PUBLIC

Live Webcast
DDMRP from Planning to
Scheduling in IBP and
S/4HANA – April 05, 2022
Live Q&A Report

Contact the SAP IBP Customer Engagement Team for

additional questions: engage-ibp@sap.com

Questions Asked
1 Do we have deployment solutions available with SAP on DDMRP? ................................................. 6
2 Is DDMRP factors EWM stocks? ............................................................................................................ 6
3 To which supply environments DDMRP is not recommended? ........................................................ 6
4 Can DDMRP be set up in a cost optimized manner (such as inventory level optimization in IBP
for inventory)? E.g., add a cost perspective to the buffer profile level calculation? And what about
shelf life? ......................................................................................................................................................... 6
5 What is required for that integration?.................................................................................................. 6
6 What is the guiding principle to decide if we should implement DDMRP or Inventory
optimization of IBP? ...................................................................................................................................... 6
7 How come internal variability is also included? .................................................................................. 6
8 Can we Stimulate based on Buffer planning? ..................................................................................... 6
9 In the event of supply shortage, how will the system help to apportion the available limited
stocks to requesting locations based on their priority ............................................................................ 7
10 How to connect DDMRP to the IBP inventory module for S&OP and mid long-term planning? . 7
11 Is DDMRP real-time linked to S4 Hanna, so does it update during the day, or do you need to
have regular planning runs? ......................................................................................................................... 7
12 Does IBP support time-series based planning and DDMRP in the same planning area? ............. 7
13 Is DDMRP in IBP is only OBP? ................................................................................................................ 7
14 Is it possible to pass buffer quantities at loc/prod to optimizer-based planning tool? .............. 7
15 On what basis decoupling points are determined? ............................................................................ 7
16 Does the DDMRP Buffer Analysis app update all IBP master data or just some data? ................ 7
17 Is DDMRP for complex supply chain network or also good with simple supply chain networks?8
18 Can we use DDMRP and OBP for prioritizing orders? What is the output of DDMRP that goes
as input to OBP? ............................................................................................................................................. 8
19 What are the table and fields that used to connect IBP to S4Hana? .............................................. 8
20 Will the presentation be shared after the webcast? .......................................................................... 8
21 Is Make-to-order strategy supported in DDMRP? Do we have flexibility to switch between MTO
& MTS strategy in DDMRP? .......................................................................................................................... 8
22 Can IBP for Inventory and IBP DDMRP be used for different parts of the portfolio, so some are
on DD and some using Inventory? ............................................................................................................... 8
23 DDMRP doesn't create any decoupling points in some supply chains - are we to conclude in
that case that DDMRP is not of any use for those supply chains? ......................................................... 8
24 How does this fit with Inventory Optimization? ................................................................................. 8
25 There are cases where there is no recommendation on the red base / yellow zone but only the
green zone buffer levels are generated - is this correct and valid? Are we assume that these
buffer levels are mutually exclusive? .......................................................................................................... 9
26 Is Buffer the same as safety stock? ...................................................................................................... 9
27 How did you come to the dec. point recommendations in such a big network? ............................ 9
28 What is the difference between regular lead time and 'decoupled' lead time? ............................. 9
29 Does the demand calculation have to be expressed as ADU or could be weekly / monthly? In
other words, is there flexibility to plan with DDMRP in daily/weekly/monthly buckets in IBP? ...... 9
30 How much historic data is needed to calculate ADU? Can this be determined based on
Segmentation .................................................................................................................................................. 9
31 How to factor the trend and the seasonality of demand in the ADU calculation? ........................ 9
32 Is there any priority/weight assigned to different factors contributing to determine
decoupling points? Or this is internally calculated by IBP DDR? ........................................................... 9
33 What is the min level for reorder point planning? .............................................................................. 9
34 In the standard DDMRP Implementation is mandatory both an IBP asks S4HANA? ................... 9
35 What is the impact if your past data is not reflective of the future trend when it comes to
calculating ADU? .......................................................................................................................................... 10
36 Are buffers similar to Kanban? ............................................................................................................ 10
37 You can use a demand forecast with seasonality as an input in the ADU calculation., but if you
do this the seasonality is lost in the ADU calculation, as it averages out of a period of time. ........ 10
38 Will option 3 have Scheduling function also? ................................................................................... 10
39 What about the compliance with earlier SAP versions? ECC, R3, etc. .......................................... 10
40 Does DDMRP support MTO with Variant Configuration by standard? .......................................... 10
41 How would you see managing 12000 combination markets /SKUs and 30000 components? It
might seem cumbersome to manage these buffers on different boms. What is your experience? 10
42 How do you deal with limited capacity in certain periods, anticipating flows in order not to be
bottlenecked in the peak? Isn't it contradictory with DDMRP philosophy? How DDMRP deals with
it? 11
43 Does the current version of SAP-DDMRP compliance by Demand Driven Institute for DDOM? If
not, when? ..................................................................................................................................................... 11
44 Can we consider now a complete coverage of DDMRP operating model using SAP Solutions,
next steps on adaptative enterprise? ....................................................................................................... 11
45 How could SAP IBP DDMRP manage the seasonality of product? And sales promotion? ......... 11
46 Is DDMRP replacing Inventory in the future? .................................................................................... 11
47 Are the IBP DDMRP algorithms available in S4 DDMRP? If yes, what's the benefit of having
IBP DDMRP license?..................................................................................................................................... 11
48 What is difference between DDMRP and Predictive MRP - how they compare? ......................... 11
49 Can you please let me know the difference between DDMRP use on IBP and S/4HANA? ........ 12
50 In which business environment is this working i.e., ETO or MTS with flow or MTO? .................. 12
51 Will SAP DDMRP offering cover off constrained storage such as bulk storage tanks for liquids
12
52 Can DDMRP support mid and long-term planning?.......................................................................... 12
53 S4 Hana DDMRP needs forecast accuracy to be fed from outside, correct? .............................. 12
54 Is the scheduling part DDOM compliant as well? ............................................................................. 12
55 How does DDMRP position alongside the IBP Inventory Optimization module? ........................ 12
56 What’s the business scenario where option 2 will be used? ........................................................... 12
57 What is Planning- OBP? ........................................................................................................................ 12
58 Can S/4 HANA DDMRP alone without buffering (IBP) considered DDMRP? .............................. 13
59 Which part does PPDS play in Option 3? ........................................................................................... 13
60 Which IBP license is needed to use steps 1-3 within IBP scope? ................................................... 13
61 Do DDMRP SUPPORT S&OP IN SAP IBP? .......................................................................................... 13
62 Which is the roadmap timeline for Option 3? .................................................................................... 13
63 What is a decoupling point? ................................................................................................................. 13
64 Which are the reasons to prefer DDMRP in IBP compared to DDMRP in S4?.............................. 13
65 Does Decoupling point mean, the node where we set safety buffer? ........................................... 13
66 How did you size the target inventory for the in-transit stock i.e. flow from China to Europe?13
67 Do we need to define Decoupling points manually or do we have some AI/ML algorithm to
define? ............................................................................................................................................................ 13
68 Can we operate DDMRP with IBP IO? ................................................................................................. 14
69 When various nodes across the supply chain are selectively chosen to act as
DDMRP/decoupled nodes, do any upstream nodes (of a decoupling point) have visibility to
dependent demand propagated from downstream nodes that were map relevant (i.e., not
decoupled)? ................................................................................................................................................... 14
70 Can we implement where the IBP is used in integration SAP ECC? .............................................. 14
