Automatically Evaluate and Select Alternatives to Meet Demand on Time

You can run a constraint-based supply plan that evaluates the use of alternate sources of supply to overcome demand fulfillment issues.

Configure constraints and decision rules on the Plan Options page, Scope tab, Constraints and Decision Rules subtab in a Supply Planning or Demand and Supply Planning work area. When configured, the planning process evaluates alternate sources, alternate work definitions, alternate resources, and substitute components to ensure that supply orders meet demand on time.

Supply Planning Logic to Automatically Evaluate and Select Alternatives

Constrained supply planning prioritizes satisfaction of demand due dates higher than the need to respect resource or supplier capacity constraints. When a capacity constraint exists, the planning process will:

1. First try to satisfy the demand in an earlier time bucket by using the primary sources of supply.

2. If there is no capacity available on the primary on or before the demand due date, the planning process selects alternate sources of supply.

3. If there is no capacity available on the primary or the alternate on or before the demand due date to fulfill demand on time, then the planning process overloads capacity.

Supply Planning Sequence to Automatically Evaluate and Select Alternatives

The planning process uses a specific sequence for alternate selections.

1. Use alternate resources

2. Use substitute components

3. Use alternate item structures and work definitions

4. Use alternate suppliers and source organizations

Before Setting Up Constraints and Decision Rules

Before you set up your constraints and decision rules to automatically evaluate and select alternatives to meet demand on time, consider the following implementation advice:

• Define the alternates in the supply chain to meet our specific business needs. Understand that some alternates are expensive.

• Select only those alternate options in supply planning for which there is corresponding data in the source.

Alternate Resource Rules

You can use alternate resources with these supported setups:

• One alternate resource is specified for one primary resource.

• One alternate resource is specified for one primary resource, and one alternate resource is specified for the simultaneous resource.

• Multiple ranked alternate resources specified for one primary resource.

These setups aren't supported with respect to alternate resources:

• Multiple alternate resources (used simultaneously) to replace one primary resource.

• A set of alternate resources (used simultaneously) to replace a set of primary resources (used simultaneously).