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Inventory Planning Glossary with Formulas and SAP MARC Fields

Planners, buyers and ERP consultants use the same words with slightly different meanings. This glossary pins down each inventory planning term with a working formula and, for SAP shops, the exact MARC field where the value lives.

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Term	Meaning	Formula or rule	SAP field (MARC)
Safety stock	Buffer held to absorb demand and supply variation during replenishment	Z x sigma(demand over lead time)	EISBE
Reorder point	Stock level that triggers a replenishment order	Average daily demand x lead time + safety stock	MINBE
MRP type	Planning method key: MRP, reorder point or no planning	PD, VB, VM, VV, ND and others	DISMM
Lot size key	Rule for how requirements are grouped into order quantities	EX lot for lot, FX fixed, HB replenish to maximum	DISLS
Procurement type	Whether the item is made in house, bought or both	E in house, F external, X both	BESKZ
Planned delivery time	Calendar days from order to receipt for purchased items	Vendor lead time in days	PLIFZ
GR processing time	Working days to receive and put away after delivery	Added to planned delivery time	WEBAZ
In-house production time	Working days to make an item, independent of lot size	Fixed lead time for scheduling	DZEIT
Minimum lot size	Smallest quantity MRP will propose	Order qty = max(requirement, minimum)	BSTMI
Maximum lot size	Largest quantity in a single proposal	Larger needs split into several orders	BSTMA
Fixed lot size	Quantity ordered each time with lot size key FX	Order qty = fixed value	BSTFE
Rounding value	Order quantity is rounded up to a multiple of this value	ceil(requirement / rounding) x rounding	BSTRF
Maximum stock level	Upper level used by lot size HB replenish to maximum	Order qty = maximum - available stock	MABST
Service level	Target probability of not stocking out in a cycle	Drives the Z score for safety stock	LGRAD
MRP controller	Planner group responsible for the item	Used to filter MD04 and MD07 lists	DISPO
Special procurement key	Overrides the standard procurement, such as transfer or subcontract	Configured per plant	SOBSL
Planning time fence	Horizon in which MRP does not change firmed orders automatically	Number of workdays	FXHOR
Cycle stock	Average stock that results from ordering in lots	Order quantity / 2	n/a
Pipeline stock	Stock in transit between nodes	Demand rate x transit time	n/a
Days of supply	How long current stock lasts at the forecast rate	On hand / average daily demand	n/a
Inventory turns	How many times stock is consumed and replaced in a year	Annual COGS / average inventory value	n/a
Fill rate	Share of demand quantity shipped from stock on first request	Units shipped complete / units ordered	n/a
Economic order quantity	Order size that minimises ordering plus holding cost	sqrt(2 x D x S / H)	n/a

SAP field names are the technical names in table MARC (plant data for material) as commonly shown in the MRP views of MM02. Confirm labels in your own release before building reports.

Parameter review against live data

Optional: have your item parameters compared with actual receipts and usage.

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How to use the glossary

Type a term, a formula fragment or a field name in the search box to filter the table. Use it when writing a planning policy, reviewing a material master extract or briefing a new planner. Export to Excel to hand a teammate a short reference for the fields that matter in your plant, and add your own rows for local terms.

Search by SAP field name to decode an extract from SE16N
Search by formula to find the definition behind a KPI
Use the n/a rows for concepts that are policy rather than master data

Terms that get confused

Reorder point and safety stock are the pair most often mixed up. Safety stock is only the buffer; the reorder point includes demand during the lead time as well. Planned delivery time (PLIFZ) is calendar days for purchased items while in-house production time (DZEIT) is working days for made items, so the two cannot be compared directly. Service level is a target probability per cycle, not the same as fill rate, which measures quantities shipped.

Reading MARC fields safely

A blank or zero in EISBE does not mean the item has no buffer policy; the plant may rely on a time based safety stock instead or on a different MRP type. Before drawing conclusions from an extract, check DISMM, DISLS and BESKZ together, because the same safety stock figure means different things under reorder point planning than under forecast based or deterministic MRP.

Common mistakes

The most common mistake is mixing units: demand per week with lead time in days, or annual cost with monthly stock. Another is treating a master data value as true without a reality check against actual receipts. Compare PLIFZ with the observed lead time from goods receipts at least once a year, and align the glossary to what your planners actually do.

Frequently Asked Questions

Is the reorder point the same as safety stock?

No. Safety stock is only the protection buffer. The reorder point is the expected demand during the replenishment lead time plus that buffer, so it is always higher than safety stock for any item that has lead time demand.

Where is safety stock stored in SAP?

In the MRP 1 view of the material master, table MARC, field EISBE. The reorder point sits in MINBE and is only used with reorder point MRP types such as VM or VB.

What is the difference between service level and fill rate?

Service level is the probability of no stockout in a replenishment cycle. Fill rate is the proportion of demand quantity met from stock. A 95 percent service level usually gives a fill rate well above 95 percent.

Can I use this outside SAP?

Yes. The meanings and formulas are system neutral. Only the last column is SAP specific, and rows marked n/a have no single master data field in any ERP.

If you want these terms checked against live material master data, Netray can build a read-only review that flags items whose parameters disagree with actual behavior.

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