71 If we frequently see SFG1 feeding into FG1, FG2 & FG3, etc., in a Make-to-Order/Make-to-
Assemble environment with somewhat flexible lead times to customer, would SFG1 be considered
a ‘natural’ decoupled point? ....................................................................................................................... 14
72 What are the differences between S/4 MRP and S/4DDMRP standalone, without IBP (buffers)
14
73 In a landscape with DDMRP and PPDS. What are the reasons to use DDMRP instead the
heuristics? ..................................................................................................................................................... 14
74 Can we identify pace-setters/bottleneck machines/constraints through ePPDS? .................. 14
75 Is the DD scheduling deployed also on Fiori App? I see Resource Planning Table as webGUI .. 15
76 Does Demand Driven Scheduling support multi-level planning, set-up matrix and resource
network? ........................................................................................................................................................ 15
77 What is the difference between DDMRP Scheduling vs ePPDS Scheduling heuristic? .............. 15
78 Can we use the heuristics, for example: top-down rescheduling to consider the DDMRP
relevant products during finite scheduling? Or is it limited only to schedule sequence heuristics
only? ............................................................................................................................................................... 15
79 Is it possible check the full kit before schedule an order?.............................................................. 15
80 I would like to understand them why it steps 1 2 and 3 are done in IBP but also is available in
S4 call challenges to determine Buffer Size, ADU, etc. Which are part of the steps 1, 2 and 3 ...... 15
81 Is DDMRP available in S/4HANA for Fashion? ................................................................................. 15
82 Can you elaborate the difference between S4/Hana solution for step1-3 and the IBP hybrid
solution? ........................................................................................................................................................ 15
83 What are the options if you click on ‘expedite supply’? .................................................................. 16
84 DDMRP will be also available for retail industry? ............................................................................. 16
85 Does this change the normal way MRP in SAP/HANA releases supply orders to vendors? So,
the new system can automatically release orders based on the NFP and buffer statuses? ............ 16
86 How do calculate this priority when you have both MTS (DDMRP) and MTO items? ................. 16
87 If I use S/4HANA DDMRP approach, can I still use forecast to derive ADU? .............................. 16
88 Which fields in S4 material master updated once Buffer level are calculated and does this
happen automatically .................................................................................................................................. 16
89 Does IBP DDR and S4 DDR support quota arrangements for splitting the replenishment orders
across multiple sources of supply? ........................................................................................................... 16
90 Are Does DDMRP generate planned orders/Stock transfer in IBP, or do we still need to run
any supply algorithm on top of DDMRP? .................................................................................................. 17
91 Why is SAP not designing a net requirement planning proposals based on the customer
demands and the buffer levels at each decoupling points? What we now have is just a buffer level
calculation and order recommendation. Isn't NRP a good idea and can we exect that in future
releases? ........................................................................................................................................................ 17
92 What is the demand element in DDMRP? is it initiated based on forecast or sales order or
dependent demand or all?........................................................................................................................... 17
93 Do SAP IBP S&OP is supported with DDMRP? Can Planning to scheduling be done with S&OP
With DDMRP? ................................................................................................................................................ 17
94 Is DDMRP successful for FMCG or Food Industry? .......................................................................... 17
95 If DDMRP is not just safety stock, then is it an alternative to IBP supply planning algorithms?
17
96 Is there a document published by SAP, especially for presales consultants and solution
architect as to "When to position which solution - be it single/multi echelon or DDMRP with or
without IBP R&S and so on' ........................................................................................................................ 18
97 Is there a digital supply chain Jam group that you can invite me to? ........................................... 18
98 What needs to be considered if a company is trying to use Supply planning heuristics &
DDMRP, or would you only use one over the other? ............................................................................... 18
99 Is Constrained & Unconstrained planning supported in DDMRP? Does it works with heuristics
and Optimizer based planning?.................................................................................................................. 18
100 If you have both IBP and S/4 makes sense to execute them from both sides? something
can go wrong if you execute it in both places? ........................................................................................ 18
101 For which industries are the DDMRP mostly use? ............................................................................ 18
102 What is the input demand to DDMRP? ............................................................................................... 18
103 We thought DDMRP is a separate license if IBP if integrated with ECC, is that incorrect? ...... 19
104 How does DDMRP works with RTO model - Replenish To Order where replenishment
triggers based unconfirmed items in sales order at different warehouse locations?....................... 19
105 Can SAP IBP Heuristics or Optimization be another approach to feasible & even optimal
solution that DDMRP attempts to address? ............................................................................................ 19
106 Does DDMRP work well only in discrete industry, or does it also work for continuous
process industry? ......................................................................................................................................... 19
107 Are there any guidelines for when to choose DDMRP vs Heuristics or optimizer, when DDMRP
works & does not? ........................................................................................................................................ 19
108What's typically the size of the "Planning Team" to run all of this? ............................................. 19
109 Since DDMRP is replenishment against true demand, would it work better for Mate to
Order scenario & not as well for Make to Stock? .................................................................................... 20
110 How justified is it to say, DDMRP is basically setting up "Safety Stock" at some strategic
nodes in the Network? ................................................................................................................................. 20
111 Do you have some reference of a company implementing and how inventory KPIs were
improved? ...................................................................................................................................................... 20
112 Will you share the list of customer references benefiting from the power of DDMRP? ............ 20
113 How does it manage events which are outside of normal demand, as the buffers are not sized
to accommodate these items? ................................................................................................................... 20
114 For what industries does SAP recommend implementing DDMRP? For Eg: For a Car assembly
company, would they be able to keep safety buffer at certain nodes? ............................................... 20
115 If you implement IBP and connect it to S/4 HANA DDMRP must run always from IBP? is there
any possibility of error because someone run it in both systems at the same time? ....................... 21
116 Buffer in production is not new - where is new approach of DDDMRP? ....................................... 21
117 In practice, do the parameters of the DDMRP have to be tuned again and again, or are they
constant? ....................................................................................................................................................... 21
118 Considering that DDMRP include actuals and also forecast to calculate ADU and buffers, it
seems that DDMRP covers Inventory functionality and further. Is this understanding, correct? .. 21
119 Sub-contracting and consignment are supported by DDMRP? ...................................................... 21
120 There is a Consulting Solution Customized MRP Type (CMT-DDP) with MRP Type DD (Demand
Driven). In which cases does it add value to DDMRP? Does it also bring benefits if DDMRP is not
used? .............................................................................................................................................................. 21
121 How Inventory Optimization fits with DDMRP meaning in integration with IBP ......................... 21
122 What needs to be considered if a company is trying to use Inventory Optimization & DDMRP,
or would you only use one over the other? ............................................................................................... 21
123 Does it consider when movements were entered in the system or when activities really
happened physically?................................................................................................................................... 22
124 ADU calculation seems to be a simple moving average. Do you recommend ADU to be sourcing
from the forecast volumes from the IBP demand license, instead of a moving average based on
the demand from IBP? ................................................................................................................................. 22
125 Could you please share the definitions for red, yellow and green zones shown here? .............. 22
126 Is DDMRP more of Inventory solution, Production planning scheduling solution or both of
them?.............................................................................................................................................................. 22
127 In S/4 DDMRP are Buffer levels calculated automatically? ........................................................... 22
 1 Do we have deployment solutions available with SAP on
DDMRP?
No DD deployment available as of today.

