Reorder Point for components - Inventory Optimization

[former_member1094184]

Hi experts,

I have my PA all set and after IO operators run, while analyzing Reorder Point KF, the results for finished goods are according to SAP formula: Demand during the lead time + recommended safety stock value in the current period. However for components (BOM is fine) the calculation doesn't match. Does anyone know why it is not respecting the formula or whether it has a different behavior for components?

Finished goods: for WK 36, ROP is 122*0,86 + 499 = 604 and 121*0,14 + 204 = 221, and repeat calculation for next periods:

Components: if you repeat the same logic for components it is different:

I appreciate your help!

Thanks and regards.

[lev_degtyarov · Accepted solution]

Hi João,

Actually components should follow the same formula as FG.

I would recommend to check for your component product settings:

- how do you set upstream source? is it Production source header or Source Location? Usually we use production source header to model procurement for components and thus PLEADTIME

- what stocking node type do you have for components? what's is stocking node type for upstream node?

BR,

Lev

[former_member1094184 · Accepted solution]

Hi Lev,

Upstream source is a vendor. I maintain TLEADTIME from vendor to the plant. In the vendor, stocking node type is N and there is no production. In the plant (where stocking node type is S), component product is maintaned as Source Type U.

I am also having problems with components pipeline stock, just replied you in another post.

Appreciate your help,

Thanks!

[eduardo_hinojosa]

Hi Joao,

Check SAP Note 37697 - Reorder point plng: Reservations and sales order and related note for futher information.

I hope it helps you

Regards

Eduardo