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Automatic Reorder Point (MRP Type: V2 or VM) Planning - Part Labels In This Area
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ABAP CDS Views 2
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ABAP CDS Views - BW Extraction 1
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Below is how automatic reorder point planning is carried out for single material using ABAP DDIC CDS view 1
material master change (t-code: MM02)
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Associations in CDS 1
Note: Validate that Reorder Point is blank.
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Attachment List 1 auditlog 1

authorization 1

Auto PO from GR 1

Availability date 1

Azure Center for SAP Solutions 1

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Bank 2 BAPI_PO_CREATE1 1

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batch Determination 1

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12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

Calculation of MAD, Error Total, Safety Stock, Reorder Point

Forecast: Parameters for Automatic Model Selection

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 10/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

Safety Stock Update on MRP 2 View

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Reorder Point Update on MRP 1 View

Below is a detailed explanation of how Error Total & MAD is being calculated (I have
shown the formula as per excel). Remember we wanted to know MAD calculation
because it's in calculating safety stock and eventually automatic reorder point
calculation.

Error Total: A forecast error is a difference between the forecast value and the actual
consumption value of the same period. The error total describes the sum of the
deviations over the periods, taking the plus or minus sign into an account. The error
total helps check the validity of the forecast model in operation. If a model is still
valid, you can assume that the error total is distributed normally and has an average
of zero.

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12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

ET Calculation

As shown above, based on Original forecast, system carries out Ex-Post forecast.
Difference between Corrective Historical Forecast - Ex post forecast is giving
Deviation in that period. Sum of each deviation converted to absolute value gives
Error Total. Below is the formula.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 13/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

ET Calculation

MAD: Below shows how MAD is calculated:

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 14/29
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MAD Calculation\

Tracking signal (TS): The tracking signal (TS) helps identify structural interruptions
by putting the error total in relation to MAD. If the error total rises or falls sharply in
relation to MAD, this means that the consumption and forecast are moving further
apart.

TS = Error Total / MAD

The TS is compared to the tracking limit specified in the material master. If the
TS exceeds the tracking limit, the MRP controller receives an exception
message in the form of a note advising that the forecast model should be
checked.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 15/29
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The tracking limit is automatically set by the system. The default value is 4.
However, you can change it while maintaining the material master record.

Since now we know how system is calculating automatic reorder point, here are the
other alternatives to run the program and calculate automatic reorder point.

Individual forecast: T-code: MP30 (or T-code: MM02 which I shown above)

Total forecast: T-code: MB38 or MPBT.

You can print the list online or in the background mode. T-code: MP39 or MPDR.

Conclusion:

Automatic reorder point calculation is another great way to manage inventory

for class B and C items based on historic consumption.

Automatic reorder point planning helps to bring on-hand inventory down

If you find my blog useful, please like and share your feedback in the comments
below and follow me for more content like the above.

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Reference: Forecast Formulas

Please follow my profile for future posts (ravidave2)

Topic Page (find the most relevant one – https://community.sap.com/topics/)

Ask questions about MM (Materials Management) and follow (

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Read other MM (Materials Management) blog posts and follow (

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Tags:

automatic reorder point based planning consumption based planning

17 Comments

former_member839594 
Explorer ‎2023 Apr 21 5:14 PM

 1 Kudo

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 17/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

Excellent demonstration. Love Excel formulas to understand the calculation. Thank

you for sharing.

SaniketK 
Participant ‎2023 Jun 12 11:10 AM

 1 Kudo

ravidave2 I read part 1 and 2 both, you have used very useful demonstration data
and realistic examples. Thanks for sharing...

RaviDave 
Active Participant ‎2023 Jun 12 3:42 PM

 0 Kudos

Hi Saniket,

I appreciate your feedback. I am glad that it's helpful for the community.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 18/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

Regards,

Ravi.

m_salah 
Discoverer ‎2023 Jun 17 12:05 PM

 1 Kudo

Appreciate your Blog , but i have these questions

How the numbers of MAD is being calculated

And how to calcutae daily requirement for Reorder Point Calculation ?

