Fair Share for Demand with Demand Cost Rules
In order to use fair share for demand, you must maintain demand cost rules. The groups are built for all demands for a certain material in a specific location, which means, that a fair distribution is performed globally for location materials. Demands for one location material are sequenced by requested date and time and are then fulfilled completely until no supply is left for the group.
Fair Share for Demand with Demand Prioritization
The demand prioritization rule of the planning run profile must contain at least one demand fair-share segment. If not, no fair share for demands is performed.
The period type and portion size key figures you can maintain for fair-share sets are not considered by the optimizer. This means that a proportional distribution within a fair-share segment cannot be achieved. Instead, an even distribution is always performed. Demands within a fair-share set are fulfilled completely until no supply is left for the set. The demands in the set are sequenced by requested date and time.
Non-delivery costs are generated for each segment of the demand prioritization rule using the following formula:
Non-Delivery Cost Weight * ( 1 + 1/(Segment Priority+1) )
A General discounting is applied bucket by bucket to prioritize fulfillment of earlier demands.
Tiered Linear Cost Function for Non-Delivery Costs
Optimization uses a linear cost function for the non-delivery costs depending on the demand fulfillment. If you define a demand fair-share segment in your demand prioritization rule and you determine the demand costs by demand prioritization, all fair-share sets in this segment get the same non-delivery costs.
Fair Share for Demands Accuracy
Fair Share for Demands accuracy depends on the number of tiers and the differences in requested quantities.
