Item coverage deep dive : Safety stock, Fulfill minimum, Minimum key and Maximum key (2/2)

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In this second post (see the previous one) of this serie, I will focus on the Minimum/Maximum keys and Minimum periods.

Minimum/Maximum keys

You can setup a key under Master Planning > Setup > Coverage > Minimum/maximum keys.

As it’s written here , you can use minimum keys to handle seasonal fluctuations in demand.

I’ve used the wizard to default periods. As you can see below, I’ve setup a factor of 4 on the week of the 15th April.

Then, you can use the Minimum key under the General tab of the Item coverage.

When doing that, have a look on the Min./Max. tab of the Item coverage. You will notice the update done accordingly.

When running the Master planning calculation… I’ve got a requirement quantity of 50 for the first planned purchase order.

Why 50 ? 10 on-hand but a safety stock of 15 * 4 (factor of the current week) = 60.

So 60 – 10 = 50 😊

Minimum periods

By using the Minimum key, you can also active the Minimum periods.

See the definition : if minimum keys are used, select the Minimum periods check box to fulfill the minimum inventory level for all the periods that are set up in the minimum key. If you clear the check box, the minimum inventory is fulfilled for the current period only.

For understanding that, let’s focus on the two weeks raised on the following screenshot.

I’ve setup a factor of 4 and 5 for the weeks of 15th April and 29th April.

Then, as you can see, I’ve cleared the Minimum periods option.

The result of the master planning calculation make sense. By clearing the option, only the current period is taken into account for the Minimum key.

When activating it, what’s the difference ?

Notice the second order of 21. The factor 5 of the 29th has been taken into account.

What requirement do I have on the 24th  ? 6 for a sales order + 15 safety stock * 5 (factor for the period of 29th April, which is not a « relevant » period but a period in the future with a factor specific setup on the Minimum key) = 81. As I have 10 on-hand inventory, it makes a requirement of 71 which is correct by adding the two planned purchase order.

Pay attention when using those setup as it can change the result of the master planning calculation. As always, in master planning, every change of one setup is impacting the result so you have to fully understand every setup for understanding a result of calculation. Not simple even for expert because a lot of cause can justify any result.

That will be all for today !

Yohann

2 comments

  1. Weirdly enough, I was precisely looking for information on field « Minimum periods » today which is the day you write the article!

    Anyhow, thanks a lot for the details post, helped a lot.

    Best regards,

    Benoît

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