Range of Coverage Profile in Time-Phased Planning

Use

Using the range of coverage profile, you can determine a safety stock level based on current requirements. This safety stock level is calculated using the average daily requirements quantity.

Prerequisites

You have a range of coverage profile in the material master (MRP 2 view).

You define range of coverage profiles in Customizing for MRP in the IMG activity Define range of coverage profile (dynamic safety stock).

Features

Example

For example, a material that has a planned delivery time of 2 days is always planned on Tuesdays. In the net 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).

Requirements calculation without entering a range of coverage profile

The system calculates a requirement of 160 pieces using the information from the forecast that was carried out previously. If the system does not take a range of coverage into account, it simply creates a procurement proposal for 160 pieces, if the stock level is equal to zero and no firmed receipts exist.

Requirements calculation when the following range of coverage is entered

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

If warehouse stock is equal to zero, the system adds a further 100 pieces to the procurement proposal for 160 pieces mentioned above as the incoming quantity has to cover an extra 5 days. This means that the system creates a procurement proposal for 260 pieces.
If warehouse stock is equal to 200 pieces, the system creates a procurement 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. 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 procurement proposal, 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).