Formula for Days of Supply, 1st RDS, 2nd RDS in MD06

Dear Guru,
Can you share formulas for Stock DS, 1st RDS and 2nd RDS in MD06?

Erik,
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.
In the IMG node you can define which mrp elements contributes or should be considered during calculation of days of supply.
Typically for most clients, I advise taking firm MRP elements like Production orders & purchase orders into 1st Reciept days of supply as well as 2nd reciept days of supply.
So in IMG node they get X =Take both receipt days' supply into account
For Firmed PR & Firmed planned order they should be considered under 2nd reciept days of supply only.
So in IMG node they get 2 = Only take receipt days' supply 2 into account
Hope this clarifies your question around this concept. More questions please feel free to ask.
thanks,
Ram

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1st and 2nd Receipt days of supply calcluation

HI,
i was wondering how the first and second receipt days of supply are calcuted when viewing in MD06. I went into the configuration 'Define Receipt Elements for Receipt Days' Supply' via menu Consumption Based Planning --> Evaluation --> Define Receip Elements Days' Supply.
However, in this config activity i'm not sure how it differentiates between 1st and 2nd receipt days of supply? Does anyone know where the difference is located in configuration.
Many Thanks, Erik

Erik,
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.
In the IMG node you can define which mrp elements contributes or should be considered during calculation of days of supply.
Typically for most clients, I advise taking firm MRP elements like Production orders & purchase orders into 1st Reciept days of supply as well as 2nd reciept days of supply.
So in IMG node they get X =Take both receipt days' supply into account
For Firmed PR & Firmed planned order they should be considered under 2nd reciept days of supply only.
So in IMG node they get 2 = Only take receipt days' supply 2 into account
Hope this clarifies your question around this concept. More questions please feel free to ask.
thanks,
Ram

Traffic lights Vs day's supply

Hi,
In MRP collective lists, system is showing red signal lights to all the materials and showing the message "3.0- days is less than limiting value of 0.1-"
In the day's supply,1stRDS and 2nd columns system is showing the value 3.0-.
In this case, how to change the signal light from red to green?
Can any body please explain the concept behind this?
Thanks in advance.
Sekhar.

hi
traffic light depends upon the day's supply and exception messages.
in md04 collective access , display all materials with MRP controller wise. Press the Tab " define traffic lights" there u can put ur own criterion of days supply and R days supply.
Example how system calculates days supply.
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
Reward if useful
Amit

Days Of Supply (DOS)

All,
One of the SAP's xApps Analytics Composite Applications for SCM included in 2004s is the Global Inventory View. One of the metrics offered within the application is the actual Days of Supply (DOS). From documentation I see that it is displayed by query 0APO_C12_Q0001 that reads from InfoCube 0APO_C12. I dont have access to the live 2004s system.
Who knows how 2004s determines the DOS value. In release 3.5 the DOS was available in two objects in Business Content:
MultiProvider 0IC_MC02 - Material Range of Coverage Components
The MultiProvider 0IC_MC02 is a union of Material Stocks/Movements (0IC_C03) and Plan/Actual Comparison Material Consumption (0PP_C05).
You can display the number of days during which the current stock of materials will cover future requirements based on the current requirement from production. When calculating the material range of coverage, it is assumed that the average future requirements for production components will be the same as those in the past (constant model). The key figure is determined on the basis of the average production requirements in the last 365 days calculated from the current calendar day.
(0IC_C03) - Material Stocks/Movements (Inventory InfoCube)
You can use this InfoCube to show on the basis of the stock and issue values the number of days during which the current stock will cover future stock issues. When calculating the material range of coverage, it is assumed that the average future stock issues will be the same as those in the past (constant model). The key figure is determined on the basis of the average stock issues in the last 365 days calculated from the calendar day selected.
What I would like to know is whether the Days Of Supply offered by the 2004s is the actual DOS that takes into account the impact the demand and supply have on the inventory on-hand?
Thanks in advance,
Stan

Hi David,
Thanks for the tip on Code Tags.
The logic for Days of Supply is to take the ending inventory (Stock on Hand) for the month then looking forward at the forecast for future months determine the Days of Inventory on Hand (Days of Supply).
In the example Stock on Hand for May is -23 and Days of Supply is 0
However for June 2011, Stock on Hand is 442 so it has coverage for all the days in July (31) and then it can cover an additional day in August so Days of Supply is 32.
The code I placed in original question is just an example of how it could be calculated in Excel.
We would like to create the report in WEBI but we know longer can use Macro's in the version we are rolling out.
Here is the Excel Function I created for Days of Supply: This will give you the code to acheive the narrative I stated above.
It passes Stock on Hand then two arrays. The forecast for future periods and the number of days in each respective period.
Private Function DOS(EndInventory As Single, Forecast As Variant, Days As Variant) As Single
    DOS = 0
    TotalDays = 0
    InventoryVar = EndInventory
    For x = 1 To Days.Count
    TotalDays = TotalDays + Days(x)
    Next
    For i = 1 To Days.Count
    If InventoryVar > 0 Then
        If Forecast(i) = 0 Then
            DOS = DOS + Days(i)
        Else
            If InventoryVar < Forecast(i) Then
                DOS = DOS + ((InventoryVar / Forecast(i)) * Days(i))
            Else
                DOS = DOS + Days(i)
            End If
        End If
    Else
        Exit For
    End If
    InventoryVar = InventoryVar - Forecast(i)
    Next
If InventoryVar > 0 Then
    DOS = 9999
End If
End Function

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our setting is 0-30 days-Information;
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Thanks&Regards
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Hi Venkadesh,
I think you put your indicator upside down.
0 to 30 should be error and avobe 51 information.
Another comments: to check if the macro is working: after running it, in interactive or background, check table /SAPAPO/AM_ALERT to see if you can see the alert or not.
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Day's Supply

Hi All,
I have one query on day's supply calculations.
Suppose stock as on date( 05-12-08) for a material is 1
1st Requirement which is on (09-12-08) for the material is 4
Then what should be the day's supply.
As per the help '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'. According to it the day's supply should be 4-1+(1/4) = 3.25
But actually system is displying the value of 0.25

Dear
The days' supply for a period is the stock level divided by the average requirements, where average requirements = sales/number of workdays.
Days' supplies are calculated by the system. You cannot overwrite them.
In ur case
DS = 1/4 = 0.25
Ur stock level is 1. & average requirement is 4
Regards
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Formula for Days of Supply, 1st RDS, 2nd RDS in MD06

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