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 DRP Rounding Rules

Use

Distribution requirements planning (DRP) applies special rounding rules in addition to the general rounding functions in Service Parts Planning (SPP) .

Prerequisites

Customizing

  • You have defined a rounding profile in Customizing for Service Parts Planning (SPP).

    For more information, see the Implementation Guide (IMG) for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Basic Settings Next navigation step Define Rounding Profile End of the navigation path .

  • You have specified one of the defined rounding profiles in the service profile for DRP. You have also specified whether you want the system to round to pack size or only to days' supply for child locations.

    For more information, see the IMG for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Distribution Requirements Planning (DRP) Next navigation step Define Service Profile for DRP. End of the navigation path .

  • You have made the following settings in the general settings for DRP:

    • You have specified how the system should round when rounding days' supply for the entry location.

    • You have specified whether you want the system to round to the economic order quantity (EOQ) or to the EOQ periods when rounding to days’ supply for child locations.

    • You have also specified whether you want the system to round to days’ supply for child locations with the deployment indicator Planned as Push at all.

      For more information, see the IMG for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Distribution Requirements Planning (DRP) Next navigation step Make General Settings for DRP End of the navigation path .

Master Data

You have defined the values in the DRP Rounding area in the location product master data on the SPP DRP tab page.

Features

For locations that are not entry locations, the system first rounds to days’ supply and then to pack sizes according to your settings in Customizing.

The system performs the following rounding process for entry locations:

  1. The system rounds to days’ supply.

  2. The system divides the net demand between the individual suppliers that are each to cover a part of this net demand.

  3. The system rounds the individual demands for each supplier to minimum and maximum values defined by you.

  4. The system rounds the results from step three to pack sizes.

Rounding to Days’ Supply

During rounding to days’ supply the system rounds either to the EOQ or the EOQ period depending on the following conditions:

  • For entry location, the way the system rounds depends on your entry in Customizing in the Methd: Round. to Days' Supp. Entry Loc. field. Here you have the following options:

    • You can specify that the system rounds to the EOQ.

    • You can specify that the system rounds to the EOQ periods.

    • You can specify that the system rounds according to what you have entered in the location product master data on the SPP Inv.Planning tab page in the EOQ Calc.Type field

      • If EOQ Manually Locked is specified in this field, the system rounds to the EOQ.

      • If EOQ Period Manually Locked is specified in this field, the system rounds to the EOQ period.

      • If Not Locked is specified in this field, the system rounds to the EOQ period.

  • For child locations the system rounds either to the EOQ or the EOQ period depending on your entry in the Method for Rounding to Days' Supply Cloc field in Customizing.

    • For child locations with the Planned as Pull or Pull Only deployment indicator, the system always rounds.

    • For child locations with the Planned as Push deployment indicator, the system only rounds to days’ supply if you have set the Days’ Supply Rounding for Child Loc. (Planned: Push) indicator in Customizing in the general settings for DRP.

Rounding to EOQ

If the system rounds to the EOQ, it rounds the unrounded net demand to a multiple of the EOQ.

Rounding to EOQ period

During rounding to the EOQ period, the system adds the demands that occur during the EOQ period. You can control the extent to which the system is to consider fixed demands . You have the following options:

  • The system considers all fixed demands.

    In this case you do not set the Consider Horizon for Fixed Demands indicator in the location product master data on the SPP DRP tab page.

  • The system only considers fixed demands that lie within the replenishment lead time.

    In this case you set both indicators Consider Horizon for Fixed Demands and Procurement Lead Time .

  • The system only considers fixed demands that lie within a certain horizon.

    In this case you set both indicators Consider Horizon for Fixed Demands and Horizon . You also define the length in working days of the horizon in the Horizon field.

Rounding to Minimum and Maximum Values

The aim of rounding to minimum and maximum values is to avoid internal costs exceeding the value of the purchase order. The system rounds to the minimum and maximum values defined by you as follows:

  • If the value of the quantity to be rounded is less that the minimum value defined by you, the system rounds the quantity to be rounded to the quantity that corresponds to the minimum value.

  • If the value of the quantity to be rounded meets the following conditions, the system rounds the value of the quantity to be rounded to the quantity that corresponds to the maximum value:

    • The value of the quantity to be rounded is greater than the minimum value.

    • The value of the quantity to be rounded is less than the maximum value.

    • The value of the quantity to be rounded is less than the value of the quantity required for the days’ supply in months.

  • In all other cases, the system does not change the quantity to be rounded.

You can define the minimum and maximum values as well as the days’ supply in months in the location product master data on the SPP DRP tab page in the following fields:

  • MinCost. DRP Rndg

  • MaxCost. DRP Rndg

  • Months DRP Rounding

DRP only rounds to minimum and maximum values if the system cannot divide the demand between several suppliers. If the system divides the demand between several suppliers and the value of the demand for one of the suppliers is less than the maximum value, the system generates an alert.

Rounding to Pack Size

To prevent packaging material being opened and thus simplifying storage and transportation, the system always rounds the demands at entry locations to pack sizes. The system never rounds the demands down, but always rounds to a value that is at least a large as the input value.

For child locations you can specify whether you want the system to round to pack sizes in the service profile for DRP. For more information about rounding to pack sizes, see Rounding and Rounding in Distribution Requirements Planning (DRP) .