Stocking According to BOM Characteristics

The aim of determining a stocking indicator based on BOM characteristics is to be able to comply with an accepted market delivery time or maximum total replenishment lead time through systematic stocking.

To determine the stocking indicator by means of BOM characteristics, first select the relevant checkbox on the selection screen.

BOM Analysis: Relevant Settings on the Selection Screen

SLM now uses the cumulated replenishment lead times over several BOM levels to check when stocking should take place. Relevant parameters that are checked are the Accepted Market Delivery Time and Maximum Total Replenishment Lead Time. You can determine these parameters yourself in planning and maintain them in the enhanced material master view. Both values are maintained in calendar days. It is also possible to work with only one of the two parameters.

BOM Analysis: Relevant Parameters in the enhanced material master view

For the accepted market delivery time, it is still possible to determine a calculated value and then use it in the analysis. You make the necessary settings in the XMD section of the selection screen.

You can define which replenishment lead time is used in the check for each material in the enhanced material master view:

Enhanced material master view: Replenishment Lead Time Source

In the enhanced material master view, you can use the dropdown list to select which replenishment lead time is to be used. The following overview illustrates the origin and calculation of the different replenishment lead times.

Calculated RLT

Inhouse production

1) Lot-size-independent RLT = inhouse production time (MRP 2, workdays) + goods receipt processing time (MRP 2, working days)

2) Lot-size-dependent RLT = setup time + processing time x lot size / base unit of measure + interoperation time (all parameters in work scheduling view, working days) + goods receipt processing time (MRP 2, working days)

Approach to lot-sizing for lot-size-dependent RLT:

Use fixed lot size (if fixed lot size available), otherwise use base unit of measure while taking minimum/maximum lot size into account.

External procurement

Purchasing processing time (plant Customizing, working days) + planned delivery time (MRP 2, calendar days) + goods receipt processing time (MRP 2, working days)

The parameters Decoupled RLT (CD), One-Level RLT (CD), and One-Level RLT (WD) are read from the enhanced material master view.

Enhanced material master view: Replenishment Lead Times

Note that working days are converted to calendar days for the calculation within SLM. For this, the values are multiplied by 7 and divided by 5.

The following example illustrates the determination logic of the stocking indicator based on BOM characteristics.

Example

For header material 4711, the BOM is exploded and checked against the accepted market delivery time and total replenishment lead time maintained in the material master. The example material has the following BOM:

Example of BOM Analysis: BOM Structure

Based on the selected RLT source, the single-level replenishment lead times per material are determined and, if necessary, converted from working days to calendar days.

Example of BOM Analysis: BOM Structure with Single-Level Replenishment Lead Times

The single-level replenishment lead times are then cumulated.

Example of BOM Analysis: BOM Structure with Cumulated Replenishment Lead Times

As soon as the accepted market delivery time or maximum total replenishment lead time is exceeded by the cumulated times, a stocking indicator is set. This can be updated in the enhanced material master view in the Stocking According to BOM field.

Enhanced material master view: Stocking Indicator According to BOM Characteristics

Depending on which criterion is used to make the stocking decision, a different identification code is assigned for the stocking indicator.

The following stocking indicators are available:

M – Stocking according to market delivery time
S – Stocking according to maximum total replenishment lead time
X – Stocking according to accepted market delivery time and maximum total replenishment lead time

The determination or update takes place in accordance with the defined stocking level. You differentiate between the following:

Same stocking level
Individual stocking level

In the case of the same stocking level, stocking always takes place for an entire BOM level as soon as a stocking indicator is set for a component/assembly of this level.

In the case of the individual stocking level, the system checks for each branch of the BOM where stocking is to take place. Stocking does not take place at the level of an entire BOM level, but individually for each material.