How automatic Safety stock calculation with MRP type PD can be done

[rvelmurugan]

Dear SAP gurus,

I am implementing MRP for my client. The MRP Type PD is being defined to meet the business need. However we want the system to calculate Safety stock automatically.

I have gone through earlier postings and the following thread

I have checked the settings for MRP Type - PD. It had automatic calculation of safety stock check box selected. But still when I execute the Planning run system doesn't calculate any Safety stock. I also entered service level field in the material master.

Request your input on how to define settings for automatic safety stock calculation with MRP type PD

Best Regards,

R.Velmurugan.

[former_member226240]

Hi Velmurugan,

Please see below Thread for how to configure Dynamic Safety Stock

http://scn.sap.com/thread/3594669

BR

Rahul

[Former Member]

Hi Velmurugan,

Coukd you please provide the screen shots of material master settings and MD04, so that it coule be help us to understand the issue better.

Regards,

Chinna.

[rvelmurugan]

Dear Chinna,

Thank you for your immediate response.

Please find attached the screen shots of MRP Type PD details and material master settings.

Best regards,

R.Velmurugan.

[rvelmurugan]

Dear Chinna,

Pl find attached MD04 Screen shot after planning run.

Regards,

R.Velmurugan

[marianoc]

Dear R.Velmurugan,

Let me add some additional comments:

Noted that you have daily forecast and you don´t have any lot sizing procedure. You have lot size EX, this means that the system will try to generate an order for each daily forecast requirements... you don't have any minimum lot size or rounding value. Do you want to generate 1 order per day?

In case you have 2 year of PIRs loaded in daily buckets, the system could generate more than 400 order per material. Please review those settings...

I recommend to work with a coverage profile.. You will need to configure a coverage profile key here:

Production --> Materials Requirements Planning --> Planning --> MRP Calculation --> Define Range of Coverage Profile

Then this is assigned in MRP2..

Finally it would be good if you read the thread sherad by the expert Rahul..

Kind Regards,

Mariano

[Former Member]

Hi Velmurugan,

The saftey stock field in the MRP 2 view is zero. So system does not proposes any proposal to cover the safety stock.

Usually in standard SAP, the safety stock is automatically calculated in automatic re-order point planning and in mannual re-order point planning it is just an information. The MRP type PD also does not plan for this safety stock. Because MRP type PD and mannual re-order point planning does not have automtic stock calculation in MRP type configurations.

So I would suggest try entering some value in safety stock and re-run MRP.

Check and get back to the community.

Regards,

Chinna

[rvelmurugan]

Dear Chinna,

Due to business scenario , I need to define MRP type PD for materials and hence reorder point planning can not be used.

However user wants SAP to define safety stock and he is not in a position to manually define the same. I have seen a SAP SCN thread where in it was mentioned that with MRP type PD also, system can calculate safety stock.

I want to know what setting to be defined for that.

Best Regards,

R.Velmurugan.

[rvelmurugan]

Dear SAP gurus,

As I explained earlier, My Scenario is as follows

1. Due to business scenario, I have to use MRP type PD for Spare parts materials planning. Based of requirements raised from diff storage locations, System will generate Planned orders for the materials at plant level that are having shortages. The period indicator used is monthly.

2. User wants to maintain some Safety stock at Plant which they are not able to define and wants system to calculate the same.

I require experts input on following.

1. Whether System can do automatic safety stock calculation with MRP type PD ?

2. If Possible what settings need to be done ?

Thanks all for your inputs so far.

Best regards,

R.Velmurugan.

[marianoc]

Hi Vel,

Yes. System can do safety stock calculation. You have to tell the system how many days of coverage you want, and the system will calculate the quantity that you need to be covered during those days. This is what SAP calls Coverage Profile.

You have to do two things:

1. Configure a coverage profile key here: SPRO --> Production --> Materials Requirements Planning --> Planning --> MRP Calculation  --> Define Range of Coverage Profile
2. Assigned the coverage profile key defined in the previous step in MRP2 view of the material.

Kind Regards,

Mariano

[rvelmurugan]

Dear Mariano,

Thanks for your inputs.

Herewith I have attached screen shots of

1. Configuration settings for Coverage profile

2. Defining coverage profile in Material master.

3. MD04 list after MRP run

But after MRP run , system still had not calculated any safety stock ?

What settings I am missing ?

Thanks and regards,

R.Velmurugan.

[marianoc]

Hi Vel,

Please check your screenshots... it is not possible to see the content.

Before sending new screenshots, check this:

• MRP Type is PD
• Your material exist in MD21 (planning file entry). If the material is not here, run MDAB.
• MRP with MD02, with the parameters:

          NETCH
          1
          3
          1
          3

          2

If the issue is not resolved, share again MRP1 and MRP2 view of the materials master, the covergae profle seetings and MD04 (please check the quality of the screenshots).

Kind Regards,

Mariano

[rvelmurugan]

Dear Mariano,

I followed the settings suggested by you. But still it is not calculating safety stock.

I have attached the following screen shots.

1. Coverage profile settings

2. MRP 1 and MRP 2 view

3. Planning file entry

4. MD02 screen

5. MD04 list (not showing any safety stock).

[rvelmurugan]

Dear Mariano,

I followed the settings suggested by you. But still it is not calculating safety stock.

