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Process documentationMaking Stocking and Destocking Decisions

 

The planning services SPP: Stocking Decision Service and SPP: Destocking Decision Service make a stocking or destocking decision for each location product at the start of inventory planning. Additional triggers for the stocking service can be demand at a non-stock location or changes to the virtual locations for consolidated ordering.

The aim of these planning services is to set a replenishment indicator according to which the system orientates itself during further planning for each location product based on the stocking or destocking decision.

You can use restocking in the stocking decision service. Restocking is an option in the stocking decision service, whereby a location product that had a planning-relevant replenishment indicator previously, but does not currently, is stocked again. In such cases, the system sets the replenishment indicator as ST (stocked), instead of SN (stocked new).

To use restocking in the stocking decision service in Customizing, choose Start of the navigation path Advanced Planning and Optimization Next navigation step Supply Chain Planning Next navigation step Service Parts Planning Next navigation step Inventory Planning Next navigation step Make General Settings for Inventory Planning End of the navigation path, and select the Use Restocking in Inventory Planning checkbox.

To use restocking in the stocking decision service, you must activate the SCM-APO-SPP, Service Parts Planning 1 (SCM_APO_SPP_GEN_1) business function. For more information, see SCM-APO-SPP, Service Parts Planning 1.

Prerequisites

Service Profiles

You have carried out the Customizing activities Define Service Profile for Stocking Decision and Define Service Profile for Destocking Decision in Customizing for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Inventory Planning End of the navigation path. There you have assigned a time series ID of the historical data to each of the two service profiles. In doing so you determine the historical data that the system is to use for planning.

Location Exclusion Rules

If you want to exclude locations from stocking, you have defined exclusion reasons and assigned them to specific locations. For more information, see Definition of Location Exclusion Rules.

Decision Tables

You have created decision tables and filled them with values. For more information, see Creation of Decision Tables.

Planning Service Manager

You have scheduled the planning services SPP: Stocking Decision Service and SPP: Destocking Decision Service in the Planning Service Manager (PSM). For more information, see Use of the Planning Service Manager for SPP and PSM Services for Inventory Planning.

Process

  1. The system checks the demand of all customer-facing locations. If a customer-facing location has a high demand, it is advisable to make a stocking decision. For low demand, a destocking decision is advisable.

  2. The destocking decision service checks if there is an exclusion reason for the location of the corresponding location product. If this is the case, the destocking decision service sets the Not stocked, locked indicator and the lock indicator (see Setting of Replenishment Indicators). The stocking decision service then does not consider the corresponding location product during stocking.

  3. The stocking and destocking services check your entries in the decision tables. On the basis of these entries, the stocking service decides for each location product whether it should increase stock, and the destocking service decides whether it should reduce stock.

  4. For the location products for which you plan stocking or destocking according to the decision tables, the stocking and destocking services check whether stocking is permissible depending on the stability periods you have defined. You can define stability periods in the location product master data in the Stckg StPer. (Days) and Dstckg StPer. (Days) fields of the SPP Inventory Planning tab page.

    Note Note

    You have the option to disregard the stability period defined for the location product. To permit stocking or destocking during the stability period, select the Do Not Consider Stability Period checkbox in Customizing for Advanced Planning and Optimization under Start of the navigation path Supply Chain Planning Next navigation step Service Parts Planning (SPP) Next navigation step Inventory Planning End of the navigation path, in the following Customizing activities:

    • Define Service Profile for Stocking Decision

    • Define Service Profile for Destocking Decision

    End of the note.

  5. The system transfers the stocking and destocking decisions made for the customer-facing locations to the corresponding parent locations. However, the system never reduces stock at all locations of a bill of distribution (BOD). Even if the system plans destocking at all child locations, the system increases stock at the parent location and, if necessary, at all virtual child locations of this parent location.

Result

On the basis of the decisions described above, the system determines a replenishment indicator (see Setting of Replenishment Indicators) for each location product, which determines whether a location product is planning-relevant. You can decide whether the system is to save modified replenishment indicators automatically or whether you want to release them manually. For more information, see Approval of a Stocking or Destocking Decision.