3/22/2021 SAP e-book

Unit 1: SAP S/4HANA Production Planning Overview

Production Planning and Control

Figure 3: Production Planning and Control

Demand Management is the management of independent requirements. The behavior of

independent requirements in material requirements planning (MRP) — for example, whether
they are effective, or whether they consume other requirements — is determined by their
requirements type or by the planning strategy.
Planned independent requirements are stock requirements that can be derived from a
forecast of future demand. In make-to-stock production, you want to start procurement of
the affected materials without waiting for specific sales orders. On the one hand, this kind of
procedure allows you to reduce delivery times, while on the other hand, you can use forecast
planning to spread the burden as evenly as possible across your production resources.
Sales orders (customer independent requirements) are created in Sales and Distribution.
Customer requirements can enter MRP directly, depending on their requirement type. This is
always desirable if you want to plan for specific customers.

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Lesson: Outlining Production Planning in SAP S/4HANA

Demand Management

Figure 4: Demand Management

Sales orders can be used either as exclusive requirement sources, for which procurement is
then specifically triggered (make-to-order production), or they can be grouped with planned
independent requirements to create the total requirements. Consumption is also possible
with planned independent requirements.

MRP Procedures

Figure 5: MRP Procedures

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