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kMin-kMax planning in APO

Former Member
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Friends,

Please help me understand SNP capabilities to achieve Lean planning objectives.

One of the lean planning methodology is to use min-max inventory levels. Min can be a safety stock number and max is to be calculated based on sales history lead times etc etc. I think APO does not have any automatic Max calculation methods (apart from the advanced safety stock calculation). but we may calculate this using macros so no big deal.

Main issue is with the planning. So lets take this business scenario : Planning should be able to create planned orders once the stock level hits Min value (which is our safety stock) and the inventory should be bumped to the Max value (some calculation based on history etc etc) and this cycle should continue lets say weekly.

Please help me understand how we can achieve this either using Heuristics or CTM and what configuration helps drive this scenario.

Thanks

Sapper

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi There,

If I get you correctly, then it is achivable. Just define your Planning Bucket as weekly and in the planning book you can see the data by weekly or monthly.. But but i think your need is, heuristic will plan for a maximum stock level at that vary day when inventory is just at minimum level.

Then you can define your maximum stock level as per your requirment and define it as maximum demand and assign it to ATD issue category group, so your 'total demand' field consider this demand. in that case also you will always get plan of containing inventory at maximum level, but your requirement is heuristic/ctm will not plan unless inventory touchs minimum level.....

Otherwise you customize your total demand field as ( check if stock on hand > (min safety stck + Forecast), then

total demand = '0' (zero)

else

total demand = max stock level) *********---(you have defined your max stck levl, as per your requirement)***

Then run heuristic/ctm to fulfill the demand

But I will say you will get a plan close to your requirement, if you use safty stock method as "SM" that is Maximum of Safety Stock and Safety Days' Supply from Loc.Product Master.

Thanks,

Satyajit

Edited by: Satyajit Patra on Jun 30

Answers (0)