This discussion is archived
1 Reply Latest reply: Dec 21, 2012 1:57 AM by Durgesh P RSS

Demand Pegging Sequence is wrong

921897 Newbie
Currently Being Moderated
** I have a low level ingredient with a bunch of dependent demands in Mfg Org, staggered through out the planning horizon. All dependent demands flow from SO/Forecast in Sales Org (Transfer rules or IS/ISO bridge the Sales Org --> <--Mfg Org demand/supplies)

** I have on-hand qty for a few purchase orders for this component

** I use safety stock

Problem:
*******
ASCP recommends to 'Reschedule In' a PO, even though my On-hand Qty is enough to cover safety stock and all demands till the original scheduled receipt date of that PO. Why is ASCP not using up the On-hand Qty first, before recommending to 'Reschedule-In" PO?

Looking at demand pegging, I am seeing that this PO is pegged to an +earlier demand+ (causing 'reschedule-in' recommendation). Meanwhile, +On-Hand Qty+ is pegged to +later demand.+ Any ideas why this arbitrary/incorrect demand pegging sequence? Isn't On-Hand Qty supposed to be pegged first before switching to POs?

I tried +FIFO pegging+, +Standard Pegging+ & +Priority Pegging+. None seems to make a difference. Do these pegging methods make difference for lower level components at all? (whose parent/grand parent independent demands may have different demand priorities)

Thanks
Siva
  • 1. Re: Demand Pegging Sequence is wrong
    Durgesh P Newbie
    Currently Being Moderated
    Hi Siva,

    Since you are using safety stock, it is a common misunderstanding that scheduled receipts are being pegged to demands even before on-hands.
    Consider using horizontal plan to analyse pegging details. Horizontal plan gives a better picture.

    If required, remove safety stock from the plan and check if you still get the same result. (PO reschedule even with onhand present)

    As far as different pegging methods are concerned, since pegging is done on item to item basis, it applies to all items no matter they are independent demands or dependent demands.

    Regards,
    Durgesh.

Legend

  • Correct Answers - 10 points
  • Helpful Answers - 5 points