How quantity of Preq is determined in SNP planning

[former_member343632]

Hello Experts,

As I am new to SNP so having one basic question and trying to understand the logic of STR creation.

In MAT1 min and max lot size is maintained and the rounding value is equal to min lot size.

I want to understand how the quantity of Preq is decided by SNP (DRP) planning for the DC.

I see that Pur Req is created for different values with some intervals.The quantity of these Preqs are between Min and Max Lot Size respecting the rounding values.

Please help me to understand this logic.

Regards,

Prabhat

[Former Member · Accepted solution]

Hi Prabhat,

An Excellent Explanation already given by Expert AMOL.

Adding to it, Check whether any Rounding Profile Assigned to it, if YES PR quantity may also get rounded according to Rounding Profile.

For Ex.

If the net demand calculated by SNP is between

10 to 50 then Round to 25

50 to 100 then Round to 75

100 to 1000 then Round to 500 etc.

Additionally Lot size Type will also play a role ( Lot to Lot, Fixed Lot & Periodic Lot).

Within Periodic Lot, Offset and Calendar will also play an role on determining the Quantity depending upon your Demand Situation.

Just my Thoughts

Regards

Vinoth

[Sasi2005]

Hi Prabhat,

As said by Amol. The explanation is quite sufficient. However you have said that you have demands in hundred's but the preq's are getting created in Thousands. You have also said that once the value in safety stock level falls then the Preqs are getting created. This is an indication that the demands are getting aggregated before the supply element is getting generated. Could you please check and let us know what is the safety stock methods that you are using. This will have an impact on the quantity of the Preq creation along with an offset in dates.

Regards

Sasi

[former_member343632]

Thanks Sasi for your reply.

I think you summarized my issue clearly.

Yes - it seems that the future demands are clubbed and then Preqs are created to cover them. Ideally we should have Preqs every week but that is not happening.

Preqs are created after 5 to 7 weeks (in 1000's)

Safety Stock Method is SZ - (Safety days supply from location product master)

Safety Days of Supply = 28 days.

Regards,

Prabhat

[ravisankara_varaprasad]

Hi Prabhat,

Hope you have got the answer for this issue already.

Please check your lot size method. Is it periodic or lot for lot.

Below checks may provide some clue for the orders generated in thousands.

1. Check the total period demand if the lot size setting is Periodic

2. Check if there is any calendar is assigned (receiving calendar at receiving location and shipping calendar at supplier location).

Kind regards,

Ravi Sankar Z

[Former Member]

Hey hi Prabhat

It´s too generic question and could be very long answers but I will try to keep in brief with respective to above planning parameters which are mentioned in your questions.

According to the requirement i.e. Total demand/Safety stock/ Stock on project, SNP will try to create additional supply elements in the form of Purchase Req based procurement type i.e. external procurement as well as Planned delivery time.

When Purchase Req is getting created, system looks for different planning parameters. For example, you have additional supply required to full fill you demand is 80 Qty but you have defined Min Lot size as 100 then SNP will create PRs with 100 Qty. Different Min mum lot size could be defined for different material based on logistic and procurement requirement. Now if you have defined 10 as rounding values then PRs would be created only with 100, 110 or 120 Qty even net requirement could be 105 or 117. If you have defined Max lot size as 200 and if your net requirement is 210 then system will create 2 PRs. First one with 200 and other with 100 Qty. Again all these parameters are defined based on logistic and procurement requirement

I hope was able to answer you questions. Please let us know if this information help you and close the thread according to https://scn.sap.com/thread/1802884

Thanks

Amol

[former_member343632]

Thanks Amol for your answer.

It seems I was looking for something more.

Preqs are created with odd intervals.

My total demand is in 100's (between 200 to 500) every week but the quantity of the Preq is in 1000's(say - 2500)

This Preq quantity is added to potential stock and  future demand is covered by this potential stock.

Moment the potential stock goes below safety stock, Preqs are created but again with some different value (Off course in 1000's - say 1250 this time) and again demand of some of the future weeks are covered.

Why such a variation in the Preq quantity and also why they are created in 1000's when everything like demand,lot size and rounding value is in 100's.

Is there something else which governs the Preq Quantity ?

No Rounding Profile is maintained for the product+location.

Please let me know if I didn't make my point clear.

Regards,

Prabhat