Subnetworks
As mentioned in Unit 10, a subnetwork is a subsection of the overall supply chain network for which a planner is responsible or that the planner wants to plan in a separate planning run (for example, all location products in a particular region or all location products in a particular product group). Splitting a large network into non-overlapping networks by using Subnetwork IDs is a leading practice that makes it possible to improve performance of supply planning solvers (mostly optimizer).
Note
If you do not select any subnetworks when you start a new planning session (and provided you have the required permission) the planning algorithm will plan the entire supply chain network.Subnetwork key figures leverage the subnetwork segmentation logic. This next section explains how you can use subnetwork key figures to do the following:
Divide the entire supply chain network into smaller subnetworks based on the responsibility of planners or according to product groups or any other criteria.
Allow independent planning of subnetworks by decoupling subnetworks during planning.
Connect independently planned subnetworks by fixing demand and supply between subnetworks.
- Specify internal prices (for example, for goods bought and sold between subnetworks or for semi-finished goods supplied by other subnetworks) and calculate the costs of transporting goods between subnetworks.
Inter-Subnetwork Transport Receipts (IPUTRANSPORT)
Base planning level: Product – Location – Ship-From Location
You use this key figure to fix the receipts delivered to a subnetwork from upstream subnetworks.
This key figure is an input key figure and an output key figure:
Input key figure: If you enter a value in this key figure, it overrules the values in the Transport Receipts and Adjusted Transport Receipts key figures defined in the supply plans of neighboring subnetworks. It therefore allows you to decouple a subnetwork from planning changes in upstream subnetworks.
Output key figure: If the parameter Compute Expected Supply is activated, the planning algorithm writes the calculated supply to this key figure.
This key figure is taken into account only when the arc it belongs to is an outer-border arc (an arc between a selected and a non-selected subnetwork in the planning session). Any value entered in the key figure is ignored if the arc is an inner-border arc (an arc between two selected subnetworks). Note that the arc is a location source of supply.
Inter-Subnetwork Dependent Location Demand (IPUDEPENDENTLOCATIONDEMANDDS)
Base planning level: Product – Location – Ship-To Location
You use this input key figure to fix the demand received by an upstream subnetwork. It is used to calculate the dependent demand of the subnetwork.
If you enter a value in this key figure, it overrules the value in the outbound location demand key figure propagated from downstream subnetworks. It therefore allows you to decouple a subnetwork from planning changes in downstream subnetworks.
Note that this key figure is taken into account only when the arc it belongs to is an outer-border arc (that is, an arc between a selected and a non-selected subnetwork in the planning session). Any value entered in the key figure is ignored if the arc is an inner-border arc (an arc between two selected subnetworks).
This key figure is overruled by the adjusted transport receipts key figure.
Inter-Subnetwork Production Component Supply (IPUPRODUCTIONCOMPONENTDS)
Output Product - Location - Product - Source ID
This key figure is relevant if the components and the output product of a production source belong to different subnetworks. If this is the case, the key figure stores the values of the production component key figure from the previous planning run of the upstream subnetwork to which the components belong.
Inter-Subnetwork Receipts Cost Rate (IPURECEIPTCOSTRATE)
Base planning level: Product – Location
You use this input key figure to specify the internal procurement price per unit for goods (for example, semi-finished products) supplied by another upstream subnetwork, rather than from outside your company. The values you enter relate to the delivery time at the receiving location (that is, the period in which the goods arrive at the location).
Transport Ship-To Receipts (TRANSPORTRECEIPTSHIPTO )
Base planning level: Product – Location - Ship-To Location
This output key figure shows the quantity transported from one location to another location in a particular period. Used only for subnetworks, this key figure contains the same values as the transport receipts key figure (base planning level Product - Location - Ship-From Location); the only difference is the structure of the key. Both key figures are based on delivery times at the ship-to location (because the transportation costs are calculated for the period in which the goods arrive at the ship-to location).
You calculate transportation costs by multiplying the value of this key figure by the value of the transportation cost rate key figure, period by period. This simple calculation is possible because both key figures have the same key structure. There's no output key figure for transportation costs, so to display transportation costs per lane, you have to configure a calculated key figure using the logic above. By aggregating all outgoing lanes, you can see the overall transportation costs for a location product.