SAP IBP for Response and Supply

Location product substitution is now supported in planning areas based on the I_SAPIBP2 planning area. You can use location product substitution to fulfill demand for one product at a location with the supply of another - its substitute.

The following business scenarios are supported:

Discontinuation without use-up phase: Product A in location L (the leading location product) is substituted by product B in location L (the substitute location product), but product A in location L is not used up.

Discontinuation with use-up phase:

Product A in location L is substituted by product B in location L and product A in location L can be used up during the use-up phase.

Discontinuation with use-up phase and mutual substitution:

Product A in location L can be substituted by product B in location L, and demand of product B in location L can be substituted by product A in location L in the use-up phase.

Promoting a location product:

Product A in location L is substituted by product B in location L for a certain period of time called the promotion phase, then demand of product B in location L is used up again during the use-up phase. During this phase demand of product A in location L can be substituted by product B in Location L. Similarly, demand of product B in location L can be substituted by product A in Location L during use up phase.

• You must create and configure the required master data types, key figures, and attributes and add them to the planning area.
• If you're using the supply planning optimizer you also need to set the cost key figures appropriately.

Master Data:

Location Product Substitution → I_LOCATIONPRODUCTSUBST

• By default Component Demands are substituted. If you would like to disable you can do via Location-Product attribute I_DISABLECOMPDEMANDSUBST
• By default Distribution Demands are not substituted. If you would like to enable you can do via Location-Product attribute I_ENABLEDISTRDEMANDSUBST

Output key figures:

Location Product Substitution Supply 

(technical name I_LPSUBSTSUPPLYTS).

This key figure shows how many pieces of the leading product PRDID are supplied from substitute product SPRDID

Location Product Substitution Supply 

(technical name  I_LPSUBSTDEMANDTS).

This key figure shows how many pieces demand is placed on the substituted product PRDID by the leading product SUBSTPRDTOID.

Input key figure:

Location Product Substitution Cost Rate (technical name I_LPSUBSTCOSTRT).

This key figure defines the costs per unit for substituting leading location product PRDID with substitute product SUBSTPRDID at location LOCID. This key figure is for use with the optimizer

In time-series-based supply planning, location product substitution is available only with the time-series-based supply planning infinite heuristic and optimizer. The optimizer supports additional scenarios for product discontinuation and promotion.

The time-series-based supply planning optimizer now supports the additional key figures. They include confirmed and planned fixed quantities without sources of supply.

In detail, the following key figures are now supported:

• Supply Planned Fixed and Confirmed Without SoS (I_SUPPLYPLNDFXDCONFWOSOS): An input key figure for the supply planning algorithms. It includes the sum of confirmed and planned fixed-supply quantities that don't have any source of supply.
• Demand Planned Fixed and Confirmed Without SoS (I_DEMANDPLNDFXDCONFWOSOS): An input key figure for the supply planning algorithms. It includes the sum of confirmed and planned fixed-demand quantities that don't have any source of supply.
• Violate Demand Planned Fixed and Confirmed Without SoS (I_DEMANDPLNDFXDCONFWOSOS): An output key figure of the supply planning algorithms. It includes the sum of the violated amounts of confirmed and planned fixed-demand quantities that don't have any source of supply

Deprecation of Customer Key Figures in Time-Series-Based Supply Planning (I_SAPIBP2)

The following key figures are not supported and therefore are deprecated as of SAP IBP 2602:

• Adjusted Requested Distribution Supply to TSP Customer (Lane) (I_ADJREQTSPCUSTDISTRSUPPLYLN)
• Adjusted Requested Distribution Demand from TSP Customer (I_ADJREQTSPCUSTDISTRDEMANDLN)

The key figures will be deleted in an upcoming SAP IBP release. If you used the key figures before 2602, and would like to continue using them, please contact SAP using the component SCM-IBP-SUP.

New Global Configuration Parameter for Displaying Profile IDs in the SAP IBP, Add-In for Microsoft Excel

You can use a new global configuration parameter to control how planning operator information is shown in the SAP IBP, add-in for Microsoft Excel, for example, in the job status dialog. With the parameter set to YES, the ID - rather than the name - of the S&OP operator profile in use is shown.

