Show TOC

 Reorder-Point-Based Planning

Use

Reorder-point-based planning is the alternative to period-based planning. You can decide for each separate location product which of these two planning modes the system uses for distribution requirements planning (DRP). In period-based planning, DRP checks whether the forecast service has forecast demand for a subsequent period, and then it carries out replenishment planning accordingly. In reorder-point-based planning, DRP does not take the forecast results into account and carries out replenishment planning statically by comparing the current stock with a reorder point defined by you. Whenever the current stock and the planned receipts drop below this reorder point, DRP plans the procurement of replenishment in order to cover demand over the replenishment lead time. Reorder-point-based planning is therefore particularly well-suited for slow turnover location products and for location products for which there is no demand history (or no reliable demand history), meaning that the system cannot create any reliable forecasts.

Prerequisites

Master Data

If you want to work with reorder-point-based planning, you need to make the following settings in the location product master data on the SPP DRP tab:

  • You either specified the DRP planning mode you require in the DRP planning mode field or you set the Trigger Determ. of DRP Planning Mode indicator. For more information about these settings, see the section Determining the DRP Planning Mode for a Location Product .

  • You made the necessary settings in the DRP ROP Planning area.

Customizing

  • You have executed the Implementation Guide (IMG) activity Define Service Profile for DRP Planning Mode .

  • If you want the system to determine the DRP planning mode for a location product, execute the IMG activity Make Settings for the BAdI for DRP Planning Mode .

For more information about these IMG activities, see the Implementation Guide for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Distribution Requirements Planning (DRP) Next navigation step Determination of DRP Planning Mode End of the navigation path .

Features

Determining the DRP Planning Mode for a Location Product

You have the following options for determining the DRP planning mode for a location product:

  • You can specify the planning mode manually for each location product in the location product master data on the SPP DRP tab in the DRP Planning Mode field.

  • You can set the Trigger Determ. of DRP Planning Mode indicator in the location product master data on the SPP DRP tab. In this case, the forecast release service sets the SPP_FCST_CHG_PLNMODE trigger, which triggers the planning service SPP: Determination of DRP Planning Mode (SPP_DRP_PLANNING_MODE). This planning service calls up the Business Add-In (BAdI) BAdI: Determine DRP Planning Mode (/SAPAPO/DRP_PLANNING_MODE), which determines the DRP planning mode of a location product. In the standard implementation supplied by SAP, the BAdI checks whether, during the last 12 months, the number of sales order schedule lines for a location product has exceeded or equaled the number you entered as the upper limit for reorder-point-based planning.If this is the case, the system plans this product in period-based planning mode, otherwise the system plans this product in reorder-point-based planning mode. You can specify the upper limit in Customizing under Make Settings for BAdI for DRP Planning Mode (see prerequisites).

    Start of the navigation path For more information about the BAdIBAdI: Determine DRP Planning Mode, see the Implementation Guide (IMG) forAdvanced Planning and Optimizationby choosingSupply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Business Add-Ins (BAdIs) for Service Parts Planning (SPP) Next navigation step BAdIs for Distribution Requirements Planning (DRP). End of the navigation path

If the planning mode that the system determines is different than the previous planning mode, there are two options:

  • The system changes the entry in the DRP Planning Mode field in the location product master data and generates the alert Determination of DRP Planning Mode (alert type 7888), which informs you that the master data entry has changed.

  • The system generates the alert Determination of DRP Planning Mode (alert type 7888), which informs you that the planning mode determined by the system is different than the planning mode you defined. In this case, you can check the planning mode and change it manually in the location product master data, if necessary.

You can define which of these options the system uses in the EV_ACTION export parameter in the DETERMINE_PLAN_MODE BAdI method.

DRP Planning Modes Within a Bill of Distribution (BOD)

The DRP planning modes have to be consistent within a BOD. In other words:

  • If you use period-based planning for a child location, you also have to use period-based planning for its parent location.

  • If you use reorder-point-based planning for a parent location, you also have to use reorder-point-based planning for all of the parent’s child locations.

    Example Example

    The following diagram shows some examples of which constellations are possible within a BOD and which are not:

    End of the example.

If the DRP planning modes are not consistent within a BOD, the system generates the alert Inconsistency of DRP Planning Modes in BoD (alert type 7868).