Describing Deployment Planning and Reasoning behind Execution

Objective

After completing this lesson, you will be able to understand the Deployment Run

What is Deployment Planning and Why Execute it?

In this chapter, we provide an overview of Deployment planning using Heuristics.

The deployment run is one of the planning run types in order-based planning and is used to plan the distribution of available supply to demand.

The deployment feature resolves issues related to distribution in case there are any mishaps on the supply side. Any such shortcomings can be addressed using the deployment run, which essentially confirms the supply plan generated by the response engine.

As a prerequisite for the deployment run, we need to define the order categories that are Available-to-Deploy (ATD) in the ATD profile. With this as a reference, the deployment engine confirms the plan across the supply chain network, however, it cannot generate any planned orders.

The figure describes where the Deployment does fit in.

Deployment Planning Process Description

Deployment planning is performed as short-term supply planning to distribute the available supply to demand.

The figure describes the Deployment Planning Process.

As shown in the figure, Deployment Customer Use Cases, the deployment run considers sales orders, forecasts, fixed demands, and receipts (and safety stock) as Demand Elements.

Deployment Planning Customer Use Cases

Some of the use cases of deployment include:

Short Term Demand Increase: as an example, sales peak in one market whereas in other market forecast is not consumed.

OR

Short Term Supply Changes: For example, production delay requires replanning of replenishment to Distribution Centers and Customers.

Deployment re-plans the distribution considering the current demand and supply situation, creates Stock Transfer Requisitions, and confirms Sales Orders.

Step by Step Deployment Planning

Sales Orders, Forecast, Safety stock targets (static or time-dependent), and so on, are the inputs to Deployment Planning run. The following constraints are considered: product allocation, rules to segment and prioritize demand, Available to Deploy elements, min-max lot size, and rounding values.

The Priority Deployment Heuristic will plan individual demand elements, one by one. The planning algorithm selects the highest priority Source of Supply first. In case of shortage or lateness, secondary sources are used.

Planning run plans Distribution based on fixed production and procurement quantities. Deployment Stock transfers are only created if pegged supply is part of the ATD List. Optionally, you can create sales orders confirmations that help you to distinguish between sales and intercompany demand at a plant. Planning Runs cannot change fixed stock transfer orders or deliveries because SAP ECC or SAP S/4Hana is the master of these orders.

With the Pegging strategy "Stable Supply", you can preferably use firm supply for your high-priority demands. For example, Sales orders consume stock before Forecast does.

The figure describes the Deployment Planning Process Step by Step.

Fair Share Distribution

In the case of limited supply, SAP IBP order-based planning offers the possibility to use demand fair share: multiple sets of demands should be handled with the same priority and supply should be allocated to the demands based on a given ratio for the sets.

In SAP IBP order-based planning demands can be grouped based on characteristic value combinations on a given planning level. The level defines the business aspect of the competition for available supply, for example, location materials compete against each other.

Within the segment of the demand prioritization rule, you define, whether the affected demands should be fulfilled using fair share or one after another following the sequence definition of the demand prioritization rule.

Refer to the Constrained Forecast Run: Fair Share Distribution, as concepts are the same.

The figure describes the Fair Share.

Available to Deploy

Release Deployment Plan and Integrate with SAP S/4HANA

During the deployment run, the stock transfer requisitions that are pegged only to supply elements that are considered available to deploy become deployment stock transfer requisitions.

After integration to SAP S/4HANA, using the RTI outbound, you can convert these deployment stock transfer requisitions to stock transfer orders to prepare the execution of the supply plan.

The figure describes the Release of Deployment Plan.

Deployment Status in SAP S/4HANA

  • IBP-S/4HANA Integration cycle keeps the deployment status of Stock Transfer Requisitions consistent in both systems.
  • In automatic (mass) STR -＞STO conversion user can schedule a job that converts only Deployment STRs into STOs.
  • Deployment status flag (what type of STR) can only be set by the interface. User cannot change the Type of STR manually in SAP S/4 HANA (that is, in transactions like ME51/ME52).
  • User can see the Deployment status flag in MD04.
The figure describes the Status in SAP S/4HANA after the Deployment run.

