Surplus and Obsolescence Planning
Use
During surplus and obsolescence planning, the system identifies surplus and obsolete stock within a bill of distribution (BOD).
If the warehouse stock and the stock in transit of a product within a BOD is greater than the probable demand during a certain time period, this part of the stock of a product is described as surplus stock .
If a product fulfils the following conditions, it is described as obsolete stock : The product is a service part of a product that you no longer produce and whose mandatory retention period has elapsed, and the demand for this product is below a certain limit value.
Surplus and obsolescence planning primarily determines surplus stock and selects possible obsolete stock within your BOD. To do this, you execute the surplus determination service. You can either schedule this service regularly, for example every year or every six months, as a planning servicein the Planning Service Manager (PSM) , or start if manually, for example if you need more warehouse space or if you want to reduce the stock value in your warehouse. Following the surplus determination service, you can manually approve the determined surplus stock and thus trigger a scrapping process in the ERP system and in SAP Extended Warehouse Management (SAP EWM). To check whether obsolete stock is completely used up, you can schedule the obsolescence check service as a regular planning service, for example monthly in the Planning Service Manager. Reporting for surplus and obsolete stock occurs in surplus reporting. This charts surplus and obsolescence quantities and values at different times during planning and analyzes them.
Prerequisites
You have made the general settings for surplus and obsolescence planning .
Features
Surplus Determination Service
The surplus determination service determines the products, in other words the service parts of your stock, that are considered as surplus. It first selects the planning-relevant products, and determines surplus quantities either at the level of the whole BOD, or at entry location level. In doing so, the surplus determination service considers whether you still produce the product in which you use the relevant service part. If you do, the system calculates the surplus quantity on the basis of an exponentially smoothed forecast. If the production end date of the product has already been reached, the system calculates the surplus quantity on the basis of the phase-out forecast . When the system calculates the surplus quantity for products on the basis of the phase-out forecast, it then also checks whether they are also obsolete stock.
In the next step, the system determines the surplus quantity per location, and checks whether it would be beneficial to scrap a product. This check results in suggested surplus and retention quantities that the system either approves automatically or that you have to approve manually.
Surplus Approval
In surplus approval , your planner checks all surplus quantities of his or her assigned location products for which the system has not automatically issued a scrapping order. You planner can then approve each of these surplus quantities manually by assigning a surplus decision code to the corresponding location product. Each planner has a product-specific budget for the approval. If the value of the surplus quantity exceeds this budget, a planner that has a higher budget must then issue the approval in order to proceed. The system triggers a scrapping for the approved surplus quantities in the ERP and EWM systems.
Obsolescence Check Service
The
obsolescence check service
checks whether the stock of a product for which the
Flag as Obsolete
indicator has been set is completely used up. You can only remove the product from your assortment if this is the case.
Surplus Reporting
The system executes surplus reporting for reporting purposes. This function evaluates surplus quantities and values.