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:

Method: 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 Items - Ordering (tcibd2100m000) session:

  • Seasonal Pattern
  • 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
SS safety 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
SS safety stock

Example

Plan Period Start Date End Date Expected Demand
1 29 April 2 May 200
2 3 May 6 May 50
3 7 May 10 May 60
4 11 May 14 May 400
5 15 May 18 May 1000
6 19 May 22 May 700

Forecast Horizon = 10 days

Method: 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 Period Start Date End Date Expected Demand
1 29 April 2 May 200
2 3 May 6 May 50
3 7 May 10 May 60
4 11 May 14 May 400
5 15 May 18 May 1000
6 19 May 22 May 700

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)