This video gives you an easy highlevel overview of constrained and unconstrained production planning in S/4HANA®.
I received the first copies of the second edition of my book “Quickstart into the SAP production processes (PP)” last week. So, it is available for you with your preferred book vendor or from my publisher. In this book, I give all newcomers an overview of the basics of production planning with SAP.Continue reading “Book: Production Planning with SAP”
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.Continue reading “How to set up a range of coverage profile”
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:
- strategic inventory positioning,
- buffer profiles and levels,
- dynamic adaptation,
- requirements-based planning and
- visible and common execution.
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.
I just finished the screenshots for the Second Edition of my book “First Steps in SAP Production Processes”. Now my publisher takes care of the fine tuning, and hopefully, he will release it within the next months. You know what’s best? This time the book will be available as a paperback as well as ebook.
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