Rounding in Inventory Planning
Use
In inventory planning the system rounds the economic order quantity during the combined planning of economic order quantity (EOQ) and safety stock (SFT) . The additional rounding rules described below are valid for this process.
Features
According to the core rounding algorithm it is possible for the system to round the value to be rounded to zero. However, in inventory planning the system considers a minimum demand that it cannot fall below during rounding. This means that the rounding result cannot be zero.
For all locations the system considers a minimum demand value and, optionally, a maximum demand value. The rounding result cannot exceed this maximum demand value. For entry locations you also specify an additional minimum purchase order quantity that the rounding result cannot fall below.
Minimum Demand Value for Entry Locations
You specify the minimum demand value for entry locations in the location product master data on the
SPP Inv. Planning
tab page in the
Minimum PO Quantity
field
As an optional process in inventory planning, you can also define pricing scales. If you have defined a pricing scale at an entry location, the system also determines an optimal pricing scale regarding the EOQ. In this case, the optimal pricing scale shows the minimum demand value for the entry location.
Minimum and Maximum Demand Value for Locations
The minimum demand value for locations results from your entry in the location product master data on the
SPP Inv. Planning
tab page in the
Min. EOQ Per.
field. In this field you specify the minimum number of days of demand for which you purchase order quantity must last. The system then adds the forecast results for the demand of these days to this entry, and defines the sum as the minimum EOQ, in other words the minimum demand value for the corresponding location.
The maximum demand value for locations results from you entry in the location product master data in the
Max. EOQ Per.
field. Here you specify the maximum number of days of demand for which your purchase order quantity can be planned. The system then adds the forecast results for the demand of these days to this entry, and defines the sum as the maximum EOQ, in other words the maximum demand value for the corresponding location.