Definition of the Material Shortage Threshold Type

The material shortage threshold type specifies the conditions to be met by a certain planning situation to be considered a relevant shortage to be displayed in the material shortage list.

You define the threshold type in the material shortage definitions for calculating material shortages. If you are creating a shortage definition to calculate uncovered demand, the threshold type is not relevant and is grayed out. In this case, the system automatically sets the threshold type to Avail.Qty Below Zero.

The following threshold types are available:

• Available quantity below safety stock

• Available quantity below safety stock share available for planning

• Available quantity below zero

• Available quantity below percentage of minimum lot size

The following figures demonstrate these threshold alternatives and how they influence the first shortage, the shortage quantity, and material availability chart in the app:

Figure 1: Threshold Type 1: Available Quantity Below Safety Stock

If you choose this threshold type, the system calculates the first shortage at the point in time where the available quantity first falls below the safety stock. The shortage quantity is the difference between the available quantity and the safety stock quantity.

With this threshold type, the system only differentiates between non-shortage (green) and shortage situations (red). No critical situations (yellow) exist in the material availability chart in the app.

Figure 2: Threshold Type 2: Available Quantity Below Safety Stock Share Available for Planning

If you choose this threshold type, the system calculates the first shortage at the point in time where the available quantity of the material falls below the share of the safety stock that is available for planning. The shortage quantity is the difference between the available quantity and the safety stock share available for planning.

With this threshold type, all intervals with an available quantity below the safety stock are displayed as critical (yellow) in the material availability chart in the app.

Figure 3: Threshold Type 3: Available Quantity Below Zero

If you choose this threshold type, the system calculates the first shortage at the point in time where the available quantity becomes negative for the first time. The shortage quantity is the absolute value of the available quantity.

With this threshold type, all intervals with an available quantity below the safety stock are displayed as critical (yellow) in the material availability chart in the app.

Figure 4: Threshold Type 4: Available Quantity Below Percentage of Minimum Lot Size

If you choose this threshold type, the system calculates the first shortage at the point in time where the available quantity is negative and falls below the calculated fraction of the minimum lot size for the first time. The shortage quantity is the absolute value of the available quantity.

All intervals with an available quantity below the safety stock are displayed as critical (yellow) in the material availability chart in the app.

For this threshold type, you also have to define the percentage value of the minimum lot size when creating the material shortage definition.