Setup of reorder point planning and forecasts

Can someone please tell me the setup steps of reorder point planning and forecast sets..
I hav seen the documentation but am complete lost
Need ur help!
Emm

Hi Emm,
1. Create an item for which the inventory planning method should be reorder point planning along with that provide the minmum order quantity & maximu ordered quantity and the Source type should be supplier.
2. Navigate to > planning > forecasts > Sets: to define the Forecast Quantity. ( First Forecast Set, then Forecast Line, then Forecast Items > inside this define the forecast quantity.
3. Define the safety stock by navigating to Planning > Safety Stocks .
4. Then submit the reorder point planning with parameters as restock – yes and name of your forecast.
Regards,
Jyoti

Similar Messages

Difference :Automatic Reorder Point Planning and Forecast based palning ?

Dear MM Guru's,
As we See in throtical Concepts that
Automatic Reorder point planning and Forcast Based Planning Used the prevuious Historical Data.
Please explain what is difference Between them.
regards,
A. S.

Hi,
Reorder Point Planning: -
Use: -
In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts falls below the reorder point.
Features: -
The reorder point should cover the average material requirements expected during the replenishment lead time.
The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the reorder level.
The following values are important for defining the reorder point:
- Safety stock
- Average consumption
- Replenishment lead time
The following values are important for defining the safety stock:
- Past consumption values (historical data) or future requirements
- Vendor/production delivery timelines
- Service level to be achieved
- Forecast error, that is, the deviation from the expected requirements
Manual Reorder Point Planning
In manual reorder point planning, you define both the reorder level and the safety stock level manually in the appropriate material master.
Automatic Reorder Point Planning
In automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated forecasting program.
The 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 by the MRP controller, 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.
Forecast-Based Planning: -
Use: -
Forecast-based planning is also based on material consumption. Like reorder point planning, forecast-based planning operates using historical values and forecast values and future requirements are determined via the integrated forecasting program. However, in contrast to reorder point planning, these values then form the basis of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements.
Features: -
The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the material withdrawal so that the forecast requirement quantity that has already been produced is not included in the planning run again.
Reducing Forecast Requirements
- Reducing forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system also reduces future forecast requirements.
- Reducing current forecast requirements by consumption
If consumption is higher than the forecast requirements in the current month, then the system does not reduce future forecast requirements.
- Average reduction of the forecast requirements
The reduction of the forecast requirements is based on average daily consumption. Actual consumption data is not relevant.
The system calculates the average daily requirement first using the formula forecast requirement/number of workdays in the forecast period.
The forecast requirements are then reduced by the quantity resulting from the following formula: number of workdays worked x average daily requirements.
Period Pattern and Forecast Periods
You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period) and the number of periods to be included in the forecast individually for each material. It is possible, however, that the forecast period pattern is not specific enough for planning purposes. In this case, you can define per material that the forecast requirements should be divided according to a finer period pattern for planning. You can also define how many forecast periods are to be taken into account during requirements planning. The splitting indicator is defined in Customizing for MRP per plant and per period unit and is assigned to the material in the material master.
Example: -
For a monthly forecast, the requirements date would be set on the first workday of the month because, for planning, it is assumed that the total requirement must be available at the beginning of the period. You can then divide this monthly requirement into either daily or weekly requirements.

Use Reorder Point Planning and see VSE Requirements in Long Term Planning

Hello,
I would like to use reorder point planning short term and something similar to MRP planning long term. I am trying to drive actual production off of consumption and plan long term for capacity, inventory and BOM components. Our plan is to delete the near term forecast and leave the long term forecast in to show requirements for LTP.
I'm configured for Reorder Point Planning as follows:
MRP type V1, Reorder Point Planning with External Requirements
Planning Strategy 52
HB Max Stock Level
For the longer term forecast requirements I'm configured with:
Independent Requirement Type VSE, Planning without final assembly. This is creating non convertible planned order independent requirements.
The reorder point planning is executing perfectly, but how do I get the VSE planned order independent requirements to show up in long term capacity and inventory planning? What am I missing? Is it something with MRP type, am I missing an option in the long term planning setup?
This has been a tough issue and I would greatly appreciate any advice on this.
Thank you,
Wes
Edited by: weslaney on Jul 21, 2009 11:40 PM

HI
check the planning scenario in MS31 and the PIR assignment in MS31 also check the plant assignement.
Check In MD61 you have enter PIRs in simulation version and the same version is to assigned in planning scenario
Also check T code OPU5 for LTP setting for planned orders
Regards
Anupam Sharma
Edited by: anupam sharma on Sep 3, 2010 2:33 PM

Automatic reorder point planning

Hi Gurus,
Cud somebody guide me on the Basic settings required for AUTOMATIC REORDER POINT PLANNING'VM',Including SPRO settings.I cudnt find an answer for this from previous FORUMs.
Kindly give me u r suggestions or aslo suggest some good links for PP documents or links concerning with Automatic reorder point planning and its settings.
THNX in ADVANCE
HKR

hi HKR
In automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated forecasting program.
The 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 by the MRP controller, 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.
http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d256344af11d182b40000e829fbfe/frameset.htm
regards
sachin

MRP TYPE IN REORDER-POINT PLANNING

Hi
I would like to know the difference between the V2 and VM MRP type in the individual Material Master record.
Because, for me, both are for Automatic Reorder-Point Planning and I don't know which I have to choose.
Thanks in advance.
Best regards.

