Production Orders in SAP®-ERP have their very own lifecycle, like every other transaction data element as well. In this post, I will give you an overview of the standard lifecycle of this data type. I refer to the term of production order in this text but everything said is also valid for the process orders.
You can create a production order from scratch, or you convert a planned order from MRP-Run. The second way is more often used and can be automated. In the status Created (CRTD) you can perform availability checks and detailed scheduling. But, you need to release the order to be able to process it.
The range of coverage profile is an object you configure in SAP-ECC-System. You use it to control the dynamic safety stock for your material. In this article, I’m going to show you how to set up a specific profile.
As described in another article SAP-System offers four basic types of safety stock. One of those types is called dynamic safety stock, as it allows a stock level that changes over time. The calculation to do so is not apparent and is controlled by different parameters. I will explain the range of coverage profile in the following post.
In recent months there has been some movement on the subject of “demand-driven mrp” (demand-driven material requirements planning). SAP has announced that its implementation of DDMRP in S/4HANA has been certified by the Demand Driven Institute. However, not only SAP but also other providers, such as DynaSys, integrate this new planning philosophy into their planning solutions or SAP add-ons. This blog article is intended to present the new procedure in more detail and give an overview of the latest news on the subject.
Origin of the DDMRP
DDMRP was introduced in 2011 in a new edition of the book “Orlicky’s Materials Requirements Planning” by the authors Carol Ptak and Chad Smith and is now distributed by the Demand Driven Institute. The concept of the DDMRP claims to eliminate the “nervousness” of traditional MRP systems and the so-called “bullwhip effect” by using five components. As a result, considerable savings potential is promised through lower inventories and reduced default costs. The five elements of the DDMRP are:
The SAP®-ERP-System provides, like any other system with MRP capabilities, methods of planning with safety stock. In this blog post, I will show you four different ways of calculating safety stock in SAP.
Safety Stock is a level of extra stock held of an item to mitigate the risk of stockouts. An adequate safety stock buffers forecast uncertainties as well as production variances. However, as this stock symbolises not used capital as well, it is a constant task for planners to optimise the safety stock level.