3/25/2022

SAP Supply Network Collaboration (SAP

SNC)
Generated on: 2022-03-25 14:20:10 GMT+0000

SAP Supply Network Collaboration (SAP SNC) | 7.0 EHP4

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SAP Supply Network Collaboration (SAP SNC)

Key Figures in Replenishment Planning
In replenishment planning, a key gure represents a particular quantity in a period. The key gures for replenishment planning
represent different types of quantities that are relevant for replenishment planning. This includes demands and planned
receipts, for example. The key gures are displayed on the detail screens of a replenishment monitor. The key gures that are
available in a replenishment monitor depend on the replenishment monitor (in other words, on the replenishment variant).

Demand
This key gure represents the total gross demand that is relevant for the respective replenishment variant.

 Example
In the Supplier Managed Inventory (SMI) business scenario, this key gure represents the gross demand that the customer
regularly sends to SAP Supply Network Collaboration (SAP SNC). This could be forecast data, for example. The supplier has
complete responsibility for planning the replenishment to the customer. For this reason, the available stock at the customer
or the deliveries already sent (in-transit quantity) are not taken into account in the gross demand. The customer also sends
his or her stock data regularly to SAP SNC, so that the supplier can take account of the stock during planning.

In the Responsive Replenishment (RR) business scenario, the supplier forecasts the demands by using SAP SNC and
releases the demands to replenishment planning.

Average Demand
This key gure is only displayed in the SMI Monitor and in the Min/Max Replenishment Monitor. It represents an averaged gross
demand that SAP SNC determines by averaging the actual gross demand ( Demand key gure). For more information, see
Calculation of Average Demand.

Inventory Reservation
This key gure is only displayed in the RR Monitor. It represents the stock of the customer location product that the customer
has reserved for speci c purposes. The customer informs the supplier about this reservation, for example by telephone or
through e-mail. The supplier can enter the reserved stock manually on the product activity screen.

Projected Stock
This key gure represents the stock that, according to the current plan, is anticipated to be available at the customer at the end
of a period. SAP SNC automatically calculates the projected stock from the demand data, stock data, and access data. The
projected stock can be negative. For more information, see Calculation of Projected Stock.

The RR scenario executes a separate planning for baseline demands and promotion demands. SAP SNC thus calculates the
projected stock separately for baseline demands and promotion demands.

Projected Stock (Firm)

This key gure is only displayed in the RR Monitor. It indicates a projected stock that considers rm receipts (that is, published
replenishment orders) only. The rm projected stock does not consider planned receipts or unpublished replenishment orders.
The system determines the rm projected stock from the projected stock (see above) by subtracting the quantity that comes
from planned receipts and unpublished replenishment orders, as shown by the following formula:

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Firm projected stock = projected stock - planned receipts - unpublished replenishment orders

The projected stock can consider the open quantity or the due quantity of unpublished replenishment orders, depending on how
you de ne the projected stock. Correspondingly, the system subtracts either the open quantity or the due quantity of the
unpublished replenishment order from the projected stock to calculate the rm projected stock.

Projected Stock - Con rmed

This key gure is relevant for responsive replenishment with ATP check (without copying con rmation schedule lines) and
represents the stock that has been con rmed as available at the customer at the end of a period. SAP SNC automatically
calculates the con rmed projected stock from the demand data, stock data, and access data. The con rmed projected stock
can be negative. The RR scenario executes a separate planning for baseline demands and promotion demands. SAP SNC thus
calculates the con rmed projected stock separately for baseline demands and promotion demands.

Days' Supply
This key gure speci es how long the projected stock of a period ( Projected Stock key gure) lasts to cover the demands of the
subsequent periods ( Demand key gure). If the projected stock is negative, the system does not display a value. For more
information, see Calculation of Days' Supply.

Days' Supply (Firm)

This key gure is only displayed in the RR Monitor. It speci es how long the rm projected stock of a period ( Projected Stock
(Firm) key gure) lasts to cover the demands of the subsequent periods ( Demand key gure). See Days' Supply above. If the
projected stock is negative, the system does not display a value.

Days' Supply - Con rmed

This key gure is relevant for responsive replenishment with ATP check (without copying con rmation schedule lines) and
represents how long the con rmed projected stock of a period ( Projected Stock - Con rmed key gure) lasts to cover the
demands of the subsequent periods ( Demand key gure). If the con rmed projected stock is negative, the system does not
display a value.

