MRP with Safety Stock
Hi All,
I am working on a trading Company. I have one scenario for Make to Stock, whenever the MRP will run it should consider the safety stock and the MRP should be run through the reorder Point. As i do not have much idea about the MRP, so please guide me on this. Please give me step by step Procedure to do this. What MRP type,shall i choose while creating the material master and which lot size? Its will be better if you clarify with an example.
Sure,Points will be awarded.
Thanks in advance.
Hi Dharama,
I have run the MRP same as the example given by you for Lot size HB and MRP type VB as--
Ex. Stock 50
Reorder point 60
safety stock 30
MAx stock level 100
When MRp run system create P.R for 50 no's.
I understood the first two line items as we have the safety stock as 30, so it will be reduced from the avalaiable quantity 50. It will become as 20.
But after that, how the system is calculating on the reorder level and the maximum stock level. Please clarify me on this.
Thanks in advance
Sure, Points will be awarded.
Edited by: Neeraj Saini on Oct 23, 2008 7:53 AM
Similar Messages
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MRP Planned % Safety Stock Not Generating Supply in R12 ASCP
Playing with MRP Planned Safety Stock in an unconstrained plan. See safety stock in the horizontal plan. See safety stock in the pegging tree. Yet this type of safety stock is not generating any supply recommendations. However with "regular fixed quantity" safety stock the plan is. Thanks in advance.
Hi
If I understand your qn correctly., user defined SS is working and MRP planned % is not. Have you setup MRP planned % such that you gave the SS method., bucket days and % for the item attributes?
Also make sure that you have demand for the item since it looks at your demand in future,adds up demand within the bucket days and applies the % .
Thnx
Partha -
Hi SAP Experts,
I have a question about MRP.
Can we work MRP with subcontractor stock?
Let me explain, the MRP could not to generate new planning orders if I have subcontractor stock. For example:
In MD04 transaction
MtlRes 100- units
MtlRes 100- units
MtlRes 100- units
SubcSt 300 units
If I have this situation, the MRP run could not to generate planning orders because the subcontractor stock recover the quantity.
This problem (almost) drive me crazy. I really appreciate any help.
Thanks in advance.Dear Demetrio
Please note that the logic for subcontracting was changed as of release
4.0A.
As of release 4.0 the net requirements calculation for components to be
provided in subcontracting takes into account that the provision stock
can only be used to cover the corresponding requirement of material
provided. The provision stock that is already available from a
subcontractor (vendor) can only therefore be used to cover the
requirements of material provided at this subcontractor.
The system uses only the stock that has not been assigned to a
subcontractor as unrestricted-use stock to cover all requirements.
For further information about this issue please consider the below QA. With the modification of note 170597 the old logic can be achieved. Please notice that it is a modification note.
1. Question
Why does the MD04/MD05 display an own segment for subcontracting as of Release 4.0B and how does the materials planning work with this new logic?
Answer
The logic regarding the subcontracting was changed as of 4.0. This is explained in detail in the release notes for 4.0A:Planning of the components to be provided for subcontracting
Material Requirements Planning -> Planning Execution -> Material Requirements Planning: Planning of the components to be provided for subcontracting
2. Question
Why does the third-party order processing for subcontracting work differently as of Release 4.0B?
Answer
The (Pseudo) Third-Party Order Processing for parts provided together with the own segment for subcontracting results in problems and can result in inconsistencies. This is described in detail in Note 214298.
As of Release 4.5A you can implement the third-party order processing with subcontracting MRP areas (refer to the corresponding documentation).In addition you can use a modification to reset the system to the behavior before 4.0A, refer to Note 388479. As of Release 4.7, BAdI 'MD_SUBCONT_LOGIC' allows this without a modification.
3. Question
Why does the discontinued part for subcontracting not work?
Answer
You cannot divert requirements of material provided to the follow-up material. The reasons are described in detail in Note 43636, section 6.
4. Question
Why does the system not display the requirements of material provided in the storage location MRP area, as expected?
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Requirements of material provided (subcontracting requirements, material staging requirements) never reach a storage location MRP area, because later you cannot post the withdrawal from this MRP area.
The withdrawal of the components (to be provided) during the goods receipt for an SC procurement proposal occurs always from the stock with subcontractor, which is managed - from the viewpoint of the inventory management - on plant level and has no storage location reference.Refer to Note 503497 for details.
5. Question
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Answer
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If the receipt element occurs after the requirements date, the corresponding element must participate in the rescheduling check (Transaction OMDW).
Regards
Soundar -
Push Deployment with Safety Stock Horizon taken into account
Hi,
I would like to know if anyone has worked in the Push Deployment - Rule - S -With Push taking the safety stock horizon into account,
If Yes, Please let me know how it should work....If possible in details.
Regards
TaritHi,
For confirm planned goods issue for which you use the safety stock in the source location to cover these goods issue.
if the difference between the requirements date and the deploy date is lower than the safety horizon.