Materials and components are limited in their validity and availability. This will be taken into consideration through planning. The substitution solution adds business value because it:

• Considers discontinuation/supersession in planning
• Optimizes product availability
• Minimizes material stocks and scrap

Use Cases

• Discontinuation with and without Use-Up
• Substitution / Mutual Substitution
• Promotion
• Substituting Component Demands

Component demand substitution is enabled by default in your model, but can be disabled by using location product attribute I_DisableCompDemandSubst.

In order-based planning the values saved for this attribute are saved as the Demand Substitution Type of the location product visible in app "View Location Product".

Note: Substitution of distribution demand is not supported in order-based planning.

Set Up: Transaction ME11

Create a SubContracting Purchasing Info Record to procure the material BULKPHONE_A which is a component for the 1st tier SubContractor.

The subcontracting purchasing info record is created for the Ordering Plant FA71 and the 2nd tier SubContractor SUBPROD71. The production version is maintained in this subcontracting purchasing info record.

Set Up: Create a SubContracting Contract for direct shipment between the 2nd and 1st tier subcontractors for the material BULKPHONE_A (Transaction ME31K)

• Make sure that the item type is L (SubContracting). This will control the generation of subcontracting type of TLANE in IBPThe subcontracting purchasing info record is automatically assigned to the contract
• Make sure that the deviating ship-to address is maintained as 1st tier subcontractor SUBPACK71 together with the Subcontracting flag, otherwise, the TLANE would be created to the ordering location FA71.

Set-Up:

Create an RTI Integration Model for Contracts that are used to ship components directly from the 2nd tier subcontractor to the 1sr tier subcontractor (Transaction CFM1/CFM2)

In addition to the subcontracting info records related the contracts have to be integrated. These contracts will enable to the creation of component provisioning TLANEs between the 2nd and 1st tier subcontractor.

View RTI Integration Result (Manage Master Data app)

If the line item type in the contract was maintained as "L - Subcontracting", then the TLANE for direct component provisioning between subcontracting vendors will be integrated with type 3 (Subcontracting).

After Supply Run (Projected Stock App):

Product PHONE_A in ordering plant FA71 had a shortage of 50 EA. The supply planning run has created a Subcontracting Purchase Requisition of 50 EA.

After Supply Run (Projected Stock App, subcontracting component BULKPHONE_A in subcontractor location SUBPACK71): As FA71 orders 50 EA of PHONE_A from Subcontractor SUBPACK71 component requirements appear for BULKPHONE_A in the subcontractor location SUBPACK71.

This requirement is covered by a subcontracting purchase requisition ordered by FA71 and directly shipped from the 2nd tier subcontractor location SUBPROD71 to the first tier subcontractor location SUBPACK71.

After Supply Run (Transaction MD04):

Product BULKPHONE_A at subcontractor SUBPACK71 has a subcontracting component requirement of 50 EA.The component material is maintained for a subcontracting MRP Area view SUBPACK71 under the plant view FA71. The supply planning run has created a Subcontracting Purchase Requisition of 50 EA (for direct shipment from subcontractor SUBROD71)

The Subcontracting Purchase Requisition has been integrated to SAP S/4HANA backend.

After Supply Run (Projected Stock App):

Product BULKPHONE_A has a component CPU_A. As FA71 orders 50 EA of BULKPHONE_A from 2nd tier Subcontractor SUBPROD71 component requirements appear in the subcontractor location.This requirement is covered by on hand stock at SUBPROD71.

• If a subcontractor serves two different plants
• • Component stock and other component supply elements need to be separated by the ordering plant for which they had originally been planned.
  • It is difficult to cleanup component location products if the components for the same subcontracting product can be different by ordering plant
• In case a subcontractor serves multiple plants, SAP recommends to:
• • create a subcontracting MRP Area in the S/4H backend system for each of the ordering plants
  • create a corresponding subcontractor location in SAP IBP, where
  • • Ordering Location ID is specific
    • Subcontracting Vendor Location ID is common

Create plant specific vendor locations in IBP (Manage Master Data App)

For each of the ordering plants manually create a specific subcontracting vendor location. The attribute Ordering Location for Subcontracting must be identical with the ordering location of location type P. The attribute Vendor for Subcontracting must be identical with the subcontracting vendor location that has been integrated via the RTI model.

