SAP MM: Range of Coverage Profile in Time-Phased Planning

If you enter a range of coverage profile in the material master record, you can determine a safety stock level that is based on actual requirement quantities. This safety stock level is calculated using the average daily requirements quantity.

The specification of a range of coverage profile has the following effect for materials planned using the time-phased planning technique:

For example, a material which has a planned delivery time of 2 days is always planned on Tuesdays. In the requirements calculation during the planning run, the system uses the interval between the MRP date and the availability date of the next MRP date. In this particular case, the interval starts on Tuesday and ends on Thursday of the following week (8 workdays).

In the requirements calculation, where no range of coverage profile has been specified, the system calculates a requirement of 160 pieces using the information from the forecast that was carried out previously. This means, an average daily requirement of 20 pieces. If the system does not take a range of coverage into account, it simply creates an order proposal for 160 pieces, if the stock level is equal to zero and no firmed receipts exist.

Now you have entered a range of coverage profile in the material master record for which the ranges of coverage listed below are defined in Customizing. The following values would result for the dynamic safety stock for an average daily requirement of 20 pieces:

Minimum range of coverage: 3 days

Dynamic minimum safety stock: 60 pieces

Target range of coverage: 5 days

Dynamic target safety stock: 100 pieces

Maximum range of coverage: 12 days

Dynamic maximum safety stock: 240 pieces

These ranges of coverage and safety stocks must be taken into account in the requirements calculation in the planning run:

If warehouse stock is equal to zero, the system adds a further 100 pieces to the order proposal for 160 pieces mentioned above as the incoming order has to cover an extra 5 days. This means that the system creates an order proposal for 260 pieces.

If warehouse stock is equal to 200 pieces, the system creates an order proposal for 60 pieces as the remaining 40 pieces would only cover a further 2 days and the stock should cover at least another 3 days. This means that if the minimum safety stock level is not fulfilled, the system replenishes up to the target safety stock level.

If warehouse stock is equal to 220 pieces, the system creates no purchase requisitions, as the remaining 60 pieces will still cover the next 3 days requirements.

If warehouse stock is equal to 410 pieces, the system creates an exception message in the planning run to the effect that excess stock exists - the stock will last longer than 12 days (160 + 12x20 = 400). Moreover, the system also indicates that the stock level of 150 pieces is too high. The target stock level is 260 pieces (requirements + target safety stock).