Finalizing the Inventory Plan

SAP IBP, advanced inventory optimization: Configuring and Preparing for Use

Creating an Inventory Planning and Optimization Process

The Power of Multi Echelon

Validating Inputs

Running an Inventory Optimization Operator

Analyzing the Results of an Inventory Optimization Run

Finalizing the Inventory Plan

Objective

After completing this lesson, you will be able to explain how to finalize the inventory planning and optimization process.

Step 4: Finalizing the Inventory Plan

The last step in the inventory planning process finalizes the process, making sure all updates are made based on analyses and providing the inventory planning results to the downstream processes—typically, the supply planning process.

The figure describes the Step 4: Approve and Update the Inventory Plan.

In this step, manual adjustments can be performed to change the outcome, and the outcome is copied into the right key figures for downstream processes. Reports are published, and the overall process is closed in the process management view of the dashboard. Since the 1902 release of SAP Integrated Business Planning (IBP), it is possible to leverage the web-based planning capability to make these final edits. Just like in the Excel planning views, users can use the web-based planning views to visualize and edit data. In other words, the inventory planner or the inventory planning manager can make the changes directly in the web browser, save their changes, and complete the inventory plan.

The figure describes the Finalizing of the Inventory Planning Process.

Approve and publish the inventory plan

Business Example

As inventory planner you would like to be able to control the results of the multistage algorithm, publishing the updates to trigger further steps within the supply chain planning process. To do that we will work during this exercise with the connection IBP400 within the Planning Area IBP400

Prerequisites

Define a Planning Area where planning should be executed, for example, IBP400.
Master and key figure data loaded into the planning area.
This exercise uses the inventory planning results generated by the Min/Max limitation process. Therefore, the Minimum and Maximum Safety Stock exercise and all related prerequisite exercises must be completed beforehand.

Steps

In the Adjusted Safety Stock key figure, enter different values increasing and decreasing recommended safety stock values for each period from the second week to the end of the planning horizon.
1. Open your favorite IO 220 Review Results.
2. Navigate to tab Adjust Safety Stock.
3. In the Planning View area, click on Edit View → Edit Planning View.
4. Navigate to the Key Figures section and add key figure Recommended Safety Stock to the selected key figures.
5. Click on OK.
6. Maintain for product ID 2IBP##-100 in location id 2HK6210 (Plant 1 HK) 10000 in the first period with a recommended safety stock greater than zero.
7. Click on Simulate and then on Simulate (Basic) in the Data Input section.
8. Observe how the key figure Final Safety Stock and also the Value of Final Safety Stock changes.
9. Save the new values by clicking Save Data in the Data Input section.

Result

Note

Final Safety Stock shows the values from Recommended Safety Stock if there are no manual adjustments within Adjusted Safety Stock. In other cases, manual adjustments will be prioritized over recommended values, and they will be displayed within Final Safety Stock as per the exercise.

Note

The time series-based supply planning algorithm generates a supply plan that aims to keep the Projected Stock key figure (I_PROJECTEDSTOCKTS), representing the actual inventory at the end of a period, at or above the value of the Final Safety Stock key figure. The Final Safety Stock acts as a buffer that helps the supply chain absorb demand variability and supply disruptions. It ensures that future demand can be met when actual demand exceeds forecasts, or when supply falls short of expectations while forecasted demand still needs to be fulfilled.

Results

You have learned how to adjust the plan that is then used in time series-based supply planning as input for projected stock. Unlike modelling in previous IBP releases with harmonized planning area (based on I_SAPIBP2) it is not needed to copy the results of the inventory optimization process into key figures used by SOP.

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