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Ferenc Gulyássy, Marc Hoppe, Martin Isermann, Oliver Köhler

Materials Planning with SAP

®

Bonn � Boston

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Contents at a Glance
PART I  Basic Principles and Processes of Materials Planning
1 Basic Principles of Materials Planning  ..............................................

25

2

Strategic versus Operational Materials Planning  ..............................

49

3

Item Classification as the Basis for Materials Planning Decisions  ......

55

4

Materials Planning Process in SAP  ...................................................

97

Part II Materials Planning Parameters in the SAP System
and Their Impact
5 General Materials Planning Master Data  . ........................................ 127
6

Planning Strategies and Requirements Consumption  ....................... 135

7

Determination of Requirements Through Planning and Forecasts  .... 173

8

Materials Planning Procedures  ........................................................ 203

9

Procurement Quantity Calculation  . ................................................. 229

10 Safety Stock Planning  ...................................................................... 253
11 Determining Sources of Supply  . ...................................................... 287
12 Scheduling Parameters  .................................................................... 323
13 Interactions  ..................................................................................... 349
Part III  Materials Planning Optimization
14 Processing Materials Planning Results  ............................................. 359
15 Availability Check  ............................................................................ 373
16 Collaborative Materials Planning Procedures  ................................... 387
17 Materials Planning with Kanban Control  ......................................... 405
18 Inventory Controlling  ...................................................................... 425
19 Materials Planning Optimization  ..................................................... 481
20 Outlook  .......................................................................................... 521
Appendices
A Literature  ........................................................................................ 527
B

Materials Planning Parameters and Influencing Factors  . .................. 529

C Materials Planning Optimization — Four Steps for
Implementation with the Support of SAP Consulting  ....................... 547

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D

Add-Ons for SAP ERP  . .................................................................... 551

E

The Authors  .................................................................................... 553

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Contents
Introduction  ...............................................................................................

17

PART I  Basic Principles and Processes of Materials Planning
1 Basic Principles of Materials Planning  ...................................... 25
1.1
1.2
1.3

1.4
1.5

1.6

1.7

Goals and Tasks of Materials Planning  ..........................................
Core Functions of Materials Planning  ...........................................
Requirements Calculation  ............................................................
1.3.1 MRP (Deterministic) Determination of Requirements  ......
1.3.2 Consumption-Oriented (Forecast-Based)
Determination of Requirements  ......................................
1.3.3 Order-Based Determination of Requirements  ..................
Accumulate Balances  ...................................................................
Purchase Order Calculation  . ........................................................
1.5.1 Reorder Cycle Method  ....................................................
1.5.2 Reorder Point Method  ....................................................
1.5.3 Mixed Procedure  . ...........................................................
1.5.4 Overview of Reorder Policies  . .........................................
Impact of Materials Planning on Inventory  . .................................
1.6.1 Selecting the Production Type  .........................................
1.6.2 Selecting the MRP Strategy/Determining the
Stocking Level  .................................................................
1.6.3 Selecting Consumption Parameters  . ................................
1.6.4 Selecting Lot-Sizing Parameters  .......................................
1.6.5 Selecting the Safety Stock Procedure  ...............................
1.6.6 Selecting the Forecast Strategies  .....................................
1.6.7 Item Classification and Product Analysis  ..........................
Conclusion  . .................................................................................

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32
33
36
38
39
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41
42
45
45
46
47
47
48

2 Strategic versus Operational Materials Planning  ..................... 49
2.1 Tasks in Materials Planning  ..........................................................
2.2 Organizational Integration of Materials Planning  . ........................
2.3 Conclusion  . .................................................................................

49
51
54
7

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..........................................2 Quantity Planning  ......3 Scheduling and Capacity Requirements Planning  ................4......... 4................................ 55 3.. 3.........................4 Calculating the Data Basis  ..2..............2.................. 3...................................Contents 3 Item Classification as the Basis for Materials Planning Decisions  ...... Combining ABC and XYZ Analyses  .....4 Order Conversion and Monitoring  .........1 Outlining the Analysis Process  ..............3....................................3..............1........................... 4...........2 Quantity Planning  ..6 Defining Class Limits  ...................................................................................... ......................... 4.............indb 8 7/7/09 7:37:52 PM .......1 Running Analyses in SAP ERP  ....... 3................1 ABC Analysis  .. ..1 Business Overview  .......... 3.2 Overview of the Materials Planning Process in the SAP System  ....5 Options Provided by Item Classification  .. 3............... 3............9 Performing an ABC Segmentation  ............................................... 97 4.....3 Materials Planning Process in SAP ERP  ...................... 4....2...... .........7 Assigning Classes  ......... ....... XYZ Analysis in the SAP System  ....2.................. 3.........................2.. ...... 97 98 100 101 102 102 104 104 108 110 8 259_Book.......... 4....................................1....................2.....2..2............................... ....1.............. 3....4 3.................... 3.............................1......................... 3..3.......2 Using SAP ERP to Create an ABC/XYZ Matrix  .........2 XYZ Analysis  ............................................. 3...............1 Program Planning  .........................2 3...........................1..........4...3 Defining the Area to Analyze  ............2.................8 Evaluating ABC Analysis  ....2...............................1 3...3 Scheduling and Capacity Requirements Planning  ......... 3............3................. 4............... 4...... 4............................ 3....3 3.................2......... ............. ..... 3......... 4.........10 Case Scenario: ABC Analysis for Warehouse Optimization  ....................1............... ABC Analysis with SAP  ........ Conclusion  ..................... ...................1 Optimization Using the ABC/XYZ Matrix  ............... 56 56 61 63 63 64 64 67 69 71 72 74 75 77 79 81 81 83 83 90 96 4 Materials Planning Process in SAP  ...... 3....................................................2 Determining the Analysis Goal  .........................1 Program Planning  ..........5 Defining the ABC Strategy  .................11 Case Scenario: ABC Quantity Flow Analysis  .................. ............................................................... 3.....

..... 6....................... .................................... 5...............2.....................................2..... 6.....1 Relationship Between the Strategy and Requirements Class  ..................9 Table Summary of Planning Strategies  ... 4.....3 Consumption Parameter  ...................2....... 127 131 131 132 133 133 134 6 Planning Strategies and Requirements Consumption  .......... .......................2 Assigning a Planning Strategy to a Material  ........ 6.. ...1 System Settings in SAP ERP  ................................................2..1 Strategies for Make-to-Stock Production  ............... 6................................4............................................... 6............. ................................4 Planning with a Planning Material  ..... 6.....................4............2 Planning Strategies in SAP ERP  ....3 Transaction MASSD  ... 135 6................................. ................... 6...... 4...........3 Make-to-Order Production  ............ ...........3................................. 5........ 6.............2.........................2 Mass Maintenance of MRP Master Data  .............. 5..2 MRP Profile  ..2.... 4................2..............................2....3 Special Materials  ....... ...... ..2................................................................ 135 136 139 141 142 143 145 151 152 155 156 159 160 161 9 259_Book.............................2...........1 MRP Group  .4 Order Conversion and Monitoring  .. 4............................................1.............................................................. 5.................2 Supply Network Planning (SNP)  .5 Conclusion  ........................Contents 4........ 6..2..1..............1..... 4.......... 5................... 6... 6............indb 9 7/7/09 7:37:53 PM ...... 6.7 Reducing Planned Independent Requirements  ........4 Conclusion  ................................................4......................1 Demand Planning  ...1 Differences Between SAP ERP and SAP APO  .3 Production Planning and Detailed Scheduling  .......2 Final Assembly by Sales Order  ............................... 112 114 115 117 119 124 Part II Materials Planning Parameters in the SAP System and Their Impact 5 General Materials Planning Master Data  .....4 Materials Planning Process in SAP APO  .......... 127 5....2...............................................5 Assembly Processing  ..........................6 Strategies for Configurable Materials  ........... 6...................................8 Adjusting and Reorganizing Planned Independent Requirements  .......... 5....