Creating a Short-Term Deployment Plan

ExerciseStart Exercise

Business Example

The business process described in this exercise creates a short-term deployment plan by distributing available supply to demand.

Here is an overview of the business process:

  • The Distribution Planner checks the alerts generated for each location product where the projected stock becomes negative. This helps the planner to identify potential issues.
  • The Distribution Planner then schedules the deployment run job: the deployment run takes all customer demands (sales orders), confirmed component demands, forecasted customer demands, and safety stock into account.
  • The run then tries to satisfy the demands with the existing supply elements by considering prioritization rules and the available-to-deploy profile. The stock transfer requisitions pegged to supply elements that are considered available to deploy are converted into deployment stock transfer requisitions. This represents the short-term deployment plan.
  • The Distribution Planner evaluates the deployment planning results, either in Excel or using a specific app.
  • If necessary, the Distribution Planner manually adjusts the deployment planning results.

Note

In this exercise, when you see ##, replace the characters with your group number.

Deployment planning requires that a supply plan is available.

Frequently, things do not go according to the plan. In the following scenario, customers create new sales orders. The planner is now in a short supply situation and needs to distribute the supply in the best possible way in the short-term horizon.

Steps

  1. Create Sales Order just outside the Distribution Freeze Horizon.

    FieldValue
    Order TypeOR
    Sales Organization0IBP
    Distribution Channel10
    Division00
    Sales Office100
    Sales Group100
    Delivery DateCurrent Date + 14
    Order Quantity 
    TXX_PHONE_A in DC71 for CUST012000 for Sales Order 1
    TXX_PHONE_A in DC71 for CUST02800 for Sales Order 2
    TXX_PHONE_A in DC71 for CUST03800 for Sales Order 3

    1. Use transaction VA01.

    2. Use Order Type OR.

    3. In the Sold-To party and Ship-To party field, enter the relevant customer number from the table.

    4. In the Cust Reference field, enter some text (it does not matter what text you enter, but it must be filled).

    5. In the Req. Deliv. Date field, enter current date + 14.

    6. Enter the order quantity shown above.

    7. Confirm your data with Enter, then choose Continue when the ATP check appears.

    8. Choose Save.

      Note

      To double-check that these orders have been created, use t-code MD04.

  2. Maintain SAP IBP Planner Workspace and view the data.

    1. Log in to SAP IBP Microsoft Fiori Interface, using the credentials supplied by your instructor.

    2. In the General Planner Group, choose the Planner Workspaces tile.

    3. Choose IBP_800 ##.

    4. Ensure that the Base Version is selected.

    5. Create a new workbook Distribution ## with the components Plant ##, DC ## and Transport ##.

    6. In the upper right corner select Design mode.

    7. Select the Workbook icon in the upper left corner of the Planner Workspaces screen and choose … (three dots) and choose Add Workbook/Variant.

    8. Choose Create.

    9. Maintain Distribution ## as name and description for your new workbook and choose Create.

    10. Choose Add Component.

    11. Select the Planning View.

    12. Choose Plant created by Trainer 01 and choose Add.

    13. In theSetting section choose Save As and maintain Plant ## as name and description for your new component.

    14. Mark the flag for Remove the original component from this workbook and choose Save.

    15. Select Filters in the Settings section.

    16. Select Load Planing Filter, and select the TXX_PHONE A.

    17. Adjust the filter for Location ID attribute.

    18. For the filter Location ID maintain the value FA71.

      Note

      Use the Advanced Settings within the Filter tab to fine-tune the interaction of the workbook-level filter and component-level filter.

    19. Choose Apply.

    20. Choose Save Component.

    21. To create the DC ## component, in the upper right corner select the + (Add Component).

      Note

      If the settings for the component Plant ## are still open the icon to create a new component will be hidden. Close the settings by selecting the x (Close) in the right upper corner of the settings.

