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# Rounded Net Demand Calculation with Minimum Net Demand

## Purpose

How DRP calcualtion considers Min Net Demand in Rounded Net Demand calculation.

## Kefigure calcualation Explanation:

We maintain Min net demand 0.9 pieces in DRP tab in Location product master data.

Refer the screen shot below: Keyfigure values:

Minimum Net Demand  0.9  - Maintained in the Master data.

Unrounded Net Demand( Adapted)   0.010  - Total Gross Demand

Rounded Net Demand (Constrained) 0.170 -  EOQ value maintained.

EOQ  0.17 – Maintained in the master data.

Supply Shortage  0.740

In General we assume that  Minimum Net Demand 0.9 +   Unrounded Net Demand( Adapted) 0.01 = 0.91

Total net demand will be now 0.91.

From this Supply shortage  will be 0.74 ( 0.91-0.17).

If you specify a minimum net demand, DRP deducts the minimum net demand value from the calculated unrounded net demand.

Considering the Unrounded Net Demand 0.10, system is calculated the Rounded net demand (Constrained) 0.170.

Considering the Unrounded Net Demand 0.10 for the time bucket ( 12/30/2016), DRP considers  EOQ value and calculated the Rounded net demand (Constrained) 0.170.

But acutaul calculation in standard is different from our assumption . If you specify a minimum net demand in the Location product, DRP deducts the minimum net demand value from the calculated unrounded net demand.  You can also refer the F4 help document.

The Minimum Net Demand is deducted from the Unrounded Net Demand Value. This is standard  DRP calculation.

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