4 Root of the Mean Square Error (RMSE)  ................ 7........3 Planning Strategies in SAP APO  .... 203 8............2 Mean Absolute Deviation (MAD)  ..........................5 Absolute Percentage Error (APE)  .....................................................................1 Error Total (ET)  ...................2... 6.4 Forecasts in SAP ERP and SAP APO  .3. 6...............................................3 Planning Parameters in the Product Master  .......8 Relative Absolute Error (RAE)  ........................ ..................................... ......................1 Adjusting Historical and Forecast Data and Other Influences  ...............................................1 Requirements Class and Check Mode  ...2.. Forecast Results and Demand Management  .......... ..... 7.....1... Forecasting Accuracy  ................. 6.1 7........... 8.................................1................3...4 Conclusion  ........... 7...2... 7.....................................3...4 Planning Strategy Names in SAP ERP and SAP APO  .............. 6....................2....2................................ 173 175 187 192 192 193 193 194 194 195 196 196 197 197 199 200 201 8 Materials Planning Procedures  ............................................1 PP Procedure  ................3..........7 Median of the Absolute Percentage Error (MdAPE)  .......................................................... 8........................ 8........................................ 7......3 7......... .....................2 Heuristics  .............. ........................................................1 Forecast Methods  .3 Results Evaluation  .................... 8.2 Guidelines for Materials with a High Forecast Error  ................................. 173 7... 7............. 7......... 7....... 7..............................2.......2 Deterministic MRP  .......... 8............2................ 203 204 212 214 215 217 227 10 259_Book.......................... ......................................2 Customizing of Planning Strategies  .........3 Mean Square Error (MSE)  ..... 7... 7..........................3 Conclusion  ....................6 Mean Absolute Percentage Error (MAPE)  ...................... 6....2............................................3........................... 7..........2 Materials Planning Procedures in SAP APO  ...........2... Conclusion  ..................1......................... ......................... 8.............. 168 168 169 170 170 171 7 Determination of Requirements Through Planning and Forecasts  .....................2.......3..2 7.1 Materials Planning Procedures in SAP ERP  .......... .......1..........2 Forecast Parameters  .....Contents 6...................3..1 Consumption-Based Planning  ..............................................indb 10 7/7/09 7:37:53 PM .. 7...............................

.......2......3..1 Static Standard Methods  ..2.................................... 10......................... 10...............................4 Lot-Size Restrictions  .....1 The Purpose of Safety Stock  ...........3 Safety Time  ................ ....................2 Beta Service Level  .................... 10.. 10................3...................... 9... ...4 Safety Stocks and Multilevel BOMs  ...................3 Optimum Lot-Sizing Procedures  ...................................1 Static Lot-Sizing Procedures  ..............5 Additional Lot-Size Options  ............3 Optimum Lot-Sizing Procedures  .................................. 10......3 Extended Methods  .....................3.................... .........6 Scrap Quantity Calculation  ..1 Business Background  ....2 Dynamic Standard Methods and Extended Methods  ................3................ 10.....7 Conclusion  ....2 Automatically Calculated Safety Stock  ................. 9.... 10.............. 10.................3 Procurement Quantity Calculation in SAP APO  .............................2........................................................... 10................. 9....................... 10..... 9...................................4 Lot-Size Restrictions  .... 253 254 255 255 256 257 258 259 259 260 263 265 268 268 271 276 285 11 259_Book.......... 9.....................................................1 Alpha Service Level  .3 Defining the Service Level  ...........6.............................3....................4 Conclusion  ................................................. 10... 9...........................................5............2............................. 9... 229 233 234 234 235 237 238 241 242 243 244 245 248 248 248 250 252 10 Safety Stock Planning  ..................2 Procurement Quantity Calculation in SAP ERP  ............6 Origin of the Lot-Size Settings  ........................................5 Safety Stock Planning in SAP ERP  ......5..............................2 Periodic Lot-Sizing Procedures  ....6.........4 Dynamic Safety Stock  ..... ...................6............................ 9. 9..... 10..3 Selecting and Defining the Service Level  ..................................................................3..........2 Uncertainties in Materials Planning  ......... 229 9...... 10.......2...................5 Additional Lot-Size Options  ..... 9...........3......................................5..................... ... 9.................................................... 253 10...........2 Periodic Lot-Sizing Procedures  ..7 Scrap Quantity Calculation  ....1 Static Lot-Sizing Procedures  ...................... 10............... 10....... 10...................................................3........6 Safety Stock Planning in SAP APO  .....Contents 9 Procurement Quantity Calculation  ............ 9................... 9.................................................................. .........3.............3........................2...................... 9................... ................ 9...................................................indb 11 7/7/09 7:37:53 PM .. 9.........5.......1 Manually Maintained Safety Stock  .....................

.3 Conclusion  .......... 324 324 330 339 339 345 348 13 Interactions  ........... 12............2 Sources of Supply for In-House Production  ......... ........................2 Lead-Time Scheduling  ........... ......................... 12.......... ..... ..............1... 11................1.......... 349 13.1.... 353 13.Contents 11 Determining Sources of Supply  ..........2.2 Relationship Model of Parameter Optimization  ................ ........... 360 12 259_Book........ ....................................................1.............1 Overview of Procurement Types in SAP ERP  ............2 SAP APO Scheduling for External Procurement  ....................... 356 Part III  Materials Planning Optimization 14 Processing Materials Planning Results  ....... 11................. .............3 Conclusion  .................................................... 11.....................4 Sources of Supply for External Procurement  ................ 323 12...................... 287 11..2 Qualitative Versus Quantitative Materials Planning  .................... 12...3 Sources of Supply for External Procurement  ................... ....... 12.......................................................2 Scheduling in SAP APO  .................1 Master Data Maintenance  ...... .....2.................1.....1 Source Determination in SAP ERP  ......2...2 Types of Special Procurement  ...............................5 The Source Determination Process  ..........3 Sources of Supply for In-House Production  ......... 11......1 Tasks of the MRP Controller and SAP System Support  ................ 287 287 289 297 299 307 307 308 311 313 314 322 12 Scheduling Parameters  .....................................................1.4 Validity of Sources of Supply  .... ............................ 11.............1...................................................................................1 SAP APO Scheduling for In-House Production  .............. .................................. 359 14...................indb 12 7/7/09 7:37:53 PM ..........2......1 Overview of Procurement Types  .................. 11...... 360 14.....3 Conclusion  .......1............................ 11... ......................................................2. 11....... 11...1 Scheduling in SAP ERP  ........2................ 12..............2....... 349 13........ 11.............................. 12................................2 Source Determination in SAP APO  .....1 Parameter Dependencies  ..... 359 14... 11......1 Basic Date Scheduling for In-House Production  ........................