This means that the system only falls below the safety stock that specified in the LOT SIZE tab. of loc prodcut master
if the demand covered in the safety stock horizon.
Regards.
MJ -
Cross Plant Planning for External procured Material in MRP with their stock
Dear Gurus,
I have one requirement my client want Cross plant planning in MRP. this plants are only site plants no Manufacturing. All materials in these plants are Externally Procure Materials(F). Now they want cross plant planning for Externally Procure Materials or cross plant planning for Externally Procure Materials with consider all plant stock details while planning.
can you tell me procedure for this,
Thanks in advance,
Regards,
DevrajHi,
In R/3 you cannot consider all plants in planning, you have to use SAP APO to achieve your goal (if your goal is to optimize the procurement in your plants). When you execute MRP run in R/3 it will only consider the details of one single plant.
I mean if you have several plants used for external procurement, and you want to make an optimal decision considering all the stocks and open transactional data, requirements in those plants, it is not possible in R/3 as per my knowledge - multi site/plant planning won't give you such optimal solutiion.
http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d2d4d44af11d182b40000e829fbfe/frameset.htm
http://help.sap.com/saphelp_apo/helpdata/en/7e/63fc37004d0a1ee10000009b38f8cf/frameset.htm
Regards,
Csaba
Edited by: Csaba Szommer on Nov 17, 2008 10:27 AM -
How to make MRP run based on Target Safety stock
Dear Experts,
For our MRP-planned materials with safety stock we would like MRP run to take into account target stock level defined for each month.
for example: we know the target stock level values will be for M1 = 1000, M2 = 0, M+3 = 5000 etc.
MRP should then propose orders to replenish up to the target stock level at the end of each month:
needs for current month = (target stock level defined for current month minus safety stock)
needs for M1 = (target stock level defined M1 minus safety stock)
needs for M2 = (target stock level defined for M2 minus safety stock)
etc
Do you know if there is any simple way to achieve this?
Thanks you!
ElynnDear Experts,
in my company, we are facing exactly the same issue, we would like the MRP to consider a target stock exaclty as described by Elynn. To be more clear, if we could reproduce the TDSS like in SNP in MRP, we'll be happy !.
We imagine already to manage the target stock level in APO DP and released into ECC6 as a different MRP element than Forecast. this target stock should not be considered as forecast neither consumed by any sales order. Only to force the MRP to generate planned orders to increase the final stock when needed. This is only an idea, we have nothing tested yet.
someone have an idea if there's a standard solution for make this ? I mean, why this fonctionality exist in SNP but not in MRP?
thanks for any help
Celia -
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,
NoëlHi 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 -
How to use forecast and safety stock
Hi
We have below business case for MRP case and scenarios , please guide me how to use safety stock in this case.
Requirement : System should always raise PR for quantity of forecast only , if forecast in not available then for the safety stock
Planning cycle
100 (Monday)
Deliver cycle
500(Friday)
Forecast model
S
Lead time
4
Safety stock
10Hi
Did anyone have idea how to use safety stock with forecast in such a way that System should always raise PR for quantity of forecast only , if forecast in not available or less then the safety stock quantity PR will be raise with safety stock quantity -
Approval for issueing safety stock
Dear Experts,
I have one requirement...
I need a control / approval... while issuing the material from Saftey stock level..
I 'll explain in detail.. If i mentioned a mtl A with safety stock 10.... till the time it reaches 10.. it needs to allow the issue...
Once it reached the limit of 10..(stock).. then it needs to restrict the issuing process.. And the issue can be further performed only after approval...
Please explain the possibility and how to configure for this in SAP.
Thanks and regards..Hi,
In OPJJ, you can control the availability check of safety stock for the combination of Availability check and Checking rule.
But for the consumption and issue you have to manually do goods issue. -
Hi,
in our ASCP plan, currently we have items with Safety Stock values manually inserted valid over all planning horizon.
Therefore all the safety stock is NON-TRANSIENT.
Actually we have Priority Based pegging with:
MSC: Include Safety Stocks in Priority based Pegging: YES.
What is appening is that ASCP peg On Hand quantities to FORECAST DEMAND, then pegs other supply type to SAFETY STOCK Demand.
I would like ASCP to peg OH to Safety Stock Demand (DUE on the plan start date) before Forecast demand (due in the future).
Someone knows how to obtain this "feature"?
Thanks in advance.
GiacomoGiacomo,
I'll give you a few pointers, but this may be difficult to achieve. Try this as a test.
I assume you have a constrained ASCP plan. This question wouldn't be as relevant in an unconstrained plan because the demands would just be calculated and priority pegging isn't that useful. .Is that correct, you have a constrained plan?
The key point is that you mentioned is that you have NON-TRANSIENT safety stocks. This means that you are setting a value due today for 100 units and at the end of the plan, you still want to have 100 units of safety stock planned.
