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 Setting Up Master Data for DRP

To perform distribution requirements planning (DRP) , you set up special location product master data for DRP as well as the general master data for Service Parts Planning (SPP).

Procurement Lead Times

You specify the number of days or hours that the component lead times Time Betw. DRP Runs and Throughput Time should last.

DRP Stability Rules

You specify which DRP stability rule you want the system to consider for the corresponding location product.

Consolidated Ordering

For location products whose locations are geographically close and that have a low demand, you can use consolidated ordering. For more information, see Virtual Location for Consolidated Ordering .

Pre-Season Safety Stock Shift

You specify whether you want to shift the safety stock for location products with seasonal demand. For more information, see Pre-Season Safety Stock Shift .

Supplier Shutdown

During replenishment planning DRP also considers supplier shutdowns, for example vacation times. You define these shutdowns in the master data. For more information, see Supplier Shutdown .

Stockholding Costs

There are absolute costs for stockholding. If you have not specified these costs, the system uses this cost factor to determine the stockholding costs. The stockholding costs are then calculated by the procurement costs multiplied by this factor.

Planning-Relevance/Planning Lock

  • You specify a replenishment indicator in the location product master data on the SPP Inventory Planning tab page. If this replenishment indicator is not planning-relevant according to your settings in Customizing, DRP does not consider this location product during planning. For more information about the planning relevance of a replenishment indicator, see the Implementation Guide (IMG) for Advanced Planning and Optimization under Start of the navigation path Master Data Next navigation step Product Next navigation step Define Replenishment Indicator End of the navigation path .

    To plan all location products irrespective of their replenishment indicator, set the Ignore Replenishment Indicator indicator in the DRP service profile.

  • If you do not want DRP to consider a location product during planning in a certain time period, you can specify this time period in the location product master data on the SPP DRP tab page in the Lock DRP Start Date and Lock DRP End Date fields.

Rounding

In addition to the general rounding functions for SPP, DRP applies special rounding rules to avoid internal costs that are higher than the value of the purchase order. You define the limit values for DRP rounding in the master data.

Anticipated Demand Coverage

You can use anticipated demand coverage for location products with seasonal demand to smooth seasonal demand patterns. In the master data you can see which profile DRP uses for anticipated demand coverage for a location product.

Approval/Releasing

DRP approval organizes the approval of the DRP run results on the basis of approval rules. In the master data you specify when the system is to generate an alert.