Target Days Supply in SNP Heuristics and Deployment

[Former Member]

Dear Experts,

Does the Target Days supply only define the minimum and not the maximum stock levels?

Example: consider a Period P1

The target dayu2019s supply is 20 days, and the Days Supply in Period P1 is more than 20 (suppose 35)

The Total Demand in that week is not big enough to bring the Days supply < 20

Question:

Does the system still create a Distribution Reciept (Planned) in this case and keeps increasing the day's supply of dest location? Or does it create stock transfers only if Days Supply is threatening to fall below the Target Days Supply?

In other words:

Does Target Days Supply only come into picture when Days Supply < Target Days Supply, in which case the system adds the difference (Target Stock Level u2013 Current Stock Level) to total demand while creating stock transfers.

When Days Supply is >> Target Days Supply, does the SNP Heuristic still create a Stock Transfer even though there is enough stock to cater to the current total demand and not fall below Target Stock?

Hope you can help in understanding this concept.

Regards,

Rimjhim

[Former Member]

thanks, all your answers have clarified things for me.

[Former Member]

Hi Rimjhim,

SNP will create purchase requisitions equal to difference between target stock level and stock on hand from earliest possible bucket.

Regards,

Vaibhav

[Former Member]

Thanks for your reply.

Please correct if I have misunderstood:

While calculating the net requirement during SNP Heuristic run, the system will apply Target Stock Level into consideration and will only create a Pur Req if the stock is falling below the Target stock.

Thanks,

Rimjhim

[Former Member]

Thats true..heuristics will create Receipts if the Stock on hand falls below the Target stock level.

For example lets take you have the following scenario:

Demand: 23

Stock: 155

Target stock level: 180

Days Supply: 200

Target days supply: 40

in this scenario heuristics creates Receipts for that time bucket.

[Former Member]

System will create Preq = Target stock level - stock on hand irrespective of days supply or target days supply.

In Sai's example it will create Preq = 48 i.e Target stock level (180) - Stock on hand (132=155-23)

Best regards,

Vaibhav

[Former Member]

Receipts are created based on the lotsize procedure maintained in the Product master. Say if the lot size maintained is Lot for lot system will generate receipts based on the min, max lot sizes and the rounding value maintained in the Product master. If the Fixed lotsize is maintained then system will generate receipts for the value maintained.