Auto.Reorder point calculation based on service level-calculation incorrect

Hi
I have gone through all the postings pertaining to this topic.Still I am not getting the calculation steps despite of using the same proposed in many of the threads.
My calculation and system calculation as follows:
Service level maintain in MRP2 view was 99.8, so R factor must be 4.00 as per the chart given in sap help.
Planned delivery was 10 days. Material is externally procured. No GR processing time. Schedule margin key was also 000.
Forecast was executed for next 3 months based on past history of 12 months. (Moving average method).
Forecast values for 03.2010 = 140, 04.2010 = 140, 05.2010 = 140.
MAD calculated by system and shown while executing forecast in material master was 48. Safety stock calculated by system was 108 and re-order point was 157.
Since lead time is shorter than forecast period, SS = RWMAD = 4(10/31)48 = 61.94
W = Lead time in days/Forecast period in days.
LTC (Lead time consumption) = 140*10/31 = 45.16
ROP = SS + LTC (lead time consumption) = 61.94 + 45.16 = 107.
Where as system proposal was 157.
Kindly throw some light where is the problem.
Thanks in advance.

Hi
It would be grateful if somebody throws light on the above scenario.

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Difficulties in Reorder point calculation

Hi,
I know there are number of posts in the forum on this topic. But I could not find my answer in them.
So please help me understand the reorder point SAP is calculating.
I have a material with following data:
MRP type = V2 (Automatic reorder point calculation)
Planned delivery time = 3 days
GR processing time = 0
Safety stock = 0
Service level = 0
Forecast model = G (Moving average model)
Period indicator = W
Historical period = 9
Forecast period = 1
Consumption values = 3,4,5,6,7,8,9,10,11
SAP gives me the result as below:
Forecast = 7 (Matches with my calculation)
Safety stock =0 as service level not maintained (I agree)
Reorder point = 6
My calculation is, reorder point = SS+ forecasted requirement during replenishment lead time
= 0 + 7 * (3/7) = 3
Why SAP has calculated 6 instead of 3 ?
Thanks in advance.

Thanks Jurgen.
I have found the issue. The 'Procurement time' was defined as 1 day in customizing of CBP. This was causing the issue.
Thanks to all of you who replied to the thread.

Safety stock and Reorder point calculation in inventory planning

Hi,
How System does the calculation of own safety stock, and Reorder point, maximum safety stock level at parent and child location while running inventory planning services in SAP APO SPP. does anyone about the calculation please let me know
Regards
Puneet

Hi,
How System does the calculation of own safety stock, and Reorder point, maximum safety stock level at parent and child location while running inventory planning services in SAP APO SPP. does anyone about the calculation please let me know
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Automatic reorder point calculation

I would like to confirm the formula for calculating a reorder point in SAP.
As I understand it, the simple formula is safety stock + average requirements * lead time.
I have the following settings for a material:
MRP Type - V2
Lot size - HB
Maximum stock level - 500
Total lead days (including GR processing) - 30
Service Level - 98%
Procurement type - F
Historical periods - 2
Forecast periods - 2
Period Indicator - M
Forecast Model - G (Moving average)
Consumption values - 12/2010 - 160
11/2010 - 190
When I execute the forecast run, the get the following result:
Basic Value - 175
MAD - 15
Safety Stock - 39
Reorder point - 219
If the formula for calculating reorder point is - 39 (safety stock) + 175 (average requirement) * (30(lead time)/30(forecast period in days), then the reorder point should be 214. Why does the system output 219?
I read somewhere that a SAP note exists for correcting the calculation, can anyone confirm?
Many thanks.

Dear
Automatic calculation of reorder point RP : The reorder point will be calculated with following formula :
RP = average consumption during LT + SS
SS = R x Sq root ( ( LT(d) x 7 ) / FCperiod(d) x 5 ) x MAD
In your case , ROP will be calulated as per your consumption for November with 20 days having consumption of 190/m and December for 10 days having consumption of 160 /month
So Reorder Qty = 190(20/30)+160(10/30)+39 =219
Refer our earlier posting on the same : Detail the safety stock calculation
Regards
JH

Regarding reorder point planning.

Hi experts,
I have entered safety stock as 40 pcs., reorder point 50 and created requirement for
may 09 - 30 pcs.
jun-09 - 30 pcs.
After executing MRP run it is showing planned order for 50 pcs. only.
But the requirements are not covered I mean to say at last the available qty should be zero.
Please help me on this immediately.
Rgds,
Parul.

