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Logistics : PP
3 posts • Page 1 of 1
Hi, I've scratched my head a long time about this issue but I thought I'd finally ask someone who might know.
We're basically using MRP-type V2 to make SAP calculate a reorder point using forecasting for materials that we machine from another (raw) material. Lets say it takes 30 working days for us to recieve the raw material (which is MRP-type PD) and then 20 working days for us to make it into the end product. When it comes to the forecasting and reorder point calculation, I want it to consider the 50 days of total replenishment lead time, meaning that we should hit the reorder point 50 days (not counting the safety stock) before we run out of stock. Does anyone know if this is possible and which values to maintain to make it work? We're using forecast model G (moving average) and service level is maintained.
As it is now, we're getting a reorder point that would barely last a month.
I'm not sure what you have configured V2 to be, but it would seem that the planning of the material manufactured is key to the solution. Meaning, if you are out of stock of the raw material and it takes 30 days to receive the raw material stock then the planned production of the produced material needs to be 30 or more days in advance.... assuming the raw material is needed at the start date. (... and with the finished product being planned, the V2 should be configured to detect requirements within a horizon that covers the planning periods of the material produced.)
Thanks for answering, very appreciated!
I'm not sure if I want something that doesn't exist in SAP. If the produced material has a moving average of 20 and we have a total replenishment lead time of 3 months, I would want it to set the reorder point to around 60, meaning that when we hit the 60 mark the system spits out a planned order during the MRP run which would mean we have sufficient stock to cover requirements during the lead time. I'm just not sure how to make lead time a factor to the forecast. Perhaps you can explain why we get such a low reorder point in the above case of about 20? I'm not sure how the systems logic works.
3 posts • Page 1 of 1
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