..4 Evaluation of VMI  ............2................. 361 362 363 367 367 368 369 371 15 Availability Check  ..3 Conclusion  ............................................................. ...........3.........................3 Conclusion  .2 Rules-Based ATP Check  .1....... 15....... 14...................... 388 391 392 394 397 399 399 401 403 404 13 259_Book.... 15.......1.........2.................1. 15.................1 Filters  ............................2......4 Exception Messages and Troubleshooting (Alert Monitoring)  ..........................................................................1 The Traditional VMI Process with SAP ERP  .......................... 373 373 379 380 380 381 381 382 382 384 385 16 Collaborative Materials Planning Procedures  ................1 Vendor-Managed Inventory (VMI)  ........... ........................................3 The VMI Process with SAP SNC (Responsive Replenishment)  ....... 387 16...................................3...................1.................................. ................ .........2. 14..................... ............ 15. 15................2 Navigation Profiles and Favorites  ... 14.......................2 SMI with Purchase Order Processing  ..........................1 Availability Check in SAP ERP  .......2................. 15........... 16... 16..........................2 Availability Check in SAP APO  .........................Contents 14..................................................... 15.......2 Standard Analyses  ............ ......................indb 13 7/7/09 7:37:53 PM .......................................... 14...........................1.........................1..................... 14....2....................3 Evaluation of SMI  ............................. .. 15............................ 16............ 16....................................... 16........................ ....................3 Availability Check Against Product Allocations  ...1 SMI with Scheduling Agreement Delivery Schedule Lines  ...... 14.......2......2 Supplier-Managed Inventory (SMI)  ........................1 Availability Check Against ATP Logic  .................................1.....................1 MRP List and Stock/Requirements List  .2 Materials Planning Controlling  ...4 Availability Check Against Capacity  ........ 14..................................................1 Combination of Basic Methods  .................. 16......... 373 15...........2........................................2 The Extended VMI Process with SAP APO  ....... 15..3 Capable to Promise (CTP)  ..............2..........1....4 Multilevel ATP Check  .......... 16...........3 Personal Settings  .. ......5 Conclusion  ............. 16................ 15............................. 16.................2 Availability Check Against Planned Independent Requirements  .........................

.5 The Kanban Process  ..... .................... 17. 18..... 18.................................3 Logistics Costs and Costs of Materials Planning  ...............4 Important Inventory Key Figures  .............. 17.2................................ 425 426 427 428 431 435 436 436 441 442 443 444 445 447 14 259_Book...................................................4...1 Classic Kanban  .......... 18...................7 Procedure for Selecting Products Suitable for Kanban  .....................6 Automatic Kanban Calculation  ........................................4 Control Charts  .............6 “Average Stock.... 17................ 17.....4......... 18..................2 Event-Controlled Kanban  ............................................................... 17...Contents 17 Materials Planning with Kanban Control  ............... 425 18........................... 18............2..........................................4.......1 Why Inventory Monitoring?  .............................5 Determining Priorities in the Working System  ..............2 Kanban Card  ....................................... 18................4 Kanban with Quantity Signal  .......4...........................................................4......... 18......................... ..... 18.......2 Introduction to Logistics Controlling  .............................................. 17.1 Kanban Control Cycle  ..... 18..1 Statistical Differentiation of Key Figures  .............. ................................4..............................................8 Conclusion  .........2.4......................................... ......... ................... 18...................... .....indb 14 7/7/09 7:37:53 PM ..........1 The Pull Principle  ..............................3 A Comparison of Kanban Control and Conventional Production Planning  ........ 17........... ..........4 Kanban Procedures  .. 17...................1 “Range of Coverage” Key Figure  ........ 17......... 17.....3 One-Card Kanban  ........................................... 17.....................” and “Range of Coverage” Key Figures  ..................2..........................3 “Slow-Moving Items” Key Figure  . .............4............................2 Business-Related Differentiation of Key Figures  ........... 405 17.................... 17.......2............ 17............. 18......... 17................ 405 407 408 408 409 409 409 409 410 410 411 411 412 413 416 420 424 18 Inventory Controlling  ............. 17............ .........................” “Consumption.......... 17............4............2.....4...... 18.7 “Receipt Value of Valuated Stock” Key Figure  ......2 Elements of Kanban Control  ..................................................................4..........2......2 “Inventory Turnover” Key Figure  .4 “Stock Value” Key Figure  ................. 18.............3 Kanban Board  ...5 “Dead Stock” Key Figure  ...............................................2.............3 Problems with Data Collection  .....................

.......3 Stock Problems Caused by Backlogs  ............................................3.......3................5...........2.................................4... 481 481 482 484 485 486 486 487 487 489 491 491 504 508 510 510 514 15 259_Book.2 Example of the Process Flow of an Optimization Project  . 18....8 18..................... 19........ Inventory Controlling with SAP APO and SAP NetWeaver BW  .. Conclusion  ....2 Flowcharts for Material Flow Analysis  ...... 19..........4..............................1 Step 1: Master Data and Process Analysis According to ABC/XYZ  ............................................... 19..... 18.........7................ 19.11 “Stock at Receipt” Key Figure  ......... 18............................1.................. 18......... 19......1 MRP Monitor  ................................................3 Product Classification  ........................ 481 19... 19.........4........6 18......1 Options for Evaluating Inventory Information  . Tools for Inventory Analysis  .....................4 Optimization Tools from SAP Consulting  ...........7 18... 18........................ 18.....4...............1 Lack of Knowledge and Insufficient Use of the Standard SAP System  ...... ....1 Decision-Making Support for MRP Controllers  .2... ....1.... ........................1 LMN Analysis  ...........................2 Stock Problems Caused by Incorrect Order Progress Messages  . 19.........2..1...... 447 448 450 456 456 457 457 458 460 461 464 465 467 469 479 19 Materials Planning Optimization  ............. 19.....5 18...................10 “Service Level” Key Figure  ...................................................... 19...2 Overview of SAP NetWeaver BW  .Contents 18.........1 Classic Problems and Optimization Potential  .........indb 15 7/7/09 7:37:53 PM ..8 “Safety Stock Buffer” Key Figure  ............................................................................. . 19........ 18...2 Step 2: MRP Training  ..........3 Effects of Classification on Planning  ..............4...............................4 Step 4: Migration and Continuous Optimization  ........................................................................................7.. 18...... 19..............4.............................. 19................ 19..................2 Replenishment Lead Time Monitor (RLT Monitor)  ...........................2................. 19..........3 Using Business Content  ..... 18........... 19......... .............5......... Inventory Monitoring in SAP ERP  ................ 18...............5...................................................................12 “Lot Size” Key Figure  ......3.... 19..3 Step 3: Classifying and Creating the Set of Rules  .9 “Safety Stock” Key Figure  .4 Weaknesses of Parameterization in SAP ERP  .............................3 Procurement and Consumption Cycles  ....................2 MRP Matrix  .........................4...........1....7............

.............indb 16 7/7/09 7:37:53 PM ............................................. C..........5 Service Level Monitor  ...4..................................1 Introduction  ............. 555 16 259_Book.................................... C Materials Planning Optimization — Four Steps for Implementation with the Support of SAP Consulting  ...3 Objectives of the “Materials Planning Optimization” Service Offering  ............. .... B...................... 521 Appendices  ..................................................... D..........2 “Materials Planning Optimization” Service Offering  .....................................3 “MRP Optimization” Expert Tool  ....... D.....................4 Forecast Monitor  ............................................................................................................................................................ E The Authors  .................................................................5 Conclusion  .................................... ..................4 Lot-Size Procedure  .... C.................................................... 527 529 529 534 536 540 543 547 547 547 549 549 550 550 551 551 551 551 551 551 553 Index  ...................... ...................................................... 515 19.............................................................................. D................................................ B..................................2 MRP Monitor  .................................. C..... B Materials Planning Parameters and Influencing Factors  ......................... B...................................................................... C........................... ............... D...............5 Safety Stock  .................................. 525 A Literature  .......................................................................................... C.........4 Contents During the Implementation  ................................................................................ C.............. B. 517 19.......................1 Forecast Monitor  ........................Contents 19..........................1 Planning Strategy  .......................................... 519 20 Outlook  ....................................... B.................................. ..................................3 Replenishment Lead Time Monitor  .. D............................................................6 Results of Service Offering  .............................................................................5 Procedure When Implementing the Ser­vice Offering  ......4 Simulating Safety Stocks  ......................................................2 Materials Planning Type  ....................3 Forecast Method  ..................4............................ D Add-Ons for SAP ERP  ...............

