Forecasting Based Planning with Dynamic Safety stock Calculation?

Hi Guys:
Based on the client requirement we are going with forecast based planning i.e based on Sales historical data , rather then buyer determining how much amount of safety stock need to be maintained ,
Can system calculate/propose safety stock based on lead time and service levels set for that particular material?.
how to load historical sales data into the system before go Live , so when they run MRP Run ( using forecast based Planning ) -> Planning orders>PO are triggered? or is there any alternative ?
Thanks
Sweth.

Hi.
Range of coverage profile in material master MRP2 view
The range of coverage profile contains the parameters for calculating the dynamic safety stock. This is a statistical calculation on the basis of average daily requirements.
Use
The dynamic safety stock is calculated depending on the requirements within a specified period and the range of coverage.
Dependencies
The range of coverage profiles (period length for calculating the average consumption, range of coverage, and so on) are maintained in Customizing in the MRP screen.
SPRO>MM>CBP>MRP CALCULATION>Define rage of coverage profile
or
Production>MRP>MRP Calculation>Define rage of coverage profile
Thanks
Diwakar

Similar Messages

Dynamic Safety stock calculation based on Future Requirements

Dear All PP experts
Our company wants to calculate the Dynamic Safety stock based on requirements in future period. Based on Standard SAP, it calculates dynamic stock based on current period only. So is there any way to do that. We are using MRP type PD.

Use MRP type VM(Automatic reorder point plng) for Dynamic safety stock calculation.
Also you can use coverage profile calculating dynamic safety stock.
Use Tcode OMIA to define the coverage profile.
For example if you have defined a minimum range of coverage of 3 days, a maximum range of coverage
of 7 days and a target range of coverage of 5 days.
The system calculates the following:
Minimum stock level = 3 x 15 pieces = 45 pieces
Maximum stock level = 7 x 15 pieces = 105 pieces
Target stock level = 5 x 15 pieces = 75 pieces
The available quantity is 40 pieces and is therefore less than the minimum stock level. Therefore, the system creates a procurement proposal for 35 pieces (= target stock level 75 pieces u2013 actual quantity of 40 pieces) during the planning run.
Regards
S.Senthil

Dynamic Safety Stock Calculation

Dear All,
We have set Dynamic Safety stock for finish good.
Below is the screen snap for Coverage profile for your reference,
After MRP we have get results as shown in below screen,
Also find Monthly results for the same in below screen,
Can anybody who has worked or Dynamic Safety stock please explain the calculation in detail for this scenario.
Thanks,
Narresh

Hello Naresh
Regarding the coverage profile calculation, I'd like to ask you to go through the following notes, which explain the range of coverage usage in MRP in detail:
217144 - Range of covrage calc. w/ range of coverage profile
217080 - Documentation: range of coverage in MRP
Let me explain to you in more detail the range of coverage calculation during the MRP run.
Calculating the range of coverage serves to determine a dynamic safety stock level based on current requirements. Statistical, in this context, means it is not the actual requirements that are taken into account, but the average daily requirements within a defined period that are calculated by the system.
MRP will execute the following procedure:
The system calculates the average daily requirements using theparameters defined in the range of coverage profile
The system reads the defined ranges of coverage in the range of coverage profile and calculates the minimum, maximum and target range of coverage (see Calculating the Minimum, Maximum and Target Stock Level and Values of the Statistical Range of Coverage Calculation). Thetarget stock level represents the safety stock level.
System checks for every MRP element whether the available quantity is below the minimum stock level. If stock falls below the minimum stock level due to a requirement, the system creates a procurement proposal and thus calculates the procurement quantity, so that the available quantity is replenished up to the target stock level.
BR
Caetano

Dynamic Safety stock

Hi All,
We are recently implemented dynamic safety stock calculation functionality with "Range of coverage profile'. Functionality working fine But client asking for report stating that how much is the dynamic safety stock.
Is there any way to find out what is our required safety stock(Dynamically calculated) for that material.
Thanks & Regards,
N. Laxman

Hi,
Following is the safety stock calculation procedure
Suggested calculation:
1. Z: NORMSINV(Service level) , for example Z=1.64 for a 95% service level
2. Safety Stock: {Z*SQRT(Avg. Lead Time * Standard Deviation of Demand2 + Avg. Demand2 * Standard Deviation of Lead Time^2)}
Follow the link
http://www.sap-img.com/materials/safety-stock-calculation-in-sap.htm
Edited by: ch pavan on Feb 26, 2010 6:08 AM

Dynamic Safety Stock and Calculate based on past consumption

Hello experts,
I have set up my coverage profile in configuration for dynamic safety stock. However, the value is going off of the current net requirements in the system. How do I set it up so that the target stock level (DSS) is determined by 30 days of our past consumption and so many days of near future requirements?
I assume I need to set up the MRP 3 tab in a specific way. These materials that will be using dynamic safety stock are not forecasted, therefore, the material master had PD as MRP type (not VM or VV as discussed for setting DSS with forecasted materials), lot size of DY, and the coverage profile.
Please let me know.
Thanks.