Minimum Stock Level

This key gure represents the minimum quantity that must be in stock at the customer in a period. In the RR Monitor, this is the
safety stock. For more information, see Determination of Minimum and Maximum Stock Level. In the RR scenario, the minimum
stock level is only relevant for baseline planning and not for promotions.

Minimum Proposal
This key gure represents the quantity that the supplier has to deliver to the customer in a period so that the projected stock
reaches the agreed minimum stock level (in the RR scenario, this is the safety stock) at the end of the period. SAP SNC
determines the minimum proposal automatically. In the RR scenario, the minimum proposal is only relevant for baseline
planning and not for promotions.

Maximum Stock Level

This key gure is only relevant for the Min/Max Replenishment replenishment planning method, and is therefore only displayed
in the SMI Monitor and in the Min/Max Replenishment Monitor. It represents the maximum quantity that is to be in stock at the
customer. For more information, see Determination of Minimum and Maximum Stock Level.

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Maximum Proposal
This key gure is only relevant for the Min/Max Replenishment replenishment method, and is therefore only displayed in the
SMI Monitor and in the Min/Max Replenishment Monitor. The key gure is not relevant for the Net-Demand-Based
Replenishment replenishment method (RR Monitor). This key gure represents the quantity that the supplier has to deliver to
the customer in a period so that the projected stock reaches the maximum stock level of the location product at the end of the
period.

 Note
The target stock, in other words the stock on which the replenishment service actually lls up projected stock if the latter
falls below the reorder point, can be lower.

For more information, see Determination of Minimum and Maximum Stock Level and Replenishment Method.

Raw Net Demand

This key gure represents the unrounded net demand of the customer in a period that the supplier must actually cover during
this period. In the raw net demand, the system - contrary to the gross demand - considers the existing stocks and receipts.

The raw net demand is calculated by the replenishment service. The calculation method used here depends on the stock type
(baseline or promotion), the replenishment method, and further settings. Product substitution, use of baseline stock for
promotions, and use of future promotion receipts can reduce the raw net demand of a product. For more information, see
Calculation of Raw Net Demand and the following sections:

Substitution Demand and Substitution Receipt

Baseline Stock for Promotions

Based on the raw net demand, the replenishment service creates a planned receipt.

The replenishment service also considers whether the availability date or the delivery date is de ned as the base date for
replenishment planning.

Planned Receipts
This key gure represents the total quantity that the supplier wants to deliver to the customer in a period so that the raw net
demands of the customer are covered. The Planned Receipts key gure is the only key gure that the supplier can edit: The
supplier can create planned receipts manually or using the replenishment service. The replenishment service calculates the
Planned Receipts key gure by rounding the raw net demand up or down.

In addition, the replenishment service conducts a scheduling (see Scheduling of Planned Receipts). Starting at the requirement
date/time, the scheduling determines the date/time on which the planned receipt can actually be available at the customer
location. The date/time depends on the execution times for the various delivery-relevant activities, on the relevant calendars
(such as the receipt calendar of the ship-to location), and on the base date for replenishment planning. Depending on the
calendars and the execution times, the planned receipt can occur before or after the actual demand period.

 Example
If the customer location, according to the receipt calendar, cannot accept the planned receipt in the demand period, the
scheduling places the availability date/time in the rst available earlier period.

If the requirement date/time is too early, a timely delivery is no longer possible. In this case, the scheduling shifts the
availability date/time to the rst possible later period.

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The system can save planned receipts as time series (for example, relevant for SMI) or as planned replenishment orders (for
example, relevant for RR). Planned replenishment orders are orders of the order document type DRPV.

 Note
Planned receipts are not yet binding. They only exist in SAP SNC. If the customer or supplier also wants to consider the
planned receipt quantities in their respective back-end system, the supplier must create replenishment orders from the
planned receipts and send these to the customer back-end system or publish them in the supplier back-end system. Various
special key gures represent the replenishment order quantities ( Firm Receipts (...)).

For more information, see Update of the "Planned Receipts" Key Figure.

Planned Receipts Before Deployment

This key gure is only displayed in the RR Monitor. It is relevant if you use deployment, which is only available in an SCM server
installation (see Deployment). If you are using deployment, the Planned Receipts Before Deployment key gure contains the
quantity from planned replenishment orders that the replenishment planning run has created. You nd the quantity from
planned replenishment orders that were created by the subsequent deployment run, in the Planned Receipts key gure .

