Automatic reorder point planning -forecast view

[Former Member]

Hi

Our client want to implement automatic reorder point Planning.

Reorder point quantity was maitained from last 3 years but MRP type is 'ND' as they are not using MRP.

Now i am changing MRP type to:VM and in forecastting view: i maintained model as:D constant model period indicator:M

His periods:60 , forecast periods:12 initialization:X tracking limit:4000 selection procedure:2 reset automatically

Is it ok ? than can i run MP30. and the client wants to run for many materils(2000).

How can be run for many materials.?

Regards,

srihari.M

[former_member186193]

Dear,

In automatic re-order oint planning , system uses past consumption data (historical data) to forecast future requirements. The system then uses these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is specified in MRP2 view, and the material's replenishment lead time into account, and transfers them to the material master.

Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually adapted to the current consumption and delivery situation. This means that a contribution is made towards keeping stock levels low.

From MP30 you have to executed forecast and system has generated forecast values and updated safety stock and reorder point also. Only thing to remember is you have to maintain service level in MRP 2 view of material master when you use VM- MRP type to calculate safety stock and reorder point

Find bleow the set up following set up for automatic re-order point planning :

1.Material Master Set up : Maintain all the relevent parameters from MRP1 to MRP4 view , Forecasting View

1.MRP Type -VM , Lot Size -EX

2.Procurement Type -E for FG and F for ROH

3.Planning Startegy -10 or 40 in FG/SFG and 20 for componenet

4.Planned Delivery Time in MRP2 VIEW

5.Indiviaul/Collective Indicator - 1/2 based on your requirement in MRP4 View

6.BOM Explosion -Keep it blank

7.Service level percentage -MRP2 view

8.Maintain Forecastin view data like model selection , Histry period , period indicator , Forecast control pramaters ,

10.Make sure that you have min 12-8 monhts total consumption update in Forecasting view .

Configuration : InSPRO -MRP -Check MRP Type -VM-check the details like Re-Orde point .Safety Stock both the automatic calcvualtion box are marked .

Finally as a sample test , select any material -mm02-execute forecast in mm02-forecasting view -exectute forecast -then save .Run MRP in MD03-1,1,3,3,1.NETCH indicator and check the result in MD04

HOPE IT WILL HELP. PLEASE REVERT BACK.

Regards,

Alok Tiwari

[Former Member]

Hi Tiwari

The settings what you have mentioned i know .

I am asking about forecastmodel and periods.

Regards,

srihari.M

[Former Member]

Srihari,

can u tell me which is the standard model i have to use.

They are all standard. The 'best' model is the model that best fits the historical data and the marketplace, and meets the business' requirements.

If you are not a statistical forecasting expert, and if the client is unable to tell you how he wants to forecast, you can have the software select a model that fits the data, based on the business requirements. This is a good starting place. Read online help at

http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c27292454011d182b40000e829fbfe/frameset.htm

Best Regards,

DB49

[Former Member]

Hi Srihari:

You brought up an interesting Question.

Forecast Model Depends upon the Historical data and client requirements.

You Need to look at MAD --Mean Absolute Deviation after u execute forecast .

If the Error is more that means your demand is fluctuating a lot -

---

> more Saftey Stock to meet the Desired Service Level.

Historical Periods: 60 is the Default but you need to see u don't want to take the Data too far.

U should give more importance to the recent data to reflect future requirements.

you can use MRP Type VV .

I wondering that reorder point is for information only since your future requirements are triggered by historical data not reorder point?

thanks

Sweth

[Former Member]

Hi Alok:

Any Idea how the historical consumption data in forecasting view will be uploaded?

Thanks for the help.

Thanks

Sweth

[madlercm]

There's no "right" or "wrong" forecast definitions; you need to tailor them to the data. It takes quite some expertise to doing it right!

To run forecasting for many materials use transaction MP38.

[Former Member]

Hi Mario

First time i am implementing automatic reorder point planning.

SAP data is available from the 2009 year onwards.Which forecast model now we have to use.

As there are so many forecast models exists.. can u tell me which is the standard model i have to use.

Regards,

srihari.M

[Former Member]

Hi Srihari:

How you are considering External requirements like Firm Forecast , Schedule Agreements from customer?

How are you capturing Sudden Spikes in Demand?

or your doing MRP Based on Historical data only?

Thanks

Sweth

[Former Member]

Hi

we decided to go for Automatic selection model.

and i am closing the thread.

Regards,

srihari.M