Days supply,Recipts days supply

Question

Hi Gurus,
Can someone tell me how does the system calculate the day's supply,Recipts days supply.
I understand these terms but it would be helpful if someone can give an example.
Also what does 999.9- indicate.
Points will be rewarded
Thanks and Regards,
Anshul Goyal

Answer 1

There are 3 types of days of supply..Please come back after going through it
Days' supply
The days' supply displays the number of days that a material will cover if only current plant stock is taken into account.
By using the Days' supply including/excluding safety stock in Customizing, in the Safety stock field, you can define whether the system is to base the calculation for the number of days on the safety stock level or the physical stock level.
If the number of days is based on the safety stock, which is set in the standard settings, the system calculates the number of days until the stock level falls below the safety stock level. If the number of days is based on the physical stock level, the system calculates the number of days until the stock level falls below 0.
Materials with critical ranges of coverage are indicated by red traffic lights in the MRP list and the stock/requirements list. You can define how many days are considered to be critical.
Note
The days' supply is not calculated, if:
Current plant stock is negative, or if
Current plant stock cannot cover the next requirement
Dependencies
You set the indicator for including the safety stock in Customizing for MRP or for Consumption-Based Planning in the IMG activity Define receipt elements for days' supply calculation.
Example
Calculation of the range of coverage: Starting from the current plant stock, the requirements are deducted one after the other along the time axis. This is done until there is a shortage (requirement > stock). The range of coverage is then the number of workdays between todays date and the date of the requirement that causes the shortage minus one day. The value after the decimal point is the ratio between the opening stock on the day of the shortage and the requirement on the day of the shortage.
Stock = 240 pcs
1st day: Requirement for 90 pcs => Stock = 150 pcs
2nd day: Requirement for 70 pcs => Stock = 80 pcs
3rd day: Requirement for 100 pcs => Shortage
Range of coverage = 3 workdays minus 1 + 80/100
= 2 + 0,8
= 2,8
First receipt days' supply
The receipt days' supply indicates how many days a material will last. The system takes current plant stock and specific, predefined receipts into account when calculating the receipt days' supply.
You can define two receipt days' supplies.This enables you to instruct the system to take the less binding receipt elements into account for the first receipt days' supply, and to take only the binding receipt elements (such as production orders and shipping notifications) into account for the second days' supply.
Additionally, in Customizing for MRP, you can use the safety stock indicator to define whether the number of days refers to the safety stock or the actual physical stock.
If the number of days is based on the safety stock, which is set in the standard settings, the system calculates the number of days until the stock level falls below the safety stock level. If the number of days is based on the physical stock level, the system calculates the number of days until the stock level falls below 0.
Material with critical ranges of coverage are indicated by red traffic lights in the MRP list and the stock/requirements list. You can define how many days are considered to be critical.
Note
The receipt days' supply is not calculated, if current plant stock is negative.
The receipt days' supply is calculated for a negative plant stock, if the next requirement is in the past.
Dependencies
You can define which receipts the system includes in both receipt days' supply and set the indicator for safety stock in Customizing for MRP, or for Consumption-Based Planning, by choosing the activity Define Receipt Elements for Receipt Days' Supply.
Example
Calculation of the range of coverage: Starting from the current plant stock, the requirements are deducted one after the other along the time axis. This is done until there is a shortage (requirement > stock). The range of coverage is then the number of workdays between todays date and the date of the requirement that causes the shortage minus one day. The value after the decimal point is the ratio between the opening stock on the day of the shortage and the requirement on the day of the shortage.
Stock = 240 pcs
Purchase orders are included in the days' supply, but not purchase requisitions
1st day: Purchase order for 50 pcs => Stock = 290 pcs
Requirement for 90 pcs => Stock = 200 pcs
2nd day: Purchase requisition for 80 pcs => Stock = 200 pcs (remains)
Requirement for 120 pcs => Stock = 80 pcs
3rd day: Requirement for 100 pcs => Shortage
Range of coverage = 3 workdays minus 1 + 80/100
= 2 + 0,8
= 2,8
2nd receipt days' supply
You can use the second receipt days' supply to separate less binding and binding receipt elements.
For example, you can specify that the less binding receipt elements are taken into consideration for the first receipt days' supply, and only the binding receipt elements, such as production orders and shipping notifications, are taken into consideration for the second receipt days' supply.
Materials with critical ranges of coverage are indicated by red traffic lights in the MRP list and the stock/requirements list. You can define how many days are considered to be critical.
Dependencies
You define the receipts that are taken into consideration for receipt days' supply 1 and 2 on a plant-specific basis, in Customizing for MRP or for Consumption-Based Planning, under IMG activity Define Receipt Elements for Receipt Days' Supply.
Example
Calculation of the range of coverage: Starting from the current plant stock, the receipts are added one after the other on a daily basis along the time axis, and the requirements are deducted one after the other, until there is a shortage (requirement > stock). The range of coverage is then the number of workdays between todays date and the date of the requirement that causes the shortage minus one day. The value after the decimal point is the ratio between the opening stock on the day of the shortage and the requirement on the day of the shortage.
Stock = 240 pcs
Purchase orders are included in the days' supply, but not purchase requisitions
1st day: Purchase order for 50 pcs => Stock = 290 pcs
Requirement for 90 pcs => Stock = 200 pcs
2nd day: Purchase requisition for 80 pcs => Stock = 200 pcs (remains)
Requirement for 120 pcs => Stock = 80 pcs
3rd day: Requirement for 100 pcs => Shortage
Range of coverage = 3 workdays minus 1 + 80/100
= 2 + 0,8
= 2,8