IBP IO optimisation updating insane qty in PROPAGATEDDEMANDSTDDEV KF

[ayanbishnu1981]

Dear Experts

I am facing an issue in IO optmiser

In the above screenshot if you see that KF IOFORECAST has values around 58000 in the first 2 weeks and approx 192000 in the 3rd and 4th week. this SKu location is a customer facing location where demand exist for a single customer group with TSL as 0.95 and forecast error CV as 0.17 and PBR value of 1.

But after I run the IO global stage inventory i could see that the no updated in the PROPAGATEDDEMANDSTDDEV is way too high, 15 times more than IOFORECAST to be precise.

As a result fo this the Recommended Safety Stock proposed by the IO is way too hig and insane.

What could be the reason that PROPAGATEDDEMANDSTDDEV value is 15 times higer than IO forecast ? what factors can contribute to such exponential increase ? Any thoughts or guidance is highly appriciated.

[chris_topf · Accepted solution]

Hello Ayan,

do you have UOM conversion on the IOFORECAST key figure? If so, do you have the HCONVIOFORECAST key figure present? Please refer to the SAP3 or SAPIBP1 sample models for proper configuration.

Regards,
Chris

[ayanbishnu1981 · Accepted solution]

Hello Chris Topf

Indeed that was the problem. after introducing HCONVIOFORECAST the results looks fine. Thanks a lot for your prompt response