Automatic reorder point

Hi
I have following setting in material.
Mrp type -VM
service level -- 80 %
planned delivery time -- 2
But system is not creating any proposals.

Dear ,
Both ROP-Automatic and Manual as well as FBP , system uses the Past Consumption (Movement Type 601, 261, etc -Consumption against Sales , projects , free issue of material through Movement Type -OMJJ-Material Master Update as Planned or Unplanned Total Conmtion in MMR-Forecasting View ) of certain period and Create Demand through Forecasting .
Now this demand-Forecasted Demand or Re-Order Point (which also a demand qty ) will teated through MRP to have Procurement Element based on planning situation after Net Requirement Calcualation and also Safety Stock..
So basically , what you have to do as a test trial is as follows :
1.Maintain Forceasting View of the Material master with Model Selection , Period Forecast , Persion per session , Initialisation Indicator , Paramter Optimisation , Histty periods min 6-12 motnhs .
2.Goto Total Consumption tab , maitain total consumption ( planned or unplanned ) -Thi is basically happnes best on the Busness txn and OMJJ updates as explained above.Now hit Excetute Forceast -it will pop up with window with model as selected ( let say Moving average -G) , continue and then you will find basica valuses , MAD , Forceasted Demand ,ROP Qty all are in date wise .Save this and now run MRP you will find result in MD04.Bsically there are two parts one is executing forcast to calcualte ROP automatically based on MRP type -VM and Forecasting view and then Run MRP-MD03
Hope this is clear
Regards
JH

Similar Messages

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
HKR

hi 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

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.M

Dear,
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

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,
Vivek

Hi Brahamakar,
Can you please help me.
Regards
Vivek

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 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

Automatic reorder point and safety stock caluclation- MRP type:V2

Hi,
I want the system to calculate reorder point and safety stock. To simulate this i created one material with
MRP type:V2, service level as 97%, Forecast model:D,Hist. period:12,Forecast periods:12, and I entered
the historical value for past 12 months as 100 nos in material master.
04.2009     100
03.2009     100
02.2009     100
01.2009     100
12.2008     100
11.2008     100
10.2008     100
09.2008     100
08.2008     100
07.2008     100
06.2008     100
05.2008      100
Then I went to MP30 and executed the forcase.When I checkd the material master the system has calculated the reorder point as 14 nos. But there is no value updated in safety stock field.
Now I have two questions.
1) How the system has arrived the reorder point value as 14 nos.
2) Why there is no safety stock updated in material master.
Could u please clarify this.
Thanks and Regards
Purushothaman

Hi,
This is further to my preivous mail. I have changed the consumption values and now i am getting the safety stock.
MRP type:V2, service level as 97%, Forecast model:D,Hist. period:12,Forecast periods:12, and I entered
the historical value for past 12 months as.
04.2009     100
03.2009     80
02.2009     110
01.2009     85
12.2008     90
11.2008     95
10.2008     125
09.2008     90
08.2008     90
07.2008     92
06.2008     101
05.2008     100
After executing the forecase the sytem has calculated the below parameter.
Basic value:95.759
MAD:11.448
Safety stock:10.252
Reorder point:23.658.
Can anyone explain me how these calculation arrived.
Thanks and regards
Purushothaman

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

Automatic reorder planning

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.
Syed

Dear 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.

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.
I would request you to provide your expert opinion to execute the Forecast Based MRP, what else should I do achieve the Linking between the Rolling Forecast and MRP instead of Reorder point. Should I have to make changes in Material Master (Only on finished product, In house developed/manufactured Product, Raw material etc), any configuration change in MPR and PR . Looking forward for your specialist advice.
Regards
Sony

I have provided the demand in MD61 and make stock level of the material in such a way that it should raise the PR for MRP run but it is not generating any PR. have checked that if I put value in the forecast tab of the material master manually then it is raising the PR but I need the system to pick the value form the demand that I provided in MD61. Is there any configuration related issue to get the values form the demand and generate PR accordingly. Please guide
Should I have to provide 'VV' at the first level of the Material at its master data or at each component of the BOM irrespective of
the components for Semi-Finished (In house production), Raw materials (Procure from the supplier). Please suggest...

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

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.
My history periods is 6 & forecast period is 6,Initialization periods is 6. Alpha factor is 0.1 & Beta is 0.2, Tracking limit is 4.00 & Forecast model is T. can any one tell me how it is calaculted basic Value, MAD, Trend Value are calculated for trend or seasonal model.
Thanks in advance, awating for ur valuable reply.
Best Regards,
Dev

HI
AS YOU SAID , THE INITIATION PERIOD WILL NOT BE SAME FOR ALL THE FORCASTING METHODS. PLS
GO AND USE THE APO LIBRARY.

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.

Is there any bapi returns dynamic value of reorder point and safety stock

Hi all,
Is there any bapi returns the runtime value of ROP and SS by passing changenr/objectid taken from CDPOS.
if exists please send me with code.
Thanks
PRR R

hi,
As far as i know is static means manual entry of reorder point.
The dynamic or automatic reorder point is used for Forecast based planning...
the sysstem wii automatically calculate the reoder point evrytime there is the forecast run.
So, it dependig on ur scenario , select either manual or automatic.
First entry for both is always manual entry....
hope u got this..
Regards,
Smitha

Automatic reorder - forecast

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
Rajaram

Hi,
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

Automatic reorder point

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