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5.1.0 Decision tree FG definition

The Decision Tree for FG, as conceived by Supply Chain Excellence, is as follows :

Syensqo IS - Customer Support > 2. Procurement LT for P&I > image2021-3-1_13-9-15.png

5.1.1 "Decision tree FG" in DynaSys

In DynaSys DiP, it corresponds to the tab "Decision tree FG" inside the workspace "PI - FG"

Syensqo IS - Customer Support > 2. Procurement LT for P&I > image2021-3-1_13-12-30.png

KPI	Definition
Proposed SHS	The Proposed Stock Holding Strategy (SHS) represents the output of the Decision tree in DynaSys by considering all the different criteria (see "Decision tree FG definition" above). This Proposed SHS will be used into calculating the "Cycle Stock proposed", "Safety Stock proposed" and "Target stock proposed", and compare them to the existing current Cycle, Safety and Target stock. Example values : for Finish Goods, possible values are MTS, MTO and MTO-FB.
Reason	It gives the reason of the proposed SHS, to guide the user as to why the SHS is proposed. It represents the different decision nodes of the Decision tree. Example: for Proposed SHS = MTS, a reason code could be "Low Internal sales ; CLT<RLT" correspond to a . Another example, now for Proposed SHS = MTO-FB, it's the reason = "High Internal Sales".
Internal sales %	It's based only on the next 12 months and it's the results of dividing the Internal sales (to other Solvay sites) to the Total Sales (Internal + External). Note: the term "Internal sales" includes the sales to other Solvay sites (either intra GBU or inter GBU). the term "External sales" includes only the sales to external Customers. Example: if I'm in Clamecy site of Novecare, flows to Spartanburg site will be considered internal sales. Flows to a TS site will also be considered internal. Flows to any external customer will be external
Catalog lead time SAP	It represents the "Promised Lead time" to the Customer. Source: For Novecare only, since the GBU wants to avoid having different values in TRLT and Catalog LT field, the "Catalog LT from SAP" is not used. The "Promised LT to the Customer" is coming instead from the SAP field TRLT (Total Replenishment LT, from MRP3 view). For other GBUs, the "Catalog lead time SAP" is coming from the new field "Catalog LT" from SAP Material Master > MRP2 view.
SHS RLT	It's calculated in DynaSys and represents the Strategy-dependent Replenishment Lead time. Represents the total time between placing a production / replenishment order and the availability date. It considers other BOM levels lead times (multi level) + distribution network (multi sites) and stock holding strategies. More info in: put link
Volume Category	It's calculated in DynaSys and represents the classification of the Material in a given site due to its volume (a classic Pareto analysis). Possible values : High volumes (top 80% volume), Medium volume (next 15% volume), Low volume (last 5 % volume).
Margin category	It's calculated in DynaSys and represents the classification of the Material in a given site due to its contribution margin (a classic Pareto analysis). Possible values : High Margin (top 80% margin), Medium margin (next 15% margin), Low margin (last 5 % margin).
Order frequency %	It's calculated in DynaSys based on last 12 months demand, and represents Number of weeks with Demand / Number of weeks in the year. The Demand includes both Independent demand (InterCo + External demand) + Dependent demand (internal consumption/use inside a site).
Number of customer	It's calculated inside DynaSys based on the Actual shipped of last 12 months. It calculates the number of Sold-to for which we have shipped volumes (shipped volumes > 0) in the past 12 months. If there is only one Sold-to, the Material is considered Monocustomer. If there are 2 or more, it's a Polycustomer.

5.2 Decision tree Raw Material & Intermediates

5.2.0 Decision tree Raw Materials & Intermediates definition

The Decision Tree for RM & Intermediates, as conceived by Supply Chain Excellence, is as follows :

5.1.1 "Decision tree for Raw Materials & Intermediates" in DynaSys

In DynaSys DiP, it corresponds to the tab "Decision tree FG" inside the workspace "PI - FG"

Syensqo IS - Customer Support > 2. Procurement LT for P&I > image2021-3-1_13-55-56.png

