Entering content frameReplenishment: Planning Using Dynamic Target Stock Locate the document in its SAP Library structure

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 run time

3 days

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

Target range of coverage

7 days

Matches the delivery cycle: weekly deliveries, on Thursday mornings

Safety stock

10 piece

Stock should not fall below this level.

Maximum target stock

500 piece

Stock should not exceed this level.

Minimum target stock

Not defined

Stock should not fall below this level.

Current stock

100 piece

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 expected 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: planning date until 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. Subtraction of the forecast sales (period: planning date until 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. Addition of the forecast sales (period: End of the replenishment run time until the end of the target range of coverage)

      2. The period taken into account is from Thursday morning of week 21 to Thursday morning of week 21. 40 pieces would be sold a day in week 20, 50 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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