In-Transit Quantity
This key gure represents the total quantity in a period that is on the way to a customer but which the customer has not yet
received. For each period, the system combines the quantity not yet received from the advanced shipping noti cations whose
availability date lies in the period.

 Note
The advanced shipping noti cation (ASN) quantity that is not yet received is the difference between the total quantity of the
ASN item to be delivered and the received quantity of the ASN item.

In the in-transit quantity, SAP SNC only considers ASNs with the status Published and Partial Goods Receipt. SAP SNC does not
consider ASNs with the status Closed or Complete Goods Receipt.

 Note
To make SAP SNC work in this way, you must implement the SAP Notes 1420372 and 1454608 . If you do not
implement these SAP Notes, SAP SNC does not consider ASNs with the status Partial Goods Receipt. This means: If an ASN
item acquires the status Partial Goods Receipt, SAP SNC removes the entire ASN item quantity from the in-transit quantity
(instead of only removing the received quantity, which is now part of the stock on hand). Correspondingly, if the in-transit
quantity is part of the projected stock, the projected stock is too low.

In-Transit Quantity - Planned

This key gure is relevant for responsive replenishment with ATP check (without copying con rmation schedule lines) and
represents the total in-transit quantity on the date that was originally planned in replenishment planning. In all other aspects,
the In-Transit Quantity - Planned key gure is the same as the In-Transit Quantity key gure.

Firm Receipts (Published - Due)

This key gure is displayed in the Min/Max Replenishment Monitor and in the RR Monitor. It represents the total due quantity
from published replenishment orders (orders of the order document type VGOR) in a period. For a period, the system
aggregates the due quantities from the replenishment orders whose availability date/time at the customer location lies in the
period.

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Firm Receipts (Published - Due) - Con rmed

This key gure is relevant for responsive replenishment with ATP check (without copying con rmation schedule lines) and is
displayed in the Min/Max Replenishment Monitor and in the RR Monitor. It represents the total con rmed due quantity from
published replenishment orders (orders of the order document type VGOR) in a period. For a period, the system aggregates the
due quantities from the replenishment orders whose availability date/time at the customer location lies in the period.

Firm Receipts (Unpublished - Due)

This key gure is displayed in the Min/Max Replenishment Monitor and in the RR Monitor. It represents the total due quantity
from unpublished replenishment orders (orders of the order document type VGOR) in a period. For a period, the system
aggregates the due quantities from replenishment orders whose availability date/time at the customer location lies in the
period.

Firm Receipts (Open)

This key gure is only displayed in the Min/Max Replenishment Monitor and in the RR Monitor. It represents the total open
quantity from all unpublished and published replenishment orders (orders of the order document type VGOR) in a period. For a
period, the system aggregates the open quantities from the replenishment orders whose availability date/time at the
customer location lies in the period.

Firm Receipts (Open) - Con rmed

This key gure is relevant for responsive replenishment with ATP check (without copying con rmation schedule lines) and is
displayed in the Min/Max Replenishment Monitor and in the RR Monitor. It represents the total con rmed open quantity from
all unpublished and published replenishment orders (orders of the order document type VGOR) in a period. For a period, the
system aggregates the open quantities from the replenishment orders whose availability date/time at the customer location
lies in the period.

Baseline Stock for Promotion

This key gure is only displayed in the RR Monitor. It is relevant if you plan with promotions. The key gure displays which
quantity of surplus projected baseline stock of a period (projected stock minus safety stock) the replenishment service has used
to cover the promotion stock of the same period. For baseline planning, this key gure represents a demand (negative
quantity), for promotion planning it represents a receipt (positive quantity).

You con gure whether the replenishment service is allowed to use surplus projected baseline stock to cover the promotion
stock, in the location product master on the GR/GI tab page.

Substitution Demand and Substitution Receipt

These key gures are only relevant for RR and are therefore only displayed in the RR Monitor. They are only relevant if you plan
with product interchangeability. When calculating the raw net demand, the replenishment service determines whether a
predecessor product that is to be discontinued exists, whose stocks must be consumed rst. If yes, the replenishment service
creates a product substitution order, which redirects the demand of the product to the predecessor product and reduces the
raw net demand for the product accordingly. The system also stores the receipt elements and demand elements for product
substitution orders in an aggregated manner in the following key gures:

Substitution Demand

For the predecessor product, the Substitution Demand key gure represents the quantity that is required by the
successor product.

