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Supply Quantity Calculation when Scrap Factor and Multiple Lot Size are given

  • September 11, 2024
  • 2 replies
  • 56 views

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Hi,

Any idea as how the supply quantity in the Inventory Part Availability Planning Screen is calculated when both Scrap Factor and Multiple Lot Size are given. Example: Scrap Factor 40, Multiple Lot Size 10. After PMRP run, system shows Supply in IPAP screen as 102 as shown below: 

Quantity in PR is correct as 170

However, if Multiple Lot size is changed to 50, scrap factor is still 40 then after PMRP run, Supply is shown in IPAP screen as 120 as below: 

Quantity in PR is correct as 200.

In both the scenario, PR quantity is correct but not able to understand the calculation logic shown in Inventory Part Availability Screen. 

Regards,

Shahnawaz Farooqui

Best answer by COVJAMIEB

Example 1

Demand is 100. Starting qty for PR will be 100/60%=166.6667, however with multiples of 10 it will be rounded to 170.

IPAP will show what supply will be in inventory after scrap factor removed.

170*60% = 102

 

Example 2

Demand is 100. Starting qty for PR will be 100/60%=166.6667, however with multiples of 50 it will be rounded to 200.

IPAP will show what supply will be in inventory after scrap factor removed.

200*60% = 120

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COVJAMIEB
Hero (Partner)
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  • Hero (Partner)
  • September 11, 2024

Example 1

Demand is 100. Starting qty for PR will be 100/60%=166.6667, however with multiples of 10 it will be rounded to 170.

IPAP will show what supply will be in inventory after scrap factor removed.

170*60% = 102

 

Example 2

Demand is 100. Starting qty for PR will be 100/60%=166.6667, however with multiples of 50 it will be rounded to 200.

IPAP will show what supply will be in inventory after scrap factor removed.

200*60% = 120


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  • Do Gooder (Partner)
  • September 11, 2024

Dear Jamie,

Thanks a lot.

Your explanation makes complete sense. It is clear now.

 

Thanks,

Shahnawaz


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