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"Inventory On Hand" is not working as expected

Former Member
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Hi Gurus,

We are trying to work with Initial Inventory in SAP S&OP. After an unconstrained plan we expect that Constrained Demand Plan Qty will decrease because of the Inventory On Hand. But is not taking it into account. Any clue?

We have not loaded any cost data yet.

Unconstrained Plan result Without inventory on hand:

Unconstrained Plan result With inventory on hand:

Many thanks in advance for your help!



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Answers (1)

Answers (1)

Former Member
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Hello Albert,

Initial inventory will have impact on Net demand calculation at product-location level. In the first case the net demand for product P0001 should be 8 while in second case it should be 3(in first bucket)

Constrained demand will be same as demand planning qty if customer sourcing ratio is 1.

Thanks,

Rohit

Former Member
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Hi Rohit,

Many thanks for your answer!
We are trying to reproduce the steps at Product-Location level and Net Demand Key Figure is showing the same values in both situations. (With and without Initial Inventory on hand).

I attach you the definition of Net Demand Key figure in our system.

Thanks,

Former Member
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Hi Albert,

Can you check configuration of Initial inventory key figure and see if it marked as input for supply planning and then run unconstrained plan again. Also see if there is any inventory target at the location.

Net demand follows below calculation logic:

Net demand = Dependent demand+ Inventory target- Initial inventory

Thanks

Rohit

Former Member
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Hi Rohit,

Thanks again for your help!

We have Initial Inventory marked as input for Supply Planning, and there is no Inventory Target in the locations.

Net Demand shows Dependent Demand but is not considering Inventories.

Thanks!

Former Member
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Hi Albert,

We need to check this in your system. Make sure you mention the planning area name in OSS.

Thanks,

Rohit

Former Member
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Hi Rohit!

That's our OSS Note: Inventory on Hand Key Figure question ( 882468 / 2015 )

Thanks,