Demand management with SAP

• Position of Demand Mgt in the Supply Chain
• Planning strategy
• Strategies for Make-to-Stock Production
• 40: Planning with Final Assembly ( планирование, учет сбытовых заказов )
• 30: Production by Lot Size ( на основании соглашения, без планирования )
• 63: Planning w/ a Planning Material and w/o MTO
• 52: Planning w/o Final Assembly and w/o MTO  
• 11: Gross Requirements Planning 
• 10: Net requirement planning 
• Strategies for Planning Components
• 70: Planning at Assembly Level
• 59: Planning at Phantom Assembly Level 
• 74: Planning w/o Final Assembly at Assembly Level 
• Strategies for Make-to-Order (MTO) Production
• 50: Planning w/o Final Assembly
• 60: Planning with a Planning Material 
• 20: Make-to-Order Production
• Strategies for Configurable Materials
• Strategies for Variants
• Strategies for Assembly Orders
• Requirements 
• Planned independent requirement
• Additional information
• 1967124 - BAdI enhancement for flexible primary independent requirements consumption/reduction
• 1715491 - Planned independent requirements consumption/reduction by sales order and delivery
• 2939973 - Consumption mode '5' in S/4HANA

Position of Demand Mgt in the Supply Chain

The function of Demand Management is to determine requirement quantities and delivery dates for finished products assemblies. Customer requirements are created in sales order management. 

To create a demand program, Demand Management uses planned independent requirements and customer requirements.

To create the demand program, you must define the planning strategy for a product. 

• Planning strategies represent the methods of production for planning and manufacturing or procuring a product.

Planning strategy

A material is planned according to the selected planning strategy.

• Strategies for Make-to-Stock Production
• 
  
• The planning strategies explained in this section are designed for planning procurement (production or purchasing) of components by planning the final products. If you can plan at component level more easily, refer to Strategies for Planning Components .
• 
  

Choose a make-to-stock strategy, if:

• The materials are not segregated. In other words, they are not assigned to specific sales orders.
  
• Costs need to be tracked at the material level, and not at sales order level.\

• 40: Planning with Final Assembly ( планирование, учет сбытовых заказов )

• • Planned independent requirements are entered at the finished product level and trigger the procurement and production of the necessary assemblies and components before receipt of the sales orders.
  • As soon as the sales order is received, an accurate availability check is performed according to ATP (available to promise) logic during sales order processing. 
  • PIR is reduced with GI
  • Requirements from the sales orders are passed on to production
    • If there is insufficient coverage of components (the sales order quantities exceed the planned independent requirement quantities), the sales orders cannot be confirmed. The system therefore automatically adjusts the master plan.
    • Choose Logistics → Production → Master Planning → Demand Management → Evaluations → Display total requirements .
    • The Total Requirements List shows only those sales orders that have reduced the independent requirements. Orders are allocated to independent requirements on a first come, first served basis. When independent requirements are fully consumed by current orders, they cannot be further reduced by new orders. New orders are not displayed on the Total Requirements List. The system performs this process dynamically, based on a calculation. The allocation does not display on the database.
    • Master data
    • Strategy group 40 on the MRP screen.
    • Consumption parameters ( Consumption mode, Bwd consumption, Fwd consumption ) to allow consumption of independent requirements. If no consumption parameters are maintained in the material master, the system uses default values are taken from the MRP group.

• 30: Production by Lot Size ( на основании соглашения, без планирования )

• Master data
• Strategy group 30 on the MRP screen
  
• Availability check field (on the MRP screen and the Sales: General/Plant screen) so that you perform an availability check with replenishment lead times ( 01 in the standard system)
• Item category group (for example, NORM ) on the Sales Organization screen
• Individual planning of the components, for example using strategy 70.
• Procurement is based on sales orders only.
• The system finds the requirements type KL (under the Procurement type tab title) because the strategy group has been set to 30.
• This procurement requisition is the starting point for production or external procurement. Various possibilities exist for handling the procurement process in the system. One option would be to convert the planned order into a production order, then release the production order and a goods receipt of the yield quantity. It is also possible, however, to use returns or other goods movements for make-to-stock production.
• An accurate availability check is performed according to ATP logic during sales order processing.
• Depending on the dates, several sales orders can be grouped together to be produced collectively in one single lot
• Stock leftover from previous procurement can be used for any other sales order. This is particularly useful for companies that mainly produce goods for major customers, but who also require the option of selling smaller requirements from stock.
• Planned independent requirements are not consumed by sales and stock orders.
• 
  

• 10: Net requirement planning ( только на основании планирования с учетом запаса)
• 
  
• This planning strategy is particularly useful in mass production environments; it is often combined with repetitive manufacturing. You should choose this strategy if you want production to be determined by a production plan (Demand Management) and if you do not want sales orders to influence production directly. 