ASCP priority pegging logic has these rules:
1. Any supply quantity that pegs to NON-TRANSIENT safety stock CANNOT be used at a future date to peg to real demands. [It's not going to happen]
2. Any Supply quantity that pegs to transient safety stock CAN be used at a future date (when the corresponding dip in safety stock occurs) to meet demands. [This means that it can release the supply and re-peg to a future demand].
Independent Demands have a seeded demand priority by default. The first two below are set by a profile option, safety stock is always the lowest priority ( a number something like 99999 where the higher value is lower priority)
1. Sales Order = 10,000*
2. Forecast = 100,000*
3. Safety Stock = 999,999 (not sure of this internal value)
Set by a profile with a name like msc: default sales order priority
For priority pegging setup instructions, please see the ascp user guide. The basics would be the use of two profiles mso: demand window size and mso supply window size. This determines how ascp will select and sort your supplies and demands for pegging. It starts at the first demand date or supply date and selects that many future days of demand and supply to sort and then peg.
You also setup a priority rule that determines how ascp calculates priorities for pegging. To accomplish what you want to do, you would have a rule like
1. MDS & Sales Order priority
2. Schedule Date
This is a commonly used example. The pegging process will the select the number of days you have chosen and sort the demands based on their prioirty.
Sales orders are more important (to you) than safety stocks, but not forecasts. You want the safety stock to peg the on hand, not a future forecast. This can only happen because you have mso: demand window size set to a number of days where pegging sees the future demand in the same sort. I haven't seen this requirement (SS higher priority than forecast), so you'll need to test my suggestion.
Set the value of MSC: Default forecast priority = A huge number (higher than 999999).
The intent is to make the demand priority the SAME as a safety stock demand. In this case, with the priority rule I suggested, the schedule date will determine the pegging order.
I think this will get you close. You can view the internal proirity calculated by ASCP for the independent demand by selecting that order in the pegging details and then rightclicking to select the properties. The pegging details wil show you the priority value that was used.
Hope this helps.
Kevin
www.inspirage.com -
MRP with stocks in other plant
Hi,
Scenario: 5 stocking Plants + 1 Manufacturing plant under a company code.
For a finished product, all 6 Plants have stock.
For MRP, the demand of the finsihed product from all 6 plants is combined and fed as PIR feeding at manufacturing plant.
Question: How to make SAP to consider stock of all plants and generate the planned order for the difference Qty?
E.g. PIR at Mfg plant = 100 Nos.
Stocks at 5 Stocking plants = 50 nos
Stocks at 1 Mfg plant = 10 nos
Hence on MRP run, system to generate planned order for 100 - (50+10) = 40 Nos at mfg Plant.
ThanksHi Nitin,
SAP's planning is based on lean-manufacturing practices - i.e. you will never have stocks in excess of requirements (plus safety stock). So, in reality, you will not need to "adjust" your production for stocks lying at stocking plants (stocks at stocking plants would be just equal to safety stock logic defined at each plant).
Now say some demand at any of the stocking plants got cancelled, and you end up with excess stocks at that moment. So in next MRP-run, system will delete some future STOs. Or, if there is nothing to delete, then MRP-list will show exception message # 25, and you can decide how to move that excess stocks.
So, in conclusion, adjustment of production, based on stocks at all 6 plants, will NOT be needed. Just produce as per MRP proposals, and be on the lookout for exception message # 25. (Hope you are using special procurement key for demand transfer from stocking plant to production plant).
- Chetan -
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 -
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 -
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 -
Is there any way plan safety stock at subcontractor in MRP ?
When the stock is at vendor ( material provided to vendor)
and if we wanted keep safety stock at vendor by entering safety qty in material master .After MRP run system ignores and planes addition requirements which is unwanted .Is there any way to fix for this issue ?Define Safety Stock Availability
In this step, you define the percentage of the safety stock to be
available for planning. This function is used to avoid a situation where
orders proposals are created unnecessarily by the system to cover small
shortage quantities.
In MRP, the system usually carries out the lot-size calculation for every
shortage and creates an appropriate order proposal or - if already
available - a firm receipt with a rescheduling proposal.
However, it does not always make sense for a new order proposal to be
created for every small shortage. These order proposals must all be
managed, converted, placed in stock and settled. If you want to save
yourself this effort, you can make a portion of the safety stock
available for planning. This has the following consequences:
o An order proposal is not created until the stock level has fallen
below the safety stock available for planning
o If the shortage exceeds the portion of safety stock available for
planning, then the system creates an order proposal in the planning
run that covers this requirement and that also replenishes the safety
stock.
o The portion of the safety stock available for planning can only be
determined using the MRP group. Therefore, to determine that a certain
percentage of the safety stock of a particular material is to be
available for planning, this material must have been given the
appropriate MRP group in the material master record.
SPRO-MM-CBP-Planning-MRP calculation-stock-define-safety stock availability
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