2 Is DDMRP factors EWM stocks?

Unclear question. Presumably "no" as there is direct integration
of DDMRP and EWM.

3 To which supply environments DDMRP is not recommended?

Basically, we would not exclude any industry per se. Depends on the concrete use
case.

4 Can DDMRP be set up in a cost optimized manner (such as inventory level

optimization in IBP for inventory)? E.g., add a cost perspective to the buffer
profile level calculation? And what about shelf life?
No, DDMRP methodology differs from inventory optimization methodology. SAP IBP
for DDR uses cost per unit input to estimate the buffer size investment. Shelf-life
constraints apply to supply planning use cases, not when estimating buffer sizes.

5 What is required for that integration?

"SAP IBP add-ons exist to integrate decoupling point and buffer size to S/4HANA:
CPI-
DS_IBP_DDR_to_S4_DCP_via_API (see https://help.sap.com/viewer/feae3cea3cc5
49aaa9d9de7d363a83e6/2105/en-
US/15b720cbc77145e6be0c645dde748cad.html)
CPI-
DS_IBP_DDR_to_S4_Buffer_Integration_via_API (see https://help.sap.com/viewer/
eab8fd1726934516a89eabced318b210/2105/en-
US/4d574e0a85024450bd4bdf4889c0f074.html)"

6 What is the guiding principle to decide if we should implement DDMRP or

Inventory optimization of IBP?
No guiding principle exists, but a customer interest in adopting DDMRP methodology
or not.

7 How come internal variability is also included?

What is internal variability? The DDMRP methodology calls for defining a variability
category applicable to upstream materials like WIPs or raw materials.

8 Can we Stimulate based on Buffer planning?

No. SAP IBP for DDR offers simulation based on changes in decoupling points.
9 In the event of supply shortage, how will the system help to apportion the
available limited stocks to requesting locations based on their priority
SAP IBP for DDR supports planning for buffer sizes, not allocation during supply
shortage.

10 How to connect DDMRP to the IBP inventory module for S&OP and mid long-
term planning?
There is no connection of SAP IBP for DDR with SAP IBP for inventory since these
are two different methodologies. Using long planning horizons in SAP IBP for DDR
could support long term planning.

11 Is DDMRP real-time linked to S4 Hanna, so does it update during the day, or

do you need to have regular planning runs?
SAP IBP for DDR supports a planning cadence-based approach, e.g., weekly,
monthly, hence, no need to use real time integration.

12 Does IBP support time-series based planning and DDMRP in the same
planning area?
Not defined as a standard connection, but via configuration, technically, you could
use the buffer size outputs of SAP IBP for DDR into SAP IBP for supply inputs for
time-series planning.

13 Is DDMRP in IBP is only OBP?

Currently, SAP IBP for DDR is time-series based only.

