Settings for the Combined Planning of EOQ and SFT

So that the system can perform the combined planning of the economic order quantity (EOQ) and the safety stock (SFT), you must make the following settings.

Customizing

You have defined a service profile for the combined planning of EOQ and SFT.
For more information, see Customizing for Advanced Planning and Optimization under Supply Chain Planning Service Parts Planning (SPP) Inventory Planning Service Profile for EOQ/SFT Calculation .
You have defined forecast types and decided whether you want the to follow constant or non constant planning. You can create forecast types under Model Types in Inventory Planning. Under Assignment of Forecast Strategiesyou can assign the forecast types that you defined to forecast models, and choose between Constant and Not Constant inventory planning types.
For more information, see the IMG for Advanced Planning and Optimization under Supply Chain Planning Service Parts Planning (SPP) Inventory Planning Assign Inventory Planning Type to Forecast Strategy .
If you want to use the enhanced safety stock calculation, make sure you have selected the Enable Enhanced Safety Stock Calculation checkbox in Customizing for Advanced Planning and Optimization under Supply Chain Planning Service Parts Planning Inventory Planning Make General Settings for Inventory Planning .

You can perform an EOQ/SFT calculation for each individual part directly after the forecast and forecast approval by assigning the service profile to the forecast approval service profile.

To be able to use the enhanced safety stock calculation, 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.

Master Data

Normal or Poisson Distribution

In the location product master data on the SPP Inv. Planning tab page you can specify in the EOQ/SFT Calculation field whether the system is to use normal or Poisson distribution as the statistical calculation model for the combined calculation of EOQ and safety stock. You can also define rules according to which the system can differentiate between normal and Poisson distribution on the SAP Easy Access menu under Start of the navigation path Advanced Planning and Optimization Next navigation step Service Parts Planning (SPP) Planning Inventory Planning EOQ and Safety Stock EOQ/SFT Model Determination Rules End of the navigation path . For more information, see Decision Between Normal and Poisson Distribution.

Economic Order Quantity

You can make the following settings for the economic order quantity in the location product master data on the SPP Inventory Planning tab page:

In the Fix EOQ Period field you can choose between EOQ Manually Locked, EOQ POD Manually Locked, and Unlocked. If you choose Unlocked, the system automatically calculates the EOQ as well as the number of EOQ periods. If you choose EOQ Manually Locked, you can specify the number of pieces of the product that the system is to plan in the Econ. Order Qty field. Depending on this, the system then calculates the entry in the EOQ Period field. If you specify EOQ POD Manually Locked, you can specify the number of days for which the system is to plan the EOQ in the EOQ Periods field. Depending on this, the system then calculates the entry in the EOQ Period field.
You can specify the minimum and maximum number of days that an EOQ period may last in the Min. EOQ Per. and Max. EOQ Per. fields.
If you have specified in Customizing for Advanced Planning and Optimization under Supply Chain Planning Service Parts Planning (SPP) Inventory Planning Define Service Profile for EOQ/SFT Calculation that the system is to transfer the EOQ periods from the parent location, you can specify in the PL: MaxPer field the maximum number of days of the parent location EOQ period that the location can take.

Safety Stock

You can make the following settings for the safety stock in the location product master data on the SPP Inventory Planning tab page:

If the system sets the EOQ/SFT TimeSer. indicator, there is no constant planning for the corresponding location product. You then only see the results of the combined planning of EOQ and safety stock for the actual period in the master data. You can see the results of the planning for a longer period of time on the SAP Easy Access screen under Advanced Planning and Optimization Service Parts Planning (SPP) Planning Inventory Planning EOQ and Safety Stock EOQ/Safety Stock Planning .
The inventory planning service automatically enters the safety stock in the Safety Stock field. You can, however, overwrite this entry. The system considers your manual entry until the next planning run.
In the SFT Parent Loc. field the inventory planning service enters the proportion of safety stock of the parent location that is to be forwarded to the location. You can, however, overwrite this entry. The system considers your manual entry until the next planning run.
The system specifies the additional safety stock in the Addl. Safety Stock field. You can, however, manually overwrite this entry.
In the OT-Dep. Sfty St. % field the system automatically enters the proportion of safety stock that must be reserved for emergencies. You can, however, overwrite this entry. The system considers your manual entry until the next planning run.
You can use the SFT Calculation Method and SFT Calculation Method for VCL fields to specify the safety stock calculation method to be used by the EOQ/SFT calculation service. You can select the following methods for location products and for virtual child locations:
- SAP hybrid method (SH)
- Cycle service level (CSL)
- Fill rate (FR)

Minimum Order Quantity

You can specify a minimum purchase order quantity of the supplier (in pieces) in the location product master data on the SPP Inv. Planning tab page in the Minimum PO Quantity field.

Reorder Point Range of Coverage

The system automatically calculates the reorder point range of coverage. This describes the necessary time span to reorder a product so that a shortage does not occur. You can define an upper limit in days for the SFT depending on the reorder point range of coverage. You do this in the location product master data on the SPP Inv. Planning tab page in the Maximum RP (Days) field. If the result of the calculation of the reorder point range of coverage exceeds the limit you defined, the system sets it to this limit.

EOQ/SFT Lock

The SPP EOQ/SFT calculation service can handle locks at product location level. You can set a new lock reason for VCL and non-VCL levels. You can also specify a time interval (FROM - TO) during which the lock applies.

Four types of lock are available:

Lock Leave - If the execution time is in a period that is between the specified dates or if the period includes one of the end dates, the product location is excluded from the calculation at the outset.
Lock Clear - If the execution time is in a period that is between the specified dates or if the period includes one of the end dates, the calculated SFT and other values of the product location are zeroed out and the EOQ is set to one.
Block Leave - During execution, the periods that include the specified dates or one of the end dates are excluded from the calculation. The calculation is performed for all other periods.
Block Clear - During execution, the SFT and other values of the periods that include the specified dates or one of the end dates are zeroed out, and EOQ is set to one. The calculation is performed for all other periods.