SAP FMS - Planning

Fashion Management Solution 1.
0
Ramp-Up Knowledge Transfer
Planning concept
May, 2014
Fashion Management Solution 1.0
Ramp-up Knowledge Transfer – Content Overview
Unit 1 Overview
Unit 2 Master Data
Unit 3 Segmentation
Unit 4 Planning
Unit 5 Purchasing
Unit 6 Inventory Management
Unit 7 Sales
Unit 8 ATP
Unit 9 Allocation Run
Unit 10 Outbound Delivery
Unit 11 Financials
Unit 12 Special Functionalities
© 2014 SAP AG or an SAP affiliate company. All rights reserved. Ramp-Up Knowledge Transfer 2
Objectives Slide – Unit 4 Planning
At the end of this lesson, you will know

- How to maintain Planning data in Article Master
- How to create Planned Independent Requirements (PIR‟s)
- How to activate Planned Independent Requirements
- How to consume Planned Independent Requirements
- How to integrate segmentation in Planning
- How to group Purchase Requisitions
- How to consider allocated quantity (ARun) in MRP
- How to protect stock in Planning
Agenda
Planning concept
 Planning Introduction
 Article Master Data
 Segmentation in ATP and Planning
 Planned Independent Requirements: Maintenance
 MRP
 Stock Protection
Agenda
Planning concept
 MRP
Planning - Introduction
• The main task of Planning in FMS is to guarantee the material availability at SKU level.
Requirements quantity have to be available internally and for sales and distribution, in the
requested characteristic values and in time.
• In FMS, planning can be dependent on planning strategies.
• The MRP plans variants of generic articles, single articles and structured articles (ERLA).
Also considering segmentation strategy during requirement to stock mapping.
• Replenishment to stores from DCs using Stock Transfer Orders is managed with existing
Retail functionalities (Allocation Table, Replenishment Function).
* Note: Bill of Material is not supported with FMS 1.0
Planning in FMS
Planning in FMS Release1 encompasses:
• Creation and Maintenance of Planned Independent Requirements (PIR) with

segmentation
- Manually (MD61/MD62)
- via APO DP
- via BAPI
• ATP with segmentation and stock protection (common stock)
• Planning strategies with segmentation

- „Planning with Final Assembly‟ (40) also with consumption of stock
transport order requirements
- „Procure-to-Order‟ (20)
• MRP on HANA (live)
FMS Planning in DC
Sales Order
Demand Planning
(APO) STO
Requirement
External Systems
Demand
PIRs MRP
Management
Manual PIRs
Manual
Reservations
FMS Procurement in DC
Manual Purchase
Order
Sales Order
Purchasing
MRP
Manufacturing
Manual Production
Order
FMS Rel 1: Planning Process
Stock
Planned Sales
Transport
Independent Order
Requirements
Requirements Requirements
Requirement Segment
MRP
Stock Segment
Option A Purchase
Requisition
Purchasing
Option B Stock
Transport
Requisition
Agenda
Planning concept
 MRP
FMS: Article Master Data (MM42) (1)
1. Article Master Data: MM42, Logistics DC1

Maintain MRP Type
Maintain Lot Size
2. Logistics DC1/other Logistics data:

Maintain Strategy Group/Consumption Mode/Backward, Forward consumption period
Determines the consumption period (in workdays) for backward consumption.

Using backward consumption, sales orders are assigned to and consume planned independent requirement quantities
which lie within the consumption period and before the requirements date
FMS: Article Master Data (MM42) (2)
Plant specific segmentation data:

 Segmentation strategy
 Strategy scope
 Consumption Priority
 Stock Protection Indicator
 Planning Relevance for A-Run
Note: 1. Consumption priority “2” only supported.