entering customer independent requirements based on sales orders in Sales and Distribution (SD). that is. that is. The SAP APO system provides the functions of the capacity planning table.4 Materials Planning Process in SAP Planning (SNP). has limited options in terms of finite detailed scheduling. in Materials Management (MM). Production Planning (PP). In a typical scenario involving integrated production planning. scheduling and capacity requirements planning. The second step in materials planning. can be performed in either SAP ERP or SAP APO. 4. which is integrated directly into materials requirements planning. can be executed in either the SAP ERP or SAP APO system. if necessary. any malfunctions and time shifts in production are also considered here. Furthermore. it takes account of any capacity restrictions associated with the network. the enhanced capacity requirements planning options in SAP APO far outweigh SAP ERP. a stock transfer from another production plant or the procurement of components or raw materials to cover the planned independent requirements of demand planning and any sales orders that have already been placed. SAP ERP. SNP makes it possible to create a network-wide plan that uses inplant production. on the other hand. subsequent processing of external procurement and manufacturing orders. 104 259_Book. Once again. detailed scheduling heuristics. if the purpose of this step is to achieve a finite production plan. However. and. and consumption-based materials are planned in SAP ERP.indb 104 7/7/09 7:38:31 PM . The step for order conversion and monitoring. 4. we’ll describe a materials planning process that only involves an SAP ERP system.3. takes place in the Procurement and Manufacturing areas of the SAP ERP system. in an integrated PDC system. We’ll show you the SAP ERP functions available for each of four steps described earlier. and the optimizer. This function isn’t available in SAP ERP. quantity planning. the planning run and the transparency associated with the procurement situation in the SAP APO system offers some benefits over the SAP ERP system.1 Program Planning Entering planned independent requirements as part of demand planning. demand-driven materials are planned in SAP APO. Even though SAP APO is purely a planning tool. In this way. and the interaction of requirement types defined in the planning strategy are also steps within program planning in SAP ERP.3 Materials Planning Process in SAP ERP In this section.

which can. which can be later transferred to materials planning. Sales and Operations Planning (SAP SOP) is available as an instrument for supporting the process of sales and operations planning. which facilitates planning at every organizational level and determines the content and layout of the planning screens. Demand planning can be the starting point for the entire production planning process. They are based on the use of characteristics (e. come from SAP ERP-LIS (Logistics Information System). on the other hand. SAP SOP produces requirement forecasts at the distribution center or production plant level. be offset 105 259_Book.2  Differences Between Flexible Planning and Standard SOP In demand planning. Forecast and planning can be based on historical. businesses can customize many of the functions provided. plant and sold-to party) that can be used to break down key figures (e. However. its functions are limited to the standard system. for example.g.2).g. to a large extent. The corresponding data structures in LIS are used to structure and prepare the plan figures. in a production key figure) and later transferred to operative planning as planned independent requirements. preconfigured when the system is delivered and can be used without much effort.indb 105 7/7/09 7:38:31 PM ..g.. forecasts are usually based on aggregated historical data. it provides numerous options for adjusting demand planning to customer-specific planning (see Table 4.Materials Planning Process in SAP ERP 4. As a result. For example.3 Demand planning In SAP ERP. existing. production quantity). In flexible planning. production plans can be created within demand planning (e. for example. Because of this. and estimated future data.. Flexible Planning Standard SAP SOP Numerous options for a customized configuration Largely preconfigured Planning hierarchies Product groups Consistent planning or level-by-level planning Level-by-level planning Planning type used to configure the content and layout of the planning table Standard planning table Table 4. the planned independent requirements form the basis for procurement planning and production planning and can. SAP SOP comprises two application components: EE Standard sales/operations planning (short form: standard SAP SOP) EE Flexible planning Standard SAP SOP is.

customer requirements can flow directly into requirements planning. Program Planning..indb 106 7/7/09 7:38:32 PM . Depending on the requirement type that has been set. can represent the total requirement. evenly spread the burden across the production resources. or they. whether they affect requirements and whether they are offset against other requirements) is determined by their requirement type or planning strategy (see Figure 4. Sales orders can be used as a sole source of requirements for which procurement is specifically triggered (make-to-order production). you want to initiate procurement of the relevant materials without having to wait for actual sales orders. Planned independent requirements are stock requirements that have been derived from a forecast of the future requirements situation. How independent requirements behave in requirements planning (i. Planned Orders Quantity and Dates Purchase Requisitions BOM Explosions Capacity Requirements for Work Centers Program Planning Requirements Planning Figure 4. LIS Sales Organization Sold-to Party Material Plant Demand Plans Demand Planning Production Plans Operative Planning Material Plant Planned Indep.3  Demand Planning Process Planning Strategies in Program Planning As already described in Section 4.1. In make-to-stock production.e. together with planned independent requirements. 106 259_Book. This process is shown again in Figure 4.1. thanks to future-oriented planning. independent requirements come from planned independent requirements and real sales orders. depending on the chosen planning strategy. Such a procedure can shorten delivery times and. Req.4 Materials Planning Process in SAP against the current sales orders. This is always desired if a business wants to implement customer-specific planning.4).3. SD employees enter customer independent requirements (sales orders). It is also possible to offset sales orders against planned independent requirements. We’ll now define the interaction of such independent requirements in program planning within the SAP ERP system.

if necessary. make-to-order production is used with subassembly planning for components to keep delivery times to a minimum. This generally makes it possible to quickly fulfill a sales order for a finished product because all that remains is final assembly (the assemblies are already available).4  Independent Requirements in the Demand Program The SAP ERP system provides the following basic strategies for creating the demand program: EE Make-to-stock production Production as a result of make-to-stock planning. After sales orders are received. requirements fulfilled from the warehouse EE Subassembly planning Planning-based make-to-stock production for assemblies EE Order-related production Make-to-order production of finished products and. production usually takes place without sales orders having to already exist for the material in question. the finished product itself isn’t produced in storage. the goods can be delivered from the warehouse.Materials Planning Process in SAP ERP 4. thus making it possible to implement short delivery times. Req. Make-to-stock production also gives rise to the most even production run. In this case. 107 259_Book. make-to-stock production of assemblies If make-to-stock production strategies are used. but only the required assemblies are procured.3 Production Program Demand Planning Forecasts Planned Indep. Make-to-stock production can also take place for assemblies. Offset according to Planning Strategy Customer Requirements Sales Orders from SD Requirements Planning Meeting Requirements by � In-House Production � External Procurement � Stock Transfers within Internal Network Figure 4. procurement doesn’t take place until an actual sales order exists. instead. irrespective of the current demand. Often. there is no planning in the actual sense.indb 107 7/7/09 7:38:32 PM . For sales-order-related production.