    22. Select the Planning View.

    23. Choose DC created by Trainer 01 and choose Add.

    24. In theSetting section choose Save As and maintain DC ## as name and description for your new component.

    25. Mark the flag for Remove the original component from this workbook and choose Save.

    26. Select Filters in the Settings section.

    27. Select Load Planing Filter, and select the TXX_PHONE A.

    28. Review the filter Location ID has maintained the value DC71.

    29. Select General in the Settings section and assign the following two key figures: Sales Order Requested and Allocation Adjusted.

    30. Choose Apply.

    31. Choose Save Component.

      Result

      Workspace should be displayed with the constrained forecast created during the previous exercise.

    32. On the Data section on the top of the workbook, switch to Plan mode. Choose Go.

    33. Take note as well of the date and quantity of three new Sales Order Requested that were just integrated from SAP S/4HANA.

    34. Populate values for Allocation Adjusted on the same date as the date of the sales orders for all three customers. For example, the following quantities:

      Customer 1 – Quantity of 2000 on Current Date +14

      Customer 2 – Quantity of 800 on Current Date +14

      Customer 3 – Quantity of 800 on Current Date +14

      Note

      Allocation is a constraint for Sales Order confirmation while executing Deployment Planning Run with Heuristics and hence we add these values manually.

    35. Choose Save Data.

    36. Populate value of 20 for Demand Fair Share - Portion Size for all the time buckets for all three customers.

      Note

      This portion size shall be used by the fair share deployment planning run.

    37. Choose Save Data.

      Note

      Projected Stock in DC71 is negative.

      Distribution Receipts (Deployment) are not created yet.

    38. On the Data section on the top of the workbook, switch to Design mode.

    39. To create the Transport ## component, in the upper right corner select the + (Add Component).

    40. Select the Planning View.

    41. Choose Transport created by Trainer 01 and choose Add.

    42. In theSetting section choose Save As and maintain Transport ## as name and description for your new component.

    43. Mark the flag for Remove the original component from this workbook and choose Save.

    44. Select General in the Settings section and remove the attribute Ship-From Loc. ID f.

    45. Select Filters in the Settings section.

    46. Select Load Planing Filter, and select the TXX_PHONE A.

    47. Click Adapt Filters, choose the filter attribute for Ship-to Location ID, and select OK.

    48. For the filter Location ID remove the existing value and maintain the value FA71 and for the filter Ship-to Location ID maintain the value DC71.

    49. Choose Apply.

    50. Choose Save Component.

      Note

      Observe the Distribution Demand Planned (Lane) and Distribution Demand (Lane) at FA71.

      Distribution Receipts (Deployment) are not created yet.

  3. Review Available to Deploy Profile ATD_FIXED.

    Since each deployment situation is different, it is useful to be able to switch between different profiles that determine which order types should be considered available to deploy in the next deployment run.

    Stock transfer requisitions that are then pegged only to supply elements of the order types specified in the profile become deployment stock transfer requisitions.

    1. Log on to the SAP Integrated Business Planning web user interface.

    2. In the Order-Based Planning Configuration Group, choose the Available-to-Deploy Profiles tile.

    3. Choose profile ATD_FIXED.

      Note

      Do not change any settings of the profile, as this may impact the deployment results.

      Note

      If Yes is displayed next to an order type, supply elements of this order type will be considered available to deploy when you schedule a deployment run using this profile.

    4. Observe that Planned Order Not fixed for planning and Purchase Requisition Not fixed for planning are not considered as supply elements, as shown in the following figure.

      The figure shows, that Planned Order Not fixed for planning and Purchase Requisition Not fixed for planning are not considered as supply elements.

  4. Open the Planning run profiles - Order based planning app, and on the Order-Based Planning Configuration Group tab, notice that we have also selected Sales Orders and Sales Order Deliveries.