2. Segmentation Strategy – 1:1 and N:1 supported
Segment Characteristics Relevance (CT04)
Relevancy for segmentation characteristic:

- Additional Data’ , “Relevancies for segmentation” for
the Characteristic should be set
Application specific relevancies are maintained in characteristics applied in Segmentation structure
Note: 1. VLC and FLC must be ON for Safety stock distribution across all valid segment combinations of segmentation strategy
Agenda
Planning concept
 MRP
Customizing of Segment structure and -strategy
Segmentation structure contains segmentation structure fields, that can freely be defined.
A segmentation structure is a well-defined sequential combination of one or more segmentation characteristics
(Characteristics Management CT04), that can be used to define one or more segmentation strategies.
Segmentation Strategy defines how Stock- and Requirement segments are considered during below activities in Planning:
Requirement and stock allocation

how requirement segments use stock segments during IMG
the material requirements planning run.
.
ATP: requirement and stock allocation
Specifies how requirement segments are assigned to
stock segments during the availability check.
Stock transfer
Defines the assignment of stock segments to
requirements segments between two plants.
Requirement to stock conversion

Define the stock segment to be proposed for a specific
requirement when the system creates new proposals
during the lot-size calculation.
Planned independent requirements consumption

Define how customer requirements consume planned
independent requirments.
Segment strategy: ATP Requirement/Stock Allocation
Below Customizing example shows an ATP Requirement/Stock Allocation strategy, that allows different
Requirement segments to be covered by a Stock Pool of common stock during ATP check.
IMG:
Agenda
Planning concept
 MRP
Create Planned Independent Requirements (MD61) (1)
1. Entry screen:
- Define Article/Variant and Plant
- Planning Horizon
- Planning period: day/Week/Month
- Planning Version
2. Planning Table:
- define required quantity per
variant, segment and period
3. Stock/Requirements List:
- shows stock/requirement situation per variant and
time line with respective Availability date
(stock segments) and Requirement date
(Requirement segments)
Note: FMS Release 1.0

APO Demand Planning can create PIR's only for one single default segment
Planned Independent Requirements (2)
Sales Orders consume PIR‘s
Existing PIR with Requirement Date 02.05.2014: 10 pcs
Backward Consumption: 20 days
Incoming Sales Orders consume PIR„s with a Requirement date < or = Sales Order Delivery Date upto 20 days.
PIR‘s: Generic Article / Article Variant (MD61)
In Transaction MD61 it is possible to enter

either generic article number or variant
number.
Entering generic article number all variants
of respective article can be maintained:
PIR-Activation:
All existing PIR„s of this version of all
variants are displayed and ready for data
entry.
The flag in column A shows, that all PIR„s
of version 00 are activated and relevant
for MRP
Agenda
Planning concept
 MRP
FMS: Materials Requirement Planning (MRP)
• Main purpose of MRP is to guarantee article availability, includes monitoring of

stock and automatic creation of procurement proposals for external and internal
purchasing or production.
• MRP balances service level optimization and minimization of costs and capital
lockup in a timely manner
• MRP considers stock, stock reservations and stock on order to calculate quantities,
and also reflects to lead times and procurement times to calculate dates. Suitable
lot-sizing procedure determine number of procurement proposals..
• Monitoring functionalities like stock/requirements list and exception messages for

unusual situation and delays enable rework of automated planning run.

Only external procurement is supported
FMS Planning Rel.1 – Elements of Planning
Planning based on Planned Independent Requirements or Sales Orders is called Demand

Driven Planning and is a typical Wholesale Planning Type. Materials Requirement Planning
takes current and future demands into consideration.
MRP Type:
controls whether or not a material is planned and how. Type PD
determines how requirements will be transferred into Stock
segments. In contrast to consumption based planning no historical
data are taken into consideration
Requirement objects
Planning Requirement objects categorize where requirements come from:
e.g. Planned Independent Requirements as a result of a planning
tool (APO etc.) or real Customer Wholesale Sales Orders
Stock objects
Define how requirements will be covered by MRP: Existing stock,
Purchase requisitions/Purchase Orders or Stock Transport
Requisitions/ Stock Transport Orders for external procurement.
FMS: Execute MRP
MD01N
1. Execute MRP Run on plant level:
MD01N: MRP Live
2. Planning Result:
Stock/Requirements List
MD04 or MD07
 Purchase Requisitions created for

coverage of PIR„s, SO, STOs based
on Net requirements calculation, delivery
date and Lot size

Only Segmentation Strategy 1:1 and N:1 supported
MRP: Segmentation
Requirement to Stock Conversion (1)
Based on segment strategies it can easily be defined which requirement segments are satisfied by
which stock segments during MRP Run.
Only 1:1 and n:1
Requirement to Stock Conversion
Req. Segment Prio Stock segment
RTQ1EU 1 RTQ1DE
RTQ1US 1 RTQ1DE
IMG:
MRP: Segmentation
Requirement to Stock Conversion (2)
In Customizing defined strategy

determines how Requirement
segments are covered by Stock
segments.
In this case scope 1 is defined:
 Stock segments
maintained.
Note : Segmentation Strategy Scope

