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Former Member

Automatic reorder - forecast

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

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2 Answers

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    Former Member
    Apr 17, 2008 at 06:13 AM

    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.

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    Former Member
    Apr 17, 2008 at 07:07 AM

    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

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