Why does CTM create an excess of supply ?
The excess of supply might result from the lot size specifications. For example the product A at location Loc1 has a minimum lot size of 100 and the input component B at location Loc1 has a minimum lot size of 50.000. When you use backward scheduling CTM creates orders of lot 100 for the product A in order to fulfill demands at time t1, t1-x and t1-2x. ——–o————–o————–o——–> t t1-2x t1-x t1 The corresponding input component B is also created in the same order. But the supply of 50.000 created at time t1 cannot be used for the demand at time t1-x and so on. Consequently CTM creates multiple orders of 50.000 and you get an excess of supply. To correct this situation you can define another CTM profile and plan for product B only. This profile will correct the excess stock situation.