The MRP type can also be used to exclude a material from materials planning.q or s. 108 259_Book.S Rule) Time-Phased Planning (t. For each material. Planning can be consumption-based (e. and BOM explosions are used to determine the dependent requirements for the components. the requirements are covered by creating planned orders (for in-house production planning) as well as purchase requisitions or schedule lines (for external procurement planning). which is entered on the Materials Planning 1 tab of the material master.3.g. EE The procurement proposals for the finished product are created. That is.2 Quantity Planning Quantity planning is used for production planning. MRP Procedures Material Requirements Plangesteuerte Disposition Planning Consumption-Based Planning Verbrauchsgesteuerte Disposition No or Manual Planning Reorder Point Planning (s. EE MRP essentially uses backward scheduling in which the required start dates are determined from a preassigned end date. EE The planned requirement quantities (in the form of planned independent requirements or sales orders) trigger requirements calculation. Figure 4.q or t. by specifying a reorder point) or demanddriven.6). external procurement. or stock transfers from other plants using existing in-plant requirements (depending on the procurement type). the basic type of materials planning is defined with the MRP type. Production planning concludes when planned orders are converted into manufacturing orders (production order or process order) or into purchase orders or schedule lines.5  Overview of MRP Procedure in SAP ERP MRP is based on current and future sales and takes place across the entire BOM structure (see Figure 4.S Rule) Forecast-Based Planning Figure 4.4 Materials Planning Process in SAP 4..5 provides an overview of the MRP procedure in SAP ERP.indb 108 7/7/09 7:38:33 PM . The dependent requirement date is determined from the start date of the source planned order.

The result of this comparison is known as the quantity available for MRP.6  Planning Process in Multilevel MRP In MRP. Consumption-based planning is characterized by its simplicity and is principally used for low-value B and C items. The proposed procurement quantity is based on the lot-sizing procedure set in the material master (see Figure 4. fixed purchase requisitions and production orders.7). Consumption-based planning. 30 Oper. and planned orders) are compared against the safety stock and the requirements.g. the procurement type determines whether the system creates purchase order requisitions or planned orders. purchase orders. 20 Oper. 109 259_Book. on the other hand. 10 Oper. Here. is based on historical consumption values and uses forecasts or statistical procedures to predict the future requirement. 40 Today When will the components be needed? Purchase Order for Raw Material C Time When does procurement have to begin? Figure 4. a net requirements calculation is performed during the planning run to determine whether there is a material shortage. For this purpose. If the quantity available for MRP is lower than zero. 30 Dependent Requirements Planned Order for Assembly B Oper.indb 109 7/7/09 7:38:33 PM .Materials Planning Process in SAP ERP EE 4.. the order dates for the components are determined in backward scheduling using the inhouse production time or the planned delivery time. this is known as a material shortage. Requirements planning responds to material shortages by creating new procurement proposals. the stock and existing firmed receipts (e. Requirement BOM When will production take place? A B Planned Order for Finished Product A C Oper.3 Starting with the dependent requirement date as the availability date. 10 Oper. 20 Oper.

.q reorder method described in Section 4. Quantity Planning. Lot Size Reorder Point Safety Stock Reorder Point Time of Delivery Time Replenishment Lead Time Figure 4. is a typical procedure in consumption-based planning. Materials planning is controlled by a manually specified reorder point (e.. etc. procurement is triggered for the lot-size amount (e.g.3. Fixed Planned Orders Fixed Purchase Requisitions Safety Stock Inventory Figure 4. a fixed lot size of 500 pieces).1. whether there are fewer than 50 pieces in storage).4 Materials Planning Process in SAP Lot Size of Procurement Proposal Material Shortage Sales Orders Planned Indep. Firmed Receipts Dependent Requirements Purchase Orders Within the Rescheduling Period Requirements Reservations Production Orders etc. If so.7  Net Requirements Calculation Inventory Manual reorder point planning. the system checks whether or not stock has fallen below this reorder point (i. This procedure corresponds to the s.2.e.. shown in Figure 4.8  Consumption-Based Planning 4. 50 pieces).8. During the planning run. the routing can be used to calculate the capacity requirements resulting from the planned orders. you 110 259_Book.3 Scheduling and Capacity Requirements Planning During quantity planning.g.indb 110 7/7/09 7:38:34 PM . Req. As a prerequisite for this calculation.

which is usually based on a particular work center. Only then is the routing used to schedule the operation dates in addition to the basic dates for planned orders. In the second step. infinite requirements planning creates capacity requirements only. The tabular and graphical planning tables can be used to schedule operations so that they can be implemented within capacity planning (see Figure 4. Subsequent capacity leveling can be used to level overloads and underloads in work centers. The goal of capacity requirements planning is to schedule all operations for planned orders or manufacturing orders in such a way that the production plan can be fulfilled.MaterialsPlanningProcessinSAPERP 4. This check takes place during capacity requirements planning. The functions of capacity evaluation are then used to determine available capacities and capacity requirements and to compare them against each other in lists or charts.3 must select Lead Time Scheduling and Capacity Planning as Scheduling parameter 2 for the MRP planning run (see Figure 4. the best deployment sequence for machines and productions lines can be determined here and suitable resources chosen.indb 111 7/7/09 7:38:35 PM . Scheduling may cause dates to shift.9). Initially. These are scheduled by using the times defined in the routing and by accepting infinite capacities. the system doesn’t check whether the work center is still available for the required dates.10).9 Scheduling Parameters for the MRP Planning Run In the first step. Figure 4. it must perform a check to determine whether planning is possible from a capacity perspective. 111 259_Book.

you can also note a particular rule for the scheduling sequence. The activities marked with an asterisk (*) can be automated or processed in the background. However. If work centers have several individual capacities. deviation recording. The following are important basic production order functions in SAP ERP: 112 259_Book. it’s considerably more helpful to create a finite production plan in the SAP APO system because it has an optimizer and scheduling heuristics (for more information. 4.3. which minimizes the manual effort for order management. a production order in SAP ERP passes through a number of phases. As you can see in Figure 4. Work-in-progress (WIP) calculations.4 Order Conversion and Monitoring Production control commences as soon as a planned order is converted into a production order. see Section 4.4 MaterialsPlanningProcessinSAP Figure 4.11. and settlement are usually periodic cost object controlling tasks that are processed in the background. Planned orders can either be converted manually by the planner or using a release period via collective processing.3. they can be assigned and split into these individual capacities.4. Production Planning and Detailed Scheduling).10 Graphical Planning Table in SAP ERP Here.indb 112 7/7/09 7:38:35 PM .

production resources/tools. services. As soon as this happens. and capacities EE Printing shop floor papers EE Material staging via reservations EE Confirmation of quantities. and production resources/tools. deviation recording. WIP calculations. overhead rates. and order settlement) A production order must be released before production can begin.indb 113 7/7/09 7:38:37 PM . goods movements can be posted for the order.Materials Planning Process in SAP ERP 4. papers printed.3 Order Creation 1 Archive/Delete Order Settlement Order Opening 2 17 3 Availability Checks * 16 Deviation Determination 15 4 Lifecycle of a Production Order Goods Receipt * 14 5 Machine Utilization Order Release * 6 Download to PDC System Work-in-Progress 13 Determination 7 Order Printout * 12 Confirmation * 8 11 Upload from PDC System 10 9 Material Staging Material Consumption Posting * Figure 4. capacities.11  Lifecycle of a Production Order in SAP ERP EE Status management EE Scheduling EE Calculation of capacity requirements EE Costing EE Availability check of components. and time events (variable confirmation procedures) EE Goods receipt EE Period-end closing (process cost allocation. The system can perform this availability check for material components. and an automatic availability check performed. confirmations entered. 113 259_Book.

partially confirmed or confirmed). EE The confirmed quantity and actual cost are written to the production order.12  Confirmation Functions EE Each confirmation is recorded with a status (e. Order Status Quantity Actual Cost Automatic Goods Receipt Update of Statistical Data (LIS.g. they must be posted manually.4 Materials Planning Process in SAP APO This section describes the following SAP APO functions: Demand Planning (DP). accurate. EE Material withdrawals can also be posted automatically. At the same time. Confirmations are generally made in the SAP ERP system. EE A confirmation can occur with an automatic goods receipt.12). and they trigger various functions (see Figure 4.4 Materials Planning Process in SAP Confirmations are used to record production progress. EE The confirmation also reduces the capacity requirements of the production order. and Production Planning and Detailed Scheduling (PP/DS).indb 114 7/7/09 7:38:38 PM .. BW) Confirmation Backflush Actual Cost HCM Data Transfer Reduction of Capacity Requirements Figure 4. They provide the basis for progress tracking and subsequent capacity requirements planning. Supply Network Planning (SNP). 4. order confirmation is used to record internal services that have been performed for the order. using a backflush. almost real-time confirmations are important. If goods receipt and goods issue postings are not coupled with a confirmation. For this reason. These postings are critical for the quality of materials planning because they provide for changes in stock and a reduction in reservations. 114 259_Book.

