The Fundamentals of DRP (Part 2 of 2)
What is the purpose of a Future Stock Analysis Query in Demand Replenishment Planning?
In a Future Stock Analysis Query, if today is September 20, the Epicor Prophet 21
system will determine what percentage of September has already passed
and what percentage remains; e.g., 30%. The system will then look at the
September forecasted usage and determine what 30% of that is. This
balance will be considered as part of the current month's anticipated
usage. (The actual orders that have been placed so far in September will
have already affected your on-hand balance or will be reflected in the
open customer requirements.)
The Future Stock Analysis
will then forecast the ending balance at the end of each period based
on actual orders, forecasted usage (or a percent remaining for the
current period), anticipated purchase orders, and other transactions
that are likely to affect your item for up to one year into the future.
This allows you to see when you are likely to run out of an item, and
what would happen if you ordered more in a given period, as project
purchases (ones that you are planning to make) can be added to the query
to see their effects.
What other DRP functions are available for specific inventory forecast methods?
- For Min/Max & OP/OQ, the net stock will be determined at the
anticipated time of purchase instead of right now, by reducing current
net stock by the forecasts.
- For UPTO & EOQ order points, the OP will be calculated based on
the forecasted usage covering the number of days of lead time, review
cycle and safety stock. This differs in that the forecasted usage will
be based on the forecasts going forward and not the current period’s
forecast, divided into daily usage and multiplied by the number of days
- For UPTO order quantity, the OQ will be calculated based on the
forecasted usage at the anticipated time of receipt over the number of
periods specified in ABC Class Maintenance.
- For EOQ, the OQ will be calculated based on the forecasted usage for
the period at the anticipated time of receipt, instead of current
- Purchase stock card calculations (IMI and PORG) now have enhanced OP
calculations to include future forecasts. IMI can adjust the look ahead
days, including the availability of dynamic look ahead days.
What is an Item Future Forecast Fast Edit?
feature included for DRP items is an Item Future Forecast Fast Edit (or
IFFFE), to find items over a specific lead time and to select all to
set to DRP. Items can also be manually set to DRP on the locations
replenishment tab. On the Item Future Stock Analysis report, items will
allow the buyer to include quotes and/or any stock outs, if they so
choose, to get a high-level view of potential stock positions for a
group of items.
Once items are set to DRP, it will be necessary to either run a
demand year update, or to update each item separately in the item
history screen. It is recommended to set up DRP items at period end, so
they will be future forecasted with the regular demand update process.
As always with any new feature, it is recommended to test these
features and to enlist an Epicor Application Consultant for help with
settings, theories and concepts.
Posted by Neil VanWalbeck, Senior Professional Services Consultant at Epicor Software