SAP APO PPDS - REORDER POINT

[former_member269053]

Hi experts,

I am trying to work in SAP APO PPDS with Reorder Point, but I have the following problem:

I update the following Master Data:

Transaction SAPAPO/MAT1

     Folder:          Lot Size – Procedure

      Fields:  

         - Reorder Point:  selected

         - Reorder Point Method:  1 Reorder stock from location product master 

         - Safety Stock:      17,416

         - Method for Calculating Safety Stock:  SB  Safety Stock from Location Product Master

         - Reorder point:    20,000

With transaction SAPAPO/CDPSB0  I executed Heuristic Reorder Point Planning SAP_PP_007

I got the following results:

In the Planning Book we can see that the system generated the Receipt (31,050) to cover the Total Demand (13,634) and Safety Stock (17,416), but is missing the Reorder Point (20,000)

Distribution Receipt (Planned)  31,050   =  Total Demand   13,634  +  Safety Stock  17,416

                                                                    W N             W N+1          W N+2

Forecast                                                    11,584          17,140          18,140

Sales Orders                                               2,050         

TOTAL DEMAND                                     13,634          17,140          18,140

Distribution Receipt (Planned)              31,050          17,140          18,140

RECEIPTS                                                31,050          17,140          18,140 

Stock on hand                                         17,416          17,416          17,416

Safety stock                                             17,416          17,416          17,416

Reorder Point                                          37,416          37,416          37,416

NOTE.- Remember the master data Reorder Point is 20,000 but the planning book shows the Reorder Point  37,416 = Reorder Point 20,000  +  Safety Stock 17,416

How I can achieve the system includes the Reorder Point in the Distribution Receipt?

If the system includes Reorder Point:

Distr. Receipt 51,050   =  Tot Demand  13,634  +  SS  17,416 + 20,000 Reorder Point

Best Regards,

Arnulfo Cordero Pradel

[Former Member · Accepted solution]

Hi Arnulfo,

The reorder point is not a demand, it is a trigger level.  In PP/DS, when you run planning, if the receipts (including stock) - demand quantity falls below the reorder point then the system will trigger replenishment.  The replenishment quantity is based upon your lot-size strategies such as whether or not you have set "replenishment to max. stock level".  In your case, safety stock won't play in the system decision.  PP/DS only considers the reorder point when planning is run.  It won't consider any future shortfalls.

If you look at the PP/DS planning results in a SNP planning book, you will get shortages in the future. They will remain until you run SNP planning where the reorder point macro (REORDER_CALC) comes into play.

Best Regards,

Mike

[former_member269053 · Accepted solution]

Hi Mike,

You are telling me that if I execute the PPDS Heuristic SAP_PP_007 the system will not include the Reorder Point in the Distribution Receipt, but if I execute the SNP Heuristic the system will include the Reorder Point

Heuristic PPDS    

Distr. Receipt 31,050   =  Tot Demand 13,634  + SS  17,416

Heuristic SNP     

Distr. Receipt 51,050   =  Tot Demand 13,634  + SS  17,416 + Reorder Point 20,000

Is the above statement correct?

The SNP Heuristic includes the Reorder Point because execute the macro REORDER_CALC

Is the above statement correct?

Thanks,

Arnulfo Cordero Pradel

[Former Member · Accepted solution]

Hi Arnulfo,

Comparing the results of a PP/DS planning run seen in the Product View with what you see in the SNP interactive planning book is problematic.  The reorder point calculation in PP/DS ignores safety stock.  So when you plan a demand, you will get a purchase req. equal to your reorder point if the reorder point is greater than the demand.  It will happen once and in the product view you can see that there will be a shortfall with future demands.

In SNP the safety stock is considered in the REORDER_CALC macro function so the reorder point key figure will show product master reorder point plus safety stock. When you run SNP planning you will get a distribution receipt equal to the KF Reorder point (product master reorder point + safety stock) + demand.

If your business case requires SNP to match PP/DS you could adjust the reorder point macro but you have to be careful.

Comparing PP/DS planning  with SNP planning is like comparing apples and oranges.

Best Regards,

Mike

[Former Member · Accepted solution]

Hi,

if you are using both SNP and PP/DS and safety stock is important in both sides, you should considering making SS relevant in PP/DS (activate in planning version, then use heuristic SAP_PP_018 to create SS liveCache orders relevant for PP/DS). You will see SS as additional demand orders.

However, as Mike said, having SNP and PP/DS "agree" is problematic in general.

thanks,

J.

[former_member269053 · Accepted solution]

Hi Mike,

Your information helps a lot

Best regards,

Arnulfo Cordero Pradel

[former_member269053 · Accepted solution]

Hi James,

Thanks for your help

Best regards,

Arnulfo Cordero Pradel