Replenishment up to Maximum Stock Level System Functions in a Planning Run

Where you have specified that the lot size, "replenishment up to maximum stock level" is to be used then the lot size the system uses for calculating is the difference between available warehouse stock and the maximum stock level defined in the material master record.

This lot size procedure is only valid for the reorder point planning procedure within consumption based planning.

The lot size is calculated according to the MRP type. There is a distinction between:

• Reorder point planning where external requirements are not taken into account

• Reorder point planning where external requirements are taken into account

If you use this lot-sizing procedure with reorder point planning without taking external requirements into account, the system creates an order proposal in the planning run to cover shortages. The order quantity for the proposal is the difference between the maximum stock level defined in the material master and the current stock level.

Lot size = maximum stock level - current stock level

In reorder point planning where external requirements are taken into account, additional requirements are also included in the calculation. MRP tries to achieve two goals with this lot-sizing procedure:

• To make sure that all requirements are covered
• To make sure that the predefined maximum stock level is not exceeded

Here, the requirements dates are not taken into account. The system calculates the total of all requirements.

The calculation of the lot size occurs in two steps using two formulas:

(1) Formula 1

Maximum stock level
- Current warehouse stock
- Existing fixed receipt elements
---------------------------------------------------
= Lot size

(2) Formula 2

Reorder point

+ Total requirements
- Current warehouse stock
- Existing fixed receipt elements
---------------------------------------------------
= Lot size

The system creates the order proposal using the greater of the two lot sizes calculated.

In release 4.0, there is a new variant for the lot-sizing procedure in connection with Reorder point planning where external requirements are taken into account. The calculation variant also applies in connection with MRP.

With the new calculation method the system orders the quantity that brings the stock level up to the maximum stock level and also satisfies all requirements.

If you want to use this new variant, you have to go in Customizing for MRP to Check lot-sizing procedure , choose lot-sizing procedure HB (Replenishing to maximum stock level) and then in field Maximum stock level variant choose indicator 1.

The system calculates the lot size using the following formula:

Maximum stock level
+ Total requirements
- Current warehouse stock
- Existing fixed receipt elements
---------------------------------------------------
= Lot size

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