Factors influencing creation of a planned order

[Former Member]

Hi,

What are the factors that lead to creation of a planned order during a Heuristic run?

When does a system decides to create a planned order? at what stock level? and how is the planned order qty. decided?

I have a material in a location that has planned orders generated.

I am trying to understand why the system created this order?

There is no safety stock, safety days supply or target days supply or rounding profile defined in Product master in Lot size tab.

Lot sizing procedure is by period (Days) - number of periods = 1

Lot size strategy blank

When I look at the product view,

the requirements pileup with category SNP:DepDmd and after some days, a planned order is generated for some qty.

I am trying to understand when the system determines to create a planned orders? What is the upper limit of the demand when the system generates a Planned order?

In the system, some times the planned order is generated when the stock is at 2,484.567 PCs some times 13.645 PCs.

[srinivas_krishnamoorthy · Accepted solution]

Planned Order creation is based on a MRP calculations (net requirements planning) and ofcourse APO takes into account various factors such as min or max lotsizes, time-phasing requirements, calendars or safety stock requirements etc.

Keeping aside the safety stock complexity in your situation, some of the reasons why a planned order could be created even with lots of stock in hand could be:

1. Check projected stock on hand may be going down under 0 if the planned order were not created on time

2. There would be a window of time for planned order creation due to production and other calendars that if lost would force projected stock in hand below 0

3. the stock in hand is blocked stock not useful for planning

4. Issues with SNP planning book configuration where key figures are not mapped correctly to ATP categories. Makes sense to double check in Product View

5. Due to min lot size being high, it might appear that system is over planning production.