<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000322" xml:lang="en">
   <Header>
      <Title>To generate an inventory plan</Title>
      <Keyword type="header" order="d1e166469">
         <Level1>Inventory plan</Level1>
         <Level2>generating</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>If you maintain an item
		master plan for an item, you can let ERP Enterprise 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="manual">Seasonal Pattern for Safety Stock</GUIRef>
            </ListItem>
            <ListItem> 
               <GUIRef href="/baanerp/tc/ibd/tcibd2100s000#tcibd200.sfst" role="manual">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, ERP Enterprise first loads the
			 relevant seasonal factors.</Paragraph>
            <Paragraph>For each plan period
			 the planned inventory level is determined as follows:</Paragraph>
            <Formula space-and-orientation="indented-estimated">
               <Paragraph>PI(t) = SS *	SF(t)</Paragraph>
            </Formula>
            <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
               <TBODY noTR="3">
                  <TR no="1" isLast="false">
                     <TD rowspan="1" colspan="1">PI(t)</TD>
                     <TD rowspan="1" colspan="1">planned inventory level for period t</TD>
                  </TR>
                  <TR no="2" isLast="false">
                     <TD rowspan="1" colspan="1">SS</TD>
                     <TD rowspan="1" colspan="1">safety stock</TD>
                  </TR>
                  <TR no="3" isLast="true">
                     <TD rowspan="1" colspan="1">SF(t)</TD>
                     <TD rowspan="1" colspan="1">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 space-and-orientation="indented-estimated">
               <Paragraph>PI(t) =	SS</Paragraph>
            </Formula>
            <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
               <TBODY noTR="2">
                  <TR no="1" isLast="false">
                     <TD rowspan="1" colspan="1">PI(t)</TD>
                     <TD rowspan="1" colspan="1">planned inventory level for period t</TD>
                  </TR>
                  <TR no="2" isLast="true">
                     <TD rowspan="1" colspan="1">SS</TD>
                     <TD rowspan="1" colspan="1">safety stock</TD>
                  </TR>
               </TBODY>
            </TABLE>
         </GeneralSection>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <TABLE border="1" borderstyle="default" space-and-orientation="indented-estimated">
               <TBODY noTR="7">
                  <TR no="1" isLast="false">
                     <TH rowspan="1" colspan="1">Plan Period</TH>
                     <TH rowspan="1" colspan="1">Start Date</TH>
                     <TH rowspan="1" colspan="1">End Date</TH>
                     <TH rowspan="1" colspan="1">Expected Demand</TH>
                  </TR>
                  <TR no="2" isLast="false">
                     <TD rowspan="1" colspan="1">1</TD>
                     <TD rowspan="1" colspan="1">29 April</TD>
                     <TD rowspan="1" colspan="1">2 May</TD>
                     <TD rowspan="1" colspan="1">200</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TD rowspan="1" colspan="1">2</TD>
                     <TD rowspan="1" colspan="1">3 May</TD>
                     <TD rowspan="1" colspan="1">6 May</TD>
                     <TD rowspan="1" colspan="1">50</TD>
                  </TR>
                  <TR no="4" isLast="false">
                     <TD rowspan="1" colspan="1">3</TD>
                     <TD rowspan="1" colspan="1">7 May</TD>
                     <TD rowspan="1" colspan="1">10 May</TD>
                     <TD rowspan="1" colspan="1">60</TD>
                  </TR>
                  <TR no="5" isLast="false">
                     <TD rowspan="1" colspan="1">4</TD>
                     <TD rowspan="1" colspan="1">11 May</TD>
                     <TD rowspan="1" colspan="1">14 May</TD>
                     <TD rowspan="1" colspan="1">400</TD>
                  </TR>
                  <TR no="6" isLast="false">
                     <TD rowspan="1" colspan="1">5</TD>
                     <TD rowspan="1" colspan="1">15 May</TD>
                     <TD rowspan="1" colspan="1">18 May</TD>
                     <TD rowspan="1" colspan="1">1000</TD>
                  </TR>
                  <TR no="7" isLast="true">
                     <TD rowspan="1" colspan="1">6</TD>
                     <TD rowspan="1" colspan="1">19 May</TD>
                     <TD rowspan="1" colspan="1">22 May</TD>
                     <TD rowspan="1" colspan="1">700</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph> 
               <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.inho" role="manual">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" borderstyle="default" space-and-orientation="indented-estimated">
               <TBODY noTR="7">
                  <TR no="1" isLast="false">
                     <TH rowspan="1" colspan="1">Plan Period</TH>
                     <TH rowspan="1" colspan="1">Start Date</TH>
                     <TH rowspan="1" colspan="1">End Date</TH>
                     <TH rowspan="1" colspan="1">Expected Demand</TH>
                  </TR>
                  <TR no="2" isLast="false">
                     <TD rowspan="1" colspan="1">1</TD>
                     <TD rowspan="1" colspan="1">29 April</TD>
                     <TD rowspan="1" colspan="1">2 May</TD>
                     <TD rowspan="1" colspan="1">200</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TD rowspan="1" colspan="1">2</TD>
                     <TD rowspan="1" colspan="1">3 May</TD>
                     <TD rowspan="1" colspan="1">6 May</TD>
                     <TD rowspan="1" colspan="1">50</TD>
                  </TR>
                  <TR no="4" isLast="false">
                     <TD rowspan="1" colspan="1">3</TD>
                     <TD rowspan="1" colspan="1">7 May</TD>
                     <TD rowspan="1" colspan="1">10 May</TD>
                     <TD rowspan="1" colspan="1">60</TD>
                  </TR>
                  <TR no="5" isLast="false">
                     <TD rowspan="1" colspan="1">4</TD>
                     <TD rowspan="1" colspan="1">11 May</TD>
                     <TD rowspan="1" colspan="1">14 May</TD>
                     <TD rowspan="1" colspan="1">400</TD>
                  </TR>
                  <TR no="6" isLast="false">
                     <TD rowspan="1" colspan="1">5</TD>
                     <TD rowspan="1" colspan="1">15 May</TD>
                     <TD rowspan="1" colspan="1">18 May</TD>
                     <TD rowspan="1" colspan="1">1000</TD>
                  </TR>
                  <TR no="7" isLast="true">
                     <TD rowspan="1" colspan="1">6</TD>
                     <TD rowspan="1" colspan="1">19 May</TD>
                     <TD rowspan="1" colspan="1">22 May</TD>
                     <TD rowspan="1" colspan="1">700</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph> 
               <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.inho" role="manual">Forecast Horizon</GUIRef> =
			 10 days</Paragraph>
            <Paragraph>Plan period one: End
			 date + 10 days = 12 May (= 10 days after 2 May) Inventory plan = 510 (= 50 + 60
			 + 400)</Paragraph>
            <Paragraph>Plan period two: End
			 date + 10 days = 16 May (= 10 days after 6 May) Inventory plan = 1460 (= 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>