• Mater data:
• Strategy group 10 on the MRP screen. Item category group (for example, NORM ) on the Sales Organization screen. Availability check field in Customizing so that you perform an availability check without replenishment lead times (in the standard system, you must enter 02 here). For more information see the Other Areas section below.
• You must use an availability check that checks without RLT.
• Procurement quantities can be planned relatively effectively by means of planned independent requirements. It is possible to use information from the sales forecast, or from the Sales Information System, or other planning tools to plan production quantities. This means that production and procurement of the required components is triggered before receipt of sales orders.
• Procurement is determined by planned independent requirements only.
• An accurate availability check is performed according to ATP logic during sales order processing.
• Sales orders can be displayed for information purposes only
• The planned independent requirements are reduced at goods issue for the delivery.
• Planned independent requirements that are left unreduced increase the warehouse stoc
• If you want the system to reduce future planned independent requirements when it makes withdrawals for unplanned sales orders
• Reduction of planned independent requirements takes place during goods issue for the delivery
• 
  

• 11: Gross Requirements Planning ( только на основании планирования. без учета запаса)

• • Master data
  • Maintain strategy group 11 on the MRP screen.
  • Set the Mixed MRP indicator to 2 on the MRP screen.
  • Maintain the item category group (for example, NORM ) on the Sales Organization screen.
    
  • Maintain the Availability check field so that you perform an availability check without the replenishment lead time (checking group 02 in the standard system). For more details, see the Other Areas section in Production by Lot Size (30).
  • Similar to 10
  • Reduction of planned independent requirements takes place during goods receipt for a production order (discrete production), for a planned order (repetitive manufacturing), or for a purchase order (trading goods).
  • Stock is not taken into account
  • 
    

• Planning w/o Final Assembly and w/o MTO (52)

• • Master data
  • Maintain strategy group 52 on the MRP screen.
    
  • Set the lot size key EX must be set in the MRP screen because lot size optimization would be incompatible with the allocation logic, which could result in over-planning and incorrect result in the ATP check. You also must ensure that no rounding profile or rounding values are taken into account.
    
  • Maintain consumption parameters ( Consumption mode, Bwd consumption, Fwd consumption ) so that the independent requirements can be found
  • Maintain the item category group (for example, NORM ) on the Sales Organization screen.
  • A BOM is required for the finished product. There are no major implications for the BOM components. However, it is important to note the following:
  • You need to set the MRP type to P* (or M* ) on the MRP screen to plan the components in MRP.
  • You may want to consider setting the Individual/coll. Indicator to 2 on the MRP screen as a starting point for your master data setup.
  • Process flow
  • Production quantities can be planned relatively effectively by means of planned independent requirements for the finished product. It is possible to use information from the sales forecast, or from the Sales Information System, or other planning tools to plan production quantities. Only the procurement of the component is triggered before the sales order stage.
  • The planned independent requirements are consumed during the sales order stage.
  • Demand from sales orders is passed on to production and triggers production after the sales order stage, even if insufficient components are planned. The sales orders, however, cannot be confirmed if there is insufficient coverage of components.
  • Planned independent requirements of the finished goods that are left unconsumed increase the warehouse stock of the components and cause procurement to be decreased or not to take place at all in the next period. This procedure is known as "netting."
  • From the costing perspective, this strategy is a make-to-stock strategy, in contrast to strategy 50 , which is make-to-order . This means that stock of the finished material is not linked to each customer order. This strategy does not take stock that exceeds the planned independent requirements (unplanned stock due to, for example, customer returns or over-production) into account, when creating a sales order. Stock for finished goods should be handled through an exception process .
  • 
    

63: Planning w/ a Planning Material and w/o MTO

This strategy has the same basic features as Planning Without Final Assembly and Without MTO (52) . In addition, more than one material can consume the planned independent requirements of one planning material. This strategy allows you to plan the variants of one product. The term variant indicates "similar" parts; it is not used in the sense of variant configuration, which implies a much higher number of variants. With this strategy, for example, you can easily exchange a component in all similar BOMs

