Coverage Profile

[Former Member]

Dear All,

Can any one please explain the logic behind the calculation of Coverage.

Thanks in advance,

Vijay Mankar

[Former Member]

Hi,

If you are looking to understand the meaning of coverage then here is my explanation.

Coverage is the no of days available stcok will cover the demand. That is the stcok on hand and receipt element will take care of the demand for so many days. Simply if you have stock on hand of 30 & demand for month is 90, then coverage is 10 days.( 30 days month)

Hope this is what you are looking for.

Vineet

[Former Member]

Hi Vijay,

Please find the details of the coverage profile..

In customizing in MRP calculation menu , you have Range of coverage. Define the range of coverage as you want , like 15 days for a period of 3 months. Then in the profile first fill the Avg. daily req data and then the range of coverage data.

As far as calcualtion are concerned its very easy to calcualte the Qty for the first period and then for the later periods its difficult.

The Range of Coverage profile is define specific to a plant in IMG and then assigned to materials in master data MRP 2 view. To define the profile, use menu path

IMG->PP->MRP->MRP Calculation->Define Range of Coverage Profile. In the definition, there are two sections of data that you need to fill in.

1. Parameters for calculation of average daily requirements and Period indicator.

2. Minimum, Target, and Maximum stock calculation parameters.

PARAMETERS FOR AVERAGE DAILY REQUIREMENTS CALCULATION:

Choose the period indicator as Month, Period, or Week.

Specify the number of periods. This is used by system to calculate the average daily requirements.

Select the "Type of Period Length", ie. as workdays or calendar days or standard days (days per period). If the type of period length is selected as standard days, they you have to specify the "days per period". Using these three parameters, the system calculates average daily requirements using the formula:

average daily requirements = Sum of requirements in the number of periods / number of days in the number of periods.

PARAMETERS FOR TARGET STOCK AS DAY'S OF SUPPLY

Then you have to specify how many workdays of supply you want to maintain as target stock, in your case 15 workdays. If you wanted to maintain a constant 15 days of supply as inventory through out the planning horizon, just specify the target stock as 15 days and leave rest of the fields as blank, i.e min, max, and number of periods. The number of periods in this section simply maintains the target stock for that many periods from the date of MRP run. This way you can tell the system to maintain different target stock levels for three different period intervals. For example, if you wanted to maintain 15 days stock for first 3 periods, then specify the target stock as 15 days and number of periods corresponding to it as 3. The system then will maintain 15 days supply as inventory for first 3 periods from the date of MRP run and subsequent months zero inventory will be maintained. This will allow you to maintain your 15 days supply constantly for 3 periods.

I hope it will help.

Regards,

Satyajit

[Former Member]

If you mention the coverage in the Collective MRP list ( MD06) you can specify in Customizing which elements are to be considered (receipt, firm planned orders, reservations, etc.) for the calculation :

- Cov stock : stock only - reqmts

- Cov1: stock in hand + some receipts - reqmts

- Con2: stock in hand + some other receipts - reqmts.

But this completely configurable .

There is another coverage concept, which is linked to dynamic safety stock calculation.

Regards