What are the disadvantages of implementing APO- Demand Planning without improvements or cleaning up the MRP. in other words is DP implementation dependant on MRP process. Gurus please advise

HI All. What are the disadvantages of implementing APO- Demand Planning without improvements or cleaning up the MRP. in other words is DP implementation dependant on MRP process. Gurus please advise

Hi Amol,
DP is the demand planning machine, here you estimate your forecast (future sales).
The MRP is a supply planning machine, here you use estimate the replenishment.
Both machines in a technical perspective are independent one each other. Now in a business perspective they are not: The problem that you will have if you don´t clean your MRP elements is not a problem in DP itself. I mean, you can have a very success implementation in DP, your forecast accuracy will be very good.. and you will get a very good forecast, but when the MRP run and estimate the replenishment, the effort that you made in DP will not be translated in good results and your planning situation will be still not good.
Kind Regards,
Mariano

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    Edited by: Anoop Sahu on Mar 29, 2009 5:14 PM

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