Forward Coverage

[Former Member]

Hi,

I have been trying to figure out the formula used to calculate the Forward coverage using the Inventory and Forecast cast Data. Could any one throw some light on the logic

Header 1	Jan	Feb	March	April	May	June	July	August	Sep
Forecast	924	872	904	876	893	880	851	890	835
Inventory	3436	3801	4251	3374	3347	3930	3945	3918	3533
Forward coverage	3.9	4	4	3	3	4	4	4	4

Thanks,

Vinay

[Former Member · Accepted solution]

Hi Vinay

check stock coverage option in key figure definition.

[Former Member · Accepted solution]

Hi Sai,

Thanks for your reply

Couple of Confirmations required - Please correct me if I am wrong

- Projected Inventory refers to "Inventory"

- Total Demand refers to "Forecast"

And Also we have duration (end period) of 12 months. We do not have Analysis for Microsoft Excel.

If you can explain calculation of each cell for forward coverage, I can try implementing in ABAP.

Thank You,

Vinay

[gajendra_moond · Accepted solution]

Hi Vinay

Your understanding is correct. You can have a single key figure for Inventory - showing actual inventory till current period and projected for future periods or separate depending on your needs.

I have not tried it but I guess you can use BEx Input ready query as well instead of Analysis Office for MS office. This stock coverage option is available since BW7.4

If you want to use ABAP to achieve the same, you have to configure the logic. The logic explanation is provided in my document shared by Sai P.

To clarify:

Let us consider Jan in your example. You have forward coverage which means you will start checking from next month onwards (Feb here - you can confirm this with your functional team).

Inventory = 3436 units

Units needed in Jan to satisfy Feb Forecast = 872 units

Units remaining at the end of Feb = 3436 - 872 = 2564 units

You need to keep checking like that till you run out of stock (inventory).

Stock at the end of Mar = 2564 - 904 = 1660 units

Stock at the end of Apr = 1660 - 876 = 784 units

Now Forecast in May = 893 units which is greater than available 784 units left at the end of Apr or beginning of May. Hence the coverage available in that month = 784/893 = 0.87 ~ 0.9 months

Total coverage is = Feb + Mar + Apr + 0.9 of May = 1+1+1+0.9 = 3.9 months of coverage.

It will be best to understand from your functional team if it is a straight forward stock coverage or if there is any additional logic involved.

[Former Member]

Thank You Sai and Gajendra. I am clear on the concept now, Thanks a lot!!