| # To generate an inventory plan If you maintain an item master plan for an item, you can let LN generate an inventory plan. You can choose between two methods for generating the inventory plan: Safety stock and seasonal pattern Forecast-based generation method Safety stock and seasonal pattern If the Forecast Based Generation Method check box in the Items - Planning (cprpd1100m000) session is cleared, the inventory plan is based on the safety stock and a seasonal pattern. You can define the following relevant parameters for this calculation in the Items - Ordering (tcibd2500m000) session: Seasonal Pattern for Safety Stock Safety Stock Note You can differentiate these parameters by warehouse in the Warehouse - Item (whwmd2510m000) session. Calculation procedure If a seasonal pattern for safety stock is specified, LN first loads the relevant seasonal factors. For each plan period the planned inventory level is determined as follows:
    PI(t) = SS *	SF(t)
PI(t) | planned inventory level for period t
SS | safety stock
SF(t) | seasonal factor for period t
If no seasonal pattern for safety stock is specified, the planned inventory level is determined for each plan period:
    PI(t) =	SS
PI(t) | planned inventory level for period t
SS | safety stock
Example
Plan Period | Start Date | End Date | Expected Demand
--- | --- | --- | ---
1 | 29 April | 2 May | 200
2 | 3 May | 6 May | 50
3 | 7 May | 10 May | 60
4 | 11 May | 14 May | 400
5 | 15 May | 18 May | 1000
6 | 19 May | 22 May | 700
Forecast Horizon = 10 days Forecast-based generation method If the Forecast Based Generation Method check box in the Items - Planning (cprpd1100m000) session is selected, the inventory plan is based on a forecast of the demand. Example
Plan Period | Start Date | End Date | Expected Demand
--- | --- | --- | ---
1 | 29 April | 2 May | 200
2 | 3 May | 6 May | 50
3 | 7 May | 10 May | 60
4 | 11 May | 14 May | 400
5 | 15 May | 18 May | 1000
6 | 19 May | 22 May | 700
Forecast Horizon = 10 days Plan period one: End date + 10 days = 12 May (= 10 days after 2 May) Inventory plan = 510 (= 50 + 60 + 400) Plan period two: End date + 10 days = 16 May (= 10 days after 6 May) Inventory plan = 1460 (= 60 + 400 + 1000) Related topics Demand and Inventory Planning Inventory planning in Enterprise Planning Demand forecasting in Enterprise Planning |