Hi,
Hi the configuration should be like this..
First Create range of actual coverage profile SPRO and enter the following data.
Period Indicator - M
Number of Periods - 2
Type of Period length - Working days
Number of days per period - 30
Range of coverage in the first period - target - 30
Then assign this profile to the material in MRP3 screen in the field range of coverage profile field.
Regards
Prasanna

Stock Coverage profile with more tha 100 days (dynamic Safety Stock)

Hello,
My customer is using dynamic safety stock using coverage profiles up to 95 days.
Now a new requierment emerged which states that they need to extend the coverage to 100, 120 and 150 days of safety stock.
I looked into the config buy as far as I understand it, I can only configurate up to 99 days of coverage in each period!
Anyone had has this requierment form their Customers before and how did they resolve it?
Thanks for any clue.
Bye
Aart

Not in front of system, working from memory here...
In OMIA, there must be a field called No. of periods (or something like that) maintain a value 2 there & for no. of days in a given period maintain 50. This should address the need for 100 days, likewise you can workout for the remaining.
Do a test with the above in your sandbox & let me know if you face any specific issues.

Issue with -ve safety stock not allowing items of smaller demand to be isue

We have a material with a safety stock value of 300 with only 119 available in inventory. Looking at MD04 the available qty immediately goes negative (-181). We have requirement of 30 but was prevented by the system from ussing the material - no iventory available message. The workaround, which is not acceptable, was to reduice the safety stock to zero, create the delivery and then re-instate the safety stock level back to 300.
So the issue is that material could not be issued to PrdOrds. Is there a possibilty that we have some missing config / master data settings that are preventing the issuing of material when safety stock is factored in and available quantity is less than zero?

From planning perspective, there are two options available for your scenario.
You may try if the dynamic safety stock works for you. You may have to configure the minimum, maximum and target stock levels. The system calculates the average daily requirements of the material and determines the proposals.
If your business process demands only static ss, you can configure the % share of ss that can be used for smaller requirements. Check the config node Production >> MRP >> Planning >> MRP calculation >> Stocks >> Define SS availability. This way the smaller requirements would be considered for use from SS by planning. You will have to define the % share of SS that can be used by planning based on MRP groups.
Edited by: Arun.CBE on Feb 17, 2012 9:25 AM

Which table can we see consumption and forecast values in forecast based planning

Dear SAP Gurus,
I am working on implementing forecast based planning for Spare parts for my client. They have one Main Plant which do purchase of Spare Parts and through Stock transfers moved to 60+ Plants from where Spares are being sold.
Now I am carrying out SAP trial runs for a set of 160+ materials with various models and want to compare with their existing methodology of requirement calculation.
I want to compile Consumption and Forecast data month wise for these trial materials (160+ materials in 60 Plants) . One way I thought is to go individual Material Master and looks for values in Forecast view. However it is tedious and time consuming.
The table name shows RMCP2 and RM03M for forecast and Cons values, but I could not find the table.
Hence I want to know which table if I can view I can get the consumption and forecast data calculated for quick copying and compilation.
Thanks and Regards,
R.Velmurugan.

Dear Mariano,
Thanks for your valuable inputs.
Like I could able to get the consumption values for materials using table MVER and fields GSV01,GSV02 etc.,
What field I need refer in table PROP for getting forecast values.
As such I could not see any column where in data are similar to Forecast view.
Thanks and Regards,
R.Velmurugan.

