Comprehending Inventory Planning and Optimization
Leveraging Inventory Planning and Optimization within SAP Integrated Business Planning

Utilizing Inventory Planning and Optimization

Objective

After completing this lesson, you will be able to use SAP IBP to configure and execute optimization scenarios that determine the inventory levels required to achieve target service levels.

Inventory Planning and Optimization Process

The inventory planning process consists of the following steps:

  1. Validating data inputs
  2. Running and reviewing the inventory plan
  3. Analyzing what-if scenarios
  4. Approving and updating the inventory plan
Inventory Optimization Process and its Frequency

The inventory optimization process relies on one set of inputs and outputs, that is, one common planning area for all SAP Integrated Business Planning processes, including:

  • SAP IBP foundation - sales and operations planning process
  • SAP IBP, advanced demand process
  • SAP IBP, advanced inventory optimization process
  • and SAP IBP, supply process.
Modeling Variability. Known variability can be modeled as Key Figures or Master Data.

For the inventory optimization process, known variability can be modeled as key figures or master data, as shown in the figure, Modeling Variability.

Demonstration on how Data Inputs for the Inventory Optimization process are validated

Demonstration on how a Multi-Stage Inventory Optimizer run can be executed

Demonstration on how to Run and Review an Inventory Plan

Learning

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