Calculate fixed order quantity by using econmoic order quanity

Hi experts,
i have one requirement
price of pen is 2/-
order costs per order is 6/-
holding costs per year is 15%
the demand forecast is 5,00,000 pen per year. SAP ECC offers more detailed information for the next two weeks:
days        week day          demand forecast
1            mon                1300
2            tue                 1400
3            wed                1200
4            thu                 1000
5            fri                    1000
6            sat                  1300
7            sun                 1400
8            mon                1500
9            tue                  1400
10          wed                 1400
11          thu                  1300
12          fri                    1400
13          sat                  1400
14          sun                 1400
in that
question a:
calculate the fixed order quantity by using economic order quantity model for this material! outline the general EOQ formula and show how you apply it to this example.
<b>points will be rewarded..</b>
its an urgent..
regards,
priyanka reddy.

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Fixed Days Supply & Fixed Order Quantity

Hi,
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We need this because we do discrete production (semiconductor industry) and with the fixed order quantity we to ensure that the system plans with full Lots.
However I am not sure what the impact of the Fixed Days Supply is, especially in combination with the Fixed Order Quantity.
Unfortunatly the Manuals do not tell very much about this. Does anyone have experience with this and wants to share some knowledge? I would like to know what these parameters really do and maybe there are better ways for our setup...
Thanks,
David.

Hi,
thanks for the reply. I found the detailed explanation in user guide you mentioned.
I am not sure that we made the setup in an optimum way.
We use for example fixed days supply = 5 for many buy items, because we place weekly Purchase Orders for these items and want to have the planned orders combined instead of having a planned order for every day.
And we use the fixed order quantity to prevent two things:
1) The size of the planned order gets below a typicall Lot size and the calculated leadtime for this planned order is too short. We define item based resource usage rates so it will calculate the exact lead time for the small planned order, but in reality our production has to run the full Lot which takes more time of course.
2) without the fixed order quantity the planned orders might become too big, which makes scheduling of them more difficult, because finding a free time-slot on the machines for a huge quantity must be more difficult than for a smaller planned order.
But unfortunatly Oracle does not provide some business cases, especially for our semiconductor industry so it is more trial-and-error what we are doing...
regards,
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Hi,
we are using ASCP together with SFM. We do descrete manufacturing for our products. The products flows look like this:
- asssembly item A (finished good item)
=> is make item (has routing), uses component3
- component3 is make item, uses component2
- component2 is make item, uses component1
- component 1 is buy item
So the flow of material looks like this:
component1 -> component2 -> component3 -> assembly4
(buy) (make) (make) (make)
In production we typically process only full Lots/Batches with a certain quantity depending on the component1.
We want that ASCP plans always full Lots, because the leadtime of the full Lot is always needed in reality. If ASCP plans with partial quantities, then the estimated/calculated leadtime for the planned orders will not be realistic.
To achieve this we want to use the Fixed Order Quantities, however it turned out that we run into several other problems if we use this parameter. For example it happens that system recommends to buy material (component1) just for the sake of the fixed order quantities.
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Sub: "We want that ASCP plans always full Lots, because the leadtime of the full Lot is always needed in reality. If ASCP plans with partial quantities, then the estimated/calculated leadtime for the planned orders will not be realistic."
Oracle ASPC has some more meaningfull logic in Lead time calcualtion. It is not that Lead time will be wrong when you Process the low batch. On the other hand lead time goes up when you use Fixed order Quantity , irrespective of Demand. It also files up your inventory.
See for example, If you have fixed order quanitity for an item say 1000 numbers;assume that you have on hand for 500. and need to refill balance 500.
What will ASCP recommend you ?..1000 numbers.It files your invenotry...Does this mean that lead time for producing 1000 is less as compared to 500!!! also is it acceptable to produce extra 500..
.It also make you to plan low levels adversly with case cade effect...
You issue is not lead time...You are talking about setup time. If you produce more batches, you are occuring the more setups for same items. it makes lead time more lengthy considering the setup time. This is your problem and wanted to limit this or wanted to make it optimization. (Is it right my observation of your problem??)
How to control...?. Rather than speaking about lead time , let us talk in other way ...what is the Planning perid do you want want to conisder while planning a batch or lot size?. In other words let us take an example,,,
Component2 has a lead time of say 30 days for 1000 numbers. At the same time, I am able to accamadate only max 1000 numbers. If the demand goes up ,say for example, 2000, then I need to have two batches. If the goes less than 1000 and demand split in time gap ...for exmaple, 500 in first of week of may and 200 in last of week of may, still I want to consolidate 500+200 into one batch and want to Plan 700 as it is less that 1000.
If the above condition matches..you need to use Min Order/Max orde qunatity and Fixed days supply together. This is the wonderful way it controls the objective as stated above.In this example you will set min 1 , max 1000 and fixed days supply to 20 days.
How ever in some cases if the demand comes likes this, say for exmaple 2000 and 2000, then there is a recommendation to produce 1000,1000,1000,1000 with due date as equal to first lot. However, if you use constranied based planning, APS will reshdule and give you best possible time slot. Other wise, if there is enoguh capacity you are still able to produce 4 batches in first due date. The result of this behaviour depends on EDD and ECC and will vary.Make it understand this and do test case..go ahead..
Thanking you,
dr

Scheduling Agreement - Fixed Order Quantity

Hi Experts!
For a short time we work with scheduling agreements in our company. So far it work well, but know i have a question, maybe anyone of you can help me with my issue.
We would order always the same fixed order quantitiy, i know that i can do this in the material master, but we still have more than one vendor for one material. So i can´t maintain the fixed order quantitiy in the material master.
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Best Regards
Florian

Hi,
Use CDHDR and CDPOS tables.
Goto VA33 or VA32. In menu Click on environment choose changes.
Enter agreement number and execute. select the line click on choose button. you will get details.
Regards,
Chandra

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How do you run the optimizer with fixed orders?

