Demand Characteristics

The aim of determining a stocking indicator based on the demand is to be able to satisfy the demand within a certain period (future-oriented) through systematic stocking.

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

Demand Analysis: Selection

The Replenishment Lead Time per part and the Demand Visibility Horizon are required as input parameters. The demand visibility horizon specifies how long in the future demands exist or are to be fulfilled. You can determine the demand visibility horizon manually or automatically. The parameter is maintained in calendar days in the enhanced material master view:

Demand Analysis: Relevant Parameters in enhanced material master view

You make the settings for automatic determination in section XMD. To be able to determine and use the demand visibility horizon, you must have made the relevant settings for the XMD tool and have executed the corresponding XMD jobs in advance. For more information, see Stock/Requirements List in the Configuration Guide for the comprehensive functions.

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:

Q – Stocking according to demand visibility horizon (multi level)
R – Stocking according to demand visibility horizon (single level)
Y – Stocking according to demand visibility horizon (single + multi level)
Z – No stocking since demand visibility horizon > RLT

Demand Analysis: Available Stocking Indicators

The stock level monitor checks whether and when the single-level or cumulated replenishment lead times exceed the demand visibility horizon, and sets a stocking indicator accordingly. The stocking indicators are divided into "single level": Stocking according to the single-level RLT and "multi level": Stocking according to the cumulated RLT.

The following examples explain the inspection logic for the analysis of one or more materials according to demand.

Example

For material 4711, a demand visibility horizon of 15 calendar days is maintained in the material master. The SLM now checks whether/when the single-level or cumulated replenishment lead times are exceeded. Since the cumulated RLT for materials 4715, 4716, 4717, 4718, and 4719 are > 15 calendar days, the indicator Q is set. Indicator Z is always set if no stocking decision has been made for the respective branch in the BOM and the SLM continues the check in the lower BOM level. No stocking indicator (indicator remains empty) is set if a stocking decision has already been made in the higher-level BOM level for the respective branch in the BOM and the SLM has therefore completed the check.

Determination of Stocking Indicator According to Demand, Example 1

In the second example, several materials are included in the selection and checked against the demand visibility horizon. Material 4713 has a demand visibility horizon of 3 calendar days maintained in the material master. Since the single-level RLT of material is 5 calendar days, the indicator 'R' is set. Material 4716 has a demand visibility horizon of 7 calendar days maintained in the material master. The single-level RLT of this material is 8 calendar days, which means that stocking is performed. Since the cumulated RLT based on header material 4711 is also exceeded for material 4716 (18 CD> 15 CD as defined in the material master of 4711), there is also stocking according to the cumulated replenishment lead times. This combination of single and multi level stocking decision sets the 'Y' indicator.

Determination of Stocking Indicator According to Demand, Example 2