Safety stock, forecasting doubts
Can anyone guide me on my doubts,
1) Safety stock : While describing safety stock in oracle, we are mentioning date and quantity. Take a example - item = xyz, Date = 01 Jan 2012, Qty = 10. is it means that 01 Jan 2011 onward, stock level of item xyz should be atleast 10. If it is less that 10 after 10 Jan, then suggest planned order from ASCP.. ?
2.1) I can see that we can manually mention safety stock, system will calculate safety stock. In case of manual, xyz item attribute should be 'Not MRP" Planned. I can mention item, date and qty for in safety stock form.
2.2) In case of system to calculate Safety stock, I have mentioned attribute value as " MRP planned", mentioned safety stock days as well. Here I have created a forecast and ran "Reload safety stocks" with method as "User defined %" with forecast created for SS calculation. Now I can see corresponding newly created SS in system.
Now I have ran data collection with calculate safety stock = Yes, and after than launched plan as well. But I am not able to see both type of safety stock in ASCP workbench. I will say, I am not able to see any safety stock demand in workbench in any one of organization. Like to inform you that while doing collection, I have selected all organizations which are enabled and also same was selected while launching plan.. so whats wrong and so not able to see any safety stock demand in system.
3) Forecasting: I can put forecasting at component instead of products level ( ie finished good). Now suppose, I have kept forecasting at component level, means I have mentioned component item, qty and due date in forecast form. Now ASCP will consider this as demand and drive material, may suggest planned order. Now same time, I have booked a SO, having a products, which requires that forecasted component to do assembly. As there is demand against forecast and demand for SO, will drive material and this will be duplication. So netting of forecast is must, which we can do through forecast consumption. Now in my scenario, I have mentioned forecast for child in forecast and SO is booked against finished item. Now my question is - is there any provision for component level consumption based on finished good SO.. ?
Let me know if anyone needs more clarity on above case,
Thanks and Regards,
Dipak
Thanks Partha your help. Following solution is working on MRP, but it seems that not working on ASCP. I am pasting process here, Here V is long LT item.
1) Define a planning bill forecast, consider FC00. This contains aggregated demand of V against a particular date.
2) We will explode forecast from FC00 to FC01, where you can see forecast against component of ‘planning bill item’ along with Qty and date. Qty will be derived from planning percentage mentioned in planning bill.
3) In order to convert these forecast demand in purchase order, we have to use a plan.. say ‘Small Plan’. Purpose of this plan is to consider ‘Forecast FC01’ only as demand ( ie do not consider any SO, On-hand etc for calculation ), and create a supply by release planned order. Here needs to run collection and also needs to mention demand schedule as ‘FC01’ in plan parameter.
4) Now all planned order as per forecast will be released and converted either requisition / PO. This may be firm / non firm.
5) Now define another Master plan, ( in order case, this plan will be global plan) which consider all supply and all demand sources. But ensure that we will not mention FC00 / FC01 forecast in this plan demand schedule. This plan will consider PO / requisition supply created via ‘Small Plan’, and will peg to actual SO. This will not peg to FC 01 as we have not attached this forecast to master plan demand schedule.
6) Now if SO dependent demand of V is less than PO qty, then master plan will suggest to raise PO vice versa it will suggest to cancel / re-schedule in –out. We can filter such suggestion by exception / action / supplier name etc. So we will NOT do cancellation / reschedule out, but we will do re-schedule in if possible. This will ensure that we will have enough supply of V irrespective of SO demand.
From above, we can use planning bill as input for long LT items planning and output will purchase order in advance of SO, also consumption ( indirectly) of forecast can happen. If we will mention ‘include past due forecast = 0’ in planning parameter, then automatically past forecast will be excluded from planning.In addition, we can use master plan ‘supply-demand’ workbecnch output for monitering SO demand trend with forecast entry done by planner.
Now am checking on ASCP and believe that it will work in ASCP as well.
Thanks for support ,
Dipak
Similar Messages
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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!
JiSweth, 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. -
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I have MRP set up for CBP (VV MRP Type). I maintain a static safety stock value. When I run my forecast, without changing the forecast model or any other forecast values, the system resets the safety stock to zero. I'm struggling to figure out what is causing this. Just a stab in the dark, but can the 'reset automatically' flag have something to do with this behavior?
Thanks, VladHi,
Please check the below link...
http://www.sapfans.com/forums/viewtopic.php?f=6&t=346330
Try to explore on service level field which is in the material master MRP2 view.
Hope it may help you...
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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 ?
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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 -
Plannin g with forecast as well as safety stock
Hi,
I have one requirement, for the finish product we use the Forecast based planning, in this case if we mantain the forecast for particular month as 100 then system will only plan the materal for the 100 quanity, but our user requirement is we will keep the forecast qty. as 100 but is if sales order qty is more than forecast then system should add that qty. in the planning
Forecast : 100
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regards,
zafarDear,
What is your MRP type?
If you are using V1 or V2 then you can use the Include ext. reqmts in configuration of MRP type in OMDQ
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Else SAP enhancement MM61W001go to Transaction SMOD for this and read document and OSS Note 351240
Regards,
R.Brahmankar -
Safety Stock Not Being Released To Cover New Sales Orders Or Forecast
Hi,
Does anyone know of a way to get safety stock at the lower levels of the BOM to get released for upper level sales order or forecast demand without having to adjust the effectively out to a future date?