• Strategies for Planning Components

• 70: Planning at Assembly Level

• • Set the indicator for assembly planning, the
  • If you are using this strategy in a make-to-stock environment, you also must set the
  • This strategy is very similar to Planning with Final Assembly (40). However, planned independent requirements are consumed by production order requirements (or schedule lines in repetitive manufacturing) and not to requirements of sales orders
  • Process
    • Stock for the assembly usually exists.
    • Planned independent requirements are entered at assembly level
    • The planned orders for the assembly/components are convertible.
    • Procurement smoothing according to order demand is possible. In this strategy, however, the ability to react flexibly to customer requirements is more important.
    • An accurate availability check is performed according to ATP logic during production order processing.
    • Requirements from production orders (or schedule lines) are passed on to production and can lead to changes to procurement after the sales order stage, if the order quantities exceed the planned independent requirement quantities. However the order quantities cannot be confirmed if there is insufficient coverage of components. The system automatically adjusts the master plan. For more information see
    • Coping with Insufficient Coverage of Components.
    • The planned independent requirements are consumed during the production stage. This means that you can compare the planned independent requirements situation with the actual order requirements.
    • Unconsumed planned independent requirement quantities increase the warehouse stock of the component, and cause procurement to be decreased or not to take place at all in the next period. This procedure is called "netting."

• 59: Planning at Phantom Assembly Level

• 74: Planning w/o Final Assembly at Assembly Level
• 
  

• Strategies for Make-to-Order (MTO) Production

• 50: Planning w/o Final Assembly

• • Set the MRP type to
  • You may want to consider setting the
  • Procurement of the components is planned by means of planned independent requirements entered at the finished product level.
  • Final assembly is triggered once a sales order has been entered.
  • An availability check is performed on the basis of planned independent requirements. This means that unplanned stock (such as returns) is not considered for sales
  • The incoming sales order consumes the planned independent requirements, and this in turn reduces the unconvertible planned order quantity.

• 60: Planning with a Planning Material
• 
  

• 20: Make-to-Order Production

• • The sales order quantities are planned for production using the sales order number. The quantities produced for the individual sales orders cannot be changed. Each quantity is maintained specifically for the individual sales order. A separate segment is created in the MRP list for make-to-order production.
  • Starting from the sales order, you can apply this type of planning to as many levels of the BOM as you want. Assemblies and components are produced or procured specifically for the pegged order and stock is managed separately for this sales order.
  • The production and procurement costs are maintained for each sales order in either a settlement order or in a project at sales order item level. This ensures a detailed analysis of the planned and actual costs.

Strategies for Configurable Materials

• Strategies for Variants

• • 26: MTO Production for Material Variants
    • You create a sales order either directly by entering a variant or a configurable material and using variant determination. The system finds the requirement type
    • Make-to-Order production of the finished product takes place.
    • Goods Issue for Delivery and Reduction of Planned Independent Requirements
  • 55: Planning Variants w/o Final Assembly
    • You create one planned independent requirement per variant
    • Components of the variants are procured.
    • You create sales orders
    • The system automatically adjusts the master plan if no planning variant can be found.
    • Make-to-Order production (assembly)
    • The finished product is delivered.
  • 65: Planning Variants w/ a Planning Material
• Characteristics Planning

• Strategies for Assembly Orders

• Assembly Processing with Production Orders
• Assembly Processing with Planned Orders
• Assembly Processing with Projects
• Assembly Processing with Variant Configuration (strategy 89)
• 
  

Requirements 

Relationships

• OMPO: Req. class ( Planned ind. req. ) -> Req. type PIR -> Planning strategy
• Req. class ( Customer req. ) -> Req. type ( Customer req. ) -> Planning strategy
• Planning strategy -> Planning strategy group (MD81, MD61 is to overwrite the main strategy )-> Material 
• MRP group - Strategy Group 

Planned independent requirement

It comes from S&P, but it can be created manually (MD61). 

Planned ind. req.: Adjustment

• MD74: Adjust PIR-s

Planned ind. req.: Reduction 

• PIRs are reduced during GI
• OMJJ: MvT is set for Ind. red. 

Customer independent requirement

With a new SD order, it adjusts it with the PIR as consumption. 

• MDD81: It also can be created manually. 
• MD73 is for total PIR/Cust Req. evaluation.

Additional information

1967124 - BAdI enhancement for flexible primary independent requirements consumption/reduction

The Business Add-In (BAdI) MD_PIR_FLEX_CONS is used for more flexible modelling of the consumption and reduction processes of planned independent requirements. This BAdI enables you to realize consumption and reduction processes in which the consumption indicator '4' is used for planned independent requirements for each MRP element to control whether consumption or reduction takes place.

In some scenarios, the control at the level of the MRP element (DELKZ) is however, not finely granulated enough. You may also want to take certain characteristics of individual MRP elements into account when controlling the consumption and reduction processes.

 The BAdI is enhanced with the additional method GET_REQ_CONS_CHARACTERISTIC, which permits you to specify which requirement characteristics are taken into account in the consumption check. The existing method CHECK_PIR_CONS_REDUC is also relevant because the consumption or reduction check is made available by the method GET_REQ_CONS_CHARACTERISTIC.