Forecast program is used to calculate reorder point.
check this document
[http://help.sap.com/erp2005_ehp_03/helpdata/EN/f4/7d257044af11d182b40000e829fbfe/content.htm]
Even when you the calculation is based on past consumptions, in the forecast view you maintain parameters for tendency (seasonal, etc), how many periods are to be taken into consideration and you may also manually adjust consumption quantities. You may refer consumptions to other materials (i.e. when you have a new material code, replacing an old one, you can use this old one historical consumption data to calculate reorder point).
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

Lot quantity to order for a material set as reorder point planning

Dear All,
Suppose the requirements of a material are as follows:
Week1 Required quantity - 100
Week2 required quantity - 150
Week3 required quantity - 300
Week4 required quantity - 500
This material is set as "VB" (Reorder point planning in the material master)
My questions is:
Can we use periodic lot sizing procedure for a material planned based on reorder point planning , so that MRP run will consider the requirements of a month (1050) and use that as the lot size to order material.
We want to plan the material if it falls below the reorder level, but we want the system to dynamically calculate the quantity to order based on the actual demand (and not on either fixed lot size or maxmimum stock level).
with regrds
Laxmipathi.G.V

Hi
Use Anyone of the following
1. Use automatic reorder point with forecast planning requirment.Where ssytem will calculate reorder point automatically based on weekly /monthly Forecast req.In this case Lot size you can use EX itself.
2. Use Planning type PD and lot size EX and Instaed of ROL use safety stock so that system will consider weekly sale req. and also safety stock according to that procerement proposal will be created.
Regards,
Velmurugan S

Regarding reorder point planning.

Hi experts,
I have entered safety stock as 40 pcs., reorder point 50 and created requirement for
may 09 - 30 pcs.
jun-09 - 30 pcs.
After executing MRP run it is showing planned order for 50 pcs. only.
But the requirements are not covered I mean to say at last the available qty should be zero.
Please help me on this immediately.
Rgds,
Parul.

In Consumption based planning(re-order point planning), planned independent requirements or dependent requirement will not be considered in the net requirements calculation. Instead, it is triggered when stock levels fall below a predefined reorder point .So, all the planned independent or dependent requirements in a certain period of time should have been considered before setting the reorder point
Therefore, these planning procedures are used in areas for planning both B- and C-parts and operating supplies.(low value materials, but consumption is more)
In reorder point planning, SAP checks whether the available stocks are below the reorder point that has been set for the material. If they are, SAP will create procurement proposal.
We can determine the reorder point manually (u201CVB-Manual reorder point planningu201D MRP Type in standard SAP R/3) or, it can also be calculated automatically using the material forecast (u201CVM-Automatic reorder point planningu201D MRP Type in standard SAP R/3).
In standard SAP R/3 system, besides u201CVB u2013 Manual Reorder Pointu201D and u201CVM u2013 Automatic Reorder Pointu201D MRP Types, there are also other MRP Types that have reorder point as its basis to calculate requirement with additional procedure which count external requirement (sales order and manual reservation) as a requirement. The MRP Type are: u201CV1-Manual reorder point with external requirementsu201D and u201CV2-Automatic reorder point with external requirementsu201D.
If you want to include requirements in the reorder point calculation in addition to the customer requirements and manual reservations,
go to SPRO ->Materials management ->consumption based planning ->master data -> MRP Types
Select the mrp type v1 and
select the following fields:
o     Requirements for materials to be provided in subcontracting
o     Dependent order reservations on the basis of production orders
o     Dependent order reservations on the basis of maintenance orders or networks
o     Release orders
o     Purchase requisition releases
o     Forecast delivery schedules
regards,
sikkandar basha

Unable to generate PO Requisition in Reorder point planning

Hi All,
I am running the REORDER POINT PLANNING REPORT, but after the completion of the report i am getting the error message Unable to generate PO requisition -- Check purchasing, order, and transaction flags on the item.
So kindly help me to get this issue resolved.
Thanks,
Simbu

Have you checked the org item setup for the particular item? Is Purchased and Purchasable checked on the Purchasing tab? Is there a list price? On the inventory tab is the item stockable /transactable?

