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 mentioned above.
  • 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 forecast.
  • 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?
Another 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


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