Automatic Reorder based Planning
SAPers...
I am trying to update re-order point automatically but with the following calculation:
The Calculation is: (Usage x Lead time / 7) + minimum stock
Is there any way to build these custom calculations into re-order points to populate/update on an adhoc basis
If not then......
Can anyone give me some suggestions of how to map this best in SAP?
Normally reorder point is calculated as below
X = average consumption per day*Lead time in days+safety stock.
Hence if your per day consumption is 10 and lead time is 100 days, safety stock is 500, then
Reorder point is 100*10+500 = 1500. Hence if stock comes below this point, then system should create a PR with specified lead time and qty as per lotsize.
pl come back if required.
Similar Messages
-
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. -
Automatic reorder point planning -forecast view
Hi
Our client want to implement automatic reorder point Planning.
Reorder point quantity was maitained from last 3 years but MRP type is 'ND' as they are not using MRP.
Now i am changing MRP type to:VM and in forecastting view: i maintained model as:D constant model period indicator:M
His periods:60 , forecast periods:12 initialization:X tracking limit:4000 selection procedure:2 reset automatically
Is it ok ? than can i run MP30. and the client wants to run for many materils(2000).
How can be run for many materials.?
Regards,
srihari.MDear,
In automatic re-order oint planning , 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 in MRP2 view, 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.
From MP30 you have to executed forecast and system has generated forecast values and updated safety stock and reorder point also. Only thing to remember is you have to maintain service level in MRP 2 view of material master when you use VM- MRP type to calculate safety stock and reorder point
Find bleow the set up following set up for automatic re-order point planning :
1.Material Master Set up : Maintain all the relevent parameters from MRP1 to MRP4 view , Forecasting View
1.MRP Type -VM , Lot Size -EX
2.Procurement Type -E for FG and F for ROH
3.Planning Startegy -10 or 40 in FG/SFG and 20 for componenet
4.Planned Delivery Time in MRP2 VIEW
5.Indiviaul/Collective Indicator - 1/2 based on your requirement in MRP4 View
6.BOM Explosion -Keep it blank
7.Service level percentage -MRP2 view
8.Maintain Forecastin view data like model selection , Histry period , period indicator , Forecast control pramaters ,
10.Make sure that you have min 12-8 monhts total consumption update in Forecasting view .
Configuration : InSPRO -MRP -Check MRP Type -VM-check the details like Re-Orde point .Safety Stock both the automatic calcvualtion box are marked .
Finally as a sample test , select any material -mm02-execute forecast in mm02-forecasting view -exectute forecast -then save .Run MRP in MD03-1,1,3,3,1.NETCH indicator and check the result in MD04
HOPE IT WILL HELP. PLEASE REVERT BACK.
Regards,
Alok Tiwari -
Automatic reorder point planning
Hi Gurus,
Cud somebody guide me on the Basic settings required for AUTOMATIC REORDER POINT PLANNING'VM',Including SPRO settings.I cudnt find an answer for this from previous FORUMs.
Kindly give me u r suggestions or aslo suggest some good links for PP documents or links concerning with Automatic reorder point planning and its settings.
THNX in ADVANCE
HKRhi HKR
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.
http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d256344af11d182b40000e829fbfe/frameset.htm
regards
sachin -
Re: Automatic Reorder point Planning for Finished Goods
Hi All,
I have some doubts regrading the Automatic Reorder point Planning for Finished Goods.
For testing purpose I have entered the consumption values for two month.
Say :
Nov-08=13
Dec-08=20
ROL level=5
Safety stock =4
Model =constant
Now when I execute the forecasting,The system gives me the forcast for the next two month jan & Feb.
But when I run the MRP I see planned order for 5.So how to fulfill my forecast for jan?
Please Advice.
Regards,
VivekHi Brahamakar,
Can you please help me.
Regards
Vivek -
Dear Peers,
1. Please let me know if it is sufficient to switch on fields 'calculate safety stock' and 'calculate reorder level' in the configuration screen of MRP Types to switch over to Automatic Reorder planning from Manual reorder planning.
2. I also want to ask a flip question, do I need to maintain forecast for material / plant level in order to run automatic reorder planning.
3. Is there any other configuration besides manual reorder planning that should be taken into consideration to switch to Automatic reorder planning.
Much appreicate.
SyedDear Syed
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 this is one type of consumption based planning You have to maintain consumtion values in the forecast view of the material master to start with, Later the regualr consumption value will get update. -
Hi Experts
Iam new to the Automatic reorder point process, it says that the reorder point and safety stock is calculated based on integrated forecast program, can anyone tell me how its calculating in forecast, can u give me a example.
Thanks in advance.
Regards
RajaramHi,
pls find the definition for Automatic ROP from SAP help.
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
Regarding the inputs - Consumption Values (hist data) shd be there , MM02-Forecasting view shd be defined .
