To compute the total demand late

Total demand late is one of the performance indicators used in the Resource Analysis and Optimization module of Enterprise Planning. This term refers to demand that cannot be delivered immediately out of inventory.

Total demand late is computed on the basis of the changes in the projected inventory from one plan period to the next.

Usually, projected inventory is expressed as an end level for a plan period. So, the projected inventory for a certain plan period is actually the level projected for the end of that period. At the same time, this level is also the projected level for the beginning of the next plan period.

Computation procedure

The computation of total demand late starts with the plan period in which the current date falls. For this plan period, the inventory on hand is used as the starting inventory. This (assumed) starting inventory is compared with the projected inventory at the end of the plan period. In turn, this projected end inventory serves as the starting inventory for the next plan period and so on.

For each plan period starting from the current one, the following computation procedure is used:

  • If in the course of a plan period the projected inventory drops from positive to negative, this negative end inventory is included in the value of total demand late (expressed as a positive figure).
  • If in the course of a plan period the projected inventory drops from negative to more negative, the increase in negative inventory is included in the value of total demand late.
  • All other cases have no impact on the value of total demand late.
Example
 Inventory on hand = 20
Period1234567
Projected inventory10-70-80-95-5020-20
Increase of neg. inv.07010150020

 

In this example, the total demand late is 115 (= 70 + 10 + 15 + 20).

You can find the inventory on hand and the projected inventory in the Item Master Plan (cprmp2101m000) session.

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