Calculation of Net Demand from IBP Optimizer

[brienne_tang74]

Dear community,

I'm trying to understand how Net Demand calculations work as IBP Optimiser output. The Optimiser computed output is shared below. Would be great to take W33 2022 Net Demand : 9,200 as the anchor point in this case. Thank you!

[SatishWaghmare · Accepted solution]

Hello brienne_tang

Net Demand is computed only by an Supply heuristic, but not by the optimizer. This key figure is just set equal to key figure "Receipts" after the optimizer computed a supply plan.

For Supply Heuristic, Net Demand is the demand that needs to be sourced for a location-product by taking into account several other keyfigures and master data such as Dependent Demand / Stock on Hand / Projected Stock from previous week, Lot Size parameters etc.

Hope this will help.

Thank you

Satish Waghmare

[girish_nitie34]

Hi brienne_tang

What are the other parameters.

1. Lot size procedure and related inputs (apart from Inventory Target)

2. Rounding Value.

Thanks

Girish

[brienne_tang74]

Hi Girish,

Thank you for the reply. Below please find the additional information/ parameters:

• Location ID: 2155 is a National Warehouse
• Production Source Header: Output Product Coefficient at Manufacturing Plant is 1000
• Production Source Header: Production Incremental Lot Size, Minimum Production Lot Size & Lot-Size Rounding Value for Production Receipts are 5580 respectively
• Location Source: Lot-Size Rounding Value for Transportation Receipts & Incremental Transportation Lot Size are 1000 respectively

Feel free to let me know if you require additional parameters. Thank you in advance!

[girish_nitie34]

Difficult to comment on this behaviour

[brienne_tang74]

No worries, thanks Girish.

Will try to reach out to SAP instead. Thanks!