I have attached the following screen shots.

1. Coverage profile settings

2. MRP 1 and MRP 2 view

3. Planning file entry

4. MD02 screen

5. MD04 list (not showing any safety stock).

[marianoc]

Hi Vel,

This is weird.. your settings seem to be ok.

Try two more things:

1- Use Lot size WB or MB in order to reduce the number of orders to be created by the MRP. Right now you have EX and this means that the MRP will create one replenishment order per day.

2- Run the MD02 and send me a screenshot of MD04 showing future periods. Also do not forget to press refresh on MD04 once the MRP is executed.

Kind Regards,

Mariano

[rvelmurugan]

Dear Mariano,

I changed the lot size to monthly (MB) and ran MD02. But still safety stock is not getting calculated. I refreshed MD04.

I have attached the screen shots of the same.

Regards,

R.Velmurugan.

[marianoc]

Hi Velmurugan,

It seems the MRP is creating Requisitions considering additional stock.

The system is creating a Purchase Requisition on Oct 1st. You have an exception message asking to move the order to Sep 1st (which is in the past).

Try these two more things and you will see how it is resolved:

1. In the coverage Profile setting, increase the number of periods from 1 to 3.. (with Number of periods = 1 you only have Safety Stock for the first month..)
2. Note that you have PIRs in the past. Start loading PIRs from today or even better starting on Oct 1st. The coverage profile calculation does not consider demand in the past.

Let me know if this resolved your problem.

Kind Regards,

Mariano

[rvelmurugan]

Dear Mariano,

I tired as per your suggestion, but still it didn't calculate any safety stock.

1. I changed coverage profile setting as per your suggestion.

2. Changed PIR's from Oct'14

3. Executed MD02 and then checked MD04

Please find attached screen shots of the same.

Thanks for your continued support.

Regards,

R.Velmurugan.

[marianoc]

Hi Velmurugan,

The system will not create a line called Safety Stock.

The safety Stock is additional stock considered when the replenishment order is created (the Purchase Requisition in your case).

If you see your MD04 screen, the purchase requisition is for 180 CS, but during October you only have 150 CS in PIRs.. so you have 30 CS as safety stock.

The question could be why is 30 CS. To answer this question I would need to for how many months you entered forecast... If you only entered forecast for Oct, then 30 CS is ok.. This is how these 30 CS are calculated:

The system calculates the average daily demand by looking at the total demand that you have in the following 3 months and this Total demand will be divided by 90 (3 months of 30 days each month). So it seems you have Total demand equal to 90 CS divided by 90 days = 1 CS/day. Finally your target is 30 days of coverage, so the safety stock will be 30 CS.

If you want to see a real month of safety stock, then you have two options:

- Enter forecast for Nov, Dec, Jan...

- Change your Coverage Profile setting (in the determine averafe req) and use 1 period and not 3.

Kind Regards,

Mariano

[rvelmurugan]

Dear Mariano,

I think System had not considered any safety stock.

I have created PIR's 90 per month for Oct,Nov and Dec each. Hence the total PIR's raised = 270.

In MD04 system shows Purchase requisition = 180+60+30 = 270

Hence PIR's raised = PR's created.

I have also attached six screen shots in sequence in two replies (3 each).

[rvelmurugan]

Dear Mariano,

I think System had not considered any safety stock.

I have created PIR's 90 per month for Oct,Nov and Dec each. Hence the total PIR's raised = 270.

In MD04 system shows Purchase requisition = 180+60+30 = 270

Hence PIR's raised = PR's created.

I have also attached the balance three screen shots in sequence

[rvelmurugan]

Dear Mariano,

I also tried as per your below suggestion

then you have two options:

- Enter forecast for Nov, Dec, Jan...

- Change your Coverage Profile setting (in the determine average req) and use 1 period and not 3.

But still PIR's raised for Nov,Dec and Jan = 270

and PR's raised for Nov,Dec and Jan = 270

No safety coverage gets calculated still.

Best Regards,

R.Velmurugan.

[marianoc]

Hi Vel,

The system is considering Safety Stock.

Lets see month by month:

• October. In Oct you have PIRs for 90 CS. If you don't have safety stock, the MRP should create a PurcReq for 90 CS, but it is creating a PurReq for 180 CS.. this means that this PurcReq will cover the 90 CS of PIR from Oct and the 90 CS of safety stock. The 90 CS of Safety Stock is calcultad as follow: Safety Stock = (Total Demand 270 / Perdiod 90 days) * target 30 = 90.
• November. In Nov you have PIRs for 90 CS. If you don't have safety stock, the MRP should create a PurcReq for 90 CS, but it is creating a PurReq for 60 CS.. So you will have the 90 CS remaining from last month + 60 CS, this is 150 CS. So the system is considering 60 CS as Safety Stock, calcultad as follow: Safety Stock = (Total Demand 180 / Perdiod 90 days) * target 30 = 90. Now it is 180 because you only loaded Oct, Nov and Dec..

In the case of Dec, I tinnk the horizon of your coverage settings is not covering the last day of Dec, so there is no coverage calculation for Dec.

Kind Regards,

Mariano