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Substitution Receipt

For the product to be substituted, the Substitution Receipt key gure represents the quantity that is to be covered by
the predecessor product.

Released QM Inspection Lot Stock

This key gure represents the stock of the customer location product that the customer has reserved for quality inspection.
This stock is considered as future planned receipt at the date of the release.

 Note
To enable SAP SNC to process and store the Released QM Inspection Lot Stock key gure in the SMI Monitor, you must
select the Tr. Rel. QM Lot (Transfer of Released QM Lot Stock to SAP SNC) checkbox in Customizing for Supply Network
Collaboration under Replenishment Replenishment Planning Global Settings for Replenishment Planning .

Including the Released QM Inspection Lot Stock key gure in SMI Monitor is available as of certain Support Packages, or by
implementing certain SAP Notes. For more information, see SAP Note 1790277 and its related SAP Notes.

Calculation of Projected Stock

Use
The projected stock is a key gure in Supply Network Inventory and in replenishment planning. The system calculates the
projected stock from demands, receipts, and stocks. The projected stock provides information about the demand/stock balance
of a location product in a period. The projected stock is the stock of a product that is expected to be available at the location at
the end of a period. As customer or supplier, you can ascertain from this key gure how the demand/stock balance develops
over time and whether critical stock situations occur.

In replenishment planning, the system proposes planned receipts (depending on the replenishment planning method) so that
the project stock reaches a certain value. For example, if the projected stock drops to the minimum stock level in the Supplier
Managed Inventory business scenario, the system generates a planned receipt that returns the projected stock to the
maximum stock level.

Features
Calculation Procedure

To calculate projected stocks for a location product, the system starts with the situation on the current day and rst calculates
the projected stock for this day. This is the stock that is expected to be available in the location at the end of this day. Based on
this value, the system calculates the projected stock for the following day by adding the demands and receipts from the next
day. Based on this value, the system calculates the projected stock for the day after next and so on. The following provides an
overview of the calculation steps:

today's projected stock

Today's projected stock =

Stock

+ all receipts with delivery date today or all receipts with delivery date up to and including today

- all demands with demand date today or all demands with demand date up to and including today

 Note
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For each demand or receipt key gure, you can con gure whether the system takes into account only the value for
the current day or if it also takes into account the total of all past values.

Tomorrow's projected stock

Tomorrow's projected stock =

today's projected stock

+ receipts with delivery date tomorrow

- demands with demand date tomorrow

Projected stock on any later day

Projected stock of this day =

projected stock of the previous day

+ receipts with delivery date on this day

− demands with demand date on this day

Stocks and Key Figures That the Projected Stock Takes into Account

The demands, receipts, and stocks that are included in the calculation of the projected stock in the standard system depend on
the application. Supply Network Inventory uses a different formula than replenishment planning. You can also use different
formulas for replenishment planning for non-promotion demands and for replenishment planning for promotion demands. For
more information, see the Implementation Guide for Supply Network Collaboration under Replenishment Replenishment
Planning Projected Stock .

User-De ned Settings

You can make the following user-de ned settings in Customizing for Supply Network Collaboration :

Under Replenishment Replenishment Planning Projected Stock , you can de ne your own formulas for calculating the
project stock that take other key gures or stock types into account.

Under Replenishment Replenishment Planning Assign Settings , you can con gure a different standard formula for the
following applications:

Supply Network Inventory

Replenishment Planning with Promotions

Replenishment Planning Without Promotions

You can make this setting based on the following characteristics:

Business partners

Location

Product

Calculation of Stock on Hand

If you want to calculate the stock on hand of a location product in a different way, use the Business Add-In /SCA/ ICH
_STOCKONHAND .

Critical Situations for the Projected Stock

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If the projected stock in a period has a critical value, this period is automatically highlighted in the Monitor. Critical situations in
the SMI Monitor include the following:

The projected stock falls to or below zero.

The projected stock falls below the minimum stock level.

The projected stock exceeds the maximum stock level.

The system also generates corresponding alerts. For more information, see Inventory Alerts for SNI and Inventory Alerts for
Replenishment Planning .

Update of the "Planned Receipts" Key Figure

When advanced shipping noti cations (ASNs) and replenishment orders are published, the system also updates the key gure
Planned Receipts based on the formula used for the projected stock. For more information, see Update of the "Planned
Receipts" Key Figure .

