Procurement Planning Requirements

The problem to monthly plan a global value chain for commodities in the chemical industry puts specific requirements considering on the aspects of values, sales, distribution, production and procurement planning in a global network. Recent research related to value chain planning can be clustered into global-oriented, chemical industry-oriented or commodity-oriented research. 

Procurement Planning detailing the planning requirements for procurement of raw materials and products for a commodity business by volume and values... 

The procurement planning model part needs to meet the requirements to distinguish spot and contract procurement planning including volumes and values integrated in the overall value chain planning. 

The developed value chain planning model is very comprehensive with its model basis, value, sales, distribution, production and procurement part. The comprehensiveness of the model is a logical consequence of the comprehensiveness of value chain planning requirements based on industry case and literature analysis. Conclusions ... 

Up to this point, it is assumed that prices are deterministic, which is true for contract demand and procurement but is not necessarily true for spot demand and procurement prices. Therefore, an important value chain planning requirement is the consideration of uncertain prices and price scenarios. Now, uncertain spot demand prices are under consideration and it is illustrated how price uncertainty can be integrated into the model in order to reach robust planning solutions. 

Network Requirements Planning The network requirements planning should reduce the coordination efforts of the demand-based disciplines demand assessment and make or buy analysis by determining the type, quantity, and time of products to be produced. For that purpose, the requirements of material and components resulting from the sales plan need to be determined and distributed to the partners of the network to assure the fulfilment of demand. The fulfilment of demand is based on the subtasks network capacity planning, network demand allocation, and network procurement planning. 

Procurement Planning and Control Procurement planning and control defines the procurement quantities and dates of parts, assembly groups, and products that need to be purchased. Therefore, the order quantity calculation determines the quantities to be purchased based on the secondary requirements and generates the orders. Later, the supplier evaluation is based on the criteria quality, compliance with delivery dates, prices, and supplier conditions. 

Identification of test plans and permit requirements, preparation of a procurement plan, and determination of utility service requirements in coordination with the... 

Among the duties of the Assistant Secretary of War was the approval of "shopping lists for the various supply arms and services. On 9 December 1921 the Assistant Secretary approved such a list for the CWS. Included were toxic agents, smoke materials, cloud gas materials, and chemical engineering equipment. Several reviews of the "List of Supplies to be Procured by the Chemical Warfare Service were made in the various categories in the 1920 s and 1930 s, but no substantial changes were effected. The Army supply list served a double purpose—it was a partial list of materials required by CWS for manufacture of its requirements and it was also the authorized procurement list of CWS for procurement planning purposes. ... 

The computation of requirements through most of the period was a relatively simple process because the basis of calculation was the number of individuals or units that were to be supplied with defensive items of equipment. Offensive munitions were not taken into consideration until the late thirties the color plans made no provision whatever for the use of toxics, although the Yellow plan called for dispatching four companies of CWS troops and a large quantity of tear gas with the expeditionary forces. The Procurement Planning Division of the chiefs office... 

Use of Results. Sales analysis data are used ia many ways by company management. The results are most useful ia production planning, particularly if grade differences appear to be ia the offing, and ia assuting that adequate suppHes are available for sales. Inventory control, raw material procurement, technical service requirements, and trends ia accounts receivable are beneficiaries of good sales analyses. 

You will need to review the requirements and the resultant design to identify any special equipment, tools, test software, and test or measuring equipment required. Once identified, plan for its design, manufacture, procurement, verification, and certification. One way of doing this is to produce a list that contains the following details ... 

Different types of industries require different characteristics to be taken into account, because in model-based planning the real decision situation must be represented adequately, as the solution will otherwise not provide any benefit. Along the lines of Meyr and Stadtler [3], the characteristics of different supply chains can be classified into functional attributes (procurement type, production type, distribution type, and sales type) and structural attributes (topography of a supply chain, integration, and coordination). 

Third, processing times may require special modeling in chemical industry. While in discrete manufacturing processing times for a certain lot are usually dependent on the lot size, i.e., the number of units to be produced, this is often not true in the chemical industry. Here, processing times are often constant, irrespective of whether a reactor is filled to 70% or 90% of its capacity. This is often referred to as batch production [5], On the other hand, the quality of the material produced may depend on resource utilization. Certain reactions may not even be feasible, if a minimum bound of the procured material is not exceeded. This implies additional restrictions regarding the resource utilization level on the planning situation. 

This relatively stable system now faces increasing volatility and complexity due to volatile demand and raw material prices as well as globalization in markets and company networks. Specifically, price-volatile commodity products within the chemical industry require planning volumes together with values across sales to procurement. In this context, the work of Matthias Kannegiesser focuses on two research questions ... 

In analogy to the demand side, procurement contracts are fixed by quantity and price with the objective to ensure a basis volume of raw materials. Spot procurement supports company s flexibility requirements and the company can decide the spot procurement quantity with certain flexibility around the offered quantity. Price levels for contracts and spot business differ and are volatile in each period. Typically, companies operate with few key strategic suppliers for a respective product or raw material. Therefore, price-quantity models like in sales planning are less applicable. More often is the case that specifically commodity-type raw materials are procured on many-to-many exchanges, which is out of the scope in our case as described in section 3.2.6. If products are supplied by internal business units, transfer prices are applied following the contract procurement principles. 

Chemicals-related literature with respect to value chain management has built up comprehensive knowledge and results in the area of production planning, scheduling and distribution as well as in procurement. Therefore, literature covers the following requirements... 

Distribution planning covers transportation and inventory planning within the network, as well as the material balance calculation between sales, production and procurement. Global transportation planning considers the lead times between continents resulting in transit inventories differentiation of sent and received transportation quantities as shown in the requirements in section 4.1.5. Inventories are managed at the defined transfer point locations either with static or dynamic boundaries. 

Solution times are sufficiently fast to be applied in tactical planning where no real time response times are required. Secondly, value results are presented. All value results are indexed focusing on comparing results and to ensure confidentiality of industry data. Initially, the value plan with total profits and single values in sales, distribution, production and procurement is analyzed. 

During the same period Mark was active on behalf of German scientists, he was nominated by Chaim Weizmann to head the Scientific Planning Committee of the newly established Weizmann Institute. Throwing himself into the job with unusual zest, he visited Rehovot the summer of 1946 despite the threat of terrorist attacks, and ascertained first hand the requirements of the Institure. Working closely with David and Ernst Bergmann, Aharon and Ephraim Katchalski, and C. Pekeris in Rehovot, and I. Fankuchen, K. Stern, and W. P. Hohenstein in Brooklyn, he organized many of the operational functions of the Institute and in 1947 procured its first sophisticated laboratory equipment. 

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