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

2. Planning Process Sales & Operations Planning SALES AND OPERATIONS PLANNING DETAIL PLANNING SCHEDULINGANDEXECUTION ProcurementProduction Master Production Scheduling MPS Material Req. PlanningMRP ProductionPlan Demandmanagement

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

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

5. PP: Output of MRP MPS Planned Order Convert to In-HouseProduction ProductionOrdersPurchaseRequisitions PurchaseOrdersScheduleLines ExternalProcurement

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) n 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) n 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)