Constrained Forecast Run

(Finite Heuristic)
November 20, 2020

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AGENDA
 Overview

 Basic Settings of OBP

 Demo of Constrained Heuristic run

 Analyze results in WebGUI Apps

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Overview
Order-based planning (OBP) helps you to create a supply plan using operational data and reacting to
short-term changes. This approach enables supply planning from an operational perspective: It uses
detailed data from external systems, and considers, for example, planned orders, production orders,
sales orders, and purchase orders.

• The OBP finite heuristic takes order data and input key figure values and uses them to calculate a
priority-driven, order-based supply plan, taking constraints into account.

• For demands, the priority is derived from the demand prioritization rules maintained in planning
run profiles. For sources of supply, the priorities are integrated from external systems.

• As opposed to the confirmation run, the constrained forecast run does not consider sales orders
or forecast consumption

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Planning parameters considered in Finite Heuristic :

• Demand Prioritization • Freeze Horizon for Production and

Distribution
• Source of Supply Selection Profile Type Priority or
Alternating • Demand Fair Share

• Production/Shipping/Receiving/Transportation • Planning With Inbound Quota

Calendar
• Mode of Transport
• Safety Stock and Target Stock

• Maximum Lateness

• Production Capacity

• Supplier Constraint

• Lot sizes

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How OBP Finite Heuristic works?
The finite heuristic's calculation process (for each product in turn) is outlined in the following logical
overview. It does the following:

a) Tries to satisfy all demands within the scope of the planning run. Demands are sorted by
priority, with higher priority demands satisfied first.

b) First tries to satisfy each demand by searching for available stock at the demand location. If the
available stock isn't enough to satisfy the demand, it uses Production data structures or
Transportation lanes (for stock transfers and for procurement) to fulfill demand.

c) Chooses the sources of supply by priority and then does the following:
i)For production data structures, creates the production receipts and component demands.
Ii)For transportation lanes (stock transfer), creates a receipt in the target location and a demand
at the source location.
Iii)For transportation lanes (procurement), creates a purchase requisition.

d) Repeats steps 2 to 4 for all demands (from high priority demands to low priority demands).
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Basic Settings:

• Forecast Consumption Profile

• Settings for Order Based Planning

• Planning Run Profiles

• Fair-Share Set profiles

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Forecast Consumption profile
• In the Order-Based Planning: Constrained Forecast Run, forecast consumption profiles define
that, and on which level, forecast key figures are read

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Settings for Order Based Planning
• You can use this app to make all the initial settings required for performing order-based planning
processes - for example, specifying the planning area and the key figures.
• Ensure that the planning area you are configuring in this app is in “Operative “ status.

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Settings for Order Based Planning

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Planning Run Profiles:
You can use this app to define various constraints for constrained forecast run:

• Demand Prioritization Rule

• Switchable Constraint

• Maximum Lateness rule

• Source of Supply limit

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Demand Prioritization Rule
• A demand prioritization rule is a set of conditions that defines the priority of each demand in any given list
of demands.

• Each demand prioritization rule consists of a pre-allocation segment, one or more demand prioritization
segments in a sequence, and a catch-all segment. Segments are the building blocks for the demand
prioritization rules.

• The pre-allocation segment (0) is for the following demand types:

 Deliveries
 Dependent demands of fixed supply elements
 Dependent demands of supply elements within the freeze horizon
 Manually adjusted quantities

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Demand Prioritization Rule

• Rules for other Demand types Such as Forecast, Sales orders can be maintained from Segment 1 onwards.

• The remaining demand types/categories are assigned “catch-all segment(9999)”. If no rule assigned for
Forecast/Sales order, they are considered as part of “catch-all segment”.

• To prioritize demand within a segment, you can choose one of the 2 options:

 Demand sequence segments

 Demand fair-share segments

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 Fair Share sets:

• When the finite heuristic applies demand fair share,

demands are placed in fair-share sets.
• The sets are built based on the OBP planning level
selected in the fair-share set profile of the segment.
• Fulfillment takes place in a round-robin manner
among the fair-share sets.
• Demand quantities are fulfilled lot by lot. The lot is
determined by interpreting the dimensionless
portion size in the base unit of measure of the
demand’s location material.
• The fair-share set then receives supply equal to its
portion size and this supply quantity is given to
demands in the set

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Scenario 1- Standard Scenario

4301

4101

4311

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• Planning run profile has priority for Demand type Forecast

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 Demand By priority
• Through a planning simulation, this app enables you to check how demand is prioritized
according to a selected planning run profile.

The app displays the following details:

• Prioritization of demands, which can

be either from a sales order or from a
forecast, for the selected location,
material, version, planning run profile,
planning start date, and time zone,
which is defaulted to the user's time
zone.
• Rank associated with each of the
prioritized demands.
• Competing sales orders for the
selected location and material

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Finite heuristic run-1

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Scenario 2- Priority to DC 4301

4301

4101

4311

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Planning run profile
• Priority is given to forecast of DC 4301 during heuristic run

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Demand By priority
• The demand priority App show preference given to DC 4301

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Finite heuristic run-2

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Scenario 3- Fairshare by Portion size

4301

4101 Portion Size

4311

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Planning run profile
• Priority is given based on fairshare profile maintained

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Demand By priority
• The demand priority App show equal priority to both locations

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 How does fair share work?
The fair share sets receive supply equivalent to their portion size in Round Robin manner. When all
fair-share sets have received supply, but the overall demand quantity has not yet been fulfilled,
another round-robin turn starts.
This is repeated until the available supply is used up or no supply can be created anymore

DC1 DC2 • For example, you have 2 DC, with portion size equivalent to
100 and 50.
100 50

100 50 • The supply from plant is 1200 units.

100 50
• Now, for every 100 unit which goes to DC1, 50 goes to DC2.
100 50 This is the 1st round robin.
100 50
• In 2nd round robin, another 100 and 50 units are given to both
100 50
DC.
100 50
• This process continues until the supply is exhausted.
100 50

Total 800 400 Copyright © 2020 Accenture All rights reserved. 25

Finite heuristic run-3

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Analysis of Constrained Heuristic Run:

• Gating Factor

• Projected Stock

• Analyze Supply Usage

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Gating Factor
• A gating factor is anything that prevents you from fulfilling an order on time, for example,
insufficient stock or manufacturing capacity. In order-based planning, the batch planning runs
calculate gating factors and update them for the planned scope.

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View Projected Stock
• You can use this app to see if demand outweighs supply at any point in the network. This can
happen if the projected stock levels of a certain material fall below zero, or simply below a safety
stock level that you have specified.

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Analyze Supply Usage
• You can use the Analyze Supply Usage app to view whether your supply is pegged and, if so, to
which demand and to see which resources are occupied to cover which demands.

• Supply Usage: In the Supply Usage tab, you can directly trace the pegging relationship of
individual receipts on any level of the supply chain to their independent demands

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Analyze Supply Usage
• Resource Usage: In the Resource Usage tab, you can see the resources that are occupied to
produce. Since this lets you see whether the production resource is occupied to cover an
important independent demand, you can react and free up production resources to fulfill
independent demands of higher priority, if necessary.

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THANK YOU

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