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SAP Demand Planning & Inventory Management EIN 5346, Logistics Engineering Spring 2010

SAP Demand Planning & Inventory Management EIN 5346, Logistics Engineering Spring 2010. Planning Process. SALES AND OPERATIONS PLANNING. Production Plan. Sales & Operations Planning. Master Production Scheduling MPS. Material Req . Planning MRP. DETAIL PLANNING. Demand

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SAP Demand Planning & Inventory Management EIN 5346, Logistics Engineering Spring 2010

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  1. SAPDemand Planning & Inventory ManagementEIN 5346, Logistics EngineeringSpring 2010

  2. Planning Process SALES AND OPERATIONS PLANNING Production Plan Sales & Operations Planning MasterProductionScheduling MPS Material Req. Planning MRP DETAIL PLANNING Demand management SCHEDULING AND EXECUTION Production Procurement

  3. PP: Demand Management Product Group PGPen Disaggregation F/G Material 75%EPEN 25% ESET

  4. Planning at Group Level Demand Planning Data Disaggregation PGPen Planning at Material Level Transfer through BOMs 75%EPEN 25% ESET Operative Planning Data Planned Independent Requirements At Material and Plant Level PP: Transfer from High Level to Detailed Planning

  5. PP: Output of MRP MPS In-House Production External Procurement Planned Order Convert to Production Orders Purchase Requisitions Purchase Orders Schedule Lines

  6. PP: Sales and Operations Planning (SOP) Information Origination • Sales • Marketing • Manufacturing • Accounting • Human Resources • Purchasing Intra-firm Collaboration • Institutional Common Sense

  7. PP: Sales and Operations Planning (SOP) Flexible forecasting and planning tool Usually consists of three steps: • Sales Plan • Production Plan • Rough Cut Capacity Plan Planned at an aggregate level in time buckets

  8. PP: Master Production Scheduling (MPS) • MPS operates within only one level of the BOM, While MRP can be utilized throughout all levels of a materials BOM. If a MPS is run on a material, the necessary orders are planned at that level. Dependent requirements (if any) are placed on the next BOM level down, and then the process stops.

  9. PP: Master Production Scheduling (MPS) • Main Idea : Master production scheduling (MPS) is a form of MRP that concentrates planning on the parts or products that have the great influence on company profits or which dominate the entire production process by taking critical resources.

  10. PP: Planned Order Planned Order (planning) • a request created in the planning run for a material in the future (converts to either a production or purchase order)

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