Reorder Point Methods - Context: APO SNP Heuristic

[Former Member]

Hi all,

I need to prepare a little summary of lot sizing options for a customer. I spent some time on help.sap.com and on the application help trying to find a clear explanation of the various reorder point methods (numbered from 1 to 6), but I couldn't get clear one-sentence explanations of these 6 sub-methods.

Can somebody help me?

Regards,

Jean-Louis

[Former Member · Accepted solution]

Hi,

1 Reorder stock from location product master

If the available stock of a location product is less than the reorder point for the location product at the time of planning, reorder point is determined based on the minimum lot size or a maximum lot sizes specified in Product Master

2 Reorder supply from location product master

the available stock for a location product does not cover the requirements that are within the reorder days' supply at the time of planning, reorder point is determined based on reorder days' supply and a larger target days' supply in the location product master. You can enter either a minimum lot size or a maximum lot size.

I am not very sure about methods 3 through 6 but to help you....(please confirm below before using). I believe the other 4 methods are more duplicates f PP-MRP-consumption based planning.

3 Maximum from MB and MR from location product master

Reorder point is determined based on MB(goods issue) and MR(reservation) defined in product master. I suppose from GR/GI tab

4 Reorder point (time-dependent maintenance)

the material is not only planned up to the MRP date recorded in the planning file, but it is also planned if stock falls below the reorder level due to a goods issue. When the stock level falls below the reorder level, the system automatically sets the net change planning indicator in the planning file which means that the material will be included in the next planning run.

5 Reporting Days' of Supply (time-depnedent maintenance)

6 Maximum from MB and MR (time-dependent maintenance)

[former_member1082795]

Hi

I am trying to get the "Reorder Days of Supply" field in "Advanced Planning" in Material Master, to work in PPDS. I am having a hard time as PPDS does not take this in account, however it does take Target Days of Supply.

Is there any setting that I need to arrange in PPDS or in Material Master, any click box, or any special heuristic I need to setup, to have the Heuristic in PPDS reordering when the days of supply are below the indicated threshold in this field?

Any help would be really appreciated.

Thanks in advance.

[Former Member]

I have to precise that the framework of my question is SNP heuristics. Reorder Point is also a concept used in PP/DS, and sometimes in my opinion one can easily be confused reading the on-line help with which statement is relevant for SNP Heuristics v which statement refers to PP/DS.

Having said that, here is my current understanding of the reorder point methods in the framework of SNP heuristics:

<b>1 - “Reorder stock based on location product master”</b>

The reorder point is read from the location product master (lot size tab, field reorder point)

The reorder point represents a threshold value for available stock on hand, which stock should not fall below in the planning.

<b>2 - “Reorder supply based on location product master “</b>

The field “Reorder Days’ Supply” is used

The system reorders according to what is missing to cover the demand over the specified number of days, considering the stock on hand and the planned receipts.

<b>3 - Maximum from MB and MR from location product master</b>

Both the “Reorder Point” and the “Reorder Days’ Supply” fields are used

The “Reorder Day’s Supply” logic is used, but additionally the stock cannot fall below the “Reorder Point”

<b>4 - Reorder Point (time-dependent maintenance)</b>

Same as “1”, however the reorder point is read from a KF rather than from master data

Additionally the “Max Stock Level” field is used

<b>5 - “Reporting Day’s Supply (time-dependent maintenance)”</b>

Same as “2”, however the reorder days' supply is read from a KF rather than from master data

Additionally the “Max Stock Level” field is used

<b>6 - “Maximum from MB and MB (time-dependent maintenance)</b>

Same as “3”, however the reorder point and the reorder days’ supply are read from KFs rather than from master data

Additionally the “Max Stock Level” field is used

Please comment if what's above is correct. And thanks to all contributors.

[sudhir_gulati]

Dear Visu,

Could you explain detail, what you meant by:

"reorder point is determined based on reorder days' supply and a<b> larger target days' supply in the location product master</b>"

regards,

Sudhir Gulati

[Former Member]

reorder point is determined based on reorder days' supply and a larger target days' supply in the location product master

This is what my understanding:

In this option, you have some stock and few requirements. Your day's of supply technically means that the stock covers the requirements for the number of days in days'of supply. Incase if the the available stock doesnot meet the requirements within days of supply at the time of planning, then reorder point is determined based on reorder days'supply( Number of days where the warehouse stock and planned goods receipts for a product cover the existing demand) and a larger target day's of supply( Number of days that the warehouse stock and already planned product receipts should be sufficient to cover the requirements already known), defined in product master.

Ex: You have 100 pcs of material A in warehouse stock and is supposed to be covering 10 days' of supply. Lets say your requirement is actually 140 and 100 is not covering for 10 days and is covering only 6 days. The system then looks for how many days your warehouse stock and planned product receipts cover. If these donot cover the 10 days and the requirement of 160, then the procurement proposals are automatically created by the system.

Also read glossary for the terms used above.