RTI Master Data Integration

View Manage Master Data App after using transaction CFM1 and CFM2 in the ERP Backend system for the integration of subcontracting PDS and subcontracting Purchasing Info Records

Note that location products are generated for the vendor locations that have been created for each of the ordering plants

RTI Master Data Integration

View Manage Master Data App after using transaction CFM1 and CFM2 in the ERP Backend system for the integration of subcontracting PDS and subcontracting Purchasing Info Records

Note that production data headers are generated for the vendor locations that have been created for each of the ordering plants

RTI Master Data Integration

View Manage Master Data App after using transaction CFM1 and CFM2 in the ERP Backend system for the integration of subcontracting PDS and subcontracting Purchasing Info Records

Note that, based on the subcontracting production version subcontracting component provisioning transportation lanes (type 7 for stock transfers) are generated for the components BULKPHONE_A and PACKAGING_A from the plants FA1 and FA2 to their respective plant specific vendor locations.

Note that, based on the subcontracting info record, subcontracting transportation lanes (type 3) are generated for the finished good PHONE_A from the plant specific vendor locations to the respective ordering plants FA1 and FA2.

After Supply Run (Projected Stock App):

Product PHONE_A in ordering plant FA71 had a shortage of 100 EA. The supply planning run has created a Subcontracting Purchase Requisition of 100 EA from its specific vendor location.

After Supply Run (Projected Stock App):

Product PHONE_A in ordering plant FA72 had a shortage of 101 EA. The supply planning run has created a Subcontracting Purchase Requisition of 101 EA from its specific vendor location.

After Supply Run (Projected Stock App):

For component BULKPHONE_A in plant specific subcontracting location plant FA71_MUL7 there was plant specific on hand stock of 49 EA. The supply planning run has created a subcontracting component provisioning stock transfer requisition against ordering plant FA71 with quantity 51 EA.

After Supply Run (Projected Stock App):

For component BULKPHONE_A in plant specific subcontracting location plant FA72_MUL7 there was plant specific on hand stock of 48 EA. The supply planning run has created a subcontracting component provisioning stock transfer requisition against ordering plant FA72 with quantity 53 EA.

After Supply Run (Projected Stock App):

Plant FA71 has on hand stock of component BULKPHONE_A of 1001 EA. This was enough to cover subcontracting component provisioning stock transfer requisition requirements fromits specific subcontracting vendor location FA71_MUL7 with quantity 51 EA. Nothing has changed.

After Supply Run (Projected Stock App):Plant FA72 has on hand stock of component BULKPHONE_A of 2052 EA. This was enough to cover subcontracting component provisioning stock transfer requisition requirements fromits specific subcontracting vendor location FA72_MUL7 with quantity 53 EA. Nothing has changed.

The new Permission Filters for Orders and Stock app allows you to restrict the data that is available to users in the Projected Stock and View Stock Details apps.

In both applications, both the unfiltered display data and the value helps are restricted.

This improves the security of your supply plan by allowing users to filter and display only the locations and products that they are authorized to access.

It also improves the user experience by tailoring views to relevant data and roles, reducing clutter.

With the upgrade to 2602, users have unrestricted read access by default, and you can apply restrictions as required.

The new business catalog Permission Filters for Orders and Stock (SAP_IBP_BC_ORD_PRMSNFILTER_PC) gives users access to the app to maintain the permission filters for orders and stock.

The new Permission Filter ID for Orders and Stock restriction type has been added to the Projected Stock and View Stock Details business catalogs and app authorization variants.

In existing roles that contain these apps, the Permission Filter ID for Orders and Stock restriction field is set to *(Unrestricted) during the upgrade to 2602.

If characteristic-based planning is enabled then the Projected Stock app has the interactive planning action „Create Subcontracting Purchase Requisition" enabled for a location product where a valid subcontracting transportation lane exists and the product has an attribute set assigned.

In this case, the create-dialog contains a section „Supply Attributes" that allows to specify the value for each supply attribute.

