Safety stock and Reorder point calculation in inventory planning

Hi,
How System does the calculation of own safety stock, and Reorder point, maximum safety stock level at parent and child location while running inventory planning services in SAP APO SPP. does anyone about the calculation please let me know
Regards
Puneet

Similar Messages

Calculation of Safety Stock and Reorder Point under Forecast Model T

Hi Gurus!
Happy Holiday!
I would like to ask for your assistance on how the the safety stock and reorder point was calculated with the following values available. I would really appreciate it if you could give me details on the calculation.
Below are the values:
Basic data
Forecast date        01.12.2009        Unit                  CTN
Forecast model       T                 Service level         0.0
Period indicator     M                 Paramtr profile
Control data
Initialization                                Tracking limit        4.000
Model selection      A                 Procedure selection   2
Parameter optimizatio                Optimization level    F
Alpha factor         0,10               Beta factor           0,10
Gamma factor       0,00              Delta factor          0,30
Basic value           5.464-           Trend value          5.603-
MAD                      4.758            Error total              4.722
Safety stock         1                   Reorder pnt.          1
No. of values
Consumption           6                Forecast periods       1
Initial. periods      0                Fixed periods          0
Periods per season   12
Historical data
Period                Original     Corrected value
11.2009                3.000              3.000
10.2009                0.000              0.000
09.2009                0.000              0.000
08.2009                9.000              9.000
07.2009               21.000             21.000
06.2009               20.300             20.300
Forecast results
Period                Original     Corrected value
12.2009                0.000              0.000
Appreciate your assistance!
Thank you and Happy Holidays!
Ji

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.

Automatic reorder point calculation

I would like to confirm the formula for calculating a reorder point in SAP.
As I understand it, the simple formula is safety stock + average requirements * lead time.
I have the following settings for a material:
MRP Type - V2
Lot size - HB
Maximum stock level - 500
Total lead days (including GR processing) - 30
Service Level - 98%
Procurement type - F
Historical periods - 2
Forecast periods - 2
Period Indicator - M
Forecast Model - G (Moving average)
Consumption values - 12/2010 - 160
11/2010 - 190
When I execute the forecast run, the get the following result:
Basic Value - 175
MAD - 15
Safety Stock - 39
Reorder point - 219
If the formula for calculating reorder point is - 39 (safety stock) + 175 (average requirement) * (30(lead time)/30(forecast period in days), then the reorder point should be 214. Why does the system output 219?
I read somewhere that a SAP note exists for correcting the calculation, can anyone confirm?
Many thanks.

Dear
Automatic calculation of reorder point RP : The reorder point will be calculated with following formula :
RP = average consumption during LT + SS
SS = R x Sq root ( ( LT(d) x 7 ) / FCperiod(d) x 5 ) x MAD
In your case , ROP will be calulated as per your consumption for November with 20 days having consumption of 190/m and December for 10 days having consumption of 160 /month
So Reorder Qty = 190(20/30)+160(10/30)+39 =219
Refer our earlier posting on the same : Detail the safety stock calculation
Regards
JH

Max stock level and reorder point for all the materials

Dear experts,
Is there any standard mm report that will give the details of max stock level and reorder point details for all the materials?
Thanks in advance,
Regards,
Krish

Your requirement can be pulled from table MARC. I dont think there is a standard report to meet your requirement. You can meet your requirement through SAP Query though.

Safety stock and safety period

Can anybody help me in understanding the effect of safety period in MRP..
CAn anybody give me an explanation with numbers so that i could test and understand..
Please help me out..

Dear
There are plenty of earlier posting on Safety stock and safety periods .
Safety Stock : This is one kind of Un-restricted stock which will be used to full fill the un-expected damand for any material apart from the normal stock .Safety Stock calcuation depends on requireiment .It can be pre-defined ( manual safety stock -MRP3 view-Safety Stock ) or Automatic Safety Stock based on the MRP Type set up in OMDQ.If you want automatic safety stock , then it will calcuated based on Forecasting view parametrs , forcast model , MAD, BASIC value calcualted wheil excuting Forecasting collectively or individually .
Safety Stock Calcualtion happend based on following CONDITION :
1.MRP type should be Forecast Base MRP -VV,VB,VS,V1,V2.Here MRP type calculates the Automatic Safety stock based on the Forcasting View Maintained in MM02 with proper Consumption History .( 261,501 etc update control in MMR through OMJJ set up --Please check MMR Forcasting View -Cosnumption Histry at least 6 months are there or not ?)
2.In MRP Type -SPRO-MRP-Check MRP Type -Select any one of the MRP Type like VV , you will find that Calcualtion of Reo-Order Point and Safety Stock Check Box Ticked .Based this set up and above Forcasting view , safety Stock will be calcualted with certain formaul .Here in the Material Master MRP3 view u need to maintain Service Level Percentage of that Material whcih will be consideredr as Service level factor to calcvualte the Safety Stock automatically based on the MAD and Basic Values calcualtion in Forcating View Individually (MM02) or collectively in MP38 .
Hope this above facts will help you to understand the calcualtrion of Safety Stock .
Formula : Safety Stock = R x Sq.rt. W x MAD
Safety Stock = R x W x MAD
Refer our earlier posting on the similar issues :
Automatic reorder point calculation
safety stock and min safety stock
Hope it clarifies
Regards
JH
Edited by: Jiaul Haque on Feb 21, 2011 10:31 AM

