Management of Vendor Service Levels (SAP Library

Management of Vendor Service Levels

Purpose

This program is used for calculating and managing vendor service levels. This comprises the following activities:

Display of vendor service levels on the database and those calculated by the system
Deletion of existing vendor service levels
Calculation of new vendor service levels

The vendor service level indicates the percentage of the maximum potential sales (forecast) that a goods recipient (a store, for example) can achieve with the quantity of the articles available from the vendor. In load building, this figure is a key factor that determines which articles and quantities the system should include in a purchase order.

The system calculates the vendor service level from the individual service levels for the individual articles.

Process Flow

You start the vendor service level function by choosing Purchasing ® Purchase order ® Environment ® Vendor service level. You can enter:

Vendor (multiple entries are also possible)

In addition to selecting vendors, you can also restrict your selection to load-building vendors only by selecting the Load-building vendors only indicator. This indicator only takes effect when the system is calculating new data. A load-building vendor is a vendor for which a restriction profile has been maintained.

Purchasing organization (multiple entries are also possible)
Site (multiple entries are also possible)
The activities to be performed by the system

You can start the program online or in the background.

The vendor service level tool performs the following activities one after the other:

Display of existing data (if this is selected in step 1)

The system displays all the data valid within the date interval entered in step 1. If you leave the interval empty, the system uses the largest possible interval (01.01.0000 to 31.12.9999).

Deletion of existing data and display of deleted data (if this is selected in step 1)

The system deletes all data older than the date entered on the selection screen. It checks for data up to the to-date of the validity period.

Calculation of new vendor service levels, and saving and/or display (if this is selected in step 1)

The calculation is made for each combination of vendor and site relevant to load building. A combination is valid for load building if the vendor and site have the same purchasing organization.

When the program is run, the system records all the messages generated in a message list.

The system displays the results in the ABAP list viewer.

The program processes the data in the sequence defined in step 2. Data can, therefore, be displayed that was deleted in a second step or data has been deleted that was re-calculated in a second step.

If you want to see the messages generated in the last run, choose Message list on the selection screen or on the output screen.

Example

	Article 1	Article 2	Article 3	Total
Price	4.00	4.00	0.40
Stock on-hand	200	400	0
Forecast value	400	800	0
Ordering day	08.10.	08.10.	08.10.
Delivery day	11.10.	11.10.	11.10.
Number of working days	1	1	1
Stock available (M)	1200	400	0
Required quantity (V)	400	800	0
Volume of future stockout (EU)	0	1600	0	1600
Volume of future sales (U)	1600	3200	0	4800
Volume of possible sales (MU)				3200
Vendor service level				66.7%

These values are calculated as follows:

Delivery day:

Ordering day plus the planned delivery time defined for the vendor. This is a working day from the site’s point of view.

Stock available (M)

Sum of stock on-hand and on-order

Required quantity (V):

Product of forecast value and number of working days

Volume of future stockout (EU):

If V – M < 0:

EU = 0

Otherwise:

EU = (V – M) x price

Volume of future sales (U):

Product of required quantity and price

Volume of possible sales (MU):

Difference between the volume of future sales (U) and future stockout (EU)

Vendor service level:

Ratio of volume of possible sales (MU) to volume of future sales (U)