Selection relevant attributes are indicated by an icon and appear on the value help for the subcontractor.

A subcontracting purchase requisition can only be created if the selected subcontractor can deliver the entered value combination for all selection relevant attributes.

If bi-directional propagation is defined for a component of the subcontracting production data structure then the entered supply attribute value combination is copied to the demand attributes of this component.

If shelf life is active then the Projected Stock app shows on the dialog of the action „Create Subcontracting Purchase Requisition" in the section „Supply Attributes" the expiration date of the new order.

The section „Quantity/Date" contains an editable field „Remaining Shelf Life". The field is pre-populated with the master data value of the transportation lane attribute „Shelf Life for Distribution" which is shown in section „Duration".

The expiration date is calculated based on the selected planned date and the (edited) value of field „Remaining Shelf Life".

If batches of a product are integrated to IBP then the actions „Create Purchase Requisition" and „Create Subcontracting Purchase Requisition" in Projected Stock app now allows to assign a batch number to the new order.

The batch number can only be entered if characteristic based planning or shelf life is used.

The value help of the batch number field shows all integrated batches of the product.

If a batch is assigned then CBP supply attributes and expiration date are taken from the batch and the corresponding fields are not editable anymore.

Streamlined Planning

• Guaranteed Compliance: Regulatory + Quality(Shelf-Life) constraints evaluated simultaneously - no more choosing between fresh or compliant
• Faster Decisions: Combine Characteristics-Based Planning with Shelf-Life in one Planning Run (Finite Heuristics)
• Enhance Shelf-Life Planning capabilities

Availability for OBP - SAP7F and HPA Planning Areas

CBP with enhanced Shelf-Life is now available for SAP7F and HPA (IBP2) planning areas

Independent Shelf-Life Planning

• Enhanced Shelf-Life planning can also be used independently of CBP
• For, SAP7F, enable the enhanced function by setting the global configuration parameter ENABLE_SHELF_LIFE_PRODUCT_LEVEL to TRUE
• For HPA, only the new enhanced Shelf-Life solution will be available - No special parameter for activation

Lot Grouping: Improved Precision with Lot Size Parameters

• Lot grouping : Old Min/Max building versus new lot grouping id as used for CBP
• Useful when dealing with stock items with varying expiration dates
• Previously, such stock items were grouped into a single order with the earliest expiration date
• Now, separate orders are created for each expiration date and grouped to meet lot size requirements
• Each order reflects the exact expiration date of its items, enhancing precision

Shelf-Life Propagation to components and inheritance (Bi-Directional)

• Finished product's usable life is constrained by the shortest remaining Shelf-Life of a critical lower-level BoM component (raw material, intermediate, or bulk)
• Restricted to only 1 component per level

Further improvements planned for subsequent releases

• Enhanced Shelf-Life planning can only be activated on the product level
• Enhanced Shelf-Life planning supports lot grouping and parallel use of CBP
• For SAP7F planning area use the ENABLE_SHELF_LIFE_PRODUCT_LEVEL configuration parameter to define if the Shelf-Life attribute is read from product master data
• For new customers, the ENABLE_SHELF_LIFE_PRODUCT_LEVEL parameter is set to TRUE by default
• For customers upgrading from releases before 2602, the parameter is set to FALSE during migration to maintain previous behaviour

• STR is created to fulfill the Sales Order with the right CBP attributes
• The quantity specified in the STR represents only the delta after the right batch has been netted out
• Based on the minimum required Shelf-Life of the sales order and the expiration dates of the batches:
  • Only batch 332100 is utilized, as batch 332999 expires before the required Shelf Life

Factory View

• CBP attributes are propagated, and STRs are created based on the minimum required Shelf Life
• The expiration of STRs is inherited from the raw materials

Factory View: Lowest level in BoM (RM)

• CBP attributes are propagated, and PRs are created based on the minimum Shelf-Life
• The expiration of PRs is determined by the Shelf-Life days maintained in the T-lane

Following CBP restrictions as mentioned in SAP note 3422877or documentation

also will impact Shelf-Life in combined solution except those mentioned on the next slide.