While executing the Forecast, system updates the ROP and safety stock.
Regards,
Sheik -
MRP TYPE IN REORDER-POINT PLANNING
Hi
I would like to know the difference between the V2 and VM MRP type in the individual Material Master record.
Because, for me, both are for Automatic Reorder-Point Planning and I don't know which I have to choose.
Thanks in advance.
Best regards.Forecast program is used to calculate reorder point.
check this document
[http://help.sap.com/erp2005_ehp_03/helpdata/EN/f4/7d257044af11d182b40000e829fbfe/content.htm]
Even when you the calculation is based on past consumptions, in the forecast view you maintain parameters for tendency (seasonal, etc), how many periods are to be taken into consideration and you may also manually adjust consumption quantities. You may refer consumptions to other materials (i.e. when you have a new material code, replacing an old one, you can use this old one historical consumption data to calculate reorder point).
Hope this helps -
hi friends....
my client wants automatic re-order planning.they want to generate automatic PO if the stock level decreases.i have confiquered
mrp1:
mrp type : VM
re-order point : 100
planning time fence:2
lot size:EX
mrp controller:101
mrp 2:
safety stock:100
min safety stock:50
service level % : 1
mrp3:
tot rep lead time : 2. now ther is no stock in inventory.this config enough r do i need configure more??
now i run the MRP .
now the automatic PO is not generating??
can anyone help me to solve this issue
thx in adv.............Dear mmboy05,
In my understanding the system by itself calculates the reorder point automatically in an automatic reorder point planning,based
on the past consumption history.Also during MRP run the system creates only the Purchase req, and not direct purchase order.
For automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated
forecasting program.
Also check this thread to understand more,
Reorder point planning
Regards
Mangalraj.S -
Automatic PR from Consumption based Planning
Dear all
While creating automatic PR from Consumption based planning, only quantity has to come,the price should be updated manually,How to do it,Kindly reply to this queryHi,
Price in purchase requisition
Shows the price of the requested material per price unit.
Use
The price and quantity set out in the purchase requisition determine the value of the purchase requisition item or purchase requisition. In turn, this value is applied in determining the release strategy for the requisition.
In Customizing for Purchasing under Purchase Requisition -> Define Screen Layout at Document Level, you can set price and price unit. The Valuation price field can be set as a mandatory or optional input field.
Procedure
Input mandatory:
If a material master record exists for the requested material, the price is automatically taken from the valuation price field.
If no material master record exists, you must enter a price when creating the purchase requisition.
Input optional:
In this case you need not enter a price.
Note
Please note that the value of the purchase requisition item or purchase requisition will be taken into account in the release strategy.
Also, the value of purchase requisition commitments are determined for items that are assigned toan account from the price (Valuation price field).
Thanks
suresh -
Reorder Point Planning via SNP heuristics based on ACTUAL stock
Hi All,
In R/3 there is the option in reorder point planning to take into account external requirements (MRP type V1) or not to take into account external requirements (VB). When using reorder point planning in APO SNP Heuristics, the reorder point is being determined in time based on the PROJECTED stock (so taking into account external requirements) so the result is the same as in R/3 when using MRP type V1. In the future horizon, everytime the projected stock goes below the reorder point, a replenishment is triggerd via a planned order or purchase requisition.
I would like to know if (and how) it is possible to perform reorder point planning in APO SNP via heuristics (can be location or network) only taking into account the ACTUAL stock (and no external requirements in the past or in the future). So, the same behavior as the MRP type VB in R/3. The difference is that only on the short term, 1 time replenishment is triggered (via planned order or purchase requisition) if the current stock is below the reorder point.
Remarks: this needs to be able to be set product specific, because not all products at the location will need to use this logic.
Any help or thoughts for a solution direction (preferably without programming or user exits) are appreciated.
Thanks in advance,
DennisIf you really just want a pure re-order point scenario based on current stock, I'd suppose that you'd want to create a new data view and modify the total demand macro so that it doesn't generate any sort of future requirements (total demand will essentially be zero). Then the reorder point will be the only thing driving planning when compared to the initial bucket SOH, which is presumably calculated through the standard macro and according to the stock cat. group you indicate in the location/product master.
You could set some specific filter in the material master using the MATLOC freely definable attributes to create selection profiles and govern in which data view you process the planning for certain materials. That is to say, you'd assign all materials which are pure current stock ROP and tag them with some attribute and use that to create selections for your Heuristic variants. -
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.VHi
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 -
Usage of MRP Procedures in Consumption Based Planning during Implementation
We have following procedures in CBP:
1. Reorder Point Planning- Manual and Automatic
2. Forecast based Planning
3. Time phased Planning.
In SAP implementations, which of these procedure is mostly used in companies in real time.
Though the CBP planning node is in MM SPRO and MM study material also contains CBP. During implementations, for CBP the responsibility rests with MM consultant or PP Consultant or both.
