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Unable to partially source an order from warehouse and vendor node

Troubleshooting


Problem

Attemtps to schedule an order sources all the items from a vendor node in in IBM Sterling Order Management System.

Symptom

Steps to reproduce:

  1. Setup the vendor node as the Primary Supplier at the Item level. Vendor node is having infinite inventory.

  2. Sourcing rule includes 2 sequences:
    -Sequence No 1: Distribution Group containing the warehouse nodes.
    -Sequence No 2: Template Type-Primary Vendor.

  3. Set the items Onhand inventory as 8 at the warehouse node.

  4. Create a warehouse node (e.g. warehouse_node1) & a vendor node (e.g. vendor_node1).

  5. Create an item (e.g. Item1). For Item1, go to the Inventory Info tab and from Primary Supplier dropdown select vendor_node1.

  6. Adjust 8 quantity of onhand inventory for Item1 at warehouse_node1.

  7. Create a distribution group (e.g. DG1) for warehouse_node1. Give priority=0.

  8. In scheduling rule, Optimize On is set to Priority.

  9. Create a sourcing rule containing 2 sequences:
    -Sequence No 1: Distribution Group-DG1 containing the warehouse_node1.
    -Sequence No 2: Template Type-Primary Vendor .

  10. Create an order for 10 quantity of Item1. Schedule the order.

Actual Result: All 10 quantity of Item1 gets sourced from vendor_node1.
Expected Result: In this case, item quantity of 8 should get sourced from warehouse node and 2 should get sourced from vendor node.

Diagnosing The Problem

If the inventory is partially available in the warehouse and vendor node, then the order gets completely sourced from vendor node instead of first using the inventory from own warehouse and then going to the vendor node for the remaining quantity.

Resolving The Problem

Sourcing and Scheduling configuration can be changed to meet the business use case.
Following are the 2 possible approaches to achieve this use case.

Solution 1:

  1. In scheduling rule with Optimize On-Priority:

  2. Give highest priority (e.g. 0) to warehouse node and less priority to vendor node (e.g. 100).

  3. Create a separate distribution group (e.g. DG2) for vendor_node1. Give priority=100.

  4. Update the Sourcing Rule:
    -Sequence No 1: Distribution Group-DG1 containing the warehouse_node1.
    -Sequence No 2: Distribution Group-DG2 containing the vendor_node1.

  5. Create an order for 10 quantity of Item1. Schedule the order.

Result: 8 quantity of Item1 gets sourced from warehouse_node1 and 2 quantity of Item1 gets sourced from vendor_node1.

Solution 2:
In landed cost configuration, provide less handling cost (e.g. 1) to warehouse node and high handling cost (e.g. 5) to vendor node.
  1. Update Scheduling Rule: Set Optimize On to Cost, Number of Shipments, No changes in Sourcing Rule:
    -Sequence No 1: Distribution Group containing the warehouse node.
    -Sequence No 2: Template Type-Primary Vendor .

  2. Create a new Node Type for primary vendors (e.g. Vendor).

  3. Update the vendor_node1 configuration:

  4. Set the Node Type to Vendor.

  5. Enable the Landed Cost and Handling Cost.

  6. In Enterprise Node Type Rules pane:
    For Node Type - Store: Update Inbound and Outbound Handling Cost. Set Per Unit=1.

  7. Create a new Enterprise Node Type Rule:
    - Set Node Type to Vendor.
    - Update Inbound and Outbound Handling Cost. Set Per Unit=5.

  8. Create an order for 10 quantity of Item1. Schedule the order.

Result: 8 quantity of Item1 gets sourced from warehouse_node1 and 2 quantity of Item1 gets sourced from vendor_node1.

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Document Information

Modified date:
16 June 2018

UID

swg21987990

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