379 Available capacity. 241. 380 Logic. 336. 373 Availability overview. 62 Accumulate balances. 92. 322 Automatic model selection. 330. 486. 59 C Materials. 59 BOM selection. 180. 457 Beta factor. 443 Area to analyze. 77 Quantity flow analysis. 384 Rules-based. 79 ABC segmentation. 333 Available stock. 83. 500 Access fluctuation. 338. 194 Accepted delivery time. 340 Activity relationship. 77. 329. 93. 454 Additional requirement. 55. 407. 382 ATP tree structures. 90. 190 BEx Analyzer. 133 Bullwhip effect. 168 ATP check Multilevel. 387 555 259_Book. 484 Barcode. 199 Alerting. 335 Basic start date. 181 Automatic model selection procedure 1. 498 3D graphic. 90. 74 3D matrix. 373 Avoid delays. 421. 369 Alpha factor. 510 ABC/XYZ matrix. 56. 492 A Materials. 330. 61. 324. 2. 31 Adherence to desired delivery date. 42 Assembly processing. 221 B Backlogs. 75 ABC strategy parameter. 44 Assembly level. 155 Assembly scrap. 338 Basic date scheduling. 212 Available to promise (ATP) → Availability check. 366. 331. 341 Activity scrap. 498 A ABC analysis. 96. 373 Against ATP logic. 103. 492 Ability to deliver. 74 For warehouse optimization. 339 Across BOMs. 206. 324. 175 Alert Monitor. 51. 60 D Materials. 475 B Materials. 59. 324. 181 Availability check. 30 Activity. 324. 337 Bestandsanalyse. 63. 337. 60 Evaluating. 329 Basic finish date. 55. 222 Avoid surpluses. 335. 336. 250 Assignment mode. 408 Base value. 329. 250 Actual delivery time. 373 Against capacity. 189 Basic date. 454 Absolute percentage error (APE). 69 ABC/XYZ analysis. 297 Bulk material. 379 Against product allocations. 420 ABC/XYZ classification. 380 Against planned independent requirements. 64 Assemble-to-order. 190 Analysis goal. 320 Adjustment of historical data. 58 B Materials. 495.indb 555 7/7/09 7:42:07 PM . 326. 327. 326.Index 3D classification. 64 Analysis of slow-moving items.

102. 184 Characteristics planning. 224. 375 Check mode. 115. 243 Core Interface. 345 Detailed scheduling. 180 Customer independent requirements. 120 MRP-based. 28. 373 Consignment. 381 Component scrap. 411. 30 Forecast-based. 491 Decision tree. 27. 340 Co-product. 432 556 259_Book. 122 Determination of requirements. 434 Data quality. 329 Delta factor. 94. 141 Consumption parameter. 364. 434 Costs for load carriers. 60 Collaborative Planning. 101 Detailed Scheduling (DS). 137 Consumption cycle. 111 Causal forecasting. 177 Consumption. 333. 190 Demand management. 156 Checking group. 319 Costs for external services. 99 D Data basis Calculating. 134 Constant model with first-order exponential smoothing. 101. 454 Delivery service. 295 Direct production. 319. 61. 105. 141 Consumption range of coverage. 67 Data collection. 102 Core Interface (CIF). 300. 100 Destination location. 437 Contract. 121. 28 Demand range of coverage. 241 Composite forecasting. 502 Delivery reliability. 374 Checking rule. 316. 168 Cost function.indb 556 7/7/09 7:42:08 PM . 454 Delivery time. 291 Display filter. 156 Confirmation. 491 Decision-making support. 102 Classification. 45. 437 Demand source. 311. 338 Capacity requirements planning. 118. 295. 434 Costs for operating facilities. 385 Capacity evaluation. 432 Distribution key. 111 Capacity requirement. Forecasting and Replenishment (CPFR). 27. 30 Direct procurement. 363 Disposal logistics. 197 Demand Planning (DP). 133. 491 Enhanced. 103. 499 Class limit. 382. 453. 224 Capable to promise (CTP). 197 Date adjustment. 71 C Materials. 111 Capacity leveling. 329 Distribution logistics. 114 Confirmation date. 414 Dependent requirement. 444 Decision-making process. 141 Consumption period. 29 Order-based. 128. 28. 345 Control cycle. 452. 381. 337 Daysí supply. 94 Dead stock analysis. 433 Croston method. 173 Deterministic.Index C Capable to match (CTM). 168 CIF → Core Interface. 410. 175 Demand program. 435 Data processing costs. 312. 406. 332. 460 Consumption mode. 185 Configurable materials → Variant configuration. 319 Consignment stores. 31. 388 Consignment scheduling agreement. 314. 70. 416 Control key. 387 Combination of basic methods. 103.

175 Forecast distribution. 310 Goods receipt processing time. 428 InfoSource. 320 Ex-post forecast. 28. 378 Lot-size dependent. 425. 529. 117. 354 Error level → Forecast error. 461 Inventory costs. 342. 345 Information system.Index E G Early warning system. 501 Float after production. 26 Independent requirement. 62 Forecast. 426 H Handling resource. 67 Exception message. 342 Heuristic. 335. 536 Forecast monitor. 173. 332 Explosion date. 367 Filter function. 261 Forecast method. 44 Enterprise-specific factor. 341. 337. 30. 236. 333. 192 Forecasting accuracy. 387 Engineer-to-order. 99 Individual/Collective Requirements indicator. 100 Gross Requirements Planning (Strategy 11). 458 Fluctuating demand. 378 Groff reorder procedure. 319 Interoperation time. 143 Fixed procurement costs. 61 557 259_Book. 121 I Inbound delivery modality. 472 In-house production time. 339 Flowchart. 201 Forecast error. 335. 246 Gross requirement. 517 Forecast parameters. 369 Execution time. 325. 188 Interaction. 330. 339 Float before production. 345 Gamma factor. 190 Geometric mean of the relative absolute error (GMRAE). 43. 461 Inventory strategy. 453 Filter. 324 Lot-size independent. 221 Fill rate. 422 Fluctuation coefficient. 324. 351 Forecast controlling. 354 Enterprise structure. 499 Influencing factors. 349 Interactions. 152 Individuality. 330. 63. 491 Interactive planning. 26 Inventory-taking. 332. 324 Initialization period. 75. 30. 311. 335. 343 Inventory Aging Analysis.indb 557 7/7/09 7:42:08 PM . 476 Inventory controlling. 532 Info record. 341 Fulfillment rate. 144 F FIFO valuation procedure. 319. 433 Inventory key figures. 67 Efficient Consumer Response. 197 Formula parameter. 189 External procurement relationship. 192 Exception. 192. 192 Error total (ET). 31. 344. 187 Forecast result. 329. 326. 329. 369 Final assembly By sales order. 436 Inventory Monitoring. 324. 330. 339. 196 Global parameter.