Dynamic safety stock in PP/DS

Hello,
My question is about how PP/DS uses dynamic safety stock. I use safety stock keyfigure in SNP to calculate dynamic safety stock and make it available for PP/DS. When I run planning heuristic in PP/DS, does heuristic go and execute the macro?
Let me give an example case.
A is header, B is component of A. When I make a full planning run in PP/DS, first A is planned, then using dependent demands from A, B is planned. While planning B, safety stock also must be calculated. Is this process an inteactive process between SNP and PP/DS? I mean, PP/DS creates planned orders for A, then dependent demand generated for B. When it comes to plan B, heuristic calls SNP and macros calculate SS and SS is used in PP/DS heuristic as requirement? Is the process like that? or Do i have to run SNP either online or bacgrounf first, calculate SS there, and then run PP/DS heuristic?
Thanks,
E

Somnath, Harish;
Thanks for your help. I read all these notes and threads. But I could not find the answer to my question.
First of all, I am using SS method MB. not an extended safety stock method.
I want to implement the same SS calculation as in R/3 coverage profile. In coverage profile, average daily requirement is calculated using X weeks of demand, and Y days of SS is calculated. I want to do the same calculation in APO.
We are using PP/DS for short term planning. Here my question is in which way SS is calculated while running planing heuristic in PP/DS. I listed 2 possible ways, can you please tell which way PP/DS work?
1) PP/DS will run for the example BOM structure I gave before. So, in this example, I need to run planning for header material first in order to find dependent demand for component. Then I need to make planning for component. If I calculate SS in SNP before starting to run PP/DS for header material, SS for component is calculated in SNP using the demand calculated before PP/DS planning run. Is this how dynamic SS works?
2) or when I run planning for component, does PP heuristic call SNP macro and calculates SS with the most updated demand situation?
Thanks,
Ergul

Independent requirements within dynamic safety stock policy

Hi Community,
I was wondering if we can setup a dynamic safety stock (coverage profile) without using consumption based forecasting? Our forecast is provided through the SCM DP. If yes, which MRP type should we use?
Many thanks for any feedback,
Noël

Hi Noel
Yes, it is possible to use a coverage profile without consumption based forecasting. You can use an MRP type with MRP procedure, such as PD.
See my answer on the following thread for more details about the coverage profile logic on MRP:
Dynamic Safety Stock
BR
Caetano

Safety Stock Calculation Setups

Hi,
Question 1:_
I created a buy item with the safety stock details as below
Method : MRP Planned %
Bucket days : 2
Percent : 100
Also i enabled the MSO: Default Timestamp Safety Stocks to End of Day (23:59).After running the collection plan (Targeted Refresh) my msc_system_items table looks as below
SAFETY_STOCK_CODE : 1
SAFETY_STOCK_BUCKET_DAYS : Nill
SAFETY_STOCK_PERCENT : Nill
and then msc_safety_stocks is also empty.
Please help me to solve the issue.
Question 2:*
what setups should i do to create the safety stock in my plan other than checking the calculate safety stock in plan option.Aslo what plan should i run (constrained or unconstrained)???
Note : we done have inventory optimization installed.
With Regards,
M.Raamjee

Hi Sandeep,
I tried the generating safety stock.I succeeded too..Thanks for the help.But i need your help again for the analysis.
I created a Buy item and i havent mentioned a LT for it.
For safety stock calculation,i mentioned
safety stock Buket days : 2
safety stock percentage : 100
Forecast was 100qty every day from 4/May to 9/May ..
Output was as below
29/Apr/2012 Forecast = 0 Saf.Stock = 76
30/Apr/2012 Forecast =300 Saf.Stock = 100
5/May/2012 Forecast =300 Saf.Stock = 73
14/May/2012 Forecast = 0 Saf.Stock = 24
As per the calculation
( 200/2) * 100% = 100 qty which is matching the qty in 30/Apr bucket.
I need to know how was the other buckets got calculated.
With Regards,
M.Raamjee
Edited by: Ramji on Apr 29, 2012 10:04 AM

Static Vs Dynamic Safety stock

Hello Gurus
I want to know the following
1. Whats a Dynamic Safety Stock ?
2. The basic difference between Static Vs Dynamic Safety Stock
3.In which business scenario do we use a Dynamic & in which cases Static safety stock -

Dear Raja,
There are two types of availability checks
1) Availability Check for stock types in Inventory Management (Static Availability Check):
This check takes only the existing stock at the time of entry into account. This check is carried out automatically & no setting can be made for it in the system .It covers the relevant stock affected at the plant, storage location & special stocks level. The stock affected is determined via the movement type.
Ex: If you enter transfer posting with mvt 321 for 20 nos from Quality to unrestricted the system checks whether 20 nos.are actually available in Quality stock
2) Check of available stocks from the view point of MRP (Dynamic availability check):
In this case in addition to stock physically available in warehouse, here planned receipt & issues can also be taken into account. This check enables you to prevent an already reserved quantity from being withdrawn or reserved for another purpose.
For Ex; Today we have a stock of 100 nos. 25 pieces are reserved for withdrawal tomorrow & another 25 nos are reserved for day after tomorrow which means only 50 pieces are available today. If you try to create another reservation of 60 nos today system will give warning or error message.
Hope this will clear your concept
Vivek

