Sourcing Due Date Filter for Availability Check
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Solution Overview
Problem
In supply chain management, existing systems face challenges in confirming early-needed product requirements without consuming available quantities, as they rely on backordering processes that redistribute from later to earlier needs, leading to inefficiencies and potential unfulfilled demands.
Innovation Solution
Introducing a Sourcing Due Date calculation to determine when to initiate sourcing, allowing for an availability check that prioritizes confirming early-needed requirements by distinguishing between sourcing due dates earlier or later than a predetermined date, thereby protecting available quantities from being consumed by future demands.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If ATP check is performed for future requirements, then availability is confirmed, but available quantity is consumed and cannot be used for earlier requirements
Solution Approach 1:
The system calculates a sourcing due date based on the material availability date and performs ATP checks only for requirements where the sourcing due date is in the past or current. This preliminary timing mechanism ensures that only requirements that can be fulfilled with currently available quantities are confirmed, preventing future requirements from consuming available stock that is needed for earlier deliveries.
2Reliability
If backordering process is used to redistribute from later to earlier needs, then earlier requirements can be confirmed, but the process is inefficient and time-consuming
Solution Approach 1:
Instead of performing backordering processes after requirements are submitted, the system preliminarily determines the sourcing due date and uses it as a filter criterion for ATP checks. This allows the system to immediately identify which requirements can be confirmed with current availability without needing to perform time-consuming backordering operations later.
Solution Approach 2:
The system introduces a new parameter (sourcing due date) that is calculated from the material availability date and used as a filtering criterion. By changing the parameter used for ATP check selection from purely time-based to availability-based, the system efficiently identifies confirmable requirements without needing complex backordering algorithms.
3Adaptability or versatility
If ATP check is performed without considering sourcing due date, then all requirements are processed equally, but available quantity may be reserved for future demands instead of immediate needs
Solution Approach 1:
The system applies different treatment to different requirements based on their sourcing due date. Requirements with sourcing due dates in the past or current are treated differently from those with future due dates. This local differentiation ensures that available quantity is prioritized for requirements that can be fulfilled immediately, improving supply chain efficiency while maintaining adaptability to various requirement scenarios.
Data Source
AI summary
Methods and systems are disclosed for processing a product order. In one implementation, a method is provided that includes receiving a product order from a customer and determining, based on the received product order, at least one of a date on which the products should be available at a location and a date by which the products should be issued out of the location. The method may also include calculating, based on the determined date, a sourcing due date on which to initiate sourcing, and performing an availability check for the ordered products on the basis of the dates when the sourcing due date is earlier than a predetermined date.