456 Stock factor. 427 Stock at receipt. 431. 461 Logistics costs. 428 Consumption. 405 Board. 419 Contol. 248 Lot-size calculation. 444 Definition. 177 Linear regression. 47. 413 With quantity signal. 407 Control cycle. 240. 51. 448 Stock value. 240 Lead time scheduling. 411 One-card. 416. 436. 334 Logistics controlling. 450 Slow-moving items. 435 Linear exponential smoothing. 105 Lorenz curve. 428 Profitability. 344 Across BOMs. 234. 432 Logistics Information System (LIS). 235. 445 Average stock. 239. 424 J Joint forecasting. 410. 174. 237. 336 Least unit cost procedure. 408 Event-controlled. 411 Procedure. 442 Statistical. 352 Optimum. 59.indb 558 7/7/09 7:42:08 PM . 363 Average consumption. 234. 232. 427 Descriptive. 407. 244 Static. 330. 324. 429 Range of coverage. 28 558 259_Book. 443 Key for performance efficiency rate. 428 Inventory turnover. 100 Low-level coding. 234 Lot-sizing restriction. 245 Periodic. 236 Lot-size procedure. 445 Business-related.Index Inventory turnover. 243 Lot-for-lot order quantity. 57 Lot size. 410 Container. 445 Dead stock. 456 Normative. 100. 418 Key figures. 229 Lot size creation Dynamic. 45 Lot-sizing procedure. 56. 425. 333 L Last lot Exact. 236 External procurement. 406. 540 Lot-size restriction. 497 Location group. 447 Safety stock. 366 Item classification. 448 Safety stock buffer. 101. 412 Kanban calculation Automatic. 428 LMN analysis. 408 Classic. 233 Low-level code. 414 Card. 414 Status. 426. 338. 410. 179 Liquidity key figure. 223 Least-unit cost procedure External procurement. 445 Average range of stock. 26 Fixed. 409. 423 Signal. 248 Lot-sizing parameters. 339. 243 Maximum. 234. 247 Licenses and other rights. 441 Lot size. 387 K Kanban. 405. 447 Service level. 111. 88. 237. 457. 445 Receipt value of valuated stock.

196 Migration. 340 Model initialization. 332. 38 Mode. 127 Hierarchy. 28. 50. 143 Customer-independent. 43 Make-to-stock production. 44. 131 Mass maintenance.indb 559 7/7/09 7:42:08 PM . 343 Move time matrix. 53. 50 Optimization. 28. 30. 335 Mixed procedure. 388. 42. 100. 455 Move time. 332. 261 Mean absolute percentage error (MAPE). 361 Materials planning decision. 405 Material grouping. 131 Master data. 27. 399 Order-based planning. 534 Matrix organization. 495 Materials planning master data General. 49 Time-phased materials planning. 481 Master Data and Process Analysis. 156 Materials Planning → s. 341. 195 Means of transport. 127 Materials planning optimization. 44 Make-to-order production (strategy 20). 179 Monitor of deliveries. 212 Operational. 49. 515 MRP monitor. 335 Forecast-based planning. 28 Qualitative. 326. 193 Mean value. 324. 329. 203. 53 Consumption-based planning. 38 MRP. 50 MRP training. 198 Master data maintenance. 28. 351 Multiple linear regression (MLR). 203 Forecast-based. 248 Minimum stock level. 41. 326. 334. 360 Strategic. 214 Material BOM. 360 Quantitative. 360 Master production scheduling. 308 Material Flow Analysis. 51 Tasks. 359 Materials planning type. 193. 188 Models with second-order exponential smoothing. 27. 131 MRP list. 510 MRP parameter. 481 Materials planning results Processing. 173 Material planning parameters. 132 MRP strategy. 489 Minimum lot size. 211 Materials planning controlling. 29. 409 Materials Configurable. 151 Make-to-stock. 94. 351 MRP procedure. 345 Mean square error (MSE). 438 Material requirements explosion. 265 Mixed procedure. 41 Make-to-Stock Strategy. 64 Material master planning. 486 Master data concept. 90. 100. 49. 51. 504. 203. Material requirements planning. 334. 189. 54 Mean absolute deviation (MAD). 489. 143. 28 Advantages and disadvantages of centralized and decentralized. 26 Material requirements planning (MRP). 363 MRP matrix. 28. 47. 176 MRP group. 329. 458 Material flow control. 185 559 259_Book. 108.Index M Make-to-order. 203 MRP profile. 406. 487 MRP type. 208 Material requirements planning. 108. 237. 81 Median of the absolute percentage error (MdAPE). 529 Material posting. 28. 344 Moving average. 26. 206 Material range of coverage. 108. 324. 142 MASSD.

239 Net requirement. 160 Periods per seasonal cycle. 453. 335. 51 Outlier correction. 84. 160 Reduce. 332 Operation date. 222 Period factor.Index N P Navigation profile. 329 Open order. 328 PDS BOM. 330. 529 Part period balancing. 339 Order monitoring. 319 Parameterization. 496. 485 Parameter optimization Relationship model. 309 Pegging area. 32. 335 Operation scrap. 310 Plan Monitor. 174 Without Final Assembly. 152 O One piece flow. 51 Large business. 332 Optimization potential. 30. 350. 241 Operation segment. 315. 146 Planning horizon. 41. 326. 223. 362 Planning strategy. 405 On-time delivery. 465 Planned delivery time. 216 Planning for Assemblies Without Final Assembly (Strategy 74). 337 Planning. 289. 215 Planning run. 102 Order cycle. 239 NetPL. 434 Phantom assembly. 45 Planning calendar. 152 Planning plant. 319. 486. 486 Process flow. 481 Deriving. 244 Period of adjustment. 136. 300 560 259_Book. 320 Opening date. 99. 64 Personnel costs. 190 Outline agreement. 529 Planning with a Planning Material and Without Make-to-Order Production (Strategy 63). 157 Planning-relevant event. 116 Planning material. 61 Order float. 324 Order progress messages. 99 Adjust and reorganize. 151 Planning for Phantom Assemblies (Strategy 59). 326 Opening period for planned order. 329. 346. 26 Normal scheduling agreement. 353 Parameter settings. 236. 497. 189 Period to analyze. 84 Optimization project. 336 NetChange. 53 Decentralized. 105. 508 Flexible. 454 On-time delivery performance. 106. 368 Negative lead time. 50 Planning level. 173. 102 Organizational structure Centralized. 327. 332 Operation time. 486 Optimization tool. 315. 149 Planning application. 102. 51 Corporate group. 100 Net requirements calculation. 52 Medium-sized business. 235 Planning file. 290 Planning profile. 246 Part provided. 320 Planning at assembly level. 510 Order conversion. 146. 482 Order release.indb 560 7/7/09 7:42:08 PM . 454 Operating time. 102 Order opening date. 159 Planned order conversion. 378 Planned independent requirements. 309 Plan explosion.