• Deployment
• MAX stock key figures / Push Excess stock in Distribution
• Transport Load Building (TLB)
• Subnetworks upstream is not allowed
• Adjustment key figures (Minimum adjustment will be ignored in the whole planning run if CBP product(attribute set))Min adjustment will work for SL only. Max adjustment will be supported in all cases
• Allocation as constraint in OBP is not supported and will be ignored with error message
• Product Substitution
• Interactive Planning: Roadmap and differences

• Min key figure in case SL only but SL 2.0
• OKF: HPA anyhow required and in SAP7F one could still use old external key figures in case SL only
• CBP attributes not in Prio rules
• CBP Attributes not in Quota/Fair Share
• Forecast Consumption (IBP_CONSUMPTION)

• The Deployment Conversion Heuristic:
• • converts stock transfer requisitions (STRs) into deployment requisition (D-STRs)
  • is based on a preceding OBP Supply Run with the newest picture of the finite distribution plan
  • is available for the I_SAPIBP2 and SAP7F planning area templates
  • is enabled by an ABAP algorithm outside the engine
  • uses Available-To-Deploy quantities (ATD) for converting a subset of stock transfer requisitions in scope
• The Deployment Conversion Heuristic
• • does not create STRs
    • except for deployment requisitions in case of order split)
• does not perform re-pegging
  • keeps pegging
  • except for order split when creating partial deployment requisitions

• The features of the first release 2602 of the Deployment Conversion Heuristic include:
• • Time based deployment priority among documents competing for ATD from left to right on the time axis.
    • Consider order quantity in case stock transfer requisitions compete for same ATD quantity in the same second
  • Consider competing requirement elements such as sales orders
  • Demand and supply horizons for the short term
  • Order split (partial conversion in a period) with or without rounding
  • Re-confirm deployment requisitions with priority over the conversion of new stock transfer requisitions
  • Consider ATD demand and supply before planning start (backward offsets)
  • Consider stock transfer requisitions with multiple-line items

Product PHONE_A in DC1: There are two sales orders with 200 and 100 EA which are not covered

Product PHONE_A in DC2: There are two sales orders with same dates and quantities as DC1 which are not covered

Product PHONE_A in FA1: There is stock for 500 EA and a fixed planned order of 100 EA which is already sufficient to cover the expected demand from the distribution network.

Product PHONE_A in DC1: Both sales orders with 200 and 100 EA are covered by stock transfer requisitions

Product PHONE_A in DC2: Both sales orders with 200 and 100 EA are covered by stock transfer requisitions

Product PHONE_A in FA1: All sales orders, with 600 EA in total, are covered by stock transfer requisitions based on stock and the fixed planned order. However, stock (500 EA) is not sufficient to create D-STRs for all of them.

Product PHONE_A in FA1: Both early STRs with 200 EA were converted to D-STRs based on Stock 500 EA. Remaining ATD (Stock 100 EA) was not sufficient to convert both late STRs with 100 EA each. Both were converted partially and equally to D-STRs (50 EA) based on their equal order sizes. The quantity of the existing STRs was reduced accordingly.

Product PHONE_A in DC1: The early STR with 200 EA was converted to a D-STR fully. The late STR with 100 EA could not be converted fully. It was split into a D-STR and an STR.

Product PHONE_A in DC2: The early STR with 200 EA was converted to a D-STR fully. The late STR with 100 EA could not be converted fully. It was split into a D-STR and an STR.

The DEPL Conversion Heuristic keeps pegging from the preceding supply planning run as much as possible

• The internal and external order number will not change if an STR is converted to D-STR with full quantity.
• Therefore, pegging and detailed pegging will remain intact in case of conversion in full.
  • The same is true if a D-STR is not re-committed in full and falls back to STR status.
• The ATD Supply elements used for deployment conversion might be different from those pegged by the preceding supply run.