14 Is it possible to pass buffer quantities at loc/prod to optimizer-based planning

tool?
Not defined as a standard connection, but via configuration, technically, you could
use the buffer size outputs of SAP IBP for DDR into SAP IBP for supply inputs for
time-series planning.

15 On what basis decoupling points are determined?

Please review slide 21 of the presentation titled "Strategic Inventory Positioning and
Buffer Sizing: Contributors Within the Supply Chain Network". In addition, please
review the DDMRP methodology by the Demand Driven Institute.

16 Does the DDMRP Buffer Analysis app update all IBP master data or just some
data?
"Only updates attributes LEADTIMECATEGORY and VARIABILITYCATEGORY in
LOCATIONPRODUCT master data."
17 Is DDMRP for complex supply chain network or also good with simple supply
chain networks?
SAP IBP for DDR supports any supply chain network complexity.

18 Can we use DDMRP and OBP for prioritizing orders? What is the output of
DDMRP that goes as input to OBP?
Currently, it is not supported. SAP IBP for DDR generates time-series plans in the
form of buffer levels.

19 What are the table and fields that used to connect IBP to S4Hana?
We will address this inquiry in the webinar. However, I suggest reviewing the
following SAP IBP Help Portal content: CPI-
DS_IBP_DDR_to_S4_DCP_via_API (see https://help.sap.com/viewer/eab8fd17269
34516a89eabced318b210/2105/en-
US/15b720cbc77145e6be0c645dde748cad.html) CPI-
DS_IBP_DDR_to_S4_Buffer_Integration_via_API (see https://help.sap.com/viewer/
eab8fd1726934516a89eabced318b210/2105/en-
US/4d574e0a85024450bd4bdf4889c0f074.html)

20 Will the presentation be shared after the webcast?

Yes

21 Is Make-to-order strategy supported in DDMRP? Do we have flexibility to

switch between MTO & MTS strategy in DDMRP?
SAP IBP for DDR supports discretionary selection of decoupling points and non-
decoupling points for testing both strategies.

22 Can IBP for Inventory and IBP DDMRP be used for different parts of the
portfolio, so some are on DD and some using Inventory?
Yes, they can be used for different individual networks of materials.

23 DDMRP doesn't create any decoupling points in some supply chains - are we
to conclude in that case that DDMRP is not of any use for those supply
chains?
SAP IBP for DDR determines decoupling points across a multi-echelon network
based on various factors. We will address this shortly.

24 How does this fit with Inventory Optimization?

SAP IBP for DDR and SAP IBP for inventory are separate solutions with different
approaches.
25 There are cases where there is no recommendation on the red base / yellow
zone but only the green zone buffer levels are generated - is this correct and
valid? Are we assume that these buffer levels are mutually exclusive?
This means you may be missing calculation of Lead Time Factor and Variability
Factor.

26 Is Buffer the same as safety stock?

No, the Red Zone would be equivalent to safety stock.

27 How did you come to the dec. point recommendations in such a big network?
We apply a multi-echelon approach to do so, considering magnitude of variabilities,
sourcing, lot size and exposure periods.

28 What is the difference between regular lead time and 'decoupled' lead time?
Simply defined, production and transportation lead times are inputs used to
calculate decoupled lead times in between decoupling points.

29 Does the demand calculation have to be expressed as ADU or could be weekly

/ monthly? In other words, is there flexibility to plan with DDMRP in
daily/weekly/monthly buckets in IBP?
In SAP IBP for DDR, ADU is recommended to be calculated at daily level. You can
aggregate outputs at higher time levels.

30 How much historic data is needed to calculate ADU? Can this be determined
based on Segmentation
IN SAP IBP for DDR, calculation of ADU can support any horizons in the past, blend
of pat and future, and future.

31 How to factor the trend and the seasonality of demand in the ADU
calculation?
You can use a demand forecast with seasonality as an input in the ADU calculation.

32 Is there any priority/weight assigned to different factors contributing to

determine decoupling points? Or this is internally calculated by IBP DDR?
In slide 21 of the presentation, we display the contributors. Hence, weight depends
on magnitude of such contributors.

33 What is the min level for reorder point planning?

You can define minimum thresholds to determine when to order up to top of green.

34 In the standard DDMRP Implementation is mandatory both an IBP asks

S4HANA?
Not mandatory
35 What is the impact if your past data is not reflective of the future trend when
it comes to calculating ADU?
You can use future data as input to calculate ADU.

36 Are buffers similar to Kanban?

Yes, similar.

37 You can use a demand forecast with seasonality as an input in the ADU
calculation., but if you do this the seasonality is lost in the ADU calculation, as
it averages out of a period of time.
SAP IBP for DDR calculates time-varying rolling ADUs so ADUs can capture
seasonality.

38 Will option 3 have Scheduling function also?

We imagine the possibility to complement option 3 by S4 ePPDS in an analogous
way like in option 2.

39 What about the compliance with earlier SAP versions? ECC, R3, etc.
"_ DDMRP is supported by S4 and IBP.
_ For ECC, there exists an IBP AddOn to run DDMRP across IBP and ECC. That
approach is supported but not further developed.
_ There is no SAP Standard solution for DDMRP in R/3"

40 Does DDMRP support MTO with Variant Configuration by standard?

"DDMRP buffers are defined independent of sales orders or projects, i.e. MTS. Their
purpose is to provide availability of the material, independent of the consumer.
Nevertheless, DDMRP could be used in a sales order / project context on a low-level-
code, where pre-production is anonymous (e.g. modules, which are then assembled
into the finished good on sales order entry - moving from pure MTO to ATO).

Now looking at Variant Configuration: If you use material variants, then you could
consider buffering such materials. Or you could buffer components/modules below
the configurable part of the configurable finished product. But buffering configurable
materials doesn't make sense."

