Plan Considering Sourcing Rules Across Multiple Ranks

To reduce risk in the supply chains, you can create sourcing rules to optionally allocate supply to rank 2 sources such as buy from alternate suppliers. With this update, you can commission production and make at rank 2 facilities or transfer assemblies from rank 2 source organizations.

Consider a supply chain in which you buy component items for the MFG manufacturing organization from both primary Supplier1 and alternative Supplier2. Sourcing rules with Rank 2 sources are transformed into Rank 1 sources with Allocation Percent equal to 0 during a sales and operations plan run.

Rank 2 Sources Transformed Into Rank 1 With Allocation Percent Equal To 0

Rank 2 Sources Transformed Into Rank 1 with Allocation Percent Equal to 0

Follow these steps to consider multiple ranks for sourcing rules in a sales and operations plan:

  1. On the General subtab on the Supply tab on the Plan Options page for the sales and operations plan, modify the value for Sourcing Ranks to Include from the default value of 1.

General Subtab on Supply Tab on Plan Options Page for Sales and Operations Plan

General Subtab on Supply Tab on Plan Options Page for Sales and Operations Plan

  1. Run the sales and operations plan with the Refresh with current data option selected. Sourcing Ranks to Include is used to consider multiple ranks up to and including the value specified for this option for sourcing rules in the plan’s assignment set. In this case, the plan transforms sourcing rules with Rank 2 sources into Rank 1 sources with Allocation Percent equal to 0.

Sourcing Rule

Sourcing Rule

  1. Analyze the sales and operations plan results. In an unconstrained plan, sourcing rules with Rank 2 sources are transformed into Rank 1 sources with Allocation Percent equal to 0, but these sources aren’t used.

    Sourcing Allocation Percentage in an Unconstrained Plan

In a constrained plan, sourcing allocation is considered as a soft constraint. If an alternative source must be used to meet demands, then it can be used.

Sourcing Allocation Percentage in a Constrained Plan

            Sourcing Allocation Percentage in a Constrained Plan

Alternative Source Used in a Constrained Plan

Alternative Source Used in a Constrained Plan

Steps to Enable

You don't need to do anything to enable this feature.

Tips And Considerations

  • Setting the Sourcing Ranks to Include option to a value greater than 2 transforms these sources into Rank 1 sources with Allocation Percent equal to 0 during the plan run. However, it’s possible in a constrained sales and operations plan that any of these alternative sources with Allocation Percent equal to 0 can be used regardless of the sourcing rule rank. Consider a supply chain in which you transfer the same category of assembly items from three manufacturing organizations MFG1, MFG2, and MFG3 with Rank 1 (100%), Rank 2 (100%), and Rank 3 (100%) respectively. In Plan Options, Sourcing Ranks to Include is set to 3 and both Rank 2 and Rank 3 sources are transformed into Rank 1 sources with Allocation Percent equal to 0 during the sales and operations plan run. In a constrained plan, sourcing allocation is considered as a soft constraint. It’s possible to transfer from MFG3 instead of MFG2 because both organizations are considered as alternative sources in the plan.
  • In unconstrained sales and operations plans, Rank 1 sources with Allocation Percent equal to 0 won’t be used. In constrained sales and operations plans, Rank 1 sources with Allocation Percent equal to 0 can be used.

Access Requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

  • Manage Sales and Operations Planning (MSC_MONITOR_SALES_AND_OPERATIONS_PLANNING_WORK_AREA_PRIV)
  • Run Plan with Snapshot (MSC_RUN_PLAN_WITH_SNAPSHOT_PRIV)

These privileges were available prior to this update.