Example: Clearing Planned Receipts
This example explains the effects of the
Clear Planned Receipts
indicator when you use the
Min/Max Replenishment
replenishment method (for example, in the SMI Monitor). The minimum stock in this example is 100 pieces, the maximum stock is 200 pieces. The reorder point is 110 pieces. If the projected stock in a period falls below the reorder point of 110 pieces, the function must “fill up” the projected stock in this period to 200 pieces.
Starting Situation
The following table shows the starting situation at the planning timepoint of August, before you call the
Propose Planned Receipts
function. There are demands of 150 pieces both in September and in October. At an earlier time, you had planned planned receipts of 200 and 300 pieces respectively for these months. In September, the projected stock of 50 pieces falls below the reorder point of 110 pieces. In October, the projected stock of 200 pieces is the same as the maximum stock of 200 pieces.
Key Figure |
Start (August) |
September |
October |
November |
|---|---|---|---|---|
Demand |
0 |
150 |
150 |
0 |
Planned Receipt |
0 |
200 |
300 |
0 |
Projected Stock |
0 |
50 |
200 |
200 |
Propose Planned Receipts with Indicator Set
Before calling the
Propose Planned Receipts
function, you set the
Clear Planned Receipts
indicator. The function therefore first sets the planned receipts to zero and then recalculates the planned receipts. The following table shows the situation after you have executed the
Propose Planned Receipts
function.
Key Figure |
Start (August) |
September |
October |
November |
|---|---|---|---|---|
Demand |
0 |
150 |
150 |
0 |
Planned Receipt |
0 |
350 (200) |
150 (300) |
0 |
Projected Stock |
0 |
200 |
200 |
200 |
The original planned receipts before the
Propose Planned Receipts
function is called are contained in parentheses. The function calculates a planned receipt of 350 pieces for September. This covers the September demand of 150 pieces. The remaining 200 pieces are used to increase the projected stock for September to the maximum stock of 200 pieces. These 200 pieces also cover the demand of 150 pieces in October. Since the remaining 50 pieces fall below the reorder point again, the function creates a planned receipt of 150 pieces for October that allows the projected stock to reach the maximum stock of 200 pieces in October. The stock does not fall below the minimum stock and the maximum stock is not exceeded as a result of this planning.
Propose Planned Receipts with Indicator Not Set
You do
not
set the
Clear Planned Receipts
indicator before calling the function. Therefore, the function does
not
first set all planned receipts to zero. The following table shows the situation after you have executed the
Propose Planned Receipts
function.
Key Figure |
Start (August) |
September |
October |
November |
|---|---|---|---|---|
Demand |
0 |
150 |
150 |
0 |
Planned Receipt |
0 |
350 (200) |
(300) |
0 |
Projected Stock |
0 |
200 |
350 |
350 |
Again, the original planned receipts are given in parentheses. In the starting situation, the projected stock of 50 pieces in September falls below the reorder point of 110 pieces. To achieve the maximum stock in September, the function creates a planned receipt of 350 for September. (In that respect, this is no different to the function when the indicator is set.) Since the function has not set the originally planned receipt of 300 pieces in October to zero, the maximum stock is now exceeded greatly in October and this is retained in November. If you do not set the indicator, you also prevent stock levels falling below the minimum stock. However, depending on the planning situation, the maximum stock might be exceeded.