Scope option defines mapping rules or segment combinations in segmentation strategy. Following scope options are defined:
1 – Requirements and Stock Segments Maintained,
2 – Only Requirements Segments Maintained
Scope = 1: both requirements- and stock segment are considered during planning run.
Scope = 2, only requirements segment is considered during planning run. Stock segment is not applicable
MRP: Segmentation
Planned Independent Requirement consumption
In Customizing of Segmentation strategy it is defined which requirement segments of
planned independent requirements are consumed by which requirement segments of
the customer requirement.
IMG:
TC: MD04
PIR
consumed by
Sales Order
MRP: Grouping of Purchase Requisitions (1)
Standard MRP creates 1 Purchase Requisition per receiving plant, Lot size and variant of an article.
In FMS the functionality ‚Grouping of Purchase Requisitions„ provides the possibility to combine the
requirements of all variants of a generic article into one Purchase Requisition.
Grouping of individual purchase requisitions during MRP

must be activated in Customizing.
Functionality is applicable only for variants of a generic
article.
As a prerequisite following attributes must have the same
value across variants of the generic article:
• Plant
• Release date
• Delivery date
• Supplying plant (in stock transport requisition)
• Supplier or vendor (in external procurement)
• Account assignment category
• Purchasing organization
• Purchasing group
• Requirement segments
• Stock segments
• Document Type
• Document Category (Item category)
• Storage Location
Example
1. Create a sales order with generic article GEN_ARTICLE along with its variants VARIANT1,
VARIANT2 and VARIANT3. All variants have the same requirement segment.
The delivery date for VARIANT1 and VARIANT2 are the same and for VARIANT3 it is
different. Assuming all other parameters for the variants are same.
Sales Order
Req.
Article Segment Qty Del. Date
VARIANT1 X 100 01.01.2014
VARIANT2 X 100 01.01.2014
VARIANT3 X 100 15.01.2014
2. Run the MRP

If you have activated the grouping of purchase requisitions, the system combines the
proposals for VARIANT1 and VARIANT2 into one purchase requisition. The system creates a
different purchase requisition for VARIANT3.
Purchase Requisition 1:
Req.
VARIANT1 X 100 01.01.2014
VARIANT2 X 100 01.01.2014
Purchase Requisition 2:
Req.
VARIANT3 X 100 15.01.2014
MRP: Order Allocation Run
The results from order allocation run (ARun) impact the net-requirement calculation during MRP run.
Hence, MRP considers the quantities reserved by order allocation run for requirements and stock or
receipts.
Prerequisites
• Article is relevant for order allocation run
• order allocation run has been executed
1. Stock-/Req.-List (MD04) 2. Arun for Sales Order2 (Arun)

Available
Date MRP-Element Qty Date MRP-Element Qty Quantity
09.10.2013 Batch Stock 50 09.10.2013 Batch Stock 50 allocated to
16.10.2013 Purch.Order 50 16.10.2013 Purch.Order 50 SalesOrder2
03.11.2013 Sales Order 1 100 03.11.2013 Sales Order 1 100
10.11.2013 Sales Order 2 100 10.11.2013 Sales Order 2 100
3. MRP Run (MD02)

MRP creates New
Date MRP-Element Qty Purchase Req. for
09.10.2013 Batch Stock 50 SalesOrder1
16.10.2013 Purch.Order 50
03.11.2013 Sales Order 1 100
03.11.2013 Purch. Req. 100
10.11.2013 Sales Order 2 100
Note:
For an article that is not relevant for order allocation run or if the order allocation run is not executed, MRP always procures at the latest date, and may even fail to
fulfill the requirements in certain cases.
Agenda
Planning concept
 MRP
PIR: Segmentation/Stock Protection (1)
• With FMS ‚Stock Protection„ companies can manage IMG:

segment specific demands in combination with a common
stock pool.
• Channel specific demands are created using PIRs with

segments and based on segmentation strategy mapped to
a common stock pool. Z001 ECO E-Commerce 1
Z001 RET Retail 2
• Common Stock pool can be defined using Scope 1 (n:1) or Z001 WHS Wholesale 3
with Scope 2 (without stock segment).
• When creating a channel specific sales order or Stock

Transport Order ATP uses the unconsumed quantities of
PIRs to protect stock also considering channel priorities
within Replenishment Lead Time horizon if customized.
• Channel priorities are defined in segmentation strategy e.g.

