Moving Average is not being calculate correctly in Automatic Reorder Point Planning

[27maheboob]

Dear Experts,

There is a requirement in my project as Automatic Reorder Point Planning, in this requirement, based on my previous 3 months consumption system should propose the Reorder Point. I have entered the details in MMR as below.

MRP-`1 View

MRP-2 View

Forecasting View

Consumption Values of last three months

As per the moving average, my reorder point should be 100

I will execute the forecast now.

After execution of the forecast, the reorder point value in MMR is coming wrong. The average of last month is 100 bur the reorder point here appears as 3.333 which is wrong in my case.

Please help me to resolve the above issue

Thanks in advance

Regards Mateen.

[DominikTylczyn · Accepted solution]

Hello 27maheboob

See SAP Help on Reorder Level Calculation. Reorder level calculation depends on replenishment lead time. You have forecasted demand for 09.2022 at 100. That is not directly reorder level. The forecasted demand would be taken as reorder level, if the replenishment lead time was exactly 30 days. You have not provided that information, but I guess it's 1 day. That's why the reorder level is 3.33 = 100 * 1/30.

Best regards

Dominik Tylczynski

[27maheboob · Accepted solution]

Thanks Dominik for your valuable answer but where we can maintain the replenishment lead time.

[DominikTylczyn · Accepted solution]

Replenishment lead time in the context of reorder point planning is nicely explained in the note 2582230 - MRP doesn't consider planned delivery time defined in the purchase info record when calcul...

It's planned delivery time for a material master in case of externally procured materials.

[27maheboob · Accepted solution]

I am using Reorder Order Point Planning at the Storage Location MRP Area level. I want to bring the Reorder Point to moving average of the last 3 months consumption and I am doing this reorder planning for my FG Material.

Please help me to achieve this.

[DominikTylczyn · Accepted solution]

Hello 27maheboob

I'm not aware of any custom enhancement in the reorder point calculation procedure that you could use. As per note 1626578 - SCM CS: Differences between safety stock calculation in SAP ERP and SCM CS SAP delivers a consulting solution, I guess it's additionally charged, to calculate reorder point using weighted average of past consumption, without forecasting.

If I were you, I would implement a simple custom report to calculate reorder point according to your requirements. The logic of the report would be as follows:

1. get consumptions values of the past 3 months from material master consumption statistics i.e. MVER (at plant level) and/or DVER (at MRP area level). See the note 1832196 - General information on the consumption update MVER/DVER on how the statistics is updated and how to rebuild it.
2. calculate consumption average of the past 3 months
3. update reorder point in the material master using BAPI_MATERIAL_SAVEREPLICA (plant level) or MD_MRP_LEVEL_CHANGE_DATA (MRP area level) functions

Such a report would be in line with SAP consulting solution, would fulfill your requirement and would save you forecasting step.

[27maheboob · Accepted solution]

Thank you very much Mr. Dominik, I got the point.