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<ManualTopic ID="/baanerp/cp/onlinemanual/000322" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To generate an inventory plan</Title>
		<Keyword><Level1>Inventory plan</Level1>
			<Level2>generating</Level2>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>If you maintain an item master plan for an item, you can let SSA ERP generate an <Link href="/baanerp/cp/glossary/glossary#000011" role="glossary">inventory plan</Link>.</Paragraph>
		<List><ListIntro>You can choose between two methods for generating the inventory plan:</ListIntro>
			<ListItem><Link href="#A" role="internal">Safety stock and seasonal pattern</Link>
			</ListItem>
			<ListItem><Link href="#B" role="internal">Forecast-based generation method</Link>
			</ListItem>
		</List>
		<GeneralSection ID="A"><SectionTitle>Safety stock and seasonal pattern</SectionTitle>
			<Paragraph>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.</Paragraph>
			<List><ListIntro>You can define the following relevant parameters for this calculation in the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session:</ListIntro>
				<ListItem><GUIRef href="/baanerp/tc/ibd/tcibd2100s000#tcibd200.csps" role="formfield">Seas Pattern for Safety Stock</GUIRef>
				</ListItem>
				<ListItem><GUIRef href="/baanerp/tc/ibd/tcibd2100s000#tcibd200.sfst" role="formfield">Safety Stock</GUIRef>
				</ListItem>
			</List>
			<Note><SectionTitle>Note</SectionTitle>
				<Paragraph>You can differentiate these parameters by warehouse in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session.</Paragraph>
			</Note>
			<GeneralSection><SectionTitle>Calculation procedure</SectionTitle>
				<Paragraph>If a seasonal pattern for safety stock is specified, SSA ERP first loads the relevant seasonal factors.</Paragraph>
				<Paragraph>For each plan period the planned inventory level is determined as follows:</Paragraph>
				<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">PI(t) = SS *	SF(t)</Paragraph>
				</Formula>
				<TABLE border="1"><TBODY><TR><TD>PI(t)</TD>
							<TD>planned inventory level for period t</TD>
						</TR>
						<TR><TD>SS</TD>
							<TD>safety stock</TD>
						</TR>
						<TR><TD>SF(t)</TD>
							<TD>seasonal factor for period t</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph>If no seasonal pattern for safety stock is specified, the planned inventory level is determined for each plan period:</Paragraph>
				<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">PI(t) =	SS</Paragraph>
				</Formula>
				<TABLE border="1"><TBODY><TR><TD>PI(t)</TD>
							<TD>planned inventory level for period t</TD>
						</TR>
						<TR><TD>SS</TD>
							<TD>safety stock</TD>
						</TR>
					</TBODY>
				</TABLE>
			</GeneralSection>
			<ExampleSection><SectionTitle>Example</SectionTitle>
				<TABLE border="1"><TBODY><TR><TH>Plan Period</TH>
							<TH>Start Date</TH>
							<TH>End Date</TH>
							<TH>Expected Demand</TH>
						</TR>
						<TR><TD>1</TD>
							<TD>29 April</TD>
							<TD>2 May</TD>
							<TD>200</TD>
						</TR>
						<TR><TD>2</TD>
							<TD>3 May</TD>
							<TD>6 May</TD>
							<TD>50</TD>
						</TR>
						<TR><TD>3</TD>
							<TD>7 May</TD>
							<TD>10 May</TD>
							<TD>60</TD>
						</TR>
						<TR><TD>4</TD>
							<TD>11 May</TD>
							<TD>14 May</TD>
							<TD>400</TD>
						</TR>
						<TR><TD>5</TD>
							<TD>15 May</TD>
							<TD>18 May</TD>
							<TD>1000</TD>
						</TR>
						<TR><TD>6</TD>
							<TD>19 May</TD>
							<TD>22 May</TD>
							<TD>700</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph><GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.inho" role="formfield">Forecast Horizon</GUIRef> = 10 days</Paragraph>
			</ExampleSection>
		</GeneralSection>
		<GeneralSection ID="B"><SectionTitle>Forecast-based generation method</SectionTitle>
			<Paragraph>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.</Paragraph>
			<ExampleSection><SectionTitle>Example</SectionTitle>
				<TABLE border="1"><TBODY><TR><TH>Plan Period</TH>
							<TH>Start Date</TH>
							<TH>End Date</TH>
							<TH>Expected Demand</TH>
						</TR>
						<TR><TD>1</TD>
							<TD>29 April</TD>
							<TD>2 May</TD>
							<TD>200</TD>
						</TR>
						<TR><TD>2</TD>
							<TD>3 May</TD>
							<TD>6 May</TD>
							<TD>50</TD>
						</TR>
						<TR><TD>3</TD>
							<TD>7 May</TD>
							<TD>10 May</TD>
							<TD>60</TD>
						</TR>
						<TR><TD>4</TD>
							<TD>11 May</TD>
							<TD>14 May</TD>
							<TD>400</TD>
						</TR>
						<TR><TD>5</TD>
							<TD>15 May</TD>
							<TD>18 May</TD>
							<TD>1000</TD>
						</TR>
						<TR><TD>6</TD>
							<TD>19 May</TD>
							<TD>22 May</TD>
							<TD>700</TD>
						</TR>
					</TBODY>
				</TABLE>
				<Paragraph><GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.inho" role="formfield">Forecast Horizon</GUIRef> = 10 days</Paragraph>
				<Paragraph>Plan period one: End date + 10 days = 12 May (= 10 days after 2 May) Inventory plan = 710 (= 200 + 50 + 60 + 400)</Paragraph>
				<Paragraph>Plan period two: End date + 10 days = 16 May (= 10 days after 6 May) Inventory plan = 1510 (= 50 + 60 + 400 + 1000)</Paragraph>
			</ExampleSection>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000304" role="manual">Demand and Inventory Planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000114" role="manual">Inventory planning in Enterprise Planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000077" role="manual">Demand forecasting in Enterprise Planning</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