ECO = Prio 1, RET = Prio 2, WHS = Prio 3.
• ARun also considers „Stock Protection‟
Note:
For materials with segmentation, the system only supports external procurement and does not support in-house production.
Prerequisites to apply Stock Protection:
Stock Protection Indicator can only be set if

segmentation strategy for a material is maintained. The
Seg. Strategy Scope can be 1 or 2
1. Create Segment Structure

2. Maintain Segment Strategy
3. Assign Segment Structure and – strategy to the
article
4. Set Stock Protection Indicator
ECO Prio 1
RET Prio 2
WHS Prio 3
Wholesale PIR
100 pcs New Wholesale Sales Order
requests: 200 Pcs
Retail PIR Common

100 pcs only 100 pcs confirmed
Stock Pool
300 pcs due to 200 pcs protected stock
E-Commerce PIR for channels with a higher
100 pcs prioritization.
(dependent on Replenishment
Lead Time)
Lesson Summary
You should now be able to know

• How to maintain Planning data in Article Master
• How to create Planned Independent Requirements (PIR‟s)
• How to activate Planned Independent Requirements
• How to consume Planned Independent Requirements
• How to integrate segmentation in Planning
• How to group Purchase Requisitions
• How to consider allocated quantity (ARun) in MRP
• How to protect stock in Planning
Contact Information:
Neureuther, Werner - werner.neureuther@sap.com
Palfi, Zoltan - zoltan.palfi@sap.com
KH, Sunil - sunil.kh@sap.com

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Fashion Management Solution 1.

At the end of this lesson, you will know

• In FMS, planning can be dependent on planning strategies.

* Note: Bill of Material is not supported with FMS 1.0

Planning in FMS Release1 encompasses:

• Creation and Maintenance of Planned Independent Requirements (PIR) with

• ATP with segmentation and stock protection (common stock)

• Planning strategies with segmentation

• MRP on HANA (live)

1. Article Master Data: MM42, Logistics DC1

2. Logistics DC1/other Logistics data:

Determines the consumption period (in workdays) for backward consumption.

Plant specific segmentation data:

 Planning Relevance for A-Run

Note: 1. Consumption priority “2” only supported.

Relevancy for segmentation characteristic:

Application specific relevancies are maintained in characteristics applied in Segmentation structure

Requirement and stock allocation

Requirement to stock conversion

Planned independent requirements consumption

Note: FMS Release 1.0

Backward Consumption: 20 days

In Transaction MD61 it is possible to enter

• Main purpose of MRP is to guarantee article availability, includes monitoring of

• Monitoring functionalities like stock/requirements list and exception messages for

Note: FMS Release 1.0

Planning based on Planned Independent Requirements or Sales Orders is called Demand

 Purchase Requisitions created for

Note: FMS Release 1.0

Only 1:1 and n:1

Requirement to Stock Conversion

Req. Segment Prio Stock segment

In Customizing defined strategy

Note : Segmentation Strategy Scope

Grouping of individual purchase requisitions during MRP

VARIANT1 X 100 01.01.2014

VARIANT2 X 100 01.01.2014

VARIANT3 X 100 15.01.2014

2. Run the MRP

VARIANT1 X 100 01.01.2014

VARIANT2 X 100 01.01.2014

VARIANT3 X 100 15.01.2014

1. Stock-/Req.-List (MD04) 2. Arun for Sales Order2 (Arun)

3. MRP Run (MD02)

• With FMS ‚Stock Protection„ companies can manage IMG:

• Channel specific demands are created using PIRs with

• When creating a channel specific sales order or Stock

• Channel priorities are defined in segmentation strategy e.g.

• ARun also considers „Stock Protection‟

Prerequisites to apply Stock Protection:

Stock Protection Indicator can only be set if

1. Create Segment Structure

Retail PIR Common

You should now be able to know

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