Policies
Policies define the planning parameters that control how the system calculates safety stock, target coverage, lead times, and order recommendations.
Types of Policies
Default Policies
Applied to items based on their scope (source, plant, supplier, purchasing group). The most specific matching policy wins.
Category-basedOverride Policies
Item-specific policies that take precedence over defaults. Created when an item needs different planning parameters.
Item-specificPolicy Resolution Order
When determining which policy applies to an item, the system follows this priority:
For default policies, scope specificity is determined by how many fields match (source + plant + supplier + purchasing group). More fields = more specific = higher priority.
Policy Parameters
Safety & Coverage
Safety Stock Days
Number of days of consumption to keep as safety buffer. Higher values = more protection against demand variability.
Safety Stock = ADC × Safety Stock DaysTarget Coverage Days
Desired days of stock to maintain after replenishment. Used to calculate recommendation quantity.
Target Stock = ADC × Target Coverage DaysLead Times
Lead times from SAP master data (ZPRM) take priority. Policy lead times are used as fallback.
Production Lead Time
Days for supplier to produce/prepare goods.
Transport Lead Time
Days for shipping from supplier to plant.
GR Processing Time
Days from arrival until stock is available.
Total Lead Time = Production + Transport + GR ProcessingOrder Constraints
Minimum Order Quantity
Smallest order quantity allowed. Recommendations will be at least this amount.
Rounding Quantity
Order quantities are rounded to multiples of this value (e.g., pallet quantities).
Creating an Override
- 1
Navigate to Item
From the Work Queue, click the settings icon on the item you want to override.
- 2
Review Current Policy
The modal shows the currently applied policy (either Default or existing Override).
- 3
Edit Parameters
Modify the parameters you want to change. Leave others unchanged to inherit from the default.
- 4
Save Override
The override takes effect on the next processing run. The item will showOverride in the Policy column.
Best Practices
- • Use default policies for categories of similar items
- • Create overrides only when an item truly needs different parameters
- • Review overrides periodically to ensure they're still needed
- • Document the reason for overrides in your planning notes