Example:
A = Finish goods item with two weeks lead time
B= component of A and it has two weeks lead time
C= component of B and has 10 weeks lead time.
Have safety stock hard coded with an effective date of today for 100,000 units.
I have 100,000 in inventory and I have planned orders to cover all my demands and future safety stock requirements for the next ten weeks.
I receive a new sales order for 50,000 units with a customer request date five weeks out.
I am getting ATP dates to assign to the new sales order 14 weeks out versus allowing me to use 50,000 units from the safety stock to schedule in week five?
Even If I schedule the sales order for five weeks, because I have gone down two levels to confirm that I have safety stock, and It could be used, planned orders would not get generated at the next two levels, because the demand date on the safety stock is earlier than the demand date for the new order?
Is there any resolution that anyone has found that addresses this issue?
We have set a demand priority rule on the ASCP plan options tab to "Sales Order Priority" where we have set criteria for number one to "Sales Orders & MDS Entries Priority" and number two to "Schedule Date".
We have found that adjusting the supply and demand dates out to cover the full 14 week period does reduce the safety stock at the lower levels, but it also creates additional starts and inventory to be put into the line, which makes this approach not feasible.
Does anyone have any solutions to this problem? We do not build safety stock for the sake of building safety stock. We want it to be used for any sales order or forecast demand that comes within the planning horizon.
Appreciate any inputs.
Regards,
DaveHi Dave,
Try this note suggestion, possibly help you in resolving your issue.
How to Avoid Getting Safety Stock Replenishment Too Early in an ASCP Plan [ID 301629.1]
In order to line up the safety stock supply with the changes in safety stock, a combination of the profiles must be used:
MSC: Use FIFO Pegging as yes
and the plan option
Peg Supplies by Demand Priority is checked.
The profile MSC: Use FIFO Pegging as yes will perform the following:
For all demands and supplies, it proceeds item by item and
pegs supplies to demands on a daily basis. Daily supplies
and demands are not sorted. When supplies or demands
on a given date are used up, it picks from supplies or
demands on the next date. The unpegged supplies are
pegged to excess.
The peg supplies by demand priority combined with the profile above will prevent the system to plan ahead for safety stock.
Also no safety stock smoothing is setup.
To implement the solution, please execute the following steps:
1. Please set the profile:
MSC: Use FIFO Pegging as yes and
2. Under the plan settings in the main tab the set the following options:
Enable Pegging ON
Peg Supplies by Demand Priority ON
Warm Regards
Sivaraman.G -
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
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100 (Monday)
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S
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Dynamic update of safety stock in SAP R/3 systems (ECC 5.0 version)
Hi Friends,
Forgive my newness to SAP. Let me explain the problem i am facing in SAP. I want to identify the parameters to dynamically update the finished goods safety stock for each depot by SKU wise.
Current process :- Safety stock is calculated manually and updated by using Transaction code MS02 in the system.
It would be highly useful if i know the flow in SAP system and how the current process can be changed?
If more info is required i'm ready to give.
Thanks in advanceHi Mario Adler,
Thanks a ton for ur answer.
Will it update safety stock for finished goods in each depot by SKU wise? Raw material safety stock isn't my concern.
project description : Manufacturer of chemical goods , 70+ products,350 skus
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Mother go-down to depot(Stock transfer)
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Edited by: Arasu_IIM on Apr 26, 2011 12:52 PM -
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
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Regards
Prasanna -
Maintain plant specific safety stock
How to maintain plant specific safety stock for the same material.
Hi swetha
First Go to T : code : MM02 : change Material
Enter plant number for which u want to enter Safety stock
Goto MRP-2
Net Requirement calculation
enter safety stock
Use of safety stock :
Safety stock
Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period.
The risk of shortfalls is reduced by having a safety stock.
Procedure:
With manual reorder point planning, you can enter a value in the material master record. However, it is merely for information.
With automatic reorder point planning and forecast-based planning, the system determines and adjusts the value automatically for forecasting purposes.
Hope ths solve ur problem
please reward points
Regards
Sunil -
Dynamic Safety Stock - Custom logic
Hi,
Are there any exits / enhancements where we can build customer specific logic to periodically update Safety Stock values in the Material Master (MRP Area)?
Thanks.
RajHi,
Thanks for your response.
We want to maintain a Minimum Stock Level at various Storage Locations periodically. However the value is computed based on certain historical values (and not mere consumption). There is an industry logic which will compute this figure.
We need to find a solution to compute this figure as per logic and use it in MRP for planning along with other requirements (such as Reservations, Customer Orders, Forecast etc.,). Since the count of parts and associated historical values are quite high, computing this offline is tedious.
Is there a better way to address this without Z - Devpt.?
I can provide any other info if reqd.
Thanks.
Raj -
Hi,
I maintained minimum safety stock as-50 in MRP2 view while creating material master, my client requirement is this minimum safety stock should not be issued at any cost, without enhancement from abap consultant i need to maintain this safety stock.
can anyone help me to cose this issue.Hi,
Minimum Safety Stock
The quantity that defines the lower limit for safety stock. This value cannot be exceeded.
Use
Defining a lower limit can influence the following:
material master data maintenance
The safety is checked to see if it is greater or equal to this lower limit.
forecasting
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.
Dependencies
The safety stock must always be greater or equal to this lower level.
Hope this helps.
Revert if you need more details.
Regards,
Tejas -
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 -
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
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