Scenario Planning

Objective

After completing this lesson, you will be able to understand the inputs for possible scenarios and simulations.

Inputs for Inventory Scenarios and Simulations

SAP IBP for inventory provides three functionalities to simulate possible future situations:

Versions: represent different amount of key, that is, it implies changes on the model
Scenarios: represent different possible results within the transactional data, that is, it implies changes on saved data keeping the original result.
Simulations: represent on-the-fly calculations that can become an scenario

Demand
- Demand Forecast
- Demand Forecast Error Coefficient of Variation
- Target Service Level
- Customer Frozen Window
Transportation
- Sourcing Quota
- Lead Time
- Lead Time Error
- Minimum Lot Size
- Incremental Lot Size
- Frozen Window
- Lot Size Periods of Coverage
Manufacturing, Co-packing, Processing, Vendor
- Output Coefficient
- Sourcing Quota
- Lead Time
- Lead Time Error
- Minimum Lot Size
- Incremental Lot Size
- Frozen Window
- Lot Size Periods of Coverage
Inventory Policy
- Periods Between Replenishment
- Minimum Internal Service Level
- Maximum Internal Service Level
- Inventory Holding Cost Rate
- Minimum Stock Requirement
- Maximum On Hand Inventory
- Maximum Inventory Violation Cost Rate