318 Procurement cycle. 75 Purchasing department processing time. 265 Ranking list. 309. 99 Purchase Order Calculation → s. 340 Production type. 338 Production order creation. 318. 226 Procurement costs. 365 Calculation. 214. 317 R Range of coverage. 68 Portfolio matrix. 229. 424 Pull strategy. 340 Process control heuristic. 319 561 259_Book. 310 Production in an alternative location. 333. 428 Program planning. 328. 307 Procurement priority. 144 Production data structure (PDS). 220. 318. 316. 317 Quota arrangement. 120 Production plant. 41 Productivity key figure. 316 Incoming. 41 Select. 319 Product allocation. 373 Product classification. 217. 483 Production order conversion. 60 Procurement planning External. 245. 365 Analysis. 155 Planning with Final Assembly (Strategy 40). 214 Prediction ability. 55 Product heuristic.Index Planning with a Planning Material (Strategy 60). 314. 413 Queue time. 422 Product phase-in and phase-out. 242 Procurement type. 287. 145 Planning Without Final Assembly (Strategy 50 and Strategy 52). 149 Plant maintenance. 33 Purchasing. 317 Production. 99 Q Quality key figure. 76 Pool. 76 Production by Lot Size (Strategy 30). 491 Product group. 290 Production process model (PPM). 317 Quota-allocated quantity. 499 Profitability key figures.indb 561 7/7/09 7:42:08 PM . 432 Production order. 431 Procurement market research. 329. 33 Purchase order quantity (q). 340 Production in alternative plant. 309. 100. 317 Quota base quantity. 308. 98. 121 PP procedure. 378 Purchasing info record. 62 Preproduction and setup costs. 460 Procurement logistics. 33 Purchase order period (t). Reorder policy. 220. 32 Purchase order limit. 310 Production logistics. 112. 317 Quota rating. 343 Quota. 429 Product lifecycle. 329. 319 Push principle. 429 Quantity flow analysis. 326 Production planning. 289. 422 Product type. 406 Push strategy. 302. 316 Quota arrangement header. 318 Procurement quantity calculation. 312. 86. 405. 307. 79 Quantity planning. 104 Pull principle. 265 Profile. 108 Quantity signal. 80 Positive lead time. 316 Outgoing. 311. 434 Primary resource. 336 PP/DS optimizer.

340 Scheduling margin key. 434 Routing. 204. 248 Rounding value. 238. 223 SAP_PP_004. 224. 220 SAP_PP_013. 339 Scheduling parameter. 250 Seasonal exponential smoothing. 223. 87 Reduction. 194 Rounding profile. 159 Regression analysis. 136 Resource. 452 Real estate and occupancy costs. 218. 323 Scheduling agreement. 332 Readiness to deliver. 332. 247. 339 Sales and distribution. 178 562 259_Book. 265 Manual. 253. 205 Manual. 42 Sales & Operations Planning (SAP SOP). 464 SAP_PP_002. 169 Requirements type. → s. 543 Dynamic. 353 Relative absolute error (RAE). 189 Relationship. 345 Scheduling basis. 205. 396 Reuse mode. 242. 227 SAP_PP_C001. 263. 437 Receipt quantity. 234. 32. 227 SAP NetWeaver BW. 223. 223. 241. 93. 100 Reorder point(s). 248 Route and network costs. 216 Root of the mean square error (RMSE). 105 Sales-order-related production. 135 Requirements list. 36 Reorder point planning. 332. 500. 242 SAP_PP_020. 243 Requirements calculation. 314. 394. 246 SAP_PP_017. 311. Purchase order limit. 179 Seasonal trend exponential smoothing. 70 Reclassification. 326. 514 Replenishment up to maximum stock level. 90 SAP_MRP_001. 391. 222 Scheduling. 269. 434 Receipt days‘ supply. 329 Release modality. 223. 61. 298 S Safety factor. 329. 352 Automatic. 317 SAP_PP_SL001. 237. 226. 41 SAP Consulting solution. 208. 36 reorder point warehouse level policy. 320 SAP_PP_003. Reorder point method. 262 Safety stock. 102. 75 Sales forecast. 33 Reorder point lot-sizing policy. 449 Safety stock planning profile. 248 SAP_PP_005. 229.indb 562 7/7/09 7:42:08 PM . 259 Simulation. 352. 344. 343 Relationship model of parameter optimization. 223. 330. 377. 225. 426 Scrap. 177 Seasonal linear regression. 280 Safety time. 300. 334. 36 Reorder point method. 26 Reorder cycle method. 340 Scheduling formula. 233. 204. 55. 308 Routing selection. 39 Replenishment lead time. 220. 221. 327. 225 SAP_PP_012. 28. 37 Reorder policy. 362 Requirement splitting.Index Rate of capacity use. 323 SCOR. 337 Reduction in independent requirements. 240. 246 SAP_PP_006. 427 Release date. 341. 27 Requirements class. 220. 335. 223. 237. 438 Replenishment lead time (RLT). 196 Relative indicators. 204 Reorder point system → s. 222 SAP_PP_Q001. 321 SAP_PP_007. 33 Reorder method. 341 Responsive replenishment (RR). 317 Requirement strategy. 226 SAP_MRP_002.

38 U Uncertainty. 31 Total lead time. 265 Target stock level method. 118 Optimizer. 38 t. 216. 363 Standard deviation. 388 SNP order. 321 Structure key figure.q policy. 327 Source location. 49 Supply Network Planning (SNP). 388. 428 Supply chain organization. 460 Total replenishment lead time. 434 Tertiary requirement. 429 Subassembly planning. 345 Transport packaging and conservation costs. 432 Set of rules. 99. 81. 102 T Takt time. reorder point warehouse level policy. 146. 311. 289. Reorder point lot-sizing policy. 500 Service Level Monitor. 403 With purchase order processing. 327 Automatic. 145. 101 Service heuristic. 262. 33 Tracking signal. 245 Taxes. 312. duties. 179 Trend value. 117 Heuristic. 133 Special process. 332 Stock days‘ supply.indb 563 7/7/09 7:42:09 PM . 338 563 259_Book.s. 33. 243. 36 s. 74 Total usage quantity. 478 Stocking level. 363 Sequence planning. 399 Supply Chain Council. insurance and other costs. 253 Sigma factor. 487 Setup time. 345 Source of supply. 348 Supplier-managed inventory (SMI). 348 Storage costs. 312. 255. 307 Special material. 324 Shortfall. 191 Transportation lane. 220 Service level. 434 Trend damping profile. 415. 254 Univariate forecast models. 240 Target stock level. 90 Storage volume analysis → LMN analysis. 262 Standard value key. 151 Subcontracting. 42 Stock in transit. 189 Troubleshooting. 328. 68 t. 294 Stock transfer. 150 Stocking level determination. 328. 422 System group. 239. 312. 37 Stage numbering algorithm. 198 Special procurement key. 67. 410. 119 Supply source. 227 Standard analysis. 317 s. 501 Storage range. 68 Total usage value. 366 Slow-moving item analysis. 399 Applications. 369 t. 332 Standard values.S policy → s.S policy. 306 Source list. 454 Service parts logistics.q policy → s. 378 Totals curve. 293 Stock of material provided to vendor. 404 Evaluation.s. 293. 293. 310 Splitting.S policy.Index Selection rule. 451. 42. 301. 497 Strategy profile. 176 Update.q policy. 438. 190 Slow-moving item. 34 t. 94 SMI → Supplier-managed inventory. 406. 104. 322 Source determination. 45 Subassembly Planning (Strategy 70). 401 With scheduling agreement delivery schedule lines.

334. 390 Evaluation. 177 Withdrawal from alternative plant. 81. 397 Extended process. 67 Valuated stock receipt quantity. 390 Traditional process. 341. 387 Winters seasonal model. 233 Y material. 295 Vendor-managed inventory (VMI). 77 Weighted moving average. 388. 398 Direct delivery scenario.indb 564 7/7/09 7:42:09 PM . 392 Shops scenario. 189 Whiplash effect. 61 Y material. 390. 62 X material. 493 N material. 156 Variation coefficient. 61 Y Yield. 81. 55. 60 Variant configuration. 61 Z material. 67 Value analysis. 92 Vendor consignment. 176.Index V Valuated stock issue quantity. 61. 395 W Wait time. 421. 61 564 259_Book. 388 Applications. 176 Weighting group. 61 Z Z material. 391. 290 X XYZ analysis. 343 Warehouse optimization. 390.