More Information
Default Formula for the Projected Stock (SMI)

Default Formula for the Projected Stock (SNI)

Calculation of Days' Supply

Use
The key gure Days' Supply displays how long the projected stock of a period would be sufficient to cover the demands of the
subsequent periods, if no receipts were to occur in these periods. The demand of a period is the sum of the key gures from the
pro le for projected stock that represent a demand (a quantity with a minus sign). The system only considers demands in the
display period of the replenishment monitor.

The days' supply is speci ed in days. The value 9999 indicates an "endless" days' supply. This means that the projected stock of a
period is larger than the sum of the demands in the display period of the replenishment monitor.

For more information about the pro le for the projected stock, see Calculation of Projected Stock .

Example
The following table shows a section of the planning grid with the key gures Demand , Projected Stock , and Days' Supply . The
planning horizon displayed comprises ve periods. Each period lasts one day.

Key Figure Day 1 Day 2 Day 3 Day 4 Day 5

Demand 10 20 40 10 100

Projected Stock 38 138 18 8 -2

Days' Supply 1.45 2.88 1.08 0.08 0

The system calculates the days' supply as follows:

Days' Supply on Day 1

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The projected stock of 38 at the end of the rst day is sufficient to completely cover the demand of 20 for the second
day. The rest of the projected stock, 18, can only partially cover the demand for the third day. It can only cover 45 percent
(18/40 = 0.45). The days' supply on the rst day is therefore 1.45 days.

Days' Supply on Day 2

New planned receipts or stocks are received on the second day (this information is not displayed in the table), so that
the projected stock at the end of the second day is 138. This is sufficient to completely cover the demand for the third
and fourth days (40 + 10). The remaining 88 planned receipts or stocks are sufficient to cover 88 percent (88/100 = .88)
of the demand of 100 on Day 5. The days' supply on the second day is 2.88 days.

Days' Supply on Day 3

At the end of the third day, the projected stock is 18. This is sufficient for the fourth day and for eight percent of the fth
day. The days' supply is therefore 1.08 on the third day.

Days' Supply on Day 4

At the end of the fourth day, the projected stock is eight. Thus, eight percent of the demand for the fth day (8/100) can
be covered. The days' supply is therefore 0.08 on the fourth day.

Days' Supply on Day 5

At the end of the rth day, the projected stock is below zero and cannot therefore cover any demands in the subsequent
periods. Therefore, the days' supply is zero.

Update of the "Planned Receipts" Key Figure

When the supplier publishes an advanced shipping noti cation (ASN) or a replenishment order, SAP Supply Network
Collaboration (SAP SNC) updates the Planned Receipts key gure. This depends on which key gures are contained in the
projected stock, as follows:

If the formula for the projected stock contains the In Transit key gure but not the Firm Receipts key gure (published
replenishment orders), SAP SNC reduces the Planned Receipts key gure by the published ASN quantity.

 Note
Changing and republishing an already published ASN does not update the Planned Receipts key gure.

If the formula for the projected stock contains the In Transit key gure and the Firm Receipts key gure, the system
reduces the planned receipts by the published replenishment order quantity rather than by the published ASN quantity.

Calculation of Average Demand

Use
The quality of demand data that the customer sends to SAP Supply Network Collaboration (SAP SNC) can vary greatly
depending on the forecasting technique the customer is using. SAP SNC therefore uses averaging methods to calculate the
average of the actual demands for a particular average-demand horizon. SAP SNC displays the average demands in the
planning grid in the Average Demand key gure of the SMI Monitor and the Min/Max Replenishment Monitor.

The following averaging methods are available:

Moving average calculation method

With this method, SAP SNC calculates the average demand based on moving averages calculated from three average
demand sets.

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Arithmetic mean calculation method

With this method, SAP SNC calculates the average demand based on an arithmetic mean calculation of one demand set.

The projected stock can take account of the average demands instead of the actual demands. You can therefore plan on the
basis of average demands.

Features
Averaging Method Based on Moving Average

The moving average distinguishes itself in the following way:

The sum of the average demands equals the sum of the actual demands in the average-demand horizon.

The development of the average demand over time keeps as close as possible to the development of the actual demand.

The principle of the averaging method is that SAP SNC calculates several sets of average demands from the actual demands in
the average-demand horizon. It then calculates the average from these sets. For a demand set, SAP SNC divides the average-
demand horizon into several time segments and averages the demands in each time segment. To do so, SAP SNC adds up the
actual demands in the planning periods in a time segment and then divides the sum by the number of planning periods. The
average demand of a planning period in a time segment is, therefore, the arithmetic average of the demands in this time
segment.

