Deployment

❖ Deployment determines which DC’s distribution demand can be covered by the present
supply. In other words, deployment determines how the demand at a location will be meet
with the present supply.

❖ The deployment heuristic creates a distribution plan for one product at one location of the
supply chain model. Once production is complete, the system first checks what product
quantities are actually available at the source locations (locations where there is stock).

❖ The sum of these product quantities is known as the available-to-deploy (ATD) quantity.

❖ The system then determines how the ATD quantity is to be distributed to destination
locations (locations where there is demand).

❖ The system considers the various distribution rules if the available product quantities exceed
or fall below the demand (fair share and push rules).

❖ You can set these rules in the SNP deployment profile or on the SNP 2-tab page of the
location product master.

❖ Deployment takes into account a number of deployment horizons that you also define in the
location product master.

Deployment Horizons
The deployment heuristic takes into account the following four different deployment horizons
(that you define on the SNP2 tab page of the location product master):

Pull deployment horizon: This horizon refers to the period of time over which deployment takes
into account the planned distribution demand. The horizon starts from today’s date.

During the deployment run, the system attempts to fulfill all distribution demands within this
horizon. Distribution begins on the first day for which distribution demands exist in the system
and ends on the last day of the pull deployment horizon.

The pull deployment horizon is also used during push distribution. In this instance, it specifies
whether the demand is to be fulfilled immediately (pull/push distribution) or according to the due
date (pull distribution). It puts a limitation on the date by which SNP stock transfers are to be
considered as relevant for deployment. Within this horizon, deployment only fulfills planned
demand that has been confirmed.

Created by Sandeep Sharma for internal training purpose

 Push deployment horizon: This horizon refers to the period of time over which deployment takes
into account the receipts defined in the ATD receipt category group of the location master. The
horizon starts from today’s date.
If push distribution has been specified (if the distribution demand is smaller than the supply and
stock on hand), this horizon determines whether stock on hand is to be distributed before the
distribution demand due date according to the push rule specified. Only stock on hand within the
push deployment horizon is taken into account for push deployment (deployment before the
actual demand date).
Safety stock horizon: This horizon is only used during push rule Push distribution taking the
safety stock horizon into account.
SNP checking horizon: Deployment uses this horizon to calculate the quantity available for
distributing to demand locations. It puts a limitation on the quantity that is available within the
push deployment horizon. Within the SNP checking horizon, deployment calculates the ATD
quantity for a period by adding up the ATD receipts from the current and preceding periods, and
subtracting all the ATD issues within the SNP checking horizon.

Pull Deployment Horizon Push Deployment Horizon

The Pull Deployment Horizon considers the The Push Deployment Horizon, in comparison,
Fulfillment of Demand from the Distribution Center / considers the distribution of the stock on hand from the
Customer Manufacturing Plant
This is the period of time, over which the deployment
Pull Deployment horizon is that period of time during considers receipts that were defined in the ATD
which the deployment is carried out based on the Receipt category of the location master
Distribution Demand
During a Deployment Run, the total Distribution
Demand within this Horizon is fulfilled. For the purposes of Deployment, the date at which the
Stock on Hand at the Plant is distributed is determined
based on the Push Distribution setting
ATD quantities of the source are considered to fulfil Only stock on hand within the push deployment
demand at the destination horizon of the source is taken into account for push
deployment.to fulfil demand at destination location

Horizon Purpose
Deployment takes into account the planned distribution
Pull deployment horizon
demand.
Push deployment horizon Only stock on hand are taken into account
This horizon is only used during push rule Push
Safety stock horizon
distribution taking the safety stock horizon into account
Deployment uses this horizon to calculate the quantity
SNP checking horizon
available for distributing to demand locations

Created by Sandeep Sharma for internal training purpose

 Distribution Rules
Deployment considers two rules which are defined on SNP2 tab of location-product master, they
are as under.
Fair Share Rules
If demand exceeds supply, the system can use fair share rules to calculate deployment using
the available-to-deploy (ATD) quantity. Various methods use fair share rules to assign a limited
amount of available product to sources of demand. The following rules are available:
Fair Share Rule A: Proportional Distribution Based on Demands
The objective of fair share rule A is to distribute the stock proportionally to all demand locations
according to planned distribution demand.

Fair Share Rule B: Proportional Distribution Based on Target Stock

The objective of fair share rule B is to raise the stock levels at all demand locations to
approximately the same percentage of target stock level. The percentage at each destination
location is defined as the deployment-relevant stock (=stock on hand – SNP stock transfers)
divided by the target stock level. If the deployment-relevant stock, is negative the system first
attempts to raise the stock level at all destination locations up to zero. The system then attempts
to raise the stock level at all destination locations to the same target stock level percentage.