The Deployment Conversion Heuristic is capable to restrict its demand and supply horizons to a short term

• The DEPLOYMENT DEMAND HORIZON is the horizon until which competing ATD Requirement elements and STRs competing for ATD Deployment Conversion are considered.
  • The STRs and ATD Requirements are considered by their requirement dates in the ship-from location.
  • ATD Requirements and STRs will be ignored beyond this horizon.
  • Existing D-STRs will be reverted to STRs beyond this horizon
• The DEPLOYMENT SUPPLY HORIZON is the horizon until which ATD Receipt elements are considered as ATD Supply.
  • The Supply elements are considered by their planned dates in the ship-from location.
  • ATD Supply will be ignored beyond this horizon.
• Both horizons are expressed in terms of calendar days
• Note, that these horizons are only considered in the Deployment Conversion Run at present

• The default value of the DEPLOYMENT DEMAND HORIZON and the DEPLOYMENT SUPPLY HORIZON is blank
• Blank is displayed as 0 for integer fields
• Nonetheless it has the meaning of NONE, meaning an eternal horizon in accordance with general OBP run standards
• There will be no message for the display value 0.
• There will be a warning in the DEPLOYMENT CONVERSION RUN Job Template indicating that the value zero has the meaning of an eternal horizon.
• There will be an info in the DEPLOYMENT CONVERSION RUN Job Log indicating that the value zero has the meaning of an eternal horizon.

• The default value of the backward offsets is blank
• Blank is displayed as 0 for integer fields
• It has the meaning of NONE, meaning "no backward horizon" as opposed to the forward horizons
• There will be no message for the display value 0
• There will be no warning in the DEPLOYMENT CONVERSION RUN Job Template
• There will be no info in the DEPLOYMENT CONVERSION RUN Job Log

The DEPL Conversion Heuristic is capable to consider competing requirement elements

• The selectable competing requirement elements in the ship-from location includes the ones shown in the right hand screenshot (default is YES for all entries)
• Capability: If the customer defines a competing requirement element, then the ATD supply quantity is reduced for the conversion of STRs
  • Example: If there is a sales order in the ship-from location with 40 EA on a certain day, and the cumulated ATD quantity is 100 on that day, only the remaining ATD quantity can be used for converting STRs, that is 60 EA.
• Two options are available:
  • At Planning Start Considering ATD Demand Offset: Cumulative requirements within the Demand Horizon in that category are deducted at plan start considering the backward offset.
  • At Demand Date: Cumulative ATD calculation, late competing requirements have no priority over earlier STRs

The Deployment Conversion Heuristic is capable to perform order split

• Existing STR for which ATD is not fully available can be converted to D-STR with partial quantity
• Order is split into a new D-STR and the existing STR line item.
• The size of the existing STR line item is reduced accordingly
• The Rounding criterion be applied for both orders old and new
• Fixed STRs and D-STRs can be excluded from splitting. They are subject to order split if the split scope parameter is checked.

The Deployment Conversion Heuristic is capable to consider different rules to fair-share ATD among competing transportation lanes

• ATD Supply Propagation rules available with the initial 2602 release include the following
  • Requirement Date only
  • Requirement Date/Time and Quantity

• The Deployment Conversion Heuristic handles multiple line items of the same header id independently
  • Multi-line item STRs usually come from ERP.
  • Decisions about conversion or re-version will be taken line item by line item
• Split functionality will be applied to STRs with multiple line items as follows:
  • In case of split, the non-deployable quantity will remain at the existing line item.
  • New split deployment requisitions will be created with a new order number

• WN2602
• What's New Viewer - [SAP Integrated Business Planning] (SAP IBP) 2602 | SAP Help Portal
• Online Help
• Predefined Application Job Templates | SAP Help Portal
• For planning area I_SAPIBP2
  • Deployment Planning | SAP Help Portal
  • Deployment Conversion Run | SAP Help Portal
  • OBP Planning Runs | SAP Help Portal
  • Prerequisites, Planning Parameters, and Deployment Key Figures | SAP Help Portal
• For planning area SAP7F
  • Deployment Planning | SAP Help Portal
  • Deployment Conversion Run | SAP Help Portal
  • OBP Planning Runs | SAP Help Portal
  • Prerequisites, Planning Parameters, and Deployment Key Figures | SAP Help Portal
• Restriction and consulting Note
• 3693329 - Deployment Conversion - Frequently Asked Questions (to be published in February)