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  Calculation of Projected Stock

Use

The projected stock is a key figure in Supply Network Inventory and in replenishment planning. The system calculates the projected stock from demands, receipts, and stocks. The projected stock provides information about the demand/stock balance of a location product in a period. The projected stock is the stock of a product that is expected to be available at the location at the end of a period. As customer or supplier, you can ascertain from this key figure how the demand/stock balance develops over time and whether critical stock situations occur.

In replenishment planning, the system proposes planned receipts (depending on the replenishment planning method) so that the project stock reaches a certain value. For example, if the projected stock drops to the minimum stock level in the Supplier Managed Inventory business scenario, the system generates a planned receipt that returns the projected stock to the maximum stock level.

Features

Calculation Procedure

To calculate projected stocks for a location product, the system starts with the situation on the current day and first calculates the projected stock for this day. This is the stock that is expected to be available in the location at the end of this day. Based on this value, the system calculates the projected stock for the following day by adding the demands and receipts from the next day. Based on this value, the system calculates the projected stock for the day after next and so on. The following provides an overview of the calculation steps:

  • today’s projected stock

    Today’s projected stock =

    Stock

    + all receipts with delivery date today or all receipts with delivery date up to and including today

    – all demands with demand date today or all demands with demand date up to and including today

    Note Note

    For each demand or receipt key figure, you can configure whether the system takes into account only the value for the current day or if it also takes into account the total of all past values.

    End of the note.

  • Tomorrow's projected stock

    Tomorrow's projected stock =

    today’s projected stock

    + receipts with delivery date tomorrow

    – demands with demand date tomorrow

  • Projected stock on any later day

    Projected stock of this day =

    projected stock of the previous day

    + receipts with delivery date on this day

    − demands with demand date on this day

Stocks and Key Figures That the Projected Stock Takes into Account

The demands, receipts, and stocks that are included in the calculation of the projected stock in the standard system depend on the application. Supply Network Inventory uses a different formula than replenishment planning. You can also use different formulas for replenishment planning for non-promotion demands and for replenishment planning for promotion demands. For more information, see the Implementation Guide for Supply Network Collaboration under Start of the navigation path Replenishment Next navigation step Replenishment Planning Next navigation step Projected Stock End of the navigation path .

User-Defined Settings

You can make the following user-defined settings in Customizing for Supply Network Collaboration :

  • Under Start of the navigation path Replenishment Next navigation step Replenishment Planning Next navigation step Projected Stock End of the navigation path , you can define your own formulas for calculating the project stock that take other key figures or stock types into account.

  • Under Start of the navigation path Replenishment Next navigation step Replenishment Planning Next navigation step Assign Settings End of the navigation path , you can configure a different standard formula for the following applications:

    • Supply Network Inventory

    • Replenishment Planning with Promotions

    • Replenishment Planning Without Promotions

      You can make this setting based on the following characteristics:

    • Business partners

    • Location

    • Product

Calculation of Stock on Hand

If you want to calculate the stock on hand of a location product in a different way, use the Business Add-In /SCA/ ICH _STOCKONHAND .

Critical Situations for the Projected Stock

If the projected stock in a period has a critical value, this period is automatically highlighted in the Monitor. Critical situations in the SMI Monitor include the following:

  • The projected stock falls to or below zero.

  • The projected stock falls below the minimum stock level.

  • The projected stock exceeds the maximum stock level.

The system also generates corresponding alerts. For more information, see Inventory Alerts for SNI and Inventory Alerts for Replenishment Planning .

Update of the "Planned Receipts" Key Figure

When advanced shipping notifications (ASNs) and replenishment orders are published, the system also updates the key figure Planned Receipts based on the formula used for the projected stock. For more information, see Update of the "Planned Receipts" Key Figure .

More Information

Default Formula for the Projected Stock (SMI)

Default Formula for the Projected Stock (SNI)