Fair Share Rule C: Percentage Distribution Based on Quota Arrangements

The objective of fair share rule C is to distribute the stock according to quota arrangements at
the demand locations. To apply rule C, you have to define outbound quota arrangements for
source location products in the Supply Chain Engineer.

Fair Share Rule D: Distribution Based on Distribution Priority

The objective of fair share rule D is to distribute stock according to priorities that you defined for
the outbound transportation lanes of the source location (distribution priority). At the onset of a
fair share situation, the system attempts to fulfill all of the current date’s demands until the ATD
quantity is exhausted. For example, you have three outbound transportation lanes to your
destination locations (A, B, and C), each with corresponding priorities (1, 2, and 3). Your ATD
quantity is 150 pieces and the required quantity in each location is 100 pieces. If you choose fair
share rule D, destination location A receives a quantity of 100 pieces over the transportation
lane with priority 1. Destination location B receives a quantity of 50 pieces over the
transportation lane with priority 2, and destination location C receives nothing over the
transportation lane with priority 3.

Created by Sandeep Sharma for internal training purpose

Push Rules
SNP only uses push rules to calculate deployment if the ATD quantity covers the demand. The
following rules are available:

Pull Distribution

Deployment fulfills all of the demand within the pull deployment horizon (for definition, see
below). Products are distributed according to the due date specified at the demand locations.
The system does not distribute any supply to the demand source in advance of the demand
date.

Pull/Push Distribution

The system immediately distributes all supply to the demand locations (ignoring the demand
dates specified at the demand locations) to fulfill all demands within the pull deployment
horizon.

Push Distribution by Demand

The system immediately distributes the entire supply for the entire planning horizon to the
demand locations to fulfill all demands. The pull deployment horizon is ignored.

Push Distribution by Quota Arrangement

The system immediately distributes the supply according to the quota arrangements defined for
the demand location. The demand situation at destination locations is ignored.

Push Distribution Taking the Safety Stock Horizon into Account

The system confirms planned issues that are to be covered by safety stock at the source
location if the difference between the demand and deploy date is smaller than the safety stock
horizon (see below). This means, the system will only fall below the safety stock level that you
defined on the Lot Size tab page of the location product master if the demand to be fulfilled is in
the safety stock horizon. Note that the safety stock horizon moves forward (rolls) with planning.

Created by Sandeep Sharma for internal training purpose

Example

The following example illustrates the three push rules: Pull distribution , Pull/push distribution ,
and push distribution by demands .

This graphic is explained in the accompanying text.

Pull distribution - A quantity of 200 is distributed to the distribution centers on every day within
the pull horizon where there is existing demand (four days into the future).

Pull/Push - A quantity of 200 pieces is distributed on the first day, when supply amounts to 200
pieces. On the second day, a quantity of 600 pieces is distributed. Although supply is 1000
pieces, the demand within the pull horizon is for only 600 pieces, so only 600 pieces are
distributed.

Push distribution by demands - 200 pieces are distributed on the first day when supply amounts
to 200 pieces; on the second day, when the supply is 1000, 1000 pieces are distributed. Since
the demand in the system is 1400, all the supply can be distributed. A demand of 200 at the end
of the planning horizon is left unfulfilled due to insufficient supply within the push horizon. If the
demand in the system had been 800, only 800 would be distributed on the second day.

Created by Sandeep Sharma for internal training purpose

 Push Distribution
Blank-Pull Distribution
Deployment fulfills demand within the pull
deployment horizon on due dates
P- Pull/Push Distribution The system immediately distributes all supply to the
demand locations within pull deployment horizon
ignoring the demand dates

X-Push Distribution by Demand The system immediately distributes the entire supply
for the entire planning horizon, pull deployment is
ignored here
Q- Push by Quota The system immediately distributes the supply according
to the quota arrangements defined for the demand
location. The demand situation at destination locations is
ignored

S- Push Distribution Taking the Safety Stock Horizon into Account Demand fulfilled by Safety Stock within this horizon

Fair Share Rules

Fair Share Rule A Proportional Distribution Based on Demands
Fair Share Rule B Proportional Distribution Based on Target Stock
Fair Share Rule C Percentage Distribution Based on Quota Arrangements
Fair Share Rule D Distribution Based on Distribution Priority of T-Lane
Fair Share Rule U User may define their own rule

Created by Sandeep Sharma for internal training purpose