Reorder point

Question

HI Gurus,
Can anybody please help me with this problem. There are about 1600 MRO items which i have setup for running mass forecast in MP38. This job runs in the background every monday. But after some time, the reorder point is again coming back to zero. Why could this be happening. Any ideas to start to debug this one, The MRP type is VM. All these materials have some histroy of atleast 1 EA of consumption in the last 30 months.
The settings on the forecasting view are Forecast model - D (constant model), Histroical periods 30. Forecast periods - 3,
Period indicator - M,(month), Initialization - X, tracking limit - 4.000, Reset automatically checked, parameter optimization checked, Selection procedure - 2 . Here is an intersting thing. Today when the forecast job ran, the forecast model (D) which was populated is blank in the forecast model feild. But if i were to run the forecast on this material now via MM02 or MP38 again, i will definitely see the reorder point again. But next week again when the job runs for siome reason the reorder pioint is zero againa. this is problem with only a set of 1600 materials . All the ither 5000 MRO items which have VM reorder point are good. Any thoughts or ideas so that we could attack this problem please?
One other thing, the service level is zero for all these 1600 materials which are having a problem, where as the materials which have no problem have some service level of 90 to 95 dpending on the material, there i do see that there is safety stock calculated and also the reorder point. So maybe in these 1600 matertials, the consumption in hte past histroy is so low that when the system runs forecast it is not able to move up the reorder point and safety stock. could that be the reason?
Thanks
ANusha
Edited by: anusha vemulapati on Apr 4, 2011 3:56 PM

Answer 1

Hi Anusha,
It is very likely that if you are running a Forecast with:
The settings on the forecasting view are Forecast model - D (constant model),
Histroical periods 30.
Forecast periods - 3,
Period indicator - M,(month)
And you have almost no consumption of that material the Forecast value = 0 (You can check if this is the case)
Do you have almost 3 years of backward history? If not I would suggest you to reduce the Historical period value!!. (Beacuse 30 month if you do not have history will reduce your forecast value.
IE consumption of the material = 30 units,
Created = Last Month
Forecast value = 30Units/30 Month = 1 Unit per month!!!
If your historical value is only 1 month then the value = 30
Another suggetion: If you have periods with cero consumption instead of using D constant, try using G, because D model is too much dependant on the consumption of the period before the forecast.
Hope I helped you.
Kind regards,
Federico