41 How would you see managing 12000 combination markets /SKUs and 30000
components? It might seem cumbersome to manage these buffers on
different boms. What is your experience?
"Usually, you would let the system do the job, e.g.
_ Buffer adjustments typically happen automatically, applying the latest forecast and
consumption data for ADU calculation, resulting in adjusted buffers
 _ The DDMRP planning step in S4 is fully embedded into the MRP context via a
specific MRP procedure ""C"" respectively the MRP types ""D1"" and ""D2"". MRP is
usually run on a daily basis. The DDMRP-managed material is palled automatically,
based on the Net Flow Calculation
_ Only in exceptional cases, the user looks into the alerted materials and takes
manual measures"

42 How do you deal with limited capacity in certain periods, anticipating flows in
order not to be bottlenecked in the peak? Isn't it contradictory with DDMRP
philosophy? How DDMRP deals with it?
You could look into possibilities of preproduction, e.g., raising the buffer levels early
enough and preparing for the time when there is not sufficient capacity. Approaches
could be via Adjustment factors (within the DDMRP solution) or using adequate
Forecast as input to the rolling ADU calculation.

43 Does the current version of SAP-DDMRP compliance by Demand Driven

Institute for DDOM? If not, when?
We haven't triggered DDOM compliance process yet. But that's the intent.

44 Can we consider now a complete coverage of DDMRP operating model using

SAP Solutions, next steps on adaptative enterprise?
Regarding the DDOM, basically yes - we still need & want to do the formal
certification.

45 How could SAP IBP DDMRP manage the seasonality of product? And sales
promotion?
You could use Forecast in the ADU calculation. Alternatively use Adjustment Factors

46 Is DDMRP replacing Inventory in the future?

IBP for Inventory and IBP DDMRP coexist and will continue to do so. They provide
alternative approaches to planning

47 Are the IBP DDMRP algorithms available in S4 DDMRP? If yes, what's the
benefit of having IBP DDMRP license?
The IBP DDMRP algorithms are part of the IBP DDMRP license. The results can be
passed to S4 via a defined interface to continue planning there

48 What is difference between DDMRP and Predictive MRP - how they compare?
Predictive MRP is a method to propagate a demand signal from the top level product
to the component / raw material. It can be run in a simulative mode. DDMRP is a
planning methodology for consumption-based planning.
49 Can you please let me know the difference between DDMRP use on IBP and
S/4HANA?
Basically, both address the DDMRP process. S4 covers the basic needs end-to-end.
IBP can address steps 1-4, offering advanced features like to algorithm for buffer
positioning and sizing. The step 5 (execution) always is in the SAP ERP system.

50 In which business environment is this working i.e., ETO or MTS with flow or
MTO?
DDMRP buffers are defined independent of sales orders or projects, i.e., MTS. Their
purpose is to provide availability of the material, independent of the consumer.
Nevertheless, DDMRP could be used in a sales order / project context on a low-level-
code, where pre-production is anonymous (e.g., modules, which are then assembled
into the finished good on sales order entry - moving from pure MTO to ATO).

51 Will SAP DDMRP offering cover off constrained storage such as bulk storage
tanks for liquids
As of today, the aspect of limited buffer size is not addressed directly. You could look
into using the possibilities for "Replenished Override Parts" approach, basically
setting the buffer size manually and not recalculate

52 Can DDMRP support mid and long-term planning?

Buffer sizing can be done also for a longer horizon, using forecast as input to the
rolling ADU calculation. From a planning perspective, IBP DDMRP can plan beyond
DLT, creating a longer stock projection

53 S4 Hana DDMRP needs forecast accuracy to be fed from outside, correct?

S4 DDMRP can use forecast for the ADU calculation (forward-looking or blended). It
does not matter, where the forecast comes from, may it be entered manually,
integrated from IBP, or imported via API.

54 Is the scheduling part DDOM compliant as well?

We haven't triggered DDOM compliance process yet. But that's the intent.

55 How does DDMRP position alongside the IBP Inventory Optimization module?
See question 6. It is two alternative approaches to planning

56 What’s the business scenario where option 2 will be used?

Scenario: You are basically fine with S4 DDMRP planning, but you would like some
support in positioning buffers through an algorithm (S4 supports only manual buffer
positioning).

57 What is Planning- OBP?

Order-Based Planning = IBP Response
58 Can S/4 HANA DDMRP alone without buffering (IBP) considered DDMRP?
Yes. As you can see in option 1, S4 DDMRP addresses all 5 steps. Difference is that
S4 supports only manual buffer positioning, while IBP can suggest the position with
an algorithm.

59 Which part does PPDS play in Option 3?

It is used for Demand-Driven Scheduling. Simply put: Prioritizing orders which feed
into buffers which are in most need of replenishment

60 Which IBP license is needed to use steps 1-3 within IBP scope?
IBP for DDMRP

61 Do DDMRP SUPPORT S&OP IN SAP IBP?

IBP DDMRP is DDS&OP certified

62 Which is the roadmap timeline for Option 3?

No concrete timeline as of today

63 What is a decoupling point?

Decoupling point means: buffer position. The buffer decouples the demand from the
supply side, reducing certain downsides of classic MRP (nervousness, bull whip),
while providing availability via the buffer

64 Which are the reasons to prefer DDMRP in IBP compared to DDMRP in S4?
Buffer positioning in S4 DDMRP is a manual process, supported by certain indicators
(like ABC or XYZ considerations or simulative decoupled lead time). In IBP the buffer
positioning can be done via an algorithm

65 Does Decoupling point mean, the node where we set safety buffer?
Yes, decoupling point = position of a buffer

66 How did you size the target inventory for the in-transit stock i.e. flow from
China to Europe?
Basically, calculation happens always in the same way via the buffer zones
red/yellow/green. applies also to "transfer" parts, like for "purchased" and
"manufactured". Decoupled lead time being a factor for all of them. If, in case of
long lead time, you want to reduce the green zone, the methodology offers different
parameters like Minimum Order Quantity, Cycle Time, Lead Time Factor.

