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You are planning replenishments of article R100499 (chocolate) in store R151.

Article master

The following data exists for the article:

Parameter

Value

This means:

RP type

RF

Calculate target stock during planning phase

Replenishment lead time

3 days

Time required between DC R300 placing PO and store R151 receiving goods

Target range of coverage

7 days

In line with delivery cycle. Deliveries weekly, on Thursday mornings

Safety stock

10 pieces

Stock should not fall below this level.

Maximum target stock

500 pieces

Stock should not exceed this level.

Minimum target stock

Not stated

Stock should not fall below this level.

Current stock

100 pieces

Stock level in store R151 on planning date

Forecasts

A forecast is run for the next four weeks for the article. The following values are produced:

Calendar week

20

21

22

23

Sales (in pieces)

240

300

240

240

Replenishment Planning

You plan replenishments on the Monday evening of week 20, taking planned receipts and issues into account. Since there is a replenishment lead time of 3 days, a stock transport order is generated as a follow-on document for the replenishment run. The stock can be delivered from distribution center R300 by Thursday morning of week 20.

The planning run operates as follows (all quantities in pieces):

  1. Calculation of the expected stock
    1. The stock currently available (100) is determined.
    2. Planned receipts and issues based on ATP are added (period: from planning date to the end of the replenishment lead time).

      3. No such transactions are planned between Monday evening and Thursday morning. The value is therefore zero.

    3. The forecast sales are subtracted (period: from planning date to the end of the replenishment lead time).

The period taken into account is from Monday evening of week 20 to Thursday morning of week 20. Based on 6 working days a week, 40 pieces would be sold per day in week 20. Over the total period of 2 days (Tuesday and Wednesday):

forecast sales = 2 ´ 40 = 80

Expected stock:

Expected stock = 100 + 0 - 80 = 20
  1. Calculation of the dynamic target stock
    1. Forecast sales are added (period: from end of replenishment lead time to end of target range of coverage).

      2. The period taken into account is from Thursday morning of week 20 to Thursday morning of week 21. 40 pieces would be sold a day in week 20 and 50 pieces per day in week 21. Over the total period of 6 days (Thursday, Friday, Monday, Tuesday and Wednesday):

      Forecast sales = 3 ´ 40 + 3 ´ 50 = 270

    2. The safety stock of 10 is added.

      3. Target stock:

      Target stock = 270 + 10 = 280

    3. Limitation using minimum and maximum stock levels

A minimum stock level was not specified. The maximum stock level of 500 is not exceeded. The result is therefore not changed.
  1. Calculation of replenishment requirements

Replenishment requirement = target stock - expected stock

= 280 - 20

= 260

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