SAP F&R Forecasting and Replenishment

SAP Forecasting & Replenishment (SAP F&R) is a key solution that drives efficient inventories in stores and DC of retailers. SAP F&R allows planning and executing inventory strategies on a global basis. With its advanced multilevel replenishment capabilities, it allows streamlining inventories along the supply chain and lowers overall inventory levels and cost while optimizing fulfillment rates.

High-level process 

1. For the forecast, SAP F&R uses time series (for example, sales history of the stores, goods issues, or alternative historical data in the distribution center). SAP F&R uses statistical methods to determine potential future consumption. You assign the methods depending on the selling class.
2. You can use the forecast in SAP F&R to determine future consumption for a location product.
3. Based on the assigned forecast technique, the forecast determines future consumptions using the sales history. 
4. Using the forecast, the current stock, and the open purchase orders, the requirements calculation determines the requirement for a location product for the future demand periods. 
5. The requirement quantities for all planned future demand periods form the basis for subsequent requirement quantity optimization. During the calculation of forecasts and requirements, SAP F&R creates exceptions so that you can evaluate automatic replenishment. Examples for exceptions are unusually high sales or unusually severe lost sales. 

Automatic replenishment requires the following data to calculate future requirements: 

• Master data 
• Time series 
• Current stock 
• Open purchase orders
  

Business process of planning in SAP F&R

SAP F&R, BP, BPMN

Interfaces between SAP ERP and SAP F&R