67 Do we need to define Decoupling points manually or do we have some AI/ML

algorithm to define?
In S4 the buffer positioning is a manual process. In IBP you can use an algorithm to
suggest buffer positions.
68 Can we operate DDMRP with IBP IO?
See question 6. IO and DDMRP are alternative approaches. You might want to use
the one for business area A while you use the other for business area B. But you
wouldn't use both for the same products.

69 When various nodes across the supply chain are selectively chosen to act as
DDMRP/decoupled nodes, do any upstream nodes (of a decoupling point)
have visibility to dependent demand propagated from downstream nodes that
were map relevant (i.e., not decoupled)?
You could use S4 Predictive MRP to propagate demand in a simulative way to
upstream buffers, where the derived demand can be considered via ADU calculation
in buffer sizing, anticipating required changes early in time

70 Can we implement where the IBP is used in integration SAP ECC?

You can integrate IBP DDMRP into SAP ECC. This requires an AddOn in ECC. Note
that this option is only in maintenance mode, i.e., no further developments. The
current and future direction is S4 and/or IBP.

71 If we frequently see SFG1 feeding into FG1, FG2 & FG3, etc., in a Make-to-
Order/Make-to-Assemble environment with somewhat flexible lead times to
customer, would SFG1 be considered a ‘natural’ decoupled point?
Could be, yes. Depends on different considerations, whether it makes sense to
buffer a particular SFG: e.g., in how many FGs is that SFG used as a component?
How regular is the consumption (XYZ)? How much does it shorten the
response/lead time to the customer?

72 What are the differences between S/4 MRP and S/4DDMRP standalone,
without IBP (buffers)
The buffers can be positioned and size din S4 also w/o IBP 2. MRP functionality
typically does exact planning of net demands, while the DDMRP methodology
typically works with dynamic buffers.

73 In a landscape with DDMRP and PPDS. What are the reasons to use DDMRP
instead the heuristics?
DDMRP avoids bull-whip effect by buffering material on certain BOM levels (->
strategic buffer positions). Compared to common MRP heuristic, creation of buffer
stock is accepted in DDMRP whereas e.g., in a make-to-order environment, there are
no material buffers foreseen (except of safety stock). In a DDMRP environment,
PPDS is only responsible for scheduling of existing order receipts and not for
creation of order receipts.

74 Can we identify pace-setters/bottleneck machines/constraints through

ePPDS?
Yes, regular capacity evaluations, which can be done in PPDS, can identify
bottleneck resources.
75 Is the DD scheduling deployed also on Fiori App? I see Resource Planning
Table as webGUI
There are no dedicated FIORI apps for Demand-Driven Scheduling.

76 Does Demand Driven Scheduling support multi-level planning, set-up matrix

and resource network?
Demand-Driven Scheduling is meant to schedule only single-level. Material buffers in
strategic places within BOM structure care for multi-level dependencies. Resource
networks and setup matrices are not considered neither.

77 What is the difference between DDMRP Scheduling vs ePPDS Scheduling

heuristic?
It depends on which scheduling heuristic in PPDS you compare with Demand-Driven
Scheduling. The criterion for sequencing orders in Demand-Driven Scheduling is the
calculated order priority calculated by projected on-hand status or remaining slack
time. Other PPDS heuristics do not consider such prioritization.

78 Can we use the heuristics, for example: top-down rescheduling to consider the
DDMRP relevant products during finite scheduling? Or is it limited only to
schedule sequence heuristics only?
Currently Demand-Driven Scheduling heuristic is the only one which prioritizes
orders using DDMRP relevant KPIs (projected on-hand stock/status).

79 Is it possible check the full kit before schedule an order?

Yes, is possible to combine Demand-Driven Scheduling heuristic with other
heuristics and also interactive scheduling.

80 I would like to understand them why it steps 1 2 and 3 are done in IBP but also
is available in S4 call challenges to determine Buffer Size, ADU, etc. Which are
part of the steps 1, 2 and 3
Step 1 to 3 of the DDMRP methodology are covered in S/4 only in a basic version,
e.g., S/4 helps to make a manual decision about decoupling points but does not, as
IBP does, make any proposals for decoupling point.

81 Is DDMRP available in S/4HANA for Fashion?

In case you refer to S/4 set-up as Retail system, DDMRP is not applicable due to the
special structure of the article master.

82 Can you elaborate the difference between S4/Hana solution for step1-3 and
the IBP hybrid solution?
Buffer Positioning and Sizing in S/4 is not as advanced as in IBP, e.g., IBP
recommends decoupling points whereas S/4 offers support to do a manual decision.
83 What are the options if you click on ‘expedite supply’?
It allows to review existing supply elements and do quick changes on them, e.g.,
change quantity or date.

84 DDMRP will be also available for retail industry?

In case you refer to S/4 set-up as Retail system, DDMRP is not applicable due to the
special structure of the article master.

85 Does this change the normal way MRP in SAP/HANA releases supply orders to
vendors? So, the new system can automatically release orders based on the
NFP and buffer statuses?
In S/4, DDMRP run as integral part of MRP defined by a dedicated MRP procedure.
This procedure takes the NFP into account when deciding about supply order
creation. So, orders are created the same way as for any other products (not being
decoupling points).

86 How do calculate this priority when you have both MTS (DDMRP) and MTO
items?
If a product is defined as buffer/decoupling point, the on-hand status for
replenishment execution is calculated independent of MTS vs. MTO. You might
argue about the meaningfulness to define a MTO finished product as buffer - or
rather buffer components of that MTO products.

87 If I use S/4HANA DDMRP approach, can I still use forecast to derive ADU?
Yes, forecast in form of PIRs are taken for ADU calculation with a future horizon.

88 Which fields in S4 material master updated once Buffer level are calculated
and does this happen automatically
Since buffer levels are time-dependent, they are not kept within the static fields of
the S/4 material master. A new, time-dependent table supplementing the (static)
material master is used to store the buffer levels.