Also why you have defaulted Delta=.30

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 19/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

RaviDave 
Active Participant ‎2023 Jun 17 5:20 PM

 0 Kudos

Hi,

I am glad that it's helpful. Here is the actual Excel calculation. I have uploaded the
file on google drive. You will get it if you go cell by cell on the MAD column.

https://docs.google.com/spreadsheets/d/15hx5saW3u6y7LyFTRxdeN1UyUG8f4yQF/e
dit?usp=drive_link&ouid=10...

If you really want to debug, then put a breakpoint at."

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 20/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

MAD is calculated in Program LSPRGF00 Form MAD_BERECHNEN.

Line RECHFELD2 = PCOM-VMMAD + PCOM-DELTA * ( RECHFELD1 - PCOM-VMMAD

) / 100 calculates the MAD."

My understanding is SAP uses forecast and Ex forecast to calculate daily

requirements.

Delta comes as default based on the forecast model. I have selected it automatically.

Regards,

Ravi.

hvlsupport 
Discoverer ‎2023 Jun 30 7:35 AM

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 21/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

 1 Kudo

Hello, I did not see from the excel calculation how you arrive at 148 Reorder
Point. Can you please share.

Thank you. Your blog is very helpful. I'm glad to read it.

RaviDave 
Active Participant ‎2023 Jul 04 3:46 AM

 0 Kudos

Hi,

I am glad it's very useful. I have published the calculation on Google Docs. Here is
the link:
https://docs.google.com/spreadsheets/d/15hx5saW3u6y7LyFTRxdeN1UyUG8f4yQF/e
dit?usp=drive_link&ouid=10...

Regards,

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 22/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

Ravi.

former_member865881 
Discoverer ‎2023 Jul 09 11:09 PM

 1 Kudo

Awesome article,very easy to understand, it helped us to resolve our production

issue.

hvlsupport 
Discoverer ‎2023 Jul 11 8:13 AM

 1 Kudo

Hello,

Prompted with Unauthorized 401. I sent a request for access please.

Thank you.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 23/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

RaviDave 
Active Participant ‎2023 Jul 11 3:47 PM

 0 Kudos

Thank you !! I appreciate your comment.

Regards,

Ravi.

RaviDave 
Active Participant ‎2023 Jul 11 3:48 PM

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 24/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

 0 Kudos

Hi Marilou,

I have given access. Can you please try again?

Regards,

Ravi.

former_member871766 
Explorer ‎2023 Aug 07 10:30 PM

 0 Kudos

Hi, This is very helpful and very well explained.

Regards,

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 25/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

Dev.

dankanv45 
Explorer ‎2023 Oct 17 1:43 AM

 1 Kudo

This MRP concept is not easy to understand on your own, so this blog makes it very
simple and easy to understand. Thank You

andrewd179 
Explorer ‎2023 Oct 17 5:18 PM

 1 Kudo

Very nice article indeed. Thanks a lot.

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 26/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

loumui 
Explorer ‎2023 Oct 17 8:21 PM

 0 Kudos

Excellent Document, Thanks For Sharing

turgut_bekil 
Discoverer ‎2023 Dec 13 7:48 AM

 0 Kudos

Hi Ravi, I need to upload consumtion values of the material as bulk to the system ?
how can I do it ? System is S4HANA and full system will be going onlive january 2024
so all materials are newly created and have no history in S4 system. Customer have
consumtion values in excels (from old non sap erp) and want to use MRP type =VM
by uploading the data at hand.

RaviDave 
Active Participant ‎2023 Dec 13 12:15 PM

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/automatic-reorder-point-mrp-type-v2-or-vm-planning-part-2/ba-p/13548175 27/29
12/2/24, 7:16 PM Automatic Reorder Point (MRP Type: V2 or VM) Plann... - SAP Community

 0 Kudos

Hi,

Please take a look blog: https://blogs.sap.com/2014/06/18/upload-material-

consumption-data-into-ecc-fm-mvermaintaindark/

Good luck !!!

Regards,

Ravi.

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