Dynamic Safety Stock wih Safety daysu2019 supply

Hi
In APO PP/DS, my compagny want to set up for several products, two safety stock :
1- Dynamic Safety Stock in order to prevent when actual usage exceeds forecasted demand
2 - Safety day's to prevent when time it takes to receive a replenishement shipment exceeds the projected lead time (usual problem in our business)
For this two cases we use
1- MB
2 -SZ
So my question, how it's possible to mix this 2 safety stock methods? Is possible to create a custom method or custom heuristic in order to do that?
Thanks for your help
Youri

Hi
We have ever try without success other solutions as :
SM and MM
MB with Good Receipt Time in APO = ( Good Receipt in R/3 + Safety Days )
The only solution seem AT/BT method but we can't make difference between safety stock and safety days during monitoring
Thanks for your help

MRP Type VV - Forecast Based Planning

Hi all,
My company would like to look at MRP Type "VV" - Forecast Based Planning (under Consumption-based Planning) for FG production materials.    I've read quite a bit about the concept and some based set up to how it works.   We would like to base Planned Orders > Production Orders based on this type of forecast planning.   It seem that SAP advises this kind of plannig for Raw Materials but not FG.   Anyway, what I really need to know are the specifics of how you set up the master data (in the Material Master) to properly execute this type of MRP: like....
MRP Type: VV
Lot Size: EX
Period Ind: W
Availability Check: 02
Forecast Period:   12
Periods per Season: 12
Historical periods: 60
other fields I'm not sure......
RP Profile: ??
Forecat Profile: ??
what else......?
Also, what is the recommended approach to convert this forecast plan into Planned requirements to be converted to Production Orders?
I appreciate any further information I can get on MRP Type "VV" and how it works.   I appreciate your input!

Thanks for the info nudratmaab.    Can you provide further data on what to expect given this forecast.....say I pick MVGA (Moving Average Forecast)? So I enter some consumption (say last 12 months) and run forecast (MP38).    The MD04 shows the average requirement per "W" bucket:
02/23/2012     ForReq     W 08/2012                16-
02/27/2012     ForReq     W 09/2012               116-
03/05/2012     ForReq     W 10/2012               116-
03/12/2012     ForReq     W 11/2012               116-
03/19/2012     ForReq     W 12/2012               116-
03/26/2012     ForReq     W 13/2012               116-
04/02/2012     ForReq     W 14/2012               116-
04/09/2012     ForReq     W 15/2012               116-
04/16/2012     ForReq     W 16/2012               116-
04/23/2012     ForReq     W 17/2012               116-
04/30/2012     ForReq     W 18/2012               116-
05/07/2012     ForReq     W 19/2012               116-
The next part is where it is a little foggy for me.   For "VV" do I run WRP1 (Replenishment) or do I run MD02/ 03 (MRP) and then what is the ForReq converted to (or does it even convert)?   I'm looking to implement this for Production Planning Requirements for Finished Produced products (I need them to convert to PldOrd (Planned Orders) to be converted to PrdOrd (Production Orders) by production scheduler.
The second part of this is the Raw Material (BOM component) associated with these Finished Goods. THese BOM components are set up as MRP Type "PD" and Lot size "EX" and I was hoping that the FG MRP run would also do BOM explosion and drive requirements for the Raw Material as well.....I'm not seeing that.
I need professional / expert to tell me how this works:    So MRP Type "VV" & Lot Size "EX" for the Finished Goods.......and MRP TYpe "PD" & Lot Size "EX" for the Raw Material (BOM Component).....
THanks again!!

Forecast Based Planning

Hi Gurus,
In which type of material forecast based planning (VV) is used in business process?
Forecast requirement are obtained by forecast run of these material.
Further you get the planned orders only when you run MRP on plant level or on that material. Planned orders not generated on its parent material?
Pl through light on this.
Srini

hi
forecast based planning is a type of consumption based planning . if u know the historical consumption of ur materials then u can plan with mrp type VV , u need to maintain the consumption data in forecast view of material master. Run ur forecast in MP38 or MPBT and then run mrp based on ur for req,.
MRP run will not consider PIR or sales order .
Reward if useful
Amit

Forecasting Based Planning with Dynamic Safety stock Calculation?

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