How does CTM select the PPM that will be used for a planning run ?
A five-step process specifies which PPM will be used for a planning run. The selection stops as soon as one PPM is left based on the selection criteria. Here are the five steps of the selection process : 1) On-time fulfillment. First, CTM looks for PPMs that can fulfill the demand on time. 2) Priority or Quota. If both are maintained, the quota will be considered. Otherwise, the priorities (multilevel costs of the plan) for the single PPMs are taken into account. 3) Validity period. The PPM with the validity period that is the closest to the demand date will be selected. 4) Lot size. The following process is used : – The PPM with the greatest maximum lot size is considered first. – Then the PPM with the smallest minimum lot size is used. – If no PPM was selected, a random selection will pick a PPM. 5) If the demand cannot be fulfilled on time, CTM starts late demand handling and steps 2 to 4 are repeated.
