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Why Inventory turns is calculating differently in Supply Plan and SNOP

in Supply Chain Planning and Collaboration 1 comment

Summary:

As per the Oracle documents (Unconstrained Supply Planning: Supply Planning Measures Common Issues and FAQ ( Doc ID 2672548.1 )) Inventory turns in Supply Planning = Annualized COGS / Avg PAB where Annualized COGS = (item std cost x sum of Independent demand qty in plan x 365) / number of days in plan +1

But in SNOP, Inventory Turns = Total Demand * 12 / PAB

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