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Ravindra Kulkarni
October 10, 2014 | 2 minute read
Coverage Pro le
6 5 35,416
Follow Hello all,
Range of Coverage pro le understanding document:
Like
Coverage Pro le :
RSS Feed Coverage pro le is used for calculating the dynamic safety stock. It is a statistical
calcuation on the basis of average daily requirement. The dynamic safety stock is
calculated depending on the requirements within the speci ed period and the range
of coverage.
Dynamic Safety Stock :
This method will take the demand uctuation into account i.e safety stock value will
change according to demand, for example PIR. It is calculated as below:
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Dynamic Safety stock = Average Daily Requirement (ADR) ( X )
Range of coverage
Average Daily requirements = Sum of Requirements in the no. of periods (/ )
no. of days in the number of periods.
Range of Coverage = Current Stock / Average Usage per day.
Maintain in Material master as below
Con guration (SPRO)
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Test case 1: requirement falling in rage of coverage in the rst period , here the target
is 3
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Running MRP
Planned order has been created for 112 qty
Explana on:
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The requirement falls in 1st period (month that is 30 days because it is maintained
with type 2 as calendar days)
The calculation formula is
Number of days= period 1 *30=30
Requirement Qty= 100
Target Range of Coverage in Period 01= 3
So, average Daily requirement =100/30= 3.33 that is 4
Safety stock requirement=4*(target 3 ) =12
So, the planned order qty is= 100 (req qty) + 12 (safety stock) that is 112
Now we will go for test 2: We will create a requirement in the maintained period in
coverage pro le
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Here the planned order will be created for 120 qty
Explanation:
Number of days= period 1 *30=30
Requirement Qty= 100
Target Range of Coverage in Period 01= 5
So, average Daily requirement =100/30= 3.33 that is 4
Safety stock requirement=4*(target 5)=20
So, the planned order qty is= 100 + safety stock 20 that is 120
would like to share the document for easy understanding the functionality for
coverage pro le and the calculation of dynamic safety stock using coverage pro le.
Thanks
Ravindra Kulkaarni
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Assigned Tags
MAN Production Planning (PP)
material planning
md04
mrp
planned orders
planning
pp
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6 Comments
You must be Logged on to comment or reply to a post.
S0007029117 SAP
October 15, 2014 at 2:44 pm
The explanation is good. But for the material the procurement type is F (external) and you have created PIR for
the same material. Is it a standard practice? I am not sure.
Like 0 | Share
Ravindra Kulkarni | Blog Post Author
October 15, 2014 at 5:09 pm
Hi
you are right, but for the simple understanding i have created the PIR.
there should not be any issue with creating PIR as the MRP will generated Planned order which can be
converted to Purchase requisition and so to purchase order.
by generating a requirement for the parent material it would have generated the Dependent
requirement and purchase requisition but it will be bit one more step to understand the functionality
of coverage pro le.
Hope it makes your point clear.
Thanks
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Ravindra Kulkarni
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Former Member
September 14, 2016 at 11:41 am
Hi Ravindra ;
THanks for the documents above;
I was reviewing the process and I have one more question about the complete setup for the dynamic safety
stock.
After setting up the coverage pro le and in same time if minimum safety stock is maintained then system will
automatically create planned orders (requirements) to compansate the di erence between min. SS and the
dynamic ss calculated according to the average requirements, Correct ?
My question is :
How can I setup also an upper threshould for the safety stocks calculated from the coverage pro le if they are
going to exceed certain amounts. (For example to avoid building extra stocks if there was a sporadic demand
increase in period under calculation)
Thanks for the support.
Gamal
Like 0 | Share
Former Member
January 16, 2018 at 7:35 pm
hello ,
please tell me for each screenshot in which transaction are you .
which transaction should i use to see a table with coverage days for all de ned materials in plant
thank you very much.
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Steve Meier
January 23, 2018 at 7:30 pm
Can STO's be eliminated from coverage pro le?
Steve
Like 0 | Share
Former Member
February 5, 2018 at 10:15 pm
Hello,
I am testing the dynamic safety stock but I have the problem that when the material will become phase out the
system still keeps available stock when the forecast finished.
is there a way when the forecast is finished that the system does not proposed planned orders to still keep
available stock?
the lifecycle of our SKUs is around 1 year, so it´s important to avoid obsoletes
Regards
Lucio
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