Fair share occurs across products, locations, customers, and time buckets in the network - not one product at a time - resulting in the right product mix when common constraints exist, such as shared production lines or BOM components.
- If the demand is already met at the third segment, it will get additional supply only when all other demands are first ensured to be at the same level as segment 3.
- The demands are met by supplies closer before unmet demand is propagated to upstream supply; that is, netting occurs closer to the demand.
A maximum of 10 segments is allowed. It is recommended that you use 4-5 segments, if fair share is desired.
Demand priority patterns (Z, N, and Hybrid) are impacted, as additional costs are assigned internally by the engine to force the same level of attainment across the network. For more information, see the exercises.
With lateness, there is a small additional cost added to meeting the demand on-time as well - see the objective function above.
Distribution planning needs to consider differences in lead times when planning bucket is by Day. It is important to design the cost model such that the dependent demands from various nodes served by an upstream node is seen in a fairshare manner.
Fair share may be limited to products with regular demand. Small and sporadic demands may be assigned higher non-delivery costs and turned off for fair share - by location or by customer.
True costs are often considered in S&OP processes for decision support - however, use of these actual costs can make for complex optimizer cost modeling, limiting the modeling choices. It may be desirable instead to track these actual costs in separate key figures, while using notional or modeling costs for the optimizer.
One of the key challenges for a better product mix is to manage the Max Inventory key figure effectively, especially if you have push production. There are many approaches to setting this key figure externally - presently, there is no app to automate setting this key figure.