1715491 - Planned independent requirements consumption/reduction by sales order and delivery

The planned independent requirements are not consumed by sales order/delivery in MD04 or they are not reduced by delivery after posting the goods issue to the customer.

1. Create the planned independent requirements (Abbreviation: PIR) in transaction MD61/MD62 or import from an external system.
2. Create sales documents, e.g. sales order.
3. Check if the sales order consumes the PIR in transaction MD04. 
• Note: The consumption just happens while calculating the quantity to be displayed in MD04 without changing the quantity of PIR in DB table.
4. Create a delivery refer to the sales order.
5. Check if the delivery consumes the PIR in transaction MD04.
6. Post the goods issue by delivery.
7. Go to transaction MD62/MD63 or MD04 to check if the PIR get reduced. 
• Note: The quantity of PIR should be reduced physically in table and the field 'Withdrawn quantity' is filled in MD62/MD63 on the schedule line.

There are 3 possible causes below:

1. The storage location assigned to the delivery item is excluded from MRP in the material master.
2. The 'Consumption indicator' of the planned independent requirement (PBIM-ZUVKZ) is different from the 'Allocation indicator' of the customer requirements for sales order and its deliveries (VBBE-VPZUO or VBBS-VPZUO or LIPS-VPZUO) .
3. The 'Planning consumption indicator' (PBIM-VERKZ) does not have the value that the customer requirements can be consumed.

Resolution

• The storage location assigned to the delivery item must be included in MRP in order to reduce the PIR while posting the goods. E.g. the field 'SLoc MRP indicator' should be blank in the MPR 4 view of the material master if the storage location is maintained for the material.
• The 'Consumption indicator' of the planned independent requirement (PBIM-ZUVKZ) should be the same as the 'Allocation indicator' of the customer requirements for sales order and its deliveries (VBBE-VPZUO or VBBS-VPZUO) and provides the consumption (values '1', '2' or '3') in order to consume the PIR. You can check these values by double-clicking the PIR in MD04 or checking the tables directly. 
• As to the PIR reduction, while issuing the goods to the customer, the table field LIPS-VPZUO for delivery can be checked, which should be the same with PBIM-ZUVKZ. Normally, the values of VPZUO in the tables VBB* and LIPS are the same.
• Regarding how the field PBIM-ZUVKZ is filled please see note 772856. The value of field VPZUO for sales order/delivery is copied from the requirement class what can be customized in the transaction OVZG and its field 'Allocation ind.'. The changes done in OVZG is only applied to the sales order/delivery newly created.
• Regarding how the requirement class is determined for sales order/delivery
• The 'Planning consumption indicator' (PBIM-VERKZ) should provide a value that can consume the customer requirements. You can display this on the detail dialog box for the planned independent requirements in the stock/requirements list (MD04) or in the item view of the maintenance of the independent requirements (MD61, MD62, MD63). Any changes to this indicator affect the consumption immediately.
• Indicator 'Ind. rqmts reduction' for the movement type is not set in transaction code OMJJ.

2939973 - Consumption mode '5' in S/4HANA

1. Set the Consumption mode '5' in the MRP3 view of the material's master data (MM01 or MM02 transactions).


2. Set independent requirements for the material in the demand management (MD61 transaction).
3. Set customer requirements for the material (MD81 transaction).
4. Go to stock view of the material to see how the independent requirements are getting consumed (MD04 transaction).

Resolution

In consumption mode 5, that is, period-based consumption, sales orders, dependent requirements, or material reservations consume planned independent requirements that lie within the consumption period of the planned independent requirement.

This period of consumption is set in MD61 transaction as follows:



You can check the main period consumptions: daily, weekly and monthly:
Daily: 5 PIRs have been maintained on May 18th to 25th of 100 pieces.


Weekly: 5 PIRs have been maintained in the weeks 21 to 25 of 2020 of 100 pieces.


Monthly: 4 PIRs have been maintained in the months of April, May, June and July of 100 pieces each.



For all these scenarios a customer order has been maintained for date 20.05.2020 (May 20th, 2020).

You can see in the stock view (MD04 transaction) the consumption:
Daily: only the date 20.05.2020 (May 20th, 2020) has been consumed because the requirements of May 18th to 25th have been maintained daily.


Weekly: only the week of the customer order 20.05.2020 has been consumed (Week 21) because the requirements have been maintained weekly.


Monthly: only the month of the customer order 20.05.2020 (May) has been consumed because the requirements have been maintained monthly.



This consumption mode is only valid to S/4HANA version. If this method of consumption is desired in the ERP standard, consider to implement BAdI MD_PIR_FLEX_CONS.

SAP help link

Planning w/o Final Assembly and w/o MTO (52) - SAP Help Portal