Forecasting and Replenishment Processor (FRP)
The F&R Processor controls automatic replenishment. Automatic replenishment is made up of forecast calculation and requirements calculation, along with requirement quantity optimization.
This process gives you a greater degree of automation. In automatic replenishment, SAP F&R determines the future requirement for a location product, while taking various factors into account.
Prerequisites
Automatic replenishment requires the following data to calculate future requirements:
Master data
Time series
Current stock
Open purchase orders
SAP F&R must import this data.
Process
For the forecast, SAP F&R uses time series (for example, sales history of the stores, goods issues or alternative historical data in the distribution center). SAP F&R uses statistical methods to determine potential future consumption. You assign the methods depending on the selling class.
Using the forecast, the current stock, and the open purchase orders, the requirements calculation determines the requirement for a location product for the future demand periods.
The requirement quantities for all planned future demand periods form the basis for subsequent requirement quantity optimization. During the calculation of forecasts and requirements, SAP F&R creates exceptions so that you can evaluate automatic replenishment. Examples for exceptions are unusually high sales or unusually severe lost sales.