The various demand sets are distinguished by how SAP SNC divides the average-demand horizon into the time segments from
which it calculates the average in each case. In the rst demand set, the rst time segment is one planning period. SAP SNC
divides the rest of the average-demand horizon into time segments with the same duration as the averaging period.
(Depending on the duration of the average-demand horizon, the last time segment might be shorter than an averaging period.)
In the second demand set, the rst time segment comprises two planning periods and the rest is divided into averaging periods.
In the third demand set, the rst time segment contains three periods, and so on. The number of planning periods in the
averaging period or in the average-demand horizon determines how many demand sets SAP SNC calculates: The number of
demand sets equals the number of planning periods in either the averaging period or in the average-demand horizon, whichever
is smaller. The nal average demand of a planning period is the arithmetic average of the average demands in the planning
period from the various demand sets. For more information, see Example: Calculation Based on the Moving Average.

Averaging Method Based on Arithmetic Average

This method is based on an arithmetic mean calculation of the actual demands. SAP SNC calculates average demand values for
the planning periods in the average-demand horizon.

To determine the average demand value for one particular planning period in the average-demand horizon, SAP SNC calculates
the mean average demand for a time interval whose duration is given by the averaging period and which starts with the period
under consideration. SAP SNC assigns this average demand value to the period under consideration.

In the arithmetic mean calculation method, the sum of the calculated average demands is not equal to the sum of the actual
demands. For more information, see Example: Calculation Based on the Arithmetic Mean Average.

Using Average Demands in Projected Stock

The formula for projected stock in SAP SNC can take account of either the actual demands or the average demands. For the
projected stock to take account of the average demands, you must de ne a corresponding formula that uses the key gure for
the average demand instead of the key gure for the actual demand. Change, for example, the default formula for the projected
stock accordingly. You de ne the formula in Customizing for Supply Network Collaboration under
Replenishment Replenishment Planning Projected Stock De ne Pro les for the Projected Stock and the SNI Demand

BAdI: Calculation of the Average Demand

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If you want to use an alternative calculation method for the average demand, you can use the Business Add-In (BAdI) BAdI:
Average Demand Calculation ( /SCA/SMI_AVG_DEMAND) to implement your own average demand calculation. You can
implement the BAdI in Customizing for Supply Network Collaboration under Business Add-Ins (BAdIs) for SAP SNC Basic
Settings Projected Stock .

 Caution
If you activate the BAdI, it overrides the standard methods. You must deactivate it before you can use the standard
averaging methods again.

Activities
You make settings for calculating the average demand in Customizing for Supply Network Collaboration under
Replenishment Replenishment Planning Projected Stock Assign Pro les for the Projected Stock . You can also make
settings in the SAP SNC Web user interface under SMI Monitor Settings .

Example: Calculation Based on the Moving Average

In this example, the average-demand horizon comprises seven planning periods and the averaging period comprises three
planning periods. To specify this data, you have entered the following number of hours in the settings for the SMI Monitor:

Number of hours for the average-demand horizon =

(Number of planning periods in the average-demand horizon)

×(Duration of a planning period in days)

×(24 hours)

Number of hours for the averaging period=

(Number of planning periods in the averaging period)

×(Duration of a planning period in days)

×(24 hours)

SAP Supply Network Collaboration (SAP SNC) uses this data to calculate an average demand for the rst seven planning
periods in the planning grid. Since the averaging period comprises three planning periods, SAP SNC divides the average-
demand horizon into time segments with a maximum length of three planning periods. Since the number of planning periods in
the averaging period is smaller than the number of planning periods in the average-demand horizon, SAP SNC calculates three
demand sets as interim steps toward the nal average demand.

In the following table, the second row contains the actual demands.The following three rows contain the demands from the
three demand sets, while the last row contains the nal average demands.

Planning 1 2 3 4 5 6 7 8 9
Period

Actual 9 7 13 3 11 5 16 2 14
Demand

1.Demand 9 7.67 7.67 7.67 10.67 10.67 10.67 - -

Set

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Planning 1 2 3 4 5 6 7 8 9
Period

2.Demand 8 8 9 9 9 10.5 10.5 - -

Set

3.Demand 9.67 9.67 9.67 6.33 6.33 6.33 16 - -

Set

Average 9 8 9 8 9 9 12 - -
Demand

To calculate the nal average demand of the planning periods in the average-demand horizon, SAP SNC proceeds as follows:

SAP SNC calculates the rst demand set from the actual demands (see second row in the table):

SAP SNC subdivides the average-demand horizon of seven planning periods into the following time segments:

The rst time segment contains planning period 1.

