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MRP Type (V1) and lot size (HB) and Reoder point and a MAX point

Former Member
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Hello,

For some our items we have choosed to use this strategy of replenishment. By this example I want to explain what is happenning frequently to us.

Lets say I have an Item with a Reorder point of 7 and a Max of 12. If my inventory has dropped to 2, the mrp plan a requisition of 5 items the first time it runs to may be fulfill the reorder-point. And the next time it suggests a  requisition of 5 to fulfill the max level.

The consequence of this situation is the fact that the purchase agent handles 2 PO for the same item within a priod of 24h. It's a waste of time and money(double administrative PO fees).

Want to know, please, what is the best strategy or config for the system which can permits us to cover the max level in one shot. For me It's not just changing the reorder point to 12. Something more smart has to be set here.

Thank you

Accepted Solutions (1)

Accepted Solutions (1)

sjeevan
Active Contributor
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That's a strange behavior, it should generate a PR for 10, if there are not external requirements.

Checkout this note 51576

MD04 with the same data you mentioned in your example:

Former Member
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Thank you Jeevan. It's helpful to understand how the sytem react using these differents formulas.

Former Member
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Hello Jeevan. according to the SAP note 51576, what formula do you think is applied to your example?

sjeevan
Active Contributor
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In the following thread I explained how system selects different formula based on conditions:

http://scn.sap.com/thread/3177242

In the above example:

(Formula 1)

Lot size = maximum stock level - current warehouse stock - existing fixed receipt elements

Lot size = 12 - 2 - 0 = 10


(Formula 2)

Lot size = reorder point + total requirements - current warehouse stock - existing fixed receipt elements

Lot size = 7 + 0 - 2 -0 = 5

Formula 1 yielded higher of the two results so it chose formula 1 which is 10 and generated a PR.

Former Member
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Very helpful Jeevan, I also see your point about OMI4. Marvelous! My data make sense know in my Sandbox environment. Just a last question. Do you a more simple words to explain the expression" existing fixed receipt elements". Thank you a lot.

sjeevan
Active Contributor
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Fixed receipts are purchase orders, production orders, stock transfer orders etc. for which you can do GR and also firmed PRs, and firmed Planned Orders, firmed transfer orders (any manually created orders are considered as firmed receipts by MRP).

Former Member
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Hello Jeevan,

Thank you again for this helpfull insight. But I have another question following a case we've faced here. For a reason we don't know yet, the MRP doesn't request a PO Quantity for an item needed for january 2013 and for which the reappro lead time in 3 months. In others words we've expected PO quantity from the MRP in October for meeting the need in january.

Now Jeevan, my simple questions are?

Does the MRP have a limited period of planification less than 3 months?

Do you know a Program or a transaction code that would allow us to double check some time(for example in a monthly basis) if there is any item that has to be reoder and for which the MRP doesn't show for any reason or another?

For this particular Item the Reoder Point is 50. The max stock level is 50 and the Wharehouse stock is 50. Requirements were 840 in july. The indicator for HB isn't set to 1 yet for the precision.

Thank you a lot,

Oumar

sjeevan
Active Contributor
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Check your planning horizon in OPPQ. Maybe it's set to 90 days or less.

If yes increase it (or) run MRP with NETCH processing key.

Former Member
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It's set to 100 days. But processing key was also set to NETCH!!!   Thank you Jeevan.

sjeevan
Active Contributor
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Change the below value to 1.

Former Member
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Oh yess Jeevan. All this make sense. It was actually at 2. I understand why we see nothing. We have  lead time of 105 days. And parameter 2 only siggest needs that we can receive by this time. Make sense Jeevan! Thanks a lot.

Answers (0)