Doubt - SAP IBP Cost Roll Up calculation

[emunozfabra2]

Hello, 

I was trying to use de Cost Roll Up functionality, but I don't understand very well the output value.

I am trying it with Cost Rollup Transportation Share profile for which the target KF is NAGCSTTRANSPORTUNITCOST, and there are several inputs:

• NAGCSTTRANSPORTATIONCOST
• NAGTOTALRECEIPT
• NAGPROJECTEDINVENTORY
• NAGTRANSPORT
• NAGPRODUCTIONCOMPONENT

In this case, I have one material (RW1) which is needed in the location Plant (lead time=0, pratio=1).

I have introduced some values into NAGCSTTRANSPORTATIONCOSTRATE, so I have:

But I don't understand which calculation is made by the profile and the Network  Aggregation Operator job. How is NAGCSTTRANSPORTATIONCOSTRATE obtained?

I would really appreciate it if someone could explain it to me.

Best regards,

Elena Muñoz

[goutam_chatterjee]

Hello Elena

Without knowing the upstream network it will be difficult to answer.

Since you mentioned pratio = 1, I will assume RW1 is manufactured at the plant and none of it shipped to the plant from other location.  But at the same time in your screenshot I see Transport coming in, a contradiction you have to explain.

If RW1 is manufactured, does RW1 need raw materials.  How are these raw materials being shipped to the plant.

If RW1 is shipped to the plant, what is the transportation cost rate in all the upstream lane.

Network aggregation operator will calculate the value of NAGCSTTRANSPORTUNITCOST which will be the share of unit cost due to transportation.  To calculate this, it will consider all the transportation costs related to RW1 that have been incurred upstream both the transportation cost associated with the raw material needed to manufacture RW1 and also the transportation cost associated with RW1 itself if it is being shipped from another location.

NAGCSTTRANSPORTATIONCOSTRATE is an input.  This value customer may get from their logistic provider.

-Goutam 

[emunozfabra2]

Hello Goutam,

[emunozfabra2]

Thanks for the input, I wasn't taking into account the aggregation transportation costs withinn the other supply chain nodes, now it makes sense. So, as I understand it, I should always make the cost analysis starting from the supplier and then to the plant with the customer demand need, right? Another question, how does the cost roll up profile takes into account the projected stock? For example, if I have in the last period a projected stock of 100 and this period I have Total Receipt=300 and NAGCSTTRANSPORTATIONCOST=500. Thanks, Elena

[goutam_chatterjee]

First the network aggregation operator will calculate the value of NAGCSTTRANSPORTUNITCOST of the previous period. Say it is x. Then it will calculate the NAGCSTTRANSPORTUNITCOST for this period as (x * 100 + 500) / 300

[emunozfabra2]

Hello Goutam, thanks again, it was a great help! And do you know how does the lead time affect the cost rollup calculation? For example, I am trying to obtain NAGCSTTRANSPORTATIONUNITCOST mentioned in the first post for RW1 for week 18 and there is lead time=3 between the vendor and the plant. So, would it use for obtaining the unit cost the NAGCSTTRANSPORTATIONCOST of week 20 and NAGTOTALRECEIPT of week 18? Or which values would have into account? Best regards, Elena

[goutam_chatterjee]

Hello Elena, The value of the NAGCSTTRANSPORTATIONCOST is considered to be incurred at the end of the transport. Therefore, the operator will use bot NAGCSTTRANSPORTATIONCOST and NAGTOTALRECEIPT from week 18 to calculate NAGCSTTRANSPORTATIONUNITCOST at week 18. However, if you have a lead time of 3, the operator will not calculate NAGCSTTRANSPORTATIONUNITCOST for the first 3 weeks. This is simply because, in a general case, it need to know NAGCSTTRANSPORTATIONUNITCOST associated with RW1 at the immediate upstream location to the plant in week 18-3 = 15 to calculate NAGCSTTRANSPORTATIONUNITCOST of RW1 at the plant in week 18. If week 18 falls within the first three weeks of the horizon then week 15 will be before the beginning of the horizon and hence not accessible to the operator. Hence the operator skips the first 3 weeks.

[emunozfabra2]

So, If I have my waarehouse which receipts the material from 3 different the vendors (this is the initial node of the supply chain). They supply the same material: Vendor1 LT=0, Vendor2 LT=5 and Vendor3 LT=1. It will start making the NAGCSTTRANSPORTUNITCOST calculation at period +1 (for example, current week is 15, so it will give me the first value at week 16 taking into account only vendor3).