In Consumption based planning(re-order point planning), planned independent requirements or dependent requirement will not be considered in the net requirements calculation. Instead, it is triggered when stock levels fall below a predefined reorder point .So, all the planned independent or dependent requirements in a certain period of time should have been considered before setting the reorder point
Therefore, these planning procedures are used in areas for planning both B- and C-parts and operating supplies.(low value materials, but consumption is more)
In reorder point planning, SAP checks whether the available stocks are below the reorder point that has been set for the material. If they are, SAP will create procurement proposal.
We can determine the reorder point manually (u201CVB-Manual reorder point planningu201D MRP Type in standard SAP R/3) or, it can also be calculated automatically using the material forecast (u201CVM-Automatic reorder point planningu201D MRP Type in standard SAP R/3).
In standard SAP R/3 system, besides u201CVB u2013 Manual Reorder Pointu201D and u201CVM u2013 Automatic Reorder Pointu201D MRP Types, there are also other MRP Types that have reorder point as its basis to calculate requirement with additional procedure which count external requirement (sales order and manual reservation) as a requirement. The MRP Type are: u201CV1-Manual reorder point with external requirementsu201D and u201CV2-Automatic reorder point with external requirementsu201D.
If you want to include requirements in the reorder point calculation in addition to the customer requirements and manual reservations,
go to SPRO ->Materials management ->consumption based planning ->master data -> MRP Types
Select the mrp type v1 and
select the following fields:
o     Requirements for materials to be provided in subcontracting
o     Dependent order reservations on the basis of production orders
o     Dependent order reservations on the basis of maintenance orders or networks
o     Release orders
o     Purchase requisition releases
o     Forecast delivery schedules
regards,
sikkandar basha

Lot quantity to order for a material set as reorder point planning

Dear All,
Suppose the requirements of a material are as follows:
Week1 Required quantity - 100
Week2 required quantity - 150
Week3 required quantity - 300
Week4 required quantity - 500
This material is set as "VB" (Reorder point planning in the material master)
My questions is:
Can we use periodic lot sizing procedure for a material planned based on reorder point planning , so that MRP run will consider the requirements of a month (1050) and use that as the lot size to order material.
We want to plan the material if it falls below the reorder level, but we want the system to dynamically calculate the quantity to order based on the actual demand (and not on either fixed lot size or maxmimum stock level).
with regrds
Laxmipathi.G.V

Hi
Use Anyone of the following
1. Use automatic reorder point with forecast planning requirment.Where ssytem will calculate reorder point automatically based on weekly /monthly Forecast req.In this case Lot size you can use EX itself.
2. Use Planning type PD and lot size EX and Instaed of ROL use safety stock so that system will consider weekly sale req. and also safety stock according to that procerement proposal will be created.
Regards,
Velmurugan S

Calculation of Safety Stock and Reorder Point under Forecast Model T

Hi Gurus!
Happy Holiday!
I would like to ask for your assistance on how the the safety stock and reorder point was calculated with the following values available. I would really appreciate it if you could give me details on the calculation.
Below are the values:
Basic data
Forecast date        01.12.2009        Unit                  CTN
Forecast model       T                 Service level         0.0
Period indicator     M                 Paramtr profile
Control data
Initialization                                Tracking limit        4.000
Model selection      A                 Procedure selection   2
Parameter optimizatio                Optimization level    F
Alpha factor         0,10               Beta factor           0,10
Gamma factor       0,00              Delta factor          0,30
Basic value           5.464-           Trend value          5.603-
MAD                      4.758            Error total              4.722
Safety stock         1                   Reorder pnt.          1
No. of values
Consumption           6                Forecast periods       1
Initial. periods      0                Fixed periods          0
Periods per season   12
Historical data
Period                Original     Corrected value
11.2009                3.000              3.000
10.2009                0.000              0.000
09.2009                0.000              0.000
08.2009                9.000              9.000
07.2009               21.000             21.000
06.2009               20.300             20.300
Forecast results
Period                Original     Corrected value
12.2009                0.000              0.000
Appreciate your assistance!
Thank you and Happy Holidays!
Ji

Sweth, you are asking for consulting, and in my opinion it is way beyond what can or should be reasonable to achieve in such a forum. You are asking complex questions, that most probable have more than one possible answer.
I suggest that you get on-site help from a knowledgeable and experienced consultant. These are crucial business issues, and should be dealt seriously.

Difference :Automatic Reorder Point Planning and Forecast based palning ?

Dear MM Guru's,
As we See in throtical Concepts that
Automatic Reorder point planning and Forcast Based Planning Used the prevuious Historical Data.
Please explain what is difference Between them.
regards,
A. S.

