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
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)