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Former Member

How to derive those Consumption-based planning value?

Dear all,

I have few questions, hopefully you all know it from your project implementation experience.

To setup consumption-based planning (CMP), the Reorder Point value, and Safety Stock value need to be given or come out from the business users. However, do you know how to come out of the following individual value?

The following values are important for defining the reorder point:

1 - Safety stock --> How?

2 - Average consumption --> How?

3 - Replenishment lead time --> How?

The following values are important for defining the safety stock:

1 - Past consumption values (historical data) or future requirements --> How?

2 - Vendor/production delivery timelines --> How?

3 - Service level to be achieved --> How?

4 - Forecast error, that is, the deviation from the expected requirements --> How?

thanks a lot.

Tuffy

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2 Answers

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    Former Member
    Sep 22, 2010 at 02:47 AM

    Dear Tuffy,

    Consumption based planning ( CBP )

    Maintain MRP type - VB

    Maintain re-order point Value - 100

    Apart from this maintain other MMR settings

    Now run MRP if the value falls below re-order pont ( i.e 100 )

    System creates an PR

    Regards

    Madhu

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    Former Member
    Sep 22, 2010 at 03:59 AM

    Tuffy,

    To expand a bit on Vivek's reply, most senior planners will understand these terms. If the business planners don't know what values to use for these parameters, the whole process is explained in detail in SAP online help. They should study this documentation so that when they go live they will not be surprised by the results.

    CBP Forecast parameters

    http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c2726b454011d182b40000e829fbfe/frameset.htm

    formulae overview

    http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c279c6454011d182b40000e829fbfe/frameset.htm

    Regards,

    DB49

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