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Consumption-based planning: time-phased materials planning

Description

If a vendor always delivers a material on a particular weekday, it makes sense to carry out the planning run according to the same cycle, displaced by the delivery time. This is now possible with the planning procedure, time-phased materials planning.

To allow this planning type for the material, you must enter the MRP type for time-phased materials planning and the planning cycle in the material master record. The planning cycle is entered in the form of a planning calendar in the field, planning cycle . You must also define the planned delivery time. You can use the lot-for-lot order quantity and the optimum lot-sizing procedures.

Materials that are planning using the time-phased materials planning procedure are provided with a planning date in the planning file. This date corresponds to the date that the material is to be planned next; it is calculated on the basis of the planning cycle entered in the material master record. For materials that are planned using this planning technique, the total change indicator and the net change indicator are of no significance.

For complex situations, you can define a delivery cycle in the material master record as well as a planning cycle. In so doing, you define the number of days on which the vendor delivers his goods. The delivery cycle is saved in the form of a planning calendar in the "Planning calendar" field.

You always enter a delivery cycle if the delivery date depends on the day that you place the order. For example, you carry out the planning run and place your orders on Mondays and Tuesdays; if you place your order on Monday, the goods arrive on Wednesday, if you place you order on Tuesday, the goods do not arrive until Friday.

You also have the option of combining the time-phased materials planning procedure with the reorder point procedure. To do this, enter the MRP type for time-phased materials planning in the material master record and also specify a reorder level.

In this case, the material is not only planned according to the MRP date recorded in the planning file, it is also planned if stocks fall below the reorder level due to a goods issue. If stocks should fall below the reorder level, the system automatically sets the net change planning indicator in the planning file. This triggers an extraordinary planning run.

By entering a range of coverage profile in the material master record, you can define a safety stock based on requirements. This is calculated on the basis of the daily average requirements.

The entry of a range of coverage profile has the following effect for materials that are planned using time-phased materials planning:

For example, a material is always planned on Tuesdays and has a planned delivery time of 2 days. In the MRP calculation during the planning run, the system uses the interval between the MRP date and the availability date of the next MRP date. In this case, the interval from Tuesday to Thursday of next week (8 workdays).

In the requirements calculation without the specification of a range of coverage profile, the system calculates a requirement of 160 pieces, for example, due to the forecast that has already been carried out, that means, an average daily requirement of 20 pieces. The system would create a purchase requisition for 160 pieces, if the dynamic safety stock was not taken into account.

Now, you have entered a range of coverage profile in the material master record for which the following values are defined in Customizing; from the average daily requirements of 20 pieces, the following values would result for the dynamic safety stock:

Minimum range of coverage 3 days
dynamic safety stock 60 pieces

Target range of coverage 5 days
dynamic safety stock 100 pieces

Maximum range of coverage 12 days
dynamic safety stock 240 pieces

These ranges of coverage and safety stocks must be taken into account by the system in the requirements calculation during the planning run:

• If the warehouse stock is zero, the system adds a further 100 pieces to the above purchase requisition of 160 pieces as the incoming purchase order has to last a further 5 days. This means that a purchase requisition for over 260 pieces exists.

• If warehouse stock is 200 pieces, the system creates a purchase requisition for over 60 pieces as the remaining 40 pieces would only last a further 2 days, however, it has to last a further 3 days at least. This means, if the minimum safety stock is not reached, the system fills up to the target safety stock.

• If warehouse stock is 220 pieces, the system will not create a purchase requisition as the remaining 60 pieces will cover another 3 days.

• If warehouse stock is 410 pieces, the system displays an exception message during the next planning run with the information that excess stock exists - as the stock will cover more than 12 days. Moreover, the system informs you that the stock level is 150 over which it should be (the target stock level is 260 pieces).