Forecast the Reorder Point Calculation

[Former Member]

Hi SAP Gurus,

My Client requires the formula used by SAP to forecast the Reorder Point on a monthly basis.

Forecast Model: Moving Average.

Hist. periods: 6

Forecast periods: 1

Period Indicator: M (Monthly)

The consumption of the previous 6 months is available. Below is the consumption data.

March	April	May	June	July	Aug
3,072	3,079	2,773	2,984	2,856	2,581

The average of above 6 periods = 2890.833

Please help me to understand the inbuilt formula used by SAP to arrive the below values:

Basic Value:  2867.000

Reorder Point: 3456

Thanks-

Bharath

[ameya_beri]

Hello,

Please check the below thread, hope it helps,

Automatic Reorder Point Planning - Example | SCN

Best Regards,

Ameya B.

[Former Member]

Hi Ameya,

Thanks. But I have already gone thro' that thread.

Mine is not so complicated. It's a simple Moving Average Model.

Would appreciate if anyone can provide the backend formula to arrive the Basic Value & Reorder Point for this model.

[Former Member]

Hi Bharath,

For your values, Forecasted Reorder Point is showing 500.

Pls. see the below screen shot.

Thanks

NR

[Former Member]

Hi NR,

We are aware of that. Our client requires the backend calculation forecasting formula to arrive the Reorder Point.