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APO-PPS-BF: Reorder Point Planning Procedures in APO ( RELNAPO_30A_SP1_PPS-BF8 )

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APO-PPS-BF: Reorder Point Planning Procedures in APO

Use

As of Release 3.0A (First Customer Shipment and Support Package 1), you are able to use reorder point planning procedures in APO. There are two main procedures: the reorder point and the reorder days supply. Only one of these procedures may be used for a product. These are defined in the Product Master and can be used in Supply Network Planning as well as in Production Planning and Detailed Scheduling. This document only contains information on the use of these reorder point planning procedures in Production Planning and Detailed Scheduling.

Reorder Point

The reorder point consists of the safety stock and the average product requirements to be expected during the replenishment lead time. When defining the reorder point, you must therefore take into consideration the safety stock, the previous consumption or the future requirements, and the replenishment lead time. You must also define that the lot-sizing procedure to be used is the Reorder procedure in the Product Master.

The reorder point is read from the master data of the currently used product.

Issue elements, such as, for example, sales orders, planned independent requirements or reservations are not considered during the net requirements calculation and are only displayed.

The calculation of the order quantity is divided into three procedures:

• Replenish to reorder point

The order quantity is the same as the shortage quantity. The shortage quantity results from the difference between the reorder point and available warehouse stock.

• Fixed lot size until reorder point reached

The order quantity is determined according to the fixed lot size that is defined in the Product Master. The total of the order quantity and available warehouse stock is not allowed to be lower than the reorder point.

• Replenish to maximum stock level

The order quantity is the same as the shortage quantity. The shortage quantity results from the difference between the maximum stock level that is defined in the Product Master and the available warehouse stock.

The reorder point is only considered in Production Planning and Detailed Scheduling if the appropriate heuristic is used.

Reorder Days' Supply

This is a reorder point planning procedure whereby a number of days is defined as opposed to a stock level (reorder point). When available stock and planned receipts fall below the defined reorder days' supply, a production lot is generated. The production lot quantity is generated to reach the target days' supply. The defined target days' supply should be higher than the reorder days' supply.

It is therefore a prerequisite for Production Planning and Detailed Scheduling that you also define the target days' supply. You must additionally select the Reorder procedure indicator in the Lot size screen of the Product Master for the reorder days' supply to be considered.

The target days' supply and the reorder days' supply are only considered in Production Planning and Detailed Scheduling if the appropriate heuristic is used.

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