Supply Assignment Run (ARun) with Back Order Processing (BOP)

[rameshraja_r]

For Overview of Supply Assignment (ARun), refer blog.

This blog explains how to execute Supply Assignment through BOP Variant. For more details on Back Order Processing (BOP), refer documentation.

Pre-requisites:

1. Check the Pre-requisites mentioned here.


2. User must have roles SAP_BR_ORDER_FULFILLMNT_MNGR and SAP_BR_ORDER_FULFILLMNT_MNGR_R

Scenario:

In a Make to Stock business, where there is a huge demand for a product, below are some of the key business requirements where supply assignment helps to achieve them:

• Customers' Orders need to be prioritized based on the business requirements


• Once product availability is committed to customers, the committed dates and units must be preserved


• Allocate on hand inventory based on certain priorities (such as manufacturing date, shelf life, storage location, etc.)


• Allocate future receipts (Purchase Orders, Inbound Deliveries, Production Orders) to demand and reserve the supply for deliveries


• Ensure minimum % of the ordered quantity is met so that customer is satisfied, and also multiple shipments can be avoided

In this example, let us take 4 Customer Orders which has 100 units each. There are 3 batches in the system with 100 units each.

Configuration/Setup:

Below are the configuration/setup required to carry out supply assignment.

• Supply Assignment Rule:

From S/4 HANA 2020, it is mandatory to configure Supply Assignment Rule, and this will be maintained in BOP Variant.

Go to Fiori App, ‘Configure Supply Assignment Rule’ and create a new rule.

Configure Supply Assignment Rule

Note: In this example, we enter a supply sort rule which sorts the supply based on the shelf-life expiry date.

Configure Supply Sort Rule

• BOP Segment:

Go to Fiori app, Configure BOP Segment.

Create a new BOP Segment and maintain the desired selection and sorting criteria for requirements. (In this example, we use delivery priority and requested delivery date).

Configure BOP Segment

• BOP Variant:

Go to Fiori app, Configure BOP Variant.

Create a new BOP Variant. Select Execution Method as ‘Supply Assignment’. Enter the Supply Assignment Rule.

Configure BOP Variant

Execute Supply Assignment

Click on ‘Run’ in BOP Variant. You can also use ‘Schedule BOP Variant’ Fiori app to schedule the execution of BOP Variant.

Execute BOP Variant

Schedule BOP Run

 

Analyze Results

The Results of Supply Assignment can be seen in multiple places such as Insight to Action (ARUNITA), Monitor Supply Assignment Runs, Monitor Supply Assignment Demand, Supply Demand Overview (Flexible Analysis), etc.

For instance, go to Fiori app, Monitor Supply Assignment Runs. Here you can see the details of the requirements and assignments.

Monitor Supply Assignment Runs

 

Monitor Supply Assignment Runs (Details)

In this example, Supply Assignment was executed in sequential mode. It is also possible to execute a proportional supply distribution in Supply Assignment which will be covered in next blog.

Please share your comments/questions/thoughts on this, if you find this is a valid fit for your requirement.

[dz0126]

Thank you Ramesh for sharing all the information around Supply Assignment! I have some basic questions between ATP and Supply Assignment:

1. How do we ensure that the Supply Assignment is consistent with the ATP? For example, there are two orders with 100 EA demand each. There are only 100 EA in stock and the rest should be confirmed with lead time. Let's suppose the request date is the same for both orders. With ATP alone, SO1 is sequenced before SO2, so that SO1 is confirmed on the requested date with 100 EA; SO2 is confirmed on a future date based on lead time. What if user manually assign the 100 EA to SO2 via ARUNITA? Should the confirmation date in SO1 & SO2 change then?


2. Another case might be: we used to have 100 EA in stock and assigned to certain sales order. Somehow, 20 EA are damaged later on and warehouse has scraped them. Will the assigned qty get reduced automatically during next BOP run?


3. In some business cases, we only want to do the auto stock assignment for orders with request date within 10 days. I see there is supply time frame but don't find anything about demand time frame. How should we achieve this? Maybe this can be done via the BOP segment with request date as one of the criteria, so the assignment only happens for such orders?


4. When the assignment is with future supply (like purchase order), once it turns to stock, the relationship still keeps, correct? (I wonder how this is achieved...) I see this function is much more flexible than the purchase-to-order or make-to-order planning strategy where the purchase order or production order has to tie to sales order, and also later on the stock. With this function, it allows bulk purchase/production and at the same time secure the assignment.

Thanks in advance & looking forward to your reply!

 

Cheers,

Dawn

[rameshraja_r]

Hi Dawn,

Below are my answers:

1. Yes, the assumption is correct. It is possible to configure to retain manual assignment or carry out reassignment based on new priorities in BOP.
2. Yes, it is possible to configure auto unassignment rules to remove the link for specific movement types.
3. Yes, this can be done with demand selection criteria in BOP or ARUNITA or MSAD.
4. Yes, the understanding is correct. The assignments are carried over from future supply (PO, IBD, Production Order) to stock after goods receipt.

Regards,

Ramesh

[dz0126]

Thank you, Ramesh! Appreciate the timely reply. 🙂 I'd try out in our system. It will be interesting to see.

Cheers,

Dawn

[dz0126]

Hi Ramesh,

One thing just to double confirm - is Scheduling Agreement fully supported with Supply Assignment function? Coz in your blogs and on-line help, they all mention about Sales Order not SA.

Furthermore, when Supply Assignment happens during BOP, does it cover with SA too?

Thanks again!

Dawn

[rameshraja_r]

Hi Dawn,

Supply Assignment is currently not supported for scheduling agreements. Supported Sales documents are Sales Orders, FOC orders, Requirement relevant Contracts.

Regards,

Ramesh

[dz0126]

Thanks again, Ramesh!

Cheers,

Dawn

[apigoli]

Hello Ramesh,

one question please: how Supply assignment (ARUN) works without ATP (no ATP at Sales Order creation and no ATP into BOP): What is the delivery date/Requirement date taken into consideration into Supply Assignment?

Thank you very much

Andrea