Exploring Business Coverage and Integration Overview of SAP IBP for response and supply - order-based planning

Objective

After completing this lesson, you will be able to appraise the scope and integration capabilities of SAP IBP's response and supply business planning processes within the organization's overall supply chain strategy.

Business Coverage and Integration Overview

Supply Planning with Allocation Creation run considers forecast, fixed demands, and receipts (and safety stock and safety days of supply) as Demand Elements. Supply Elements created are Planned orders, Stock Transfer Requisitions, Purchase Requisitions. Allocations are not considered as a constraint and Sales orders are also not considered.

The Supply Planning with Order Confirmation Run, in response and supply planning, re-plans the supply with the most recent prioritized demand and the product allocation. This planning run also performs the order confirmation. For any change in the demand and supply situation, the confirmation planning run recreates the plan and confirms the orders. Therefore, the output of this complete cycle is the confirmed orders and the most preferred supply plan per the prioritization rule and the organization’s ability to supply.

Deployment planning is performed as short-term supply planning to supply the available material against open orders. This planning methodology matches demand elements with the existing supply. Deployment is normally performed only in the short term for the actual product movement horizon, typically from a couple of days to a week.

The image provides an overview of a Supply Planning Run template, highlighting its value proposition and capabilities. The value proposition includes support for supply planning with order confirmation or allocation creation, selection of independent demand types (sales order, forecast), and the ability to choose any algorithm type for planning. It also mentions improving planning through on-or-off demand fulfillment switching. The capabilities section details executing planning runs with heuristic or optimizer algorithms, in various modes (version, scenario, simulation), and scheduling planning runs from different platforms (Application Job, Planner Workspaces, Projected Stock, Monitor Application Job, Excel Add-In). It also covers using planning run profiles to select independent demand types and switch sales-order confirmations and forecast fulfillment on or off. The image includes a table comparing different planning run templates and a screenshot of a planning run interface on a computer monitor.

Functional capabilities of SAP IBP for response and supply include:

  • Specific SAP Fiori Apps provide excellent data visibility into the planning situation. This includes Gating Factors, Competing Demands, Analyze Supply Usage, Pegging, and so on.
  • Prioritization Logic is described in subsequent sections but uses a flexible \ reusable rules framework and is the brains of the algorithm.
  • Simulations: Ability to create and copy planning version, version-specific MD. Specific Sales Order simulation capability exists just for Order Based Planning.
  • Constraints: Listed above, some are Master Data, others Time-Series key figures and can be used to determine a feasible plan.
The image is a diagram divided into four sections, each detailing different aspects of a planning and analysis system. 1. Root-cause and Results Analysisincluding pegging analysis on planning run result, gating factor analysis on created supply plan (order & forecast), analysis of competing demands, and constrained forecast view. 2. Prioritization Rules including rule set definition, rule set assignment to planning runs, rules definition and evaluation based on HANA Rules Framework, and demand fair share capabilities. 3. Simulation and Scenarios including order-based planning in planning versions (copy between planning versions), simulations for analyzing changes in demand or supply situation, including simulative orders, on-the-fly and persistent scenarios for different situation analyses, and analysis of scenarios (see root-cause and results analysis). 4. Constraints and Consumption Strategies including considered constraints like allocations, material constraints, production capacity, supplier constraints; forecast consumption within forecast period (day, week); and allocation consumption rules based on material availability date, defined in allocation procedure.

The apps used to view the Order Based Planning Data are shown below.

The image consists of six screenshots from a software interface, each labeled with a different function. The top row includes: View Planning Results in Excel, showing a spreadsheet with charts; Planner Workspace, displaying a map and data table; and Gating Factor and Order Network, featuring a table with order details. The bottom row includes: Analyze Competing Demands, showing a table with demand data; Analyze Supply Usage, displaying a table with supply details; and Projected Stock, featuring a table with stock projections and color-coded indicators.

Figures show an overview of where the different algorithms fall into which planning horizon, and whether they are time-bucketed or order-based.

For items in gray, refer to the SAP IBP Roadmap.

The image is a detailed chart outlining the supply planning capabilities offered by a solution, categorized into three main processes: Response Planning, Operational Planning, and Strategic/Tactical Planning. Response Planning involves short-term supply plans, updating sales order commitments, and deployment planning. It uses order-based data stores and includes methods like Priority Heuristic, Priority Heuristic without sales order reconfirmation, Deployment via Priority Heuristic and Deployment Optimizer. Operational Planning focuses on creating specific orders for production, internal distribution, and procurement in the short to mid-term, generating allocation plans for order fulfillment. It also uses order-based data stores and includes methods like Priority Heuristic , Priority Heuristic without Allocations Planning, Capacity Leveling, and Supply Optimizer. Strategic/Tactical Planning aligns long-term revenue and operating plans with financial plans, sets capacities, and makes outsourcing decisions. It uses time-bucketed data stores and includes methods like Shelf Life Heuristic, Unconstrained Heuristic, and Capacity Leveling. The chart also differentiates between finite and infinite planning capabilities, with a roadmap indicating the progression from finite to infinite planning.

Time-Series based planning uses Cloud Platform Integration – Data Services (Ci-DS) as its technique. Its more of a data mapping setup with provided templates (not all) for the data elements and is periodic.

SAP Cloud Integration (CI) is used to integrate data between S4 SAP HANA Cloud and SAP IBP

Order-based planning uses Real-Time Integration (RTI) for both Master and Transactional data integration.

The image is a flowchart illustrating the integration of SAP IBP (Integrated Business Planning) with SAP ECC (ERP Central Component) and SAP S/4HANA (both Cloud ES and On-Premises) using a new configurable data model and SAP7F Planning Area. The flowchart shows data moving between these systems, emphasizing the use of queues and connectors to facilitate integration and data transformation.

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