Days Supply Key figure not reflecting actual values

[AA3]

We have a key figure, DAYS Supply in our SNP planning book in WEEKLY buckets, it is linked to a SAP default MACRO (Days Supply)

the scenario is as follows:

1)INITIAL column = Stock on hand = 208

2)week of 08/29 = DEMAND = 203, stock on hand = 5

3)Target Days supply = 10

3) Days Supply = 63

Now in the folllow on weeks there is no demand at all, however the days supply keeps decreasing by 7 for each week

we would like to know why does the Days supply keep decreasing even though there is no future DEMAND

Edited by: AAL123 on Sep 2, 2011 11:38 AM

[m_manimaran · Accepted solution]

Hi,

If there is no requirement, how the Day's supply shows 63? It means that down the line at 9 the week, after 63 days, there is a requirement which can be fulfilled by the current stock.

As you mentioned, you are using weekly bucket, each week has 7 days. So, the Day's supply will reduce by 7 days for the upcoming weeks. It is the right behavior only.

If it is daily bucket, then it will reduce by one every day.

Please check and revert.

Regards,

Manimaran M.

[AA3 · Accepted solution]

Here I would like to raise an example

My initial stock = 100

on Day 1 , demand(requirement) = 10

so in this case Days supply = 10

Now if there is no demand from day 2 onwards , then the Days supply should remain constant as 10

but in our case the days supply is decreasing for each 1 day.

Even without any future demand , why is the days of supply decreasing for each week till the point it turns 0. Thats the main point i would like to find.

Edited by: AAL123 on Sep 2, 2011 2:08 PM

[AA3 · Accepted solution]

The point that I want to make is , with every increase or decrease in the Stock on Hand values , the Days of supply must change.

[former_member453166 · Accepted solution]

AAL 123,

In the event that supply exists with no demand, you days of supply is technically infinite. However, the standard macro is designed to calculate days of supply as a function of the days remaining in the planning horizon. So if you have a 2-year, 730 day planning horizon, it will assume the end of the data view is the "end of time" and calculate it backwards from there.....

Hope this helps!