Automatic reorder - forecast

[Former Member]

Hi Experts

Iam new to the Automatic reorder point process, it says that the reorder point and safety stock is calculated based on integrated forecast program, can anyone tell me how its calculating in forecast, can u give me a example.

Thanks in advance.

Regards

Rajaram

[Former Member]

Hi,

pls find the definition for Automatic ROP from SAP help.

Automatic Reorder Point Planning

In automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated forecasting program.

The system uses past consumption data (historical data) to forecast future requirements. The system then uses these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is specified by the MRP controller, and the material's replenishment lead time into account, and transfers them to the material master.

Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually adapted to the

Regarding the inputs - Consumption Values (hist data) shd be there , MM02-Forecasting view shd be defined .

While executing the Forecast, system updates the ROP and safety stock.

Regards,

Sheik

[Former Member]

Dear,

Automatic reorder point planning works on consumption rate. If you go for manaul ROP planning, the rorder point is constant.

Some times you have decided on the last year data and this year let us say it is not used much...hence system will go for lesser reorder point value so that inventory cost will be reduced. How system will calculate - depends on consumption of that material in the period

You can see the details in the link..

http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d3f9344af11d182b40000e829fbfe/frameset.htm

pl come back if required

Regards,

Anand.

[Former Member]

Can u give me a example, or steps what r the necessary parameter we have to pass.

In our company forecasting is not implemented. so can we do automatic reorder only when we implement the forecasting.

pls clarify me.

[Former Member]

Hi

the mrp type for the material should be V1 and then go to MD02 and as per your requirement take the MRP run.

Please come back if required.

Reward if point is useful.

Regards,

Anand.

[Former Member]

Hi anand

actually mrp type for automatic reorder point is VM no,

u r telling V1, then do we need to fill the reorder point and safety stock and all.

or it will fetch automatically. and we have not implemented the forcasting in our comapny, how it will work, do we have to implement it first.

pls explain me clearly yar.

Regards

Rajaram

[Former Member]

HI

There are three types for reorder point planning as V1,V2 and VM.

Regards,

Anand.