Excesses and Shortages for Location Products Planned Using a Reorder Point

Use

If you schedule a location product in the reorder-point-based planning mode , the system calculates excesses and shortages differently than for location products that you schedule on the basis of periods. For more information about how the system calculates excesses and shortages for period-based planning of location products, see Definition of Excess and Shortage .

Prerequisites

In the parameter profile for inventory balancing, you specified an excess percentage and a shortage percentage. You get to the parameter profile on the SAP Easy Access screen via Start of the navigation path Advanced Planning and Optimization Next navigation step Service Parts Planning (SPP) Planning Deployment and Inventory Balancing Inventory Balancing End of the navigation path .

Features

If supersession triggers inventory balancing, the excess and shortage quantities for reorder-point based planning location products are null. Otherwise, the system proceeds as follows to calculate excesses and shortages for reorder-point based planning of location products.

Excesses for Location Products Planned Using a Reorder Point

The system calculates excesses according to the following formula:

Excess = prev. stock – (MAX (reorder point; max. stock) * (1 + excess percentage)

You specified the reorder point and the maximum stock level in the location product master data on the SPP DRP tab in the Reorder Point and Max.Stock Level fields.

The available stock level is calculated by taking the initial stock and subtracting the scheduled and confirmed distribution demand and subtracting any additional demand that the Business Add-In (BAdI) BAdI: Determine Additional Quantities for Reorder-Point-Based Planning (/SAPAPO/ROP_ADDITIONAL_QTYS) may have calculated.

You specified the excess percentage in the parameter profile for inventory balancing (see Prerequisites ). This excess percentage allows you to retain only a part of the excess quantity at the location instead of using the entire excess quantity.

Example Example

You have 100 pieces in the available stock.

The maximum from the reorder point and the maximum stock level is 60.

Without an excess percentage, the system would calculate an excess of 40 pieces available to inventory balancing in order to cover shortages at other locations.

If you define an excess percentage of 50, the system only calculates an excess of 10 pieces; in other words, only 10 pieces are available for inventory balancing and the remaining stock remains at the excess location. That is (100 – 60 * (1 + 50%) = 100 – 90 = 10)

End of the example.

Shortages for Location Products Planned Using a Reorder Point

The system calculates shortages according to the following formula:

Shortage = unrounded net demand – distribution demand (planned and confirmed) reorder point * (1 – shortage percentage)

For more information about how the unrounded net demand is calculated for location products planned with a reorder point, see Executing DRP for Products Planned on a Reorder Point Basis .

You specified the shortage percentage rate in the parameter profile for inventory balancing (see Prerequisites ). This shortage percentage allows you to cover less than the complete shortage in stock balancing.