How much to order , reorder point and Safety stock calculation in SAP?
Existing Client is Distribution company , the Challenge is how much order , when to order and how much safety stock we need to keep for Material in SAP?
Limitations with Client System:
u2022The existing system does not enable purchasing to have visibility to firm (open sales orders) and planned (customer forecasted) demand for a material.
u2022If a sales order is placed that consumes all of the inventory available, the purchasing department is not notified automatically to replenish the stock
u2022The system in place currently does not enable the organization to maintain a level of safety stock.
u2022If inventory is logically allocated to a priority customer based on their forecast, there is no way to ensure that inventory is reserved for the priority customeru2019s orders u2013 other sales orders often consume it.
u2022If a material is backordered with several sales orders waiting for parts, the sales orders are allocated based on earliest requested delivery date upon receipt of the part; there is no way currently to allocate the stock across the open sales orders if it is determined that is the appropriate course of action.
Thanks
Sweth
Sweth, you are asking for consulting, and in my opinion it is way beyond what can or should be reasonable to achieve in such a forum. You are asking complex questions, that most probable have more than one possible answer.
I suggest that you get on-site help from a knowledgeable and experienced consultant. These are crucial business issues, and should be dealt seriously.
Similar Messages
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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
PurushothamanHi,
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 -
Static or Dynamic Reorder Point and Safety Stock
Hi,
In a retail scenario, what would be the advantages over the other of setting a static or dynamic reorder point and safety stock?
The MRP type used is Time Phased Planning, but whether to let the system automatically set the reorder point and safety stock is the question. What should be considered in implementing this?
Regards,
Leehi,
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 -
MRP with reorder point and safety stock and planning calender issue
Hi,
We are using currently MRP type PD and using Scheduling agreements and after the demand management changes when ran MRP the delivery quantities are fluctating in higher range and vendor complains about it so to avoid this we are constantly changing GR Processing days in material master? how can we avoid the drastic changes on the order quantites on scheduling agreements with out changing GR processing days.
For example : we constantly manufacter 480 vehciles per week and some time because of holidays it will be 320 or 560 per week then the forward scheduling agreement quantites instead of 480 parts week(twice a week delivery) goes up and down and vendor needs a at least a range for his prodcution?
I was thinking to use Reorder point but when i changed the MRP type VB then i cannot see forward scheduling agreements at MD04? does MRP type VB or V1 will allow forward scheduling also like 120 days ahead of planning?
Appreciates everyone time and help.
Thanks and Regards,
Sivayou can use MRP time fence to restrict the changes in planning data for specified horizon. For example If MRP time fence = 30 days, no changes in planning data will be allowed for coming 3o days unless you manually intervene.if any new requirements came in this period , they will be planned automatically at the end of this period only.
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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 Rhi,
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 -
Opening and Closing Stock Calculation In SAP BPC 10.0 NW
Hello Experts,
Need your guidance on this calculation.
BI Cube: Receipts and Issues only Available on day basis
BPC Report / Cube Context
Product = Product1, Product2,
Account = receipts, Issues, Opening Stock, Closing stock,
Flow = Other
Audittrail = Input
UOM = QTY
rptcurrency = LC
Category = Actual
TIme = All Periods (Monthly)
Plant = Plant1, Plant2, Plant3, Plant4
In the Cube I don't Have Opening Stock, without Which I cannot calculate Closing stock.
Scenario: If I Enter Manually Opening stock for all products at some starting point, say In Year 2008 Jan. How To take this closing stock of this month automatically to next month opening stock and So on and so forth to following Periods? Is it possible through "Carry Forward Business rule" in this case, as Closing stock is a calculated value using Member dimension Formula. I am having receipts and issues in Account dimension.
Dimension Formula used: Closing Stock = Opening Stock+Receipts- Issues.
Please find attachment of the report screen shot.
Thanking you
PraveenHello Vadim,
1. The Cube storage Type is "Periodic".
2. Acctype of the account dimension is "AST"
3. Time Dimension Is based on Month.
ID
Description
RELEVANT
Base Period
CLOSED
Level
Month Number
Period
TIMEID
Year
Calendar
2006.01
2006 Apr
1
MONTH
1
APR
20060100
2006
2006.Q1
2006.02
2006 May
2
MONTH
2
MAY
20060200
2006
2006.Q1
2006.03
2006 June
3
MONTH
3
JUN
20060300
2006
2006.Q1
2006.04
2006 July
4
MONTH
4
JUL
20060400
2006
2006.Q2
2006.05
2006 August
5
MONTH
5
AUG
20060500
2006
2006.Q2
2006.06
2006 September
6
MONTH
6
SEP
20060600
2006
2006.Q2
2006.07
2006 October
7
MONTH
7
OCT
20060700
2006
2006.Q3
2006.08
2006 November
8
MONTH
8
NOV
20060800
2006
2006.Q3
2006.09
2006 December
9
MONTH
9
DEC
20060900
2006
2006.Q3
2006.10
2007 Jan
10
MONTH
10
JAN
20061000
2006
2006.Q4
2006.11
2007 Feb
11
MONTH
11
FEB
20061100
2006
2006.Q4
2006.12
2007 Mar
12
MONTH
12
MAR
20061200
2006
2006.Q4
2006.Q1
2006 Q1
3
QUARTER
3
Q1
2006
2006.TOTAL
2006.Q2
2006 Q2
6
QUARTER
6
Q2
2006
2006.TOTAL
2006.Q3
2006 Q3
9
QUARTER
9
Q3
2006
2006.TOTAL
2006.Q4
2006 Q4
12
QUARTER
12
Q4
2006
2006.TOTAL
2006.TOTAL
2006
12
YEAR
12
TOTAL
2006
Thank You
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