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CTM planning generates excess stock

aparna_ranganathan
Active Contributor
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Hello experts ,

We are using CTM planning and we have given build up safety stock and the lot sizing procedure in product master is by period (W). Now CTM planning is generating excess stock for this material . Why is it ?? Can anyone help please

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Answers (2)

Answers (2)

Former Member
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Periodic lot sizes (and the reorder point method) are not supported by CTM. Please also consider CTM FAQ note 855229 "Why does CTM create an excess of supply when I use the safety stock method".

Regards,

Thorsten

srinivas_krishnamoorthy
Active Contributor
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It is not clear in your Q whether the excess stock created while running CTM is lesser or greater in magnitude than the Lot Size. I would not be too surprised if the excess stock is lesser than Lot Size. Not that lot sizing restrictions only apply on supply side and hence there could be a situation where supplies are created in excess.

One other situation where this can happen is when there are unpegged fixed supply orders in the system. In that scenario the order may not be sensed as a supply order by CTM. You can verify that by looking at Pegging Overview related transaction in PPDS. Or do a supply simulation in CTM profile. It can clearly let you know the supply orders considered.

Excess stock can also be generated if there are Quantity Based Safety Stock requirements in the system.

To isolate the problem, I would also try out scenarios with standard lot size instead of periodic just to make sure that there is nothing funny happening with the latter setting.