Calculation of supply quantity, number of kanbans, and average daily demand

LN calculates the default supply quantity for kanban orders by multiplying the bin quantity with the number of kanbans.

The number of kanbans is specified or calculated by LN. If calculated, this formula is used:

Number of kanbans = D * T * (1+B/100)/Q

The average daily demand for (end) items from the current warehouse is based on SFC production orders. The items supplied by the kanban order are used to assemble or produce the (end) items. The average daily demand is used to calculate the number of kanban bins and the default supply quantity of kanban orders.

The value of the Average Daily Demand field can be manually specified or calculated. If calculated, LN determines this demand for the period defined by the future and history horizons specified in the Horizon for Historical Demand and Horizon for Future Demand fields. For the future horizon, LN checks the planned issues for production orders in the Planned Inventory Transactions (whinp1500m000) session. Planned issues with a date in the past are also included. For the history horizon, LN checks the completed issues for production orders in the Item - Warehouse - Inventory Transactions (whinr1510m000) session.

The demand quantity thus found is divided by the number of days calculated or specified in the Stock Coverage field.

This is the number of days within the future and history horizons on which there is planned or actual production in the current warehouse. For example, if the future and history horizons span five days, but there is planned or actual production on four days within these horizons, the coverage in days is 4. The value in the Stock Coverage field is manually specified or calculated.

Buffer

The default quantity of items that must be supplied in a kanban bin. This quantity is manually entered.