured. Our lead times range from 1 week on some items to 26 weeks for some of our imported items.

We would like the order to stay at a back ordered status but when we move the scheduled pick date to the date it will be available JDE automatically considers it a future. I don't know of any other way to give the customer an accurate date on the acknowledgement


We don't have a problem with the fact that we have back orders

 

[peterban]

RE: RE: Bp COMMITTMENT DAYS

Carol,
I think I understand now. You are trying to forward schedule from the date
of order using the lead time (cumulative) to find a either a pick or a
dispatch date.

There are a few preferences that you can use to schedule the pick date from
the dispatch date (Order preparation days preference - type 16) and the
dispatch date from the promise date (delivery date preference - type 09).
This can either forward or backward schedule based on which date is entered.
Take a look at ODS-01-0004 from the KG which may help a little more.

I think that you can use these in conjunction to give you what you want.

Note that I have not yet discovered how to run all this off the lead time
rollup (without changes).

I hope this helps!

Best regards

Peter

Peter Bannister : [email protected]
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Product Specialist

 

[kpapenfuss]

In addition to what Carol has already described ... OneWorld commits inventory based on Branch Plant Commitment Days (one value for all items within a branch plant). This methodology makes an incorrect assumption that in practice cannot be applied. The majority of companies sell products that have a wide range of production/purchase lead times. As a result, some products require more time than others to produce/procure in order to meet customer demand. The use of a Branch Plant Commitment Day does not take this into account. In addition, orders entered that fall outside the branch commitment days are superseded by orders placed within the branch plant commitment days, regardless of which order was entered first. Companies are forced to decide between shortening the commitment day period to free up inventory but provide incorrect promise date information or extending the commitment day period to provide more accurate promise date information while losing the ability to manage inventory on future orders. We believe that the inventory commitment should be based on each item's planning time fence and not at the branch plant level.

 

[peterban]

Hi Keith!
Firstly, see my last reply in regards to the preferences to Carol.

I see what you mean, however if you do not commit stock (not even soft
commit) as SO entry - but use the preferences for the dates (to facilitate
ack. Print) then I think the first part of your problem should go.

I am still thinking this through but I am not wholly convinced that future
commits are required. If we do not have commitment at SOE and we only
commit based on the pick run then this pretty much alleviates the problems
you are facing.

Have I missed something??

I look forward to you reply

Best regards

Peter

Peter Bannister : [email protected]
1st Consulting Ltd : www.1stconsulting.biz
Mobile : +44-(0)7711-649358
Fax : +44-(0)7739-256227
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Product Specialist

 

[kpapenfuss]

Re: RE: Bp COMMITTMENT DAYS

It’s easier for me to give you some simple examples of our issue with commitment days at the branch plant level instead of by item. First, our goal is to service our customers as efficiently as possible, by giving them product when they need it or telling them when it will be available. Second, we want to turn our inventory as quickly as possible while maximizing our customer service without building excessive inventory. The majority of our sales orders are ship immediate, so if we have the inventory on hand, there is no problem. But, in the real world, we know that to satisfy our customers in these situations 100% of the time we would need an infinite amount of inventory.

Let’s start with the branch plant commitment days set to 10 days. Product A is a manufactured item with a lead time of 20 days and has a quantity of 100 on hand. Customer 1 orders 150 of Product A to ship in 15 days. The sales order request date is outside the 10 branch plant commitment days, so the order does no availability checking to determine if Product A will be available when the customer wants it. The assumption is that Product A will be available and we acknowledge the customer likewise. In reality, it will take 20 days to produce Product A so it will not be available when the customer wants it. We have given the customer wrong information.

Now, let’s say the Customer 1 only wants to order 100 of Product A (the entire on hand quantity), to be shipped in the same 15 days. Again, the sales order request date is outside the 10 branch plant commitment days, so the order does no availability checking to determine if Product A will be available when the customer wants it, but in this case it will be available; therefore, we acknowledge the customer accordingly. Now, we get another customer order for Product A from Customer 2. Customer 2 wants to order 50 to ship immediately. The request date is within the branch plant commitment days, so Customer 2 gets 50 of Product A because its inventory is not being held for Customer 1, reducing its on hand to 50. This causes the situation where when Customer 1’s order is due to ship there will not be enough on hand to ship their order on the date that they requested even though we promised that we could.

In both cases, if the branch plant commitment days were set to over 20, we would have been able to give accurate information (backorder with an availability date of 5 days beyond the request date) or service Customer 1 by holding Product A for their shipment and backorder Customer 2’s sales order with an accurate availability date..

