replenishment

[Former Member]

Hello ,

I have a replenishment lead time question I like to share with you.

Inward movement

|............old MAD...Order Qty 20..

|....................x<----

---

|Requested delivery date

| 100.....................50.........................60

-

---

> Time

|.........100.........................40.............20..........50

|..........................................................|----

---

>confirmation date

|..........................................................| New Material availability date (MAD)

Outward movement

Above: Scenario where Complete Delivery required when Replenishment lead time (RLT) is not used.

-

---

Inward movement

|..................MAD....

|....................X<----

---

|.confirmed delivery date.

|..100...................50.........................60

-

---

>Time

|..........100.....................40...........................50

| RLT

| -

---

>

Outward movement

Above: Scenario where Complete Delivery required when Replenishment lead time Is Used.

Referring to the 2nd scenario diagram, why is it that the order can be confirmed at requested delivery date and why the MAD is possible at that time? The MAD derived seems to be when the stock is ZERO (100 inward , 100 outward). Why is it that when RLT is used, there is stock at this time?

Does RLT not mean more time is considered for stock availabilty? If so, why is it able to confirm delivery earlier than the 1st scenario?

Is there a simple way of explaining this?

Thanks in advance.

John Tivoli

Edited by: johntivoli on Jan 11, 2011 5:26 AM

[former_member365422 · Accepted solution]

Dear John,

In simple language Replenishment lead time means, Time taken to make the material available in warehouse using External procurement or In house production.

When you select RLT in OVZ9, system will consider RLT while performing availability check. If after considering all the planned inward and outward movements stock is not available on requested delivery date but in future date then system calculates RLT and proposes the earliest possible MAD.

For ex. Suppose after considering all inward and outward movement material X is available after 10days.

But if i raise the fresh production order today and my plant can manufacture and make material X available in 4 days then my new MAD will be after 4 days. So i can confirm the quantity with MAD after 4 days rather than after 10 days.

Hope this clears

Regards

Mayank

[Former Member]

To make it more simpler,

RLT= Purchase order processing timetime taken by vendor to send the goods Goods receipt processing time

The above logic considered by the system, holds goods for both Inward & outward movements of goods.

Rgds

Sumanth.G

[Shiva_Ram]

Referring to the 2nd scenario diagram, why is it that the order can be confirmed at requested delivery date and why the MAD is possible at that time? The MAD derived seems to be when the stock is ZERO (100 inward , 100 outward). Why is it that when RLT is used, there is stock at this time?

When you maintain RLT in the material master and when the availability check is configured to consider RLT (in t.code OVZ9), the system only considers the RLT and not further inward (example purchase order) and outward movements(sales orders and deliveries). It assumes that at the end of RLT, for example if you maintain 20 days as RLT, then the system assumes at end of 20 th day, the material is available. Based on this, the system confirm the sales orders.

Does RLT not mean more time is considered for stock availabilty? If so, why is it able to confirm delivery earlier than the 1st scenario?

- No, it does not mean it is more time. It means at the end of the RLT the material is available. That is the reason why it is confirming earlier than the first scenario.

Please read more details at http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d328744af11d182b40000e829fbfe/frameset.htm

Regards,

[Former Member]

• bump *

Edited by: johntivoli on Jan 22, 2011 4:38 PM