KPI	Definition
Proposed SHS	The Proposed Stock Holding Strategy (SHS) represents the output of the Decision tree in DynaSys by considering all the different criteria (see "Decision tree for RN & Intermediates definition" above). This Proposed SHS will be used into calculating the "Cycle Stock proposed", "Safety Stock proposed" and "Target stock proposed", and compare them to the existing current Cycle, Safety and Target stock. Example values : for Raw Materials, possible values are PTO and PTS. For intermediates, possible values are MTO, MTO-FB and MTS.
Reason	It gives the reason of the proposed SHS, to guide the user as to why the SHS is proposed. It represents the different decision nodes of the Decision tree. Example: for Proposed SHS = PTS, a reason code could be "Storage Y ; High Order Frequency ; RLT>FG scheduling LT". . Another example, now for Proposed SHS = PTO, it's the reason = "Storage Y ; Low Order Frequency".
Existing storage for RM	This has to be manually input by user, by default it's equal to TRUE (i.e., a storage for RM exists). If no storage exists, it can be easily untick by user. Possible values: True (Storage exists) / False (no storage exists).
Order frequency %	It's calculated in DynaSys based on last 12 months demand, and represents Number of weeks with Demand / Number of weeks in the year. The Demand includes both Independent demand (to other Solvay sites) + Dependent demand (internal consumption/use inside a site).
SHS RLT	It's calculated in DynaSys and represents the Strategy-dependent Replenishment Lead time. Represents the total time between placing a production / replenishment order and the availability date. It considers other BOM levels lead times (multi level) + distribution network (multi sites) and stock holding strategies. More info in: put link
Shortest FG SLT	The "Shortest FG SLT" is calculated in DynaSys and represents the lowest Administrative Scheduling LT of the Parent products (n+1 level in the BOM). It can be thought sort of a "Catalog LT" for Components. > It's important to note that here we are talking about the administrative Scheduling LT (related to but not exactly equal to the notion of 'Scheduling LT' in SAP). More info here: Scheduling LT. > By default, all the Intermediates & Finish Good have a "Scheduling LT" of 3, but it can be forced to a different value inside DynaSys.
Critical RM	It's calculated in DynaSys. A Raw Material/Intermediate is critical if one of the following conditions is fulfilled: > It has only one vendor > It's used in more than 5 Parents.
EOQ	It's calculated in DynaSys and represents the Economic Order Quantity (EOQ), i.e., the optimal quantity to buy in order to minimize the total costs of inventory It will be compared to the the Min
Min Order Quantity	Used for Raw Material, this notion comes from SAP (Purchase Info record) and is determined by the supplier. If the EOQ is smaller than the min order quantity stock will need to be held to ensure enough supply
Max Order Quantity	Used for Raw Material, this notion comes from SAP (Purchase Info record) and is determined by the supplier. if the EOQ exceeds the max order quantity, stocks will have to be held to ensure enough stocks available.
Batch size	It comes from SAP and is the same used in DiP screens. More info in Distribution multiple priorities page.

Proposed SHS

The Proposed Stock Holding Strategy (SHS) represents the output of the Decision tree in DynaSys by considering all the different criteria (see "Decision tree FG definition" above).

This Proposed SHS will be used into calculating the "Cycle Stock proposed", "Safety Stock proposed" and "Target stock proposed", and compare them to the existing current Cycle, Safety and Target stock.

Example values : for Finish Goods, possible values are MTS, MTO and MTO-FB.

Reason

It gives the reason of the proposed SHS, to guide the user as to why the SHS is proposed. It represents the different decision nodes of the Decision tree.

Internal sales %

It's based only on the next 12 months and it's the results of dividing the Internal sales (to other Solvay sites) to the Total Sales (Internal + External).

Catalog lead time SAP

It represents the "Promised Lead time" to the Customer.

SHS RLT

It's calculated in DynaSys and represents the Strategy-dependent Replenishment Lead time.

Represents the total time between placing a production / replenishment order and the availability date. It considers other BOM levels lead times (multi level) + distribution network (multi sites) and stock holding strategies.

Volume Category

It's calculated in DynaSys and represents the classification of the Material in a given site due to its volume (a classic Pareto analysis).

It's calculated in DynaSys and represents the classification of the Material in a given site due to its contribution margin (a classic Pareto analysis).

Proposed SHS

The Proposed Stock Holding Strategy (SHS) represents the output of the Decision tree in DynaSys by considering all the different criteria (see "Decision tree for RN & Intermediates definition" above).

This Proposed SHS will be used into calculating the "Cycle Stock proposed", "Safety Stock proposed" and "Target stock proposed", and compare them to the existing current Cycle, Safety and Target stock.

Example values : for Raw Materials, possible values are PTO and PTS. For intermediates, possible values are MTO, MTO-FB and MTS.

Reason

It gives the reason of the proposed SHS, to guide the user as to why the SHS is proposed. It represents the different decision nodes of the Decision tree.

Existing storage for RM

This has to be manually input by user, by default it's equal to TRUE (i.e., a storage for RM exists). If no storage exists, it can be easily untick by user.

SHS RLT

It's calculated in DynaSys and represents the Strategy-dependent Replenishment Lead time.

Represents the total time between placing a production / replenishment order and the availability date. It considers other BOM levels lead times (multi level) + distribution network (multi sites) and stock holding strategies.

Shortest FG SLT

The "Shortest FG SLT" is calculated in DynaSys and represents the lowest Administrative Scheduling LT of the Parent products (n+1 level in the BOM). It can be thought sort of a "Catalog LT" for Components.

It's calculated in DynaSys. A Raw Material/Intermediate is critical if one of the following conditions is fulfilled:

> It has only one vendor