IBP transport extra stock to warehouse

[kimon_stergakos]

I am running Lot-Size procedure 2. Running Heuristics infinite supply at a weekly level. I have plant MW01 and distribution centers AB01 and AB02. I setup number of subperiods and target periods of supply for both plants and distribution center.

My plant MW01 only produces finished product and does not store anything. Anything that gets produced immediately gets put into a shuttle and delivered to AB01 or AB02.

The concept is: I cannot have stock build up in MW01 when using lot-sizing procedure 2.

I have dependent demand in AB01 and AB02. Based on the subperiod values my net demand is dependent demand + target periods of supply for each AB01 and AB02. (7 subperiods / 4 target periods of supply = 4 days)

MW01 will produce all the net demand for each AB01 and AB02 for 28 periods (7 subperiods / 28 target periods of supply = 4 weeks).

During the supply plan run Transport Receipts/Transport Supply is calculated for each period to transport to AB01 and AB02, but only for the net demand of that period. Because MW01 produced for 28 periods during the first period stock will build in MW01 unless I manually adjust the transport receipts in period one to transport the extra stock between AB01 and AB02.

How can I get IBP to take the extra stock in MW01 and distribute proportionally to AB01 and AB02 by increasing the transport receipts during the heuristic supply run?

I attached a live example and highlighted the projected stock in MW01. On the day of production the entire quantity should go to AB01 or AB02. Not in subsequent periods.

ibp-example.jpg

[kimon_stergakos]

Hello Revan,

That worked. Also, gave me greater insight to other options.

Sincerely

Kimon

[kimon_stergakos]

Hello Revan,

That makes so much sense. I will give it a shot and get back to you.

Sincerely,

Kimon

[revanchatraban]

Hi kimon.stergakos,

If you don't have stock build up at MW01, why are you using lot-sizing procedure 2 at MWO1?

You can look for lot-sizing procedure 0(lot for lot) at MW01 and Let your DC's use the lot sizing procedure 2 with appropriate "Target Subperiods of Supply". Since the demand for MW01 is coming from 2 DC's, you can maintain the appropriate "Target Subperiods of Supply" at DC's that drives the production in MW01.

Thanks and Regards,

Revan C

[kimon_stergakos]

Hello Revan,

I missed one additional requirement. If we use the Production Receipts Adjusted for MW01 to make more than the total dependent demand for AB01 and AB02 there will be stock held at MW01. How can we get IBP to take the extra stock and move it to AB01 or AB02?