Dependant requirements are to be considered in reorder point planning

Hi,
We are currently using safety stock planning with PD.but the problem is that MRP triggers a procuement proposal when ever the availabile quantity(not the stock) falls below safety stock(as it considers MRP elements like DEP REQ etc in the net requirements calculation).
Now if i propose VB,it does not consider the dependent requirements at all(they are not even displayed)
Requierment is that the procurement proposals should only be triggered when the safety stock falls below the physical stock and DEPREQ's and all other requirements should still be displayed.
I appreciate your help in getting me through with this.Thanks.
Ram

Dear Ram,
go to the customizing of MRP type ,
ther you will find the field 'Reorder point planning with external requirements'
Indicates whether an external requirement (sales order or manual reservation) is included in the net requirements calculation for reorder point planning.
If yes, you can decide whether it is to be included:
-in the complete planning horizon, or
-only within the replenishment lead time
I hope the above information will be useful,
best regards

Manual reorder point planning not able to create

Dear all,
I am maintaining manual reorder point planning for one raw material with MRP type VB and also maintained reorder point level . For other two raw materials i am maintaining MRP type as PD my issue is
when ever i run MRP for FG material purchase requisition is not generating for the material with MRP type VB even though stock is less than Reorder point. For other two raw materials purchase requisitions are generated
Pls give me solutions for generating the purchase requisitions for the raw material with MRP type VB.
Thanks
MBR

please check here:
http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d256344af11d182b40000e829fbfe/frameset.htm

Spare parts Demand Planning and Forecasting SCM

Hi ,
I am APO DP consultant can any body help me on questions on AS-IS and To-Be analysis Of Spare Parts Demand Planning and forecasting in SAP SCM.
If You have any Documents or links or nay information on these please give replay.
Ram

Dear Ram..
SPP is purely base on BOD (Bill of Distribution)..
following are the points u can cover in AS is TOBE..
1. On what Level (Chs) the Client performing Spare Parts Planning?nd how u want to disagreegate on lowest level ie.Hierarchy Level?
Ex. from Region..to Branch..to ..Customer..
2. Have u configured Spare Parts in R/3?
3. What is the Pattern of Sales History?Seasonal/Trend/Constant etc?
4. u can ask questions on Deployment...Inventory?
5. What is the Lead Time for Procurement?Distribution?Transportation?
for more details...
http://help.sap.com/saphelp_scm50/helpdata/en/a3/7ed240caeb752ae10000000a155106/frameset.htm
Rajesh Patil
SPINNOVATION

Re: Automatic Reorder point Planning for Finished Goods

Hi All,
I have some doubts regrading the Automatic Reorder point Planning for Finished Goods.
For testing purpose I have entered the consumption values for two month.
Say :
Nov-08=13
Dec-08=20
ROL level=5
Safety stock =4
Model =constant
Now when I execute the forecasting,The system gives me the forcast for the next two month jan & Feb.
But when I run the MRP I see planned order for 5.So how to fulfill my forecast for jan?
Please Advice.
Regards,
Vivek

Hi Brahamakar,
Can you please help me.
Regards
Vivek

Reorder Point Planning via SNP heuristics based on ACTUAL stock

Hi All,
In R/3 there is the option in reorder point planning to take into account external requirements (MRP type V1) or not to take into account external requirements (VB). When using reorder point planning in APO SNP Heuristics, the reorder point is being determined in time based on the PROJECTED stock (so taking into account external requirements) so the result is the same as in R/3 when using MRP type V1. In the future horizon, everytime the projected stock goes below the reorder point, a replenishment is triggerd via a planned order or purchase requisition.
I would like to know if (and how) it is possible to perform reorder point planning in APO SNP via heuristics (can be location or network) only taking into account the ACTUAL stock (and no external requirements in the past or in the future). So, the same behavior as the MRP type VB in R/3. The difference is that only on the short term, 1 time replenishment is triggered (via planned order or purchase requisition) if the current stock is below the reorder point.
Remarks: this needs to be able to be set product specific, because not all products at the location will need to use this logic.
Any help or thoughts for a solution direction (preferably without programming or user exits) are appreciated.
Thanks in advance,
Dennis

If you really just want a pure re-order point scenario based on current stock, I'd suppose that you'd want to create a new data view and modify the total demand macro so that it doesn't generate any sort of future requirements (total demand will essentially be zero). Then the reorder point will be the only thing driving planning when compared to the initial bucket SOH, which is presumably calculated through the standard macro and according to the stock cat. group you indicate in the location/product master.
You could set some specific filter in the material master using the MATLOC freely definable attributes to create selection profiles and govern in which data view you process the planning for certain materials. That is to say, you'd assign all materials which are pure current stock ROP and tag them with some attribute and use that to create selections for your Heuristic variants.

SAP ERP - Demand Planning and Forecasting

Dear all,
my customer is a wholesale company. They want to use a component in SAP ERP (not SAP APO), in order to make demanding planning and forecasting for the materials , quantities and dates they should make the purchases in order to cover the demand of their customers. What is the component that should be used in order to achieve this?

MRP can be used without production planning. SOP and Demand Management are not Production.
Nevetheless, if you want a simpler planning cycle, provided that you understand its ads and cons, you could go for Consumption Based Planning MRP.
See this link for details:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c2821c454011d182b40000e829fbfe/frameset.htm
Mario

Setup of reorder point planning and forecasts

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