    1. In the Order-Based Planning Configuration Group, choose the Planning run profiles - Order based planning tile.

    2. Check the ranking of the demands with Planning Run Profile: DEMAND_SEQ_RULE. Customer 1 Sales Orders have the highest priority.

    3. Check the ranking of the demands with Planning Run Profile FAIR_SHARE_RULE.

  5. Review Demand Prioritization for two different Planning Run Profiles for Deployment in the Simulate Demand Prioritization app.

    Two profiles for deployment planning have been created: DEMAND_SEQ_RULE and FAIR_SHARE_RULE.

    FieldValue
    VersionBase Version
    Planning Run ProfileDEMAND_SEQ_RULE
    Planning Start DateToday's Date
    Time ZoneYour Time Zone
    MaterialTXX_PHONE A
    FieldValue
    VersionBase Version
    Planning Run ProfileFAIR_SHARE_RULE
    Planning Start DateToday's Date
    Time ZoneYour Time Zone
    MaterialTXX_PHONE A

    1. In the Account Planner Group, open the SAP Fiori app Simulate Demand Prioritization.

    2. Enter the information in the first table above and choose Start Simulation.

      • Version: Base Version

      • Planning Run Profile: DEMAND_SEQ_RULE

      • Planning Start Date: Today's date
      • Time Zone: Your Time Zone

      • Product Number: TXX_PHONE_A

      Result

      • A list of your demands will be displayed. The demands are sorted by priority.
      • The first column displays the rank of the primary demand. The second column displays the segment to which the demand was assigned.

    3. To check the rankings for FAIR_SHARE_RULE profile enter the information in the second table and choose Go.

      • Version: Base Version

      • Planning Run Profile: FAIR_SHARE_RULE

      • Planning Start Date: Today's date
      • Time Zone: Your Time Zone

      • Product Number: TXX_PHONE_A

      In addition, notice that in the FAIR_SHARE_RULE, customer orders are before forecast and both have a fair share segment on PERPRODLOCCUST. Examples of profiles are shown in the following figures.

      The figure shows, that in the FAIR_SHARE_RULE, customer orders are before forecast and both have a fair share segment on PERPRODLOCCUST.The figure shows, that in the FAIR_SHARE_RULE, customer orders are before forecast and both have a fair share segment on PERPRODLOCCUST.

  6. Execute Order-Based Deployment run with DEMAND_SEQ_RULE. Use the following parameters for your job:

    FieldValue
    Planning AlgorithmFinite Heuristics
    Available to Deploy ProfileATD_FIXED
    Planning Run ProfileDEMAND_SEQ_RULE

    1. In the General Planner Group, choose the Planner Workspaces tile.

    2. Select your workspace IBP_800 ## .

    3. In your workspace, choose Jobs -> Run Application Job.

    4. In the Job Template field, select ZOrder-Based Planning Deployment  Run HEUR PWS.

    5. Choose Base Version.

    6. Choose TXX_PHONE A , as a planning filter.

    7. In the Scheduling Information field, accept Start Immediately.

    8. In the Job Template Parameters section, check that the values from the table above are populated.

    9. Choose Schedule and Continue.

    10. Check that the status of the job shows as Finished .

  7. View deployment run results with DEMAND_SEQ_RULE.

    After executing the deployment run, review the data in the Projected Stock app at DC 71 and FA71.

    1. Log on to the SAP Integrated Business Planning web user interface and open the Projected Stock app by choosing the corresponding tile on the launchpad.

    2. In the General Response Planner Group, open the SAP Fiori app Projected Stock.

    3. On the Projected Stock screen, in the filter bar, select ZSAP7/Base Version and your material number, TXX_PHONE A.

    4. Set Date Horizon, for example, Current + 56 days.

    5. Choose location FA71 and refer to Element View and Daily View.

    6. Choose location DC71 and refer to Element View and Daily View.

      The figure shows a screenshot of the Analyze Supply Usage app.

