Generating an inventory plan

If you maintain an item master plan for an item, you can let LN generate an inventory plan.

You can choose between two methods for generating the inventory plan:

Safety stock and seasonal pattern

If the Forecast Based Generation Method check box in the Items - Planning (cprpd1100m000) session is cleared, the inventory plan is based on the safety stock and a seasonal pattern.

You can define the following relevant parameters for this calculation in the Item - Ordering (tcibd2100m000) session:

  • Seasonal Pattern for Safety Stock
  • Safety Stock
Note

You can differentiate these parameters by warehouse in the Item Data by Warehouse (whwmd2510m000) session.

Calculation procedure

If a seasonal pattern for safety stock is specified, LN first loads the relevant seasonal factors.

For each plan period the planned inventory level is determined as follows:

PI(t) = SS *	SF(t)
PI(t)planned inventory level for period t
SSsafety stock
SF(t)seasonal factor for period t

 

If no seasonal pattern for safety stock is specified, the planned inventory level is determined for each plan period:

PI(t) =	SS
PI(t)planned inventory level for period t
SSsafety stock

 

Example
Plan PeriodStart DateEnd DateExpected Demand
129 April2 May200
23 May6 May50
37 May10 May60
411 May14 May400
515 May18 May1000
619 May22 May700

 

Forecast Horizon = 10 days

Forecast-based generation method

If the Forecast Based Generation Method check box in the Items - Planning (cprpd1100m000) session is selected, the inventory plan is based on a forecast of the demand.

Example
Plan PeriodStart DateEnd DateExpected Demand
129 April2 May200
23 May6 May50
37 May10 May60
411 May14 May400
515 May18 May1000
619 May22 May700

 

Forecast Horizon = 10 days

Plan period one: End date + 10 days = 12 May (= 10 days after 2 May) Inventory plan = 510 (= 50 + 60 + 400)

Plan period two: End date + 10 days = 16 May (= 10 days after 6 May) Inventory plan = 1460 (= 60 + 400 + 1000)