Static or Dynamic Reorder Point and Safety Stock

Hi,
In a retail scenario, what would be the advantages over the other of setting a static or dynamic reorder point and safety stock?
The MRP type used is Time Phased Planning, but whether to let the system automatically set the reorder point and safety stock is the question. What should be considered in implementing this?
Regards,
Lee

hi,
As far as i know is static means manual entry of reorder point.
The dynamic or automatic reorder point is used for Forecast based planning...
the sysstem wii automatically calculate the reoder point evrytime there is the forecast run.
So, it dependig on ur scenario , select either manual or automatic.
First entry for both is always manual entry....
hope u got this..
Regards,
Smitha

Similar Messages

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
Purushothaman

Hi,
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

Is there any bapi returns dynamic value of reorder point and safety stock

Hi all,
Is there any bapi returns the runtime value of ROP and SS by passing changenr/objectid taken from CDPOS.
if exists please send me with code.
Thanks
PRR R

hi,
As far as i know is static means manual entry of reorder point.
The dynamic or automatic reorder point is used for Forecast based planning...
the sysstem wii automatically calculate the reoder point evrytime there is the forecast run.
So, it dependig on ur scenario , select either manual or automatic.
First entry for both is always manual entry....
hope u got this..
Regards,
Smitha

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.

How much to order , reorder point and Safety stock calculation in SAP?

Existing Client is Distribution company , the Challenge is how much order , when to order and how much safety stock we need to keep for Material in SAP?
Limitations with Client System:
u2022The existing system does not enable purchasing to have visibility to firm (open sales orders) and planned (customer forecasted) demand for a material.
u2022If a sales order is placed that consumes all of the inventory available, the purchasing department is not notified automatically to replenish the stock
u2022The system in place currently does not enable the organization to maintain a level of safety stock.
u2022If inventory is logically allocated to a priority customer based on their forecast, there is no way to ensure that inventory is reserved for the priority customeru2019s orders u2013 other sales orders often consume it.
u2022If a material is backordered with several sales orders waiting for parts, the sales orders are allocated based on earliest requested delivery date upon receipt of the part; there is no way currently to allocate the stock across the open sales orders if it is determined that is the appropriate course of action.
Thanks
Sweth

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.

Report on current stock and safety stock

Hi,
I want to have the report on current stock and safety stock.
In MC.9 it gives wrong safety stock. When I go to cross check the safety stock in material master & in MC.9 I see differences.
Thanks,
Kiran

You can user tcode MC.9 or MC.5 to know valuated stock available at given plant. Stock lying in Returns (MB52) will not be a part of this report as it non-valuated stock.
The stock in the accounting view of the material master considers stock at plant level including stock in Transit (Intra & Inter plant stock trasnfers) & special stock like stock issued to vendor , consigment stock etc which is valuated at plant level.
whereas and stock in the plant stock view of the material master does not consider such special stocks hence there will always difference in both veiws.
For Physical stock as on particular date you can consider MB5B report with radio button "Storage location/Batch Stock" wherein you will get Quantity issued & Qunatity received in those SLOC along with Opening stock & Closing stock for the specified period.
use tcode
MBLB to know stock at vendor.
MB54 - Consignment Stock.

Overview of AR Invoice and Safety Stock API

Hello experts,
I am new to oracle apps. Please send the me overview of AR Invoice and Safety stock API in inventory.
Thanks a ton in advance.
Kumar

Soni,
Please see (Note: 296559.1 - FAQ: Common Tracing Techniques within the Oracle Applications 11i/R12). Since you run the API from SQL*Plus/TOAD, follow the steps under "d. Note that a similar technique can be used for enabling trace with binds for a user in SQL*Plus" section to generate the trace file, and the steps under the TKPROF section to generate the TKPROF file.
Thanks,
Hussein

ASCP and Safety Stock Pegging

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.
Giacomo

Giacomo,
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

Exception message 10 and safety stock

Hello
When I have a ressource in the past (we have this case), and if the safety stock is not complet, the exception message is "10" (reschedulling in) without date.
Normaly the result should be exception message "15" (rescheduling out) with a date.
Why have I an exception message "10" without date ?
Is it the custo, but I found nothing ?

Hi Christian,
I've seen this myself, and believe that it happens only if you allow start in the past and have got insufficient coverage for safety stock.
I guess it doesn't have a date because of the start in the past, which will set availability date even today. Try to change the "start in the past" indicator, and see what happens.
Regards,
Mario

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
10

Hi
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

One purchase requision for PIR and safety stock

Dear All,
We have following scenario:-
We have maintained safety stock of 50 Pc for A material.
planned delivery time is 5 days.
PIR of 100 Pc with date 15/9/10
Lot size maintained in material master is MB
Now when I take MRP run on 20/8/10 system creates two PR
50 pc on 21/8/10
100 pc on 15/9/10
Our requirement is to create one PR instead of two.
pls suggest.
with regards,
pradeep

Hi,
Lot size is MB, the demands are in 2 different months & hence system is creating 2 different PR's.
If you want it to be under same PR, then you might consider moving the demand in september to august if its possible or think of having a custom Lot size which is bi-monthly.
Regards,
Vivek

Reorder point

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

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

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

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

Reorder Point Safety Stock

Dear All
Can I have a report on Rorder Point and a safety stock for the material.
Regards
Manoj

hi
use MARC table in SE16 for reorder level
MINBE Reorder Point
EISBE Safety Stock
Vishal...

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

Static or Dynamic Reorder Point and Safety Stock

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