APO recommendations with Reorder point and safety stock values maintained

[Former Member]

Hi gurus,

We are using SCM 5.0 and running SNP heuristics. My product has Reorder Point method 2 (Reorder supply from location product master) selected as lot size procedure while my safety stock method is SB (Safety Stock from Location Product Master).

Reorder point is 150

Safety stock is 100

all other quantieies in the material master lot size tab are zero to simplify analysis.

Running SNP heuristics, i was expecting for the system to generate order start date when stock on hand meets reorder pt 150 and then eventually the receipt will be on a future date according to the t-lane duration. The stock on hand should not go below 100.

However, what actually happens is that the system behaves as if it is not using reorder point method. It is generating receipts on the actual date that stock will go below total of safety stock + reorder point = 250. It is like having a value of safety stock = 250. So my stock never goes below 250 while I was expecting it to go below 150 but never below 100.

Is this an expected behavior?

Thank you.

[Former Member]

Hi,

You need to specify the reorder days' supply if you have defined reorder point method 2 for the location product.

Regards

Datta

[Former Member]

Hi Datta,

My bad, we use reorder pt method 1 and that is the behavior