Hi,
Reorder Point Planning: -
Use: -
In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts falls below the reorder point.
Features: -
The reorder point should cover the average material requirements expected during the replenishment lead time.
The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the reorder level.
The following values are important for defining the reorder point:
- Safety stock
- Average consumption
- Replenishment lead time
The following values are important for defining the safety stock:
- Past consumption values (historical data) or future requirements
- Vendor/production delivery timelines
- Service level to be achieved
- Forecast error, that is, the deviation from the expected requirements
Manual Reorder Point Planning
In manual reorder point planning, you define both the reorder level and the safety stock level manually in the appropriate material master.
Automatic Reorder Point Planning
In automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated forecasting program.
The system uses past consumption data (historical data) to forecast future requirements. The system then uses these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is specified by the MRP controller, and the material's replenishment lead time into account, and transfers them to the material master.
Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually adapted to the current consumption and delivery situation. This means that a contribution is made towards keeping stock levels low.
Forecast-Based Planning: -
Use: -
Forecast-based planning is also based on material consumption. Like reorder point planning, forecast-based planning operates using historical values and forecast values and future requirements are determined via the integrated forecasting program. However, in contrast to reorder point planning, these values then form the basis of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements.
Features: -
The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the material withdrawal so that the forecast requirement quantity that has already been produced is not included in the planning run again.
Reducing Forecast Requirements
- Reducing forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system also reduces future forecast requirements.
- Reducing current forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system does not reduce future forecast requirements.
- Average reduction of the forecast requirements
The reduction of the forecast requirements is based on average daily consumption. Actual consumption data is not relevant.
The system calculates the average daily requirement first using the formula forecast requirement/number of workdays in the forecast period.
The forecast requirements are then reduced by the quantity resulting from the following formula: number of workdays worked x average daily requirements.
Period Pattern and Forecast Periods
You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period) and the number of periods to be included in the forecast individually for each material. It is possible, however, that the forecast period pattern is not specific enough for planning purposes. In this case, you can define per material that the forecast requirements should be divided according to a finer period pattern for planning. You can also define how many forecast periods are to be taken into account during requirements planning. The splitting indicator is defined in Customizing for MRP per plant and per period unit and is assigned to the material in the material master.
Example: -
For a monthly forecast, the requirements date would be set on the first workday of the month because, for planning, it is assumed that the total requirement must be available at the beginning of the period. You can then divide this monthly requirement into either daily or weekly requirements.

Change the MRP run fro Reorder Point to Forecast Based.

Dear Experts
My client is a battery manufacturing company, its Semi Finished product is Make-to-Stock and Finished Product is Make-to-Order. Initially the MRP was configured as reorder based and in Material master it was set as VM (Automatic reorder point plng ). But now we need to change the MRP form reorder point to Forecast Based. The rolling forecast of the coming 3 three months is given in Planned Independent requirement (MD61) as version u201800u2019 - REQUIREMENTS PLAN.
We have changed the MRP procedure in Material Master form VM to VV Forecast-based planning of the finished product but unable to get any result means no Automatic PR is getting generated, the we have changed all the materialsu2019 MRP procedure of that Particular BOM to have the required MRP and Automatic PR raise but still no expected result is coming.
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Reorder Point Planning via SNP heuristics based on ACTUAL stock

Hi All,
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Determining service level offer for delivery date based on customer/materi

Hi,
we operate R/3 4.7 enterprise and are looking at a new requirement to present a service level offer at time of sales order input va01, drvin by customer number or group and the material number... For example customer 123456 orders two materials, ABC, ZXC... ABC has a proposed delivery date of today +2 while ZXC has +5 days, this would populate the "first date" ETDAT and then if not available schedule lines would be based on ATP scope of check. To further explain a second customer 654321 orders the same two materials, ABC and ZXC but this customer has a service level of today +4 days for ABC and +10 days for ZXC... I do not recollect in my experience such functionality in standard sap, perhaps with CRM? OR ABAP user exit?
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Hi,
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xyz = today + 5 days
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ABC = Today + 4 days
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Thanks in advance,
Regards,
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Your requirement can be pulled from table MARC. I dont think there is a standard report to meet your requirement. You can meet your requirement through SAP Query though.

Forecasting formula calculation in Automstic reorder point plannig

Dear Experts,
We are using R/3 ECC 6.0 we want to implement Automatic reorder point planning. for this basic settings i know.
suppose i taken 430,590,350,490,495,520 value for hitsory from Jan 2009 as conusmtion value for testing purpose.
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HI
AS YOU SAID , THE INITIATION PERIOD WILL NOT BE SAME FOR ALL THE FORCASTING METHODS. PLS
GO AND USE THE APO LIBRARY.

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Hi,
When I am doing mass change of reorder point through MM17 tcode selecting MARC table,it will chnage at plant level and getting reflected in material master once I save changes.
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Best Regards
Manfred

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Regards,
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Auto.Reorder point calculation based on service level-calculation incorrect

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