Maximum Inventory Level and Reorder Point in SAP IBP heuristic

[former_member745850]

Hi Experts,

I have one requirement where we need to consider two parameters they are Reorder point and Maximum Inventory level. The requirement is like if projected stock goes below reorder point then stock transfer shall replenish the location to its maximum inventory level and next order shall trigger only if projected stock goes below reorder point.

Is it possible to achieve this through standard key figures/master data attributes etc? or could you suggest the best possible approach to handle this ?

[ayanbishnu1981 · Accepted solution]

Hello Gaurav

The current scope is based on heuristic only or TS optimizer is also an option ? If optimiser is an option then leveraging the aggregate constraint feature especially using the MAXAGGINVTENTORY and MINAGGINVENTORY you can acheive the requirement where reorder point is equivalent to MINAGGINVENTORY and max inventory level is to MAXAGGINVTENTORY.

I am sure their no standard KF / ATT thru which you can acheive this as with heuristics that becomes tricky as infinite is without constraint and Finite does takes into account few costs and capacity. But that said it doesnt mean that you cant acheive this using heuristics.

Your approach should be the following

1) Create 2 KFs for your Reorder point (REORDERPOINT) and Max inventory level(ZMAXINVENTORY). This is where you can update the respective values. Keep in mind that both this KF will be at PRODLOC LEVEL.

2) you need to leverage the ADJUSTEDTRANSPORT KF which is at a PRODLOCLOCFR level.

3) Now create a 3rd new KF (ZFOOLHERISTIC) which should be at PRODLOC level where you need to use similar logic in KF expression.

IF PROJECTEDINVENTORY@PRODLOC <= REORDERPOINT@PRODLOC,ZMAXINVENTORY@PRODLOC,NULL

This will populate the value of max inventory in buckets where projected inventory is less or equal to REORDERPOINT KF.

4) Now create a 4th KF (ZINPTOADJUSTEDTRANSPORT) at PRODLOCLOCFR level. thier use the below logic

ZINPTOADJUSTEDTRANSPORT@PRODLOCLOCFR = ZFOOLHERISTIC@PRODLOC * TRATIO@PRODLOCLOCFR

I am assuming that you have multiple source location combination and you are using TRATIO attribute or Location sourcing ratio KF to maintain the split

5) Create a copy operator profile to copy from ZINPTOADJUSTEDTRANSPORT@PRODLOCLOCFR to ADJUSTEDTRANSPORT@PRODLOCLOCFR.

6) Execute heuristic with option of upstream in the Merger Policy for Key Figures of the operator and use the additional parameter "ADJUSTED_KEYFIGURES_HANDLING_POLICY" as APPLY

Let me know if that works.

Regards

Ayan

[former_member745850 · Accepted solution]

Hi Ayan,

I appreciate your response on It. Yes I am using time series infinite without shortage heuristic to execute it. Before starting this scenario just wanted to understand the condition Projected Stock <= Reorder Point. Projected stock is calculated after the supply planning run and everyday it can differ based on current stock /Inventory Correction situation from ECC. Don't you think we have to calculate projected stock before hand in a customized way in order to compare it against Reorder Point?

[ayanbishnu1981 · Accepted solution]

In that case you can use a custom KF where you can use the CAGGR function to get the similar result that projectedinventory gives. So with that KF you dont need to run heuristics everytime to get the updated projected stock that custom KF will calculate the projected inventory using demand and supply even without running heuristics.

I have done a similar things few months back.

[ayanbishnu1981 · Accepted solution]

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