Analyzing Demand Planning

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Understand the basic demand planning process steps
  • Explain the use of demand planning
  • Explain planning in SAP IBP

Current Process Step

For the following lessons we will focus on the business process Demand Planning in SAP S/4 HANA. Additionally, we will mention possibilities for integrating SAP IBP and perform the demand planning in SAP IBP as well.

As we have heard about the master data records, we will now look at the planning possibilities in IBP and how this can be used for planning in Production. The result of the IBP Planning will then be used for the further processing in PP. Now that we have covered the necessary master data, we will start with the planning of our future production.

First, let’s have a look at the possibilities provided for the initial planning steps in SAP IBP.

Integration to SAP S/4HANA

When the planning has been done in SAP IBP the planning data is transferred as seen to SAP S/4 HANA in the planning. Here we define planned independent requirements as a requirement for stock. This demand will be analyzed by the short-term planning the Material Requirements Planning (MRP) and will generate during the planning run the necessary input for production.

Alternatively, we could do the entire planning for SOP and DM as well as SAP S/4 HANA. We want to give a short overview about the possibilities.


Forecasting can be performed in different tools. For example, forecasting can be performed in SAP Integrated Business Planning (IBP). The result of the forecasting can be transferred to S/4HANA as a planned independent requirement.

Demand Management

Demand management is the management of independent requirements. The behavior of independent requirements in MRP (for example, whether they are effective or consume other requirements) is determined by the type of requirements or the planning strategy in the product master record.

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