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Does SNP provides functionality for Inventory Planning

syed_hassan2
Explorer
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Hi

I am thinking of proposing Service Parts Planning to client based on their requirements for inventory planning and distribution planning.

I wanted to ask if this would be a good proposal? I based my decision on my knowledge that SNP lacks functionality for calculating stock levels (i.e. EOQ and Target Stock Level ). By tareget stock levels, I mean how much inventory we should keep at a location and where in supply chain should we keep that inventory.

It does however provides Safety Stock Planning method to calculate the safety stock.

If this is not the case and SNP does have functionality to calculate target stock levels?

Please let me know.

1. If there is a functionality or process to calculate your reorder levels/target stock level in SNP for a location and multi-level locations?

2. How hard would is to implement Safety Stock Planning? and how hard is it explain the results? and whether those results are reliable? know on APO 3.0, the functionality was not stable at the least.

regards

Syed

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Answers (1)

Answers (1)

Former Member
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sure does

take a look at the different safety stock methods - it involves the ones for target stock level planning

http://help.sap.com/saphelp_scm50/helpdata/en/ea/1d9b3979e90e1be10000000a114084/content.htm

target stock levels can be maintained in the masterdata in terms of min stock levels and/or target days of supply that is maintained in the masterdata or in the planning books

there is a macro as well that does the demand calculation based on target stock calculation.. check NET_DEMAND()

This net demand is satisfied by SNP calculations and you would be able to get the requirements and reciepts to satisfy these from the different locatons in the network

BTW, are you suggesting SPP just for this functionality? you dont need to- regular SNP will do

Former Member
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Hi Harish.

Agree with what you're saying, but I think what Sayid is asking is not available in basic SNP.

Inventory optimisation (which I think Sayid is referring to) across the network is not provided through the safety stock and target stock level methods provided, which are defined on a location by location basis.

There has been some argument that using the optimiser with storage costs has this covered but it does not focus on inventory only.

There are specific tools for this, <a href="http://www.toolsgroup.com/">Tools Group</a> being one such example (please do not see this as a promotion, I have no experience with such a tool and make no claims, only to provide an example).

Any experiences, input from anyone else?

M

syed_hassan2
Explorer
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Harish,

Thank you for your response.

I was thinking of using Safety Stock Planning to do just that but if you read through the help documentation, it says that Multi-level safety stock planning is complex issue. From my experience with Safety Stock Planning on APO 3.0 on not good.

But if nothing else, I will use Safety Stock Planning to do my re-order point planning and use macro to calculate the ROP.

Per your question on SPP, I just read up on this new functionality. It provides the end to end functionality for Service Parts and uses BOD (bill of distribution) which in my case may help to distribute the reciepts back to destination locations as per their demand.

syed_hassan2
Explorer
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Thanks Percx,

Can you tell me what basic methods are available on SNP beside Safety Stock Planning to calculate Target Stock Level. I will consider location by location Target setting among my options if it can calculate.

Does anyone know if Optimizer can work and how?