on 01-04-2011 9:35 AM
I would like to confirm the formula for calculating a reorder point in SAP.
As I understand it, the simple formula is safety stock + average requirements * lead time.
I have the following settings for a material:
MRP Type - V2
Lot size - HB
Maximum stock level - 500
Total lead days (including GR processing) - 30
Service Level - 98%
Procurement type - F
Historical periods - 2
Forecast periods - 2
Period Indicator - M
Forecast Model - G (Moving average)
Consumption values - 12/2010 - 160
11/2010 - 190
When I execute the forecast run, the get the following result:
Basic Value - 175
MAD - 15
Safety Stock - 39
Reorder point - 219
If the formula for calculating reorder point is - 39 (safety stock) + 175 (average requirement) * (30(lead time)/30(forecast period in days), then the reorder point should be 214. Why does the system output 219?
I read somewhere that a SAP note exists for correcting the calculation, can anyone confirm?
Many thanks.
Dear,,
Below link will help you to find the solutions.
http://help.sap.com/saphelp_me52/helpdata/EN/f4/7d257044af11d182b40000e829fbfe/content.htm
http://help.sap.com/ERP2005_EHP_02/helpdata/EN/f4/7d256344af11d182b40000e829fbfe/content.htm
http://help.sap.com/saphelp_erp60/helpdata/EN/56/4ff5cd40e211d3b49b006094b9c9be/content.htm
Regards
Aamir
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