Purpose
The aim of this activity is to define a range of coverage profile. Coverage profile is used when you use dynamic safety stock concept. The range of coverage profile contains parameters for calculating the dynamic safety stock. Said in simple language it is a statistical calculation on the basis of average daily requirements. Statistical, in this context, means it is not the actual requirements that are taken into account, but the average daily requirements within a defined period that are calculated by the system. Range of coverage is defined as the number of days you plan for a material to be available to prepare for fluctuations in requirements.
Procedure
1. Access the IMG activity choosing one of the following navigation options:
IMG Menu
Production -> Material Requirements Planning -> Planning -> MRP Calculation -> Define Range of Coverage (Dynamic Safety Stock)
2. On the Change View “Range of coverage profile”: Overview screen, choose New entries.
3. On the New Entries: Details of Added Entries screen,
you can make the following entries as example:
| Key field | Entry |
| Plant | BP01 |
| Coverage profile | 001 (3 Days in next month, then 5 days) |
| Period ind | M |
| Number of periods | 3 |
| Type of per. length | 1 |
| Tgt (Range coverage in the first period) | 3 |
| Number of periods (Range coverage in the first period | 1 |
| Tgt (Range coverage in the second period) | 5 |
4. Save your entries.
Result
Coverage profile is defined.
How does the settings in coverage profile in a material master function?
The range of coverage profile contains the parameters for calculating the dynamic safety stock. This is a statistical calculation on the basis of average daily requirements.
With the dynamic safety stock, you can determine a safety stock based on requirements and range of coverage. The dynamic safety stock adapts automatically to the changed requirements and is fully available for planning purposes.
You can limit the quantities used in the calculation of
the dynamic safety stock by defining maximum and minimum ranges of coverage.
You can also limit the period of time by defining different time periods
in which the range of coverage is valid.
How to Configure Range Of Coverage Profile?
Can I know in details how the profile coverage works in SAP. In details means how it is being calculated and what is being considered. As I am figuring how I could make use of this function that my customer require us to keep 15 days inventory and customer forecast fluctuates drastically every week.
The Range of Coverage profile is define specific to a plant in IMG and then assigned to materials in master data MRP 2 view. To define the profile, use menu path as mention above. In the definition, there are two sections of data that you need to fill in.
1. Parameters for calculation of average daily requirements and Period indicator.
2. Minimum, Target, and Maximum stock calculation parameters.
Parameters For Average Daily Requirements Calculation:
Choose the period indicator as Month, Period, or Week.
Specify the number of periods. This is used by system to calculate the average daily requirements.
Select the "Type of Period Length", i.e. as workdays or calendar days or standard days (days per period). If the type of period length is selected as standard days, they you have to specify the "days per period". Using these three parameters, the system calculates average daily requirements using the formula:
average daily requirements = Sum of requirements in the
number of periods / number of days in the number of periods.
Parameters For Target Stock As Day's Of Supply
Then you have to specify how many workdays of supply you want to maintain as target stock, in your case 15 workdays. If you wanted to maintain a constant 15 days of supply as inventory throughout the planning horizon, just specify the target stock as 15 days and leave rest of the fields as blank, i.e. min, max, and number of periods. The number of periods in this section simply maintains the target stock for that many periods from the date of MRP run. This way you can tell the system to maintain different target stock levels for three different period intervals. For example, if you wanted to maintain 15 days stock for first 3 periods, then specify the target stock as 15 days and number of periods corresponding to it as 3. The system then will maintain 15 days supply as inventory for first 3 periods from the date of MRP run and subsequent months zero inventory will be maintained. This will allow you to maintain your 15 days supply constantly for 3 periods.