Difficulties in Reorder point calculation

Hi,
I know there are number of posts in the forum on this topic. But I could not find my answer in them.
So please help me understand the reorder point SAP is calculating.
I have a material with following data:
MRP type = V2 (Automatic reorder point calculation)
Planned delivery time = 3 days
GR processing time = 0
Safety stock = 0
Service level = 0
Forecast model = G (Moving average model)
Period indicator = W
Historical period = 9
Forecast period = 1
Consumption values = 3,4,5,6,7,8,9,10,11
SAP gives me the result as below:
Forecast = 7 (Matches with my calculation)
Safety stock =0 as service level not maintained (I agree)
Reorder point = 6
My calculation is, reorder point = SS+ forecasted requirement during replenishment lead time
= 0 + 7 * (3/7) = 3
Why SAP has calculated 6 instead of 3 ?
Thanks in advance.

Thanks Jurgen.
I have found the issue. The 'Procurement time' was defined as 1 day in customizing of CBP. This was causing the issue.
Thanks to all of you who replied to the thread.

Safety stock and min safety stock

Dear all,
CAn anybody explain me the functional difference between safety stock and min safety stock?
And what is the meanng of safety time?
Karthick

Hi,
Safety Stock:
The quantity of stock to satisfy high requirements. The purpose of the safety stock is to prevent material shortage.
Safety stock as the name suggest is the stock level till which the dead stock or stock out situation will not arise (probable figure based on past data maintained in master).
As such this figure is not stock, it is cut-off figure maintained in master which is used for Planning and once the stock level dips below this value, you can configure system to generate PR, orders automatically. It has its relevance in MRP and CBP.
Safety stock is not used in production.
Minimum Safety Stock
    The quantity that defines the lower limit for safety stock. This value cannot be exceeded.
    The safety is checked to see if it is greater or equal to this lower limit.
    The lower limit is checked if you use an availability indicator which shows, according to customizing settings, if the safety stock is to be calculated again in a forecast. If the safety stock is lower than this level in forecasting, the safety stock is automatically increased to the value of the lower level.
The safety stock must always be greater or equal to this lower level (minimum safety stock)
Hope this will help help you.
Regards,
Pavan

Safety stocks and STO's

Hi everyone,
I am new to APO but I am writing a functional spec. The safety stocks and STO's obtained after running SNP optimizer must be sent to third party system. I have to do the field mapping. Can somebody tell which table and technical name I should use. I know we can use /sapapo/rrp3 but I am not sure. Can somebody help...

Hi Bopanna,
We are using version SCM5.0 and a using planning book which is copy of standard planning book 9ASNP94. We have assigned correct KF function (3003) to safety stock key figure. I stillc nat figure out whats wrong
Mylene

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,
Siva

you 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.

Auto.Reorder point calculation based on service level-calculation incorrect

Hi
I have gone through all the postings pertaining to this topic.Still I am not getting the calculation steps despite of using the same proposed in many of the threads.
My calculation and system calculation as follows:
Service level maintain in MRP2 view was 99.8, so R factor must be 4.00 as per the chart given in sap help.
Planned delivery was 10 days. Material is externally procured. No GR processing time. Schedule margin key was also 000.
Forecast was executed for next 3 months based on past history of 12 months. (Moving average method).
Forecast values for 03.2010 = 140, 04.2010 = 140, 05.2010 = 140.
MAD calculated by system and shown while executing forecast in material master was 48. Safety stock calculated by system was 108 and re-order point was 157.
Since lead time is shorter than forecast period, SS = RWMAD = 4(10/31)48 = 61.94
W = Lead time in days/Forecast period in days.
LTC (Lead time consumption) = 140*10/31 = 45.16
ROP = SS + LTC (lead time consumption) = 61.94 + 45.16 = 107.
Where as system proposal was 157.
Kindly throw some light where is the problem.
Thanks in advance.