The second and the third time segments contain three planning periods each; the planning periods 2, 3, and 4 or 5, 6, and 7
respectively.

SAP SNC averages the demands in the time segments of the average-demand horizon.

Since the rst time segment only contains one planning period, no averaging is required in this case.The demand for the rst
planning period is 9.

To calculate the average demand in the planning periods of the second time segment, SAP SNC adds up the actual demands
and divides the sum by the number of planning periods. This results in a demand of (7 + 13 + 3)/3 = 7.67.

The average demand in the third time segment is (11 + 5 + 16)/3 = 10.67.

SAP SNC calculates the second and third demand set accordingly (see third and fourth row in the table). The only difference to
the rst demand set is that SAP SNC subdivides the average-demand horizon into other time segments as follows:

In the second demand set, the rst time segment contains the planning periods 1 and 2. An average demand of (9 + 7)/2 = 8 is
the result for these planning periods. Then there is a time segment with the same duration as the averaging period (planning
periods 3, 4, and 5), with the average demand (13 + 3 + 11)/3 = 9. The last time segment contains only two planning periods -
planning periods 6 and 7 - with the average demand (5 + 16)/2 = 10.5.

SAP SNC proceeds in the same way for the third demand set, whose rst time segment contains three planning periods.

SAP SNC then calculates the nal average demand for each planning period (see last row in the table). To do so, SAP SNC adds
up the three average demands from the three demand sets and divides the sum by three.

The average demand of the rst planning period is calculated as follows: (9 + 8 + 9.67)/3 = 8.89 (see rst column in the table).
SAP SNC rounds this value up to 9.

The average demand of the second planning period is calculated accordingly as follows: (7.67 + 8 + 9.67)/3 = 8.45 (see second
column in the table). SAP SNC rounds this value down to eight.

The average demands of the remaining planning periods in the average-demand horizon are calculated accordingly.

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Example: Calculation Based on the Arithmetic Mean Average

In this example, the average-demand horizon comprises seven planning periods and the averaging period comprises three
planning periods. To specify this data, you have entered the following number of hours in the settings for the SMI Monitor:

Number of hours for the average-demand horizon =

(Number of planning periods in the average-demand horizon)

×(Duration of a planning period in days)

×(24 hours)

Number of hours for the averaging period =

(Number of planning periods in the averaging period)

×(Duration of a planning period in days)

×(24 hours)

SAP SNC uses this data to calculate an average demand for the rst seven planning periods in the planning grid.

In the following table, the second row contains the actual demands, while the last row contains the nal average demands.

Planning 1 2 3 4 5 6 7 8
Period

Actual 9 7 13 3 11 5 16 9
Demand

Average 10 8 9 6 11 11 16 0
Demand

In this example, SAP SNC calculates the average demand values for the planning periods 1-5 by adding the demands in an
averaging period and then dividing the total demand by the averaging period itself.

For example, to calculate the average demand value for planning period 1, SAP SNC adds the average demand values for
planning periods 1, 2 and 3 and divides the total demand by the number of the periods in the averaging period (3).

(9+7+13)/3 = 9.67

SAP SNC rounds the value up to 10.

Similarly, to calculate the average demand value for planning period 2, SAP SNC adds planning periods 2, 3 and 4 and divides
them by the number of the periods in the averaging period (3).

(7+13+3)/3 = 7.66

SAP SNC rounds the value up to 8.

In order to determine the average demand value for periods at the end of the average-demand horizon (where the averaging
period exceeds the end of the average-demand horizons), SAP SNC uses the number of remaining planning periods as the
averaging period. This is relevant for planning periods 6 to 7 .

So, for planning period 6, SAP SNC adds the demands from planning periods 6 and 7 and divides that value by the number of
planning periods left in the average-demand horizon.

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(5+16)/2 = 10.5

SAP SNC rounds the value up to 11.

SAP SNC calculates planning period 7 using the same principle.

16/1 = 16

For planning period 8, SAP SNC does not calculate the average demand as it lies outside of the average-demand horizon.

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