| To generate an inventory plan |  |
| If you maintain an item master plan for an item, you can let ERP 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, ERP 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 = 710 (= 200 + 50 + 60 + 400) Plan period two: End date + 10 days = 16 May (= 10 days after 6 May) Inventory plan = 1510 (= 50 + 60 + 400 + 1000) Related topics Demand and Inventory Planning Inventory planning in Enterprise Planning Demand forecasting in Enterprise Planning |