Hi
It would be grateful if somebody throws light on the above scenario.

Error message in PR for material having stock above reorder point

Hi Experts,
                  We want the error message while creating Purchase Requisition (ME51N) for a material which is having stock (MMBE) above Reorder point ( MRP1 View of material master-MM03) .Is there any user exit available for this requirement.
    MAXIMUM STOCK LEVEL
     With reference to this thread i checked the user exit   MEREQ001 . But this exit will contain include ZXM02U01 Which is showing error message - program names ZX..are reserved for includes of exit function groups .I want to open this include if i want to write the code for the above req.
Regards,
RAHUL S

Hi Rahul,
you can ignore the message "program names ZX..are reserved ..." - because you are in such a reserved function module. Just create the include, active your coding and activate the exit (transaction CMOD) -> then you have an active implementation of an user-exit.
BR,
Christian

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

Safety stock not covered by schedule lines in planning run

Hi !
In our organization we are trying to implement scheduling agreements and automatic creation of delivery schedule lines through MRP. We have MRP type PD and it considers the reservations created by PM orders and Production orders as requirement elements. When I do the planning run, it creates schedule lines for the PM order reservations and purchase requisition for safety stock. I need it to create schedule lines for all scenarios. Kindly help and suggest a solution.
Regards,
Satya

Hi,
Please refer the below links.
Schedule Lines not getting created in MRP
Re: No Scheduling line is generated when RUN MRP
Hope it helps you.
Thanks.

Safety Stock and Value of Safety Stock

I have two business content key figures 0EISBE_QTY and 0EISBE_VAL I have found a source for the first MARC-EISBE, can someone confirm that this is the best source and also a source for the second? Thanks

hi Niten,
check
http://help.sap.com/saphelp_nw2004s/helpdata/en/37/6266370f5a2a68e10000009b38f8cf/frameset.htm
WEISB, logon in r/3, se11, data type = WEISB; 'where used list', 'table'.
<b>S094</b>, S194, S194BIW1
S094-WEISB; S094-EISBE
hope this helps.

Automatic reorder point planning -forecast view

Hi
Our client want to implement automatic reorder point Planning.
Reorder point quantity was maitained from last 3 years but MRP type is 'ND' as they are not using MRP.
Now i am changing MRP type to:VM and in forecastting view: i maintained model as:D constant model period indicator:M
His periods:60 , forecast periods:12 initialization:X tracking limit:4000 selection procedure:2 reset automatically
Is it ok ? than can i run MP30. and the client wants to run for many materils(2000).
How can be run for many materials.?
Regards,
srihari.M

Dear,
In automatic re-order oint planning , system uses past consumption data (historical data) to forecast future requirements. The system then uses these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is specified in MRP2 view, and the material's replenishment lead time into account, and transfers them to the material master.
Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually adapted to the current consumption and delivery situation. This means that a contribution is made towards keeping stock levels low.
From MP30 you have to executed forecast and system has generated forecast values and updated safety stock and reorder point also. Only thing to remember is you have to maintain service level in MRP 2 view of material master when you use VM- MRP type to calculate safety stock and reorder point
Find bleow the set up following set up for automatic re-order point planning :
1.Material Master Set up : Maintain all the relevent parameters from MRP1 to MRP4 view , Forecasting View
1.MRP Type -VM , Lot Size -EX
2.Procurement Type -E for FG and F for ROH
3.Planning Startegy -10 or 40 in FG/SFG and 20 for componenet
4.Planned Delivery Time in MRP2 VIEW
5.Indiviaul/Collective Indicator - 1/2 based on your requirement in MRP4 View
6.BOM Explosion -Keep it blank
7.Service level percentage -MRP2 view
8.Maintain Forecastin view data like model selection , Histry period , period indicator , Forecast control pramaters ,
10.Make sure that you have min 12-8 monhts total consumption update in Forecasting view .
Configuration : InSPRO -MRP -Check MRP Type -VM-check the details like Re-Orde point .Safety Stock both the automatic calcvualtion box are marked .
Finally as a sample test , select any material -mm02-execute forecast in mm02-forecasting view -exectute forecast -then save .Run MRP in MD03-1,1,3,3,1.NETCH indicator and check the result in MD04
HOPE IT WILL HELP. PLEASE REVERT BACK.
Regards,
Alok Tiwari

Safety stock and Reorder point calculation in inventory planning

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