Please share your views on this.Dear ,
Let me share my views on this as we are runing CBP-Forcast base planning in our trading business .
Decision on CBP-Forecast base planning method are based on the following criteria
1.Stockable and low value material
2.Fast Moving with good sales pattern ( Trend Analysis , Historical Trend analysis on Product Group , Statistical Sales analysis )
3.Inventory turn around based on the monthly physical inventory and sales
4.Good service level percentage over an period .
5.Consumption pattern .
Decision on CBP-Re-order point planning method are based on the following criteria
1. Material which are higher valu and Non Stockable
2. Customer oriented traded goods
3. Strategic vendor with good Sales pattern .
4.Re-order Level based on Sales Forecast (Manual or Automatic )
In SAP implementations, which of these procedure is mostly used in companies in real time : It is based on the business requirement (Trading /Manufacturing ) .Mostly Trading business goes for CBP-Forecast Base planning method (MRP Type -VV) IF THE MATERIALS HAS GOOD CONSUMPTION PATTERN OVER A PERIOD OF TIME .
MRP is both the part of Supply Chain Planning and Manufactruing . Material master parameters are maintained by MM .CBP is one kind of MRP where Demand Management comes into PP whereas after MRP run , procurement proposal handeled by MM.So there is no hard and fast rule that it is only part of PP.It is the combination of MM and PP.
Hope this will help you to analysise your requirement .
Regards
JH -
Hi,
I need to configure the CBP based on Past consuption data of 3 months and also it should give me future forecast values for 3 months. also I want to use safety stock and Reorder level.
Which MRP type should be used and what are configuration setting required for the same.
Also pl.guide me on What will happen if there is sedden rise in the requirement is any month?
ThxHi,
MRP supports and helps the MRP controller in the task areas. These tasks include
determining type, quantity and time of the requirement, and scheduling corresponding
procurement elements. The automatic planning run for MRP determines shortage situations and generates the corresponding procurement elements. Possible
procurement elements of MRP are planned orders, purchase requisitions and
scheduling agreement schedule lines. The planned order and purchase requisition are
internal planning elements that can be changed, rescheduled or deleted at almost
any time.
In in-house production, the system creates planned orders for planning production
quantities. When planning has finished, the system converts the planned orders into
production orders. The system then converts the dependent requirements in the
planned order into reservations in the production order.
In external procurement, the system either creates a planned order or a purchase
requisition for direct planning of external procurement quantities. Whether purchase
requisitions are created for direct planning, or planned orders are created first, you
can use the creation indicator for purchase requisitions/MRP groups in the material
master record on the initial screen of the planning run. When planning has finished,
the planned order must be converted to a purchase requisition, which is subsequently
converted to a purchase order. The advantage of creating a planned order first is
the additional procurement proposal check that is executed by the MRP controllers.
Purchasing can only order the material when the MRP controller has checked the
planned order and converted it into a purchase requisition. Otherwise, the procurement proposal is immediately available for Purchasing.
Planning Levels of Consumption-Based Planning
Requirements planning takes place at plant level. In other words, the entire stock that
exists in the plant is considered in planning. However, the stocks of individual storage
locations can be excluded from MRP or planned independently. These stocks are then
not included in MRP at plant level. You can also execute requirements planning
for individual MRP areas. You can define the MRP areas yourself. This means
that several storage locations can be grouped together for one MRP area and that
requirements planning can be executed separately from the plant for these MRP areas.
MRP areas enable a differentiation of material requirements planning within a plant.
(MRP areas include the function of storage locations that are planned separately for
materials requirements.)
Planning Levels for Materials Planning is either
1. The Plant with Storage locations planned separately.
2. MRP areas
Basically, MRP areas are optional. You can plan all material requirements without referring to MRP areas.
There are three different types of MRP areas:
1. Plant MRP areas (obligatory) that are automatically created by activating
planning with MRP areas. Their numbers match the number of the plant. If no
more MRP areas are defined, the plant MRP area covers the entire plant.
2. Storage location MRP areas that are defined by the storage locations assigned
to them.
3. Subcontractor MRP areas that provide planning of the requirement of the
material provided for a subcontractor and are defined by the assignment of
this subcontractor.
Prerequisites for Consumption-Based Planning
The following prerequisites must have been fulfilled in order to carry out requirements
planning for a plant:
Requirements planning for the corresponding plant must be activated in
Customizing for Materials Management under Consumption-Based Planning u2192
Planning u2192 Activate Material Requirements Planning.
T-code - OMDU
The plant parameters for the corresponding plant must be activated in
Customizing for Materials Management under Consumption-Based Planning u2192
Plant Parametersu2192 Carry Out Overall Maintenance of Plant Parameters.
T-code - OMI8
In the material master record, you have to maintain the MRP data of the materials
that are subject to automatic planning.
I hope this may help u ! -
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
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