89 Does IBP DDR and S4 DDR support quota arrangements for splitting the
replenishment orders across multiple sources of supply?
In S/4, DDMRP is defined as a special MRP procedure and integrated into the MRP
run. So, you can run MRP for all products being decoupling points or not. As well by
being integrated with the MRP run, replenishment order generated for decoupling
points can use all MRP features, e.g., quota arrangements. In SAP IBP for DDR,
sourcing quota inputs for transportation and production are applied to multiple
sourcing cases to determine decoupling points, decupled lead times, lot sizes
applicable to green zone.
90 Are Does DDMRP generate planned orders/Stock transfer in IBP, or do we still
need to run any supply algorithm on top of DDMRP?
No planned order is generated in SAP IBP for DDR.

91 Why is SAP not designing a net requirement planning proposals based on the
customer demands and the buffer levels at each decoupling points? What we
now have is just a buffer level calculation and order recommendation. Isn't
NRP a good idea and can we expect that in future releases?
The order recommendation is a net requirement. Calculating the net flow position
includes all the net requirement influencing factors, (starting inventory position,
open supply orders, qualified sales order demand) so DDMRP replenishment is a net
requirement calculation.

92 What is the demand element in DDMRP? is it initiated based on forecast or

sales order or dependent demand or all?
The demand element in DDMRP is something called qualified sales order demand.
That term itself is a little misleading as the demand signal for a given decoupling
point may be several steps removed from the actual sales order. The forecast may
be used as a part of the ADU calculation that determines the buffer zones. For a full
explanation refer to the Demand Driven Institute published book DDMRP. SAP's
DDMRP solutions precisely follow the formulas as defined.

93 Do SAP IBP S&OP is supported with DDMRP? Can Planning to scheduling be

done with S&OP With DDMRP?
S&OP and DDMRP are separate business processes. When DDMRP is adopted in an
organization, the constrained supply plan generated from the S&OP process is not
used to drive replenishment. That plan is still used for rough cut capacity planning
and organizational alignment. DDMRP takes over management of replenishment.
The only connection between the S&OP process and DDMRP replenishment is in the
ADU calculation where the consensus demand figure can be used as an input. ADU is
then used as one of the inputs for buffer zone calculation. For a full explanation of
the relationship between DDMRP and S&OP refer to the Demand Driven Institute
published books, "DDMRP" and "Adaptive Sales & Operations Planning."

94 Is DDMRP successful for FMCG or Food Industry?

The Demand Driven Institute will tell you that it works just fine for FMCG. DDMRP is a
highly adaptable for MTS, and MTO environments. Keep in mind that DDMRP is
primarily a replenishment approach. Regardless as to how you define your demand
signal DDMRP replenishment will protect the flow of materials at any stage through
the supply chain.

95 If DDMRP is not just safety stock, then is it an alternative to IBP supply

planning algorithms?
Short answer, yes. It is a supply planning methodology or more accurately, a
replenishment methodology.
96 Is there a document published by SAP, especially for presales consultants and
solution architect as to "When to position which solution - be it single/multi
echelon or DDMRP with or without IBP R&S and so on'
There has not been an external asset produced specifically on this topic. It has been
addressed a few times in previous public webinars. It is not a short and simple
answer but for here, the best answer is this: MEIO feeds traditional supply planning
methods. DDMRP is a different methodology completely. When to recommend
which, one is dependent on whether the customer has an appetite for changing how
they manage the supply chain.

97 Is there a digital supply chain Jam group that you can invite me to?
There is not an external JAM group for that.

98 What needs to be considered if a company is trying to use Supply planning

heuristics & DDMRP, or would you only use one over the other?
You cannot use them both for the same item/location.

99 Is Constrained & Unconstrained planning supported in DDMRP? Does it works

with heuristics and Optimizer based planning?
DDMRP is an unconstrained replenishment methodology. You do not use supply
planning algorithms with DDMRP. They are in conflict. Once the replenishment
orders are generated, PPDS can perform finite capacity planning

100 If you have both IBP and S/4 makes sense to execute them from both
sides? something can go wrong if you execute it in both places?
You would not execute the same steps in both systems. During the implementation
you would decide which steps would be done in which system and set the
permissions to control that. The same core logic drives both solutions so in theory, if
all the input data is the same, they would produce the same output if the same step
was run in both systems

101 For which industries are the DDMRP mostly use?

The Demand Driven Institute will tell you that it works for all industries. They have
reference use cases published on their web site for many different industries.
Applicability is determined more by individual company situations. For example, if a
company has sporadic infrequent usage and high-cost items, out-of-the-box DDMRP
will not really work well. In fact, for that use case, there is no methodology that works
well.

102 What is the input demand to DDMRP?

DDMRP uses what is called true demand (they call it qualified sales order demand
but it's more than just sales orders). It is the true demand signal to replenish each
decoupling point (think dependent demand).
103 We thought DDMRP is a separate license if IBP if integrated with ECC, is
that incorrect?
The IBP components require a license. There are self-contained licensing capabilities
completely embedded in S/4 core that do not require any additional license. The S/4
solution does not calculate and recommend the placement of decoupling points
though. In S/4 they must instead be specified in setup.

104 How does DDMRP works with RTO model - Replenish To Order where
replenishment triggers based unconfirmed items in sales order at different
warehouse locations?
DDMRP does not work on a precise replenish to order or par level basis. DDMRP
replenishes when the net flow position is at any level under the green buffer zone and
replenishes up to top of green. It is possible through dynamic adjustment of teh
buffer zones to mimic RTO.

105 Can SAP IBP Heuristics or Optimization be another approach to feasible &
even optimal solution that DDMRP attempts to address?
No. Both of those approaches feed traditional, highly dependent and connected
replenishment methods and do not address the bullwhip effect. That is not to say
that some benefit cannot be derived from the heuristic and /or the optimizer but
those techniques do not address bullwhip and the protection of material flow
through the supply chain.

