The purpose of this blog is to share some information regarding Co-Product modelling in IBP TS Optimizer (Cycle Error).
1) When is Co-Product required?
Co-product is mainly used to represent the production of one product that is generated automatically while manufacturing a semi-finished or finished product. This co-product is normally consumed in the process or kept is stock or even sold. In segment like Mills, Sugar Cane and mining this is a very common scenario.
2) How to build this in IBP TS Supply optimizer?
1st) You need to know where you will generate the Co-Product on your BOM structure.
2nd) You should define your co-product source type = C, in the Master Data Type > Production Source Header as follows:
Then while running the optimizer or the check mode you get error:
Invalid production source: Cycle is defined. Co-product RM – SF2 is also component RM – SF2 and both have set time-independent, non-zero coefficients. (Co-product coefficient is 1.000000 and component coefficient is 1.000000).
The reason is written in help: “The main output product can’t also be a co-product in the same production source”. To solve this I normally create an “intermediate” product as bellow:
help.sap.com > IBP > Business Application > Time Series Based Supply Planning > Production > Co Production > Setting up a data model for Co production
Hope this blog makes your life easier !