Hi experts,
If the planner wishes to prioritize orders based on the customer demand, orders should be set as fixed.
How do I run the optimizer when using fixed orders??
Regards,
Analía Nahmías

Hi Analia,
Will you please elaborate more ?
It looks you are running SNP optimizer and want to use also make use of order prioirty functionlity.
You may be knowing already the contents below :
We know that Demand Prioritization functionlity is handled differently in SNP CTM and in SNP Optimizer.
In SNP CTM, Demand can be sorted by different sort criteria.
Whereas in SNP-Optimizer, Demand can be aggregated for three demand classes or by customer locations.
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2. The Corrected demand forecast
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dear all..
what is meant by fixed order?
ranjit

Hi,
The fixed order is also called as Fixed order. This firmin type 0,1,2,3 are used in Master Production Scheduling (MPS) run.
pls let me know any clarification.
regards,
Mohan

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In QM module. Any solution can achive this?
Calculate Production Order time past rate of each operation. QM in production order in-processing inspection. Whether can calculate time past rate of each operation by the operation confirm.
Past Rate = Cofirm Qty. / Total Qty. of Operation.

Hi,
Given the very limited info from your end, i presume it is for a Z report. If yes, you can obtain that info from tables - AFRU (for confirmations), AFVC & AFVV (for operation details). If you need any header details of the order, refer to AUFK & AFKO.
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Hi All,
Can someone explain me the difference between Fixed order qty and Fixed Lot multiplier in general planning tab at item level with example.

Hi,
Thanks for the reply. Just bit more clarification i need to understand the difference.
Like for example let us assume two cases.
Case 1:- order less than Fixed order qty (Fixed order qty =50 and the FIxed lot multiplier =50)
Let us assume that we have set Fixed order qty equal to 50. We have a physical order of 40 then still MRP will place a order of 50 only. In case of tumhi snagaSame is the case of Fixed lot multiplier it will place a order of 50
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If for example the report is run for 2nd of February, it is necessary to
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If yes, this open quantity is a negative deviation (we delivered not
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If there is no open quantity it is necessary to determine whether for the
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Looking for your helpful suggestions.
Many thanks in Advance,
Mira Saikrishna

Krishna....have a look in the below threads where there was a similar requirement..
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Dear All
SAP NOTE:
Use of Execution Factor
Use the execution factor to indicate how many times an operation or sub-operation is to be carried out during processing of an order.
The execution factor refers to the work, the operation duration, the operation quantity and the material quantity.
If the indicator fixed operation quantity was set, the execution factor has no effect. If the indicator fixed lot was set, the material quantity remains unchanged.
Where i can find Fixed operation quantity and fixed lot indicator field in project builder.
Thanks
Shobana

Please refer this SAP link:
http://help.sap.com/saphelp_erp2005/helpdata/en/0f/28b904c3e511d194f900a0c93033d8/frameset.htm
i.e.
If the indicator Fixed lot quantity is set (in the component item under General data), the execution factor of the components is not taken into account for the component quantity.
If the indicator Fixed op.quantity is set (on the external processing screen of the operation), the execution factor is not taken into account.
Hope this will help you.
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Fixed Scrap Quantity In Production

Im using SAP ECC 6.0 now.
Is there any place I can set a fixed scrap quantity in BOM or PP related?
The situation is like this: While producing Semi-finishegoods A we alway need extra 10 Raw-mateiral B for scrap.
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I can only find scrap ratio in percentage.
thanks alot for looking into my problem.
Edited by: Liang Shi on Aug 25, 2010 7:08 AM

Hi
As you rightly mentioned , to my knowledge, as of now in standard SAP
All the SCRAPS are maintained in % only.
1) Component Scrap >>>>> Maintained in MRP4 in % & also in BOM General data tab
2) Assembly Scrap >>>>>> Maintained in MRP1 in %
3) Operation Scrap >>>>>>Maintained in BOM item detail General Tab in %
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BRSR

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Hy,
In most cases the component qty. are depends on prodcution/process order quanity, but we have a scenario in which Order quanity is only decided on the basis of Active component's avalable qty of a single bacth which is based on its potency.
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2.0) If available quanity of a second batch of a actuve ingredient is 3.1 kg and (Assay is 98%) then we can tak process order quanity of 2800 Nos.
Due this we can not set our lot size.For every single bacth of active ingredient we have to do manual calculation of a process order quantity.
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Regards,
Dhaval

Hi Dhaval,
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If it is not there then create one custom transaction where you can get the component availability along with batch ids. and use the same quantity for creation of Header material production order.
We have developed custom transaction for PO creation where we adjusting or assigning the batch on availability.
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Thanks in advance,
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Hello Bhaskar,
Is Availability Check in your system considering Replenishment Lead time, if yes, then this is possible.
Check this IMG Link:
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Here check the RLT settings.
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Hope this helps,
Thanks,
Jignesh Mehta

Calculate fixed order quantity by using econmoic order quanity

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