106 Does DDMRP work well only in discrete industry, or does it also work for
continuous process industry?
If you have a BOM (or recipe) that requires material to flow through the production
and distribution process, then DDMRP will provide benefit. It feels easier to
understand when you think of it in terms of discrete, but it will work for process as
well.

107 Are there any guidelines for when to choose DDMRP vs Heuristics or
optimizer, when DDMRP works & does not?
The Demand Driven Institute will tell you that it works for all industries. They have
reference use cases published on their web site for many different industries.
Applicability is determined more by individual company situations. For example, if a
company has sporadic infrequent usage and high-cost items, out-of-the-box DDMRP
will not really work well. In fact, for that use case, there is no methodology that works
well.

108 What's typically the size of the "Planning Team" to run all of this?
Determining the size of the planning team to run DDMRP is company specific. What
can be said is that DDMRP is highly automatable and requires attention on an
exception basis. This means planners (whose job changes dramatically in a DDMRP
world) can manage far larger amounts of items that in a traditional planning
environment.
109 Since DDMRP is replenishment against true demand, would it work better
for Mate to Order scenario & not as well for Make to Stock?
It works equally well for both. DDMRP is not replenishing to orders. Aggregate orders
trigger replenishment of the buffer zones. DDMMRP manages to buffer zones.

110 How justified is it to say, DDMRP is basically setting up "Safety Stock" at

some strategic nodes in the Network?
It is not. Safety stock calculation is only one small part of DDMRP. Safety stock in
traditional planning doesn't address the bullwhip effect. DDMRP is an overall
replenishment methodology, not just a safety stock calculation.

111 Do you have some reference of a company implementing and how inventory
KPIs were improved?
At this point, none of our customers have given us permission to share or have
publicly published their exact numbers

112 Will you share the list of customer references benefiting from the power of
DDMRP?
We will not be sharing that today.

113 How does it manage events which are outside of normal demand, as the
buffers are not sized to accommodate these items?
There are two approaches to absorbing this. In core DDMRP, you have a variability
coefficient used in calculation buffer zone size. This can be adjusted to address
unexpected large orders. If this is a forecasted increase, forecast can be used to
calculate the Average Daily Usage (ADU) which is an input to the buffer zone
calculations. Those are system driven approaches. The buffer zones are designed to
absorb variability unless the variability is extremely large. The second way is this:
Step 3 on the DDMRP process is specifically there for this purpose. It is called
dynamic adjustment to the buffer zones for those rare but real cases where math
cannot address variability.

114 For what industries does SAP recommend implementing DDMRP? For Eg:
For a Car assembly company, would they be able to keep safety buffer at
certain nodes?
He demands driven institute would say that it works in all cases. Using your exact
example. Most car assembly plants are using a JIT and lean approach to managing
their process as storing stock at the assemble plant is impractical. However, using
DDMRP terminology. These supplying locations, whether they are sub plants like
engines and transmissions or OEM suppliers are in effect decoupling points in the
overall supply chain for automobile assembly. Telling the supplying location more
accurately how much to stock to accommodate variability would be beneficial to the
automobile assembly company.
115 If you implement IBP and connect it to S/4 HANA DDMRP must run always
from IBP? is there any possibility of error because someone run it in both
systems at the same time?
Depending on how you implement that possibility could occur. However, careful
application of security permissions should prevent such a situation as this.

116 Buffer in production is not new - where is new approach of DDDMRP?

You are correct. Theory of Constraints and inventory optimization and Kanban all
use a form of buffer stock. However, DDMRP goes far beyond just calculation of
buffer stock.

117 In practice, do the parameters of the DDMRP have to be tuned again and
again, or are they constant?
Some can be retuned and some are automatically adjusted as the baseline data
changes. Monitoring performance against the buffer zones is a trigger point for any
needed changes and is one of the primary responsibilities of the planner in a DDMRP
environment.

118 Considering that DDMRP include actuals and also forecast to calculate
ADU and buffers, it seems that DDMRP covers Inventory functionality and
further. Is this understanding, correct?
Yes, that is correct.

119 Sub-contracting and consignment are supported by DDMRP?

If those entities can be defined as decoupling points and material control is in the
hands of the planning company, then yes

120 There is a Consulting Solution Customized MRP Type (CMT-DDP) with MRP
Type DD (Demand Driven). In which cases does it add value to DDMRP? Does
it also bring benefits if DDMRP is not used?
The consulting solution is not a DDI certified solution and was used to meet one
customer’s specific request. It is not supported by SAP development and adds no
value to the standard delivered solution.

121 How Inventory Optimization fits with DDMRP meaning in integration with
IBP
These are conflicting approaches. You cannot do inventory optimization and DDMRP
for the same item/location

122 What needs to be considered if a company is trying to use Inventory

Optimization & DDMRP, or would you only use one over the other?
One or the other. The math and approach conflict with each other.
123 Does it consider when movements were entered in the system or when
activities really happened physically?
All calculations are based on when data is available. replenishment calculations, ADU
calculations, buffer zone calculations are performed each day based on available
data.

124 ADU calculation seems to be a simple moving average. Do you recommend

ADU to be sourcing from the forecast volumes from the IBP demand license,
instead of a moving average based on the demand from IBP?
It can be either or both. That is up to the individual customer

125 Could you please share the definitions for red, yellow and green zones
shown here?
I believe the calculations are published on SAP online help. I would recommend
acquiring the DDMRP book which has all the calculations for all of DDMRP. SAP has
followed the methodology exactly.

126 Is DDMRP more of Inventory solution, Production planning scheduling

solution or both of them?
It is really a replenishment solution. It maintains the flow of relevant material through
the supply chain.

127 In S/4 DDMRP are Buffer levels calculated automatically?

Yes