Our issue is what to do about thousands of items with a wide range of lead times. Branch plant commitment days of 20 may be good for a handful of products, but not for thousands of other ones. By setting the branch plant commitment days too far out, other problems are created. For example, if BPCD is set to 200 days, and Customer 1 orders 100 of Product A (with current on hand of 100) with a request date of 3 months out, the current inventory will be held for them. This means that even if we can replenish Product A’s inventory in 20 days, every customer who wants some of Product A’s current on hand will backorder, even though the inventory is actually available for them to have.

I hope this clarifies our issue a little better.

Thanks for attempting to understand our issue.

 

[peterban]

RE: RE: Bp COMMITTMENT DAYS

Hi Keith,

I have read your detailed mail with some interest and I think that the
information I stated in my previous mails will work. Let me walk through it
to see if I've missed anything.

Set up requirements
1) Change P4210 version to bypass availability checking
2) Change the version of P40400 to activate the delivery date and order
preparation days
3) Ensure that P4210 uses this version
4) Create some item groups for use with these preferences (e.g. 10=10days
etc)
5) Assign these groups to items as appropriate
6) Create hierarchies for these logistics preferences
7) Create preference groups for these item groups - too add days for order
preparations and delivery dates.
8) Create version of R42520 to run by date (probably required a change to
make this work - standard bit of code from KG)

Process walk through
1) Order entered for items that belong to a group
2) Pick date and delivery date are created from order entered date plus days
from the preference groups.
3) No stock allocated so availability not changed
4) Supply/demand works off inclusion rules so this will be OK
5) You are a make to forecast environment so no MFG issues
6) Order ack. Will have a delivery/dispatch date on it - depending on set up
(delivery + order prep days) this should be OK
7) Pick note date reached so nightly jobs soft/hard allocates stock (we
have not talked about serialized or lot controlled product yet - but looking
at the web site I think this may be likely)
8) If there is not enough stock then it will be back ordered at the pick
time - which is not really very good, so I would recommend that you use some
form of forecast consumption through the mfg area so that you can create
WO's for exceptional demand (through MRP/MPS).
9) The rest of the process is as per standard.....!

Note that we flex the days (which we are using for the pick and dispatch
date) by either item or a group - so you can set this up as you like.

I hope this helps a little more.....

Best regards

Peter

Peter Bannister : [email protected]
1st Consulting Ltd : www.1stconsulting.biz
Mobile : +44-(0)7711-649358
Fax : +44-(0)7739-256227
E-mail on the move : [email protected]



Product Specialist

 

[kpapenfuss]

Re: RE: RE: Bp COMMITTMENT DAYS

Thanks for your thoughts Peter.

The order preparation day logic works in the case where there is no inventory available and is no replenishment scheduled within the item's lead time (assumption is that order preparation days will be set to that of the item's lead time). But, if inventory is currently available, we want to ship the product immediately. If inventory isn't available, but is scheduled for replenishment within the item's lead time, we need to inform that customer at order entry of when the item will be available, as well as, ship the order as soon as the item becomes available.

Thanks for all the time you are expending on our issue. I have attached a document that our company submitted to JDE a couple of years back, detailing how our current availability logic works in our legacy system and how it differs from JDE's logic. Our hopes were to attempt JDE to change how their standard availability logic works.

 

[peterban]

RE: RE: RE: Bp COMMITTMENT DAYS

Hi Keith,

Sorry for the delay - I had to earn a few pennies!

Anyway I have been giving you're problem some thought and I do not think
there is a direct solution to you're issue.
A few possibilities I have seen/thought about are as follows: -
1) Use the order promising module
2) Split the product by type into a selling branch then the future order
days can be more relevant
or what I think you are really after
3) Change P4210 and P42997 to allocate by the rules laid out in the document
you attached.

Each of these options have their pros and cons which I feel sure you have
thought of.
This last one is similar to changes I have designed for a small number of
clients, which basically revolve around a new allocation method 4. It can
be done but depending on how this is to work operationally it can be a
little messy.

I will give it some more thought to see if there are any additional
solutions, or any other variations.

Please feel free to continue this discussion.....

Peter Bannister : [email protected]
1st Consulting Ltd : www.1stconsulting.biz
Mobile : +44-(0)7711-649358
Fax : +44-(0)7739-256227
E-mail on the move : [email protected]



Product Specialist