      Note

      Deployment run creates deployment requisition at DC71 and deployment requisition requirement at FA71.

    7. In the Supply Planner Group, open the SAP Fiori app Analyze Supply Usage.

    8. On the Analyze Supply Usage screen, in the filter bar, select ZSAP7/Base Version and your material number, TXX_PHONE A.

    9. Set Location ID to DC71.

    10. Select the first Deployment Requisition number at DC71 and select Show Order Network. Here you can see from the original Sales order or Forecast, along with Deployment Requisition, Production and Planned Order behind it.

      Note

      The deployment results can also be seen next. The figure shows you that the sales order with the highest priority is confirmed and the sales order for customer 3 is partially confirmed. As an example shown in the next figure, the sales order only for the highest customer priority, Customer 1, could be partially confirmed.  Sales orders for other customers remain unconfirmed.  This can also be seen using the View Confirmations app.

      The figure shows you that the sales order with the highest priority is confirmed and the sales order for customer 3 is partially confirmed.
      The figure shows you that the sales order with the highest priority is confirmed and the sales order for customer 3 is partially confirmed.

  8. Execute Order-Based Deployment run with FAIR_SHARE_RULE. Use the following parameters for your job:

    FieldValue
    Planning AlgorithmFIN_HEUR
    Available to Deploy ProfileATD_FIXED
    Planning Run ProfileFAIR_SHARE_RULE

    1. In the General Planner Group, choose the Planner Workspaces tile.

    2. Select your workspace IBP_800 ## .

    3. In your workspace, choose Jobs -> Run Application Job.

    4. In the Job Template field, select ZOrder-Based Planning Deployment  Run HEUR FS PWS.

    5. Choose Base Version.

    6. Choose TXX_PHONE A , as a planning filter.

    7. In the Scheduling Information field, accept Start Immediately.

    8. In the Job Template Parameters section, check that the values from the table above are populated.

    9. Choose Schedule and Continue.

    10. Check that the status of the job shows as Finished .

  9. View deployment run results with FAIR_SHARE_RULE.

    After executing the deployment run, review the data in the Projected Stock app at DC 71 and FA71.

    1. Log on to the SAP Integrated Business Planning web user interface and open the Projected Stock app by choosing the corresponding tile on the launchpad.

    2. In the General Response Planner Group, open the SAP Fiori app Projected Stock.

    3. On the Projected Stock screen, in the filter bar, select ZSAP7F/Base Version and your material number, TXX_PHONE A.

    4. Set Date Horizon, for example, Current + 56 days.

    5. Choose location FA71 and refer to Element View and Daily View.

    6. Choose location DC71 and refer to Element View and Daily View.

      Note

      Deployment run creates deployment requisition at DC71 and deployment requisition requirement at FA71.

      Note

      The deployment results can also be seen in the Planning View. The figure shows that all sales order now have some confirmed quantity that is distributed more equally.

      Result

      A comparison of the two results (first screenshot below is from the app View Confirmations, and the second one is from the planning view), reveals that fulfillment across customer had improved with fair share logic and the planner decides to go with this approach of complying with minimum fulfillment percentage agreement with customers.

      The deployment STRs created during the Deployment planning run can be integrated into the SAP S/4 HANA system and they will get a processing status that carries whether these STRs are deployment STRs or not. This field can be then used to selectively convert Deployment STRs to STOs.

      The figure shows a screenshot from the View Confirmation app.The figure shows a screenshot from the planning view.

  10. Check the integration result.

    Check the outbound integration result on the SAP S/4HANA side. The order number of MRP elements matches the one you had seen on the Projected Stock screen.

    1. In the SAP S/4HANA system, access the transaction by entering the transaction code, /n/md04.

    2. On the Stock Requirement list, enter your material number TXX_PHONE_A and DC71.

    3. Check locations FA71 and DC71, as STR are visible on DC71, Planned Orders are visible on FA71.

    4. Exit out of Stock Requirement list.

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