Sales Planning vs Demand management

Can any body explain how to process the sales planning vs Demand management !

Hi,
Demand Management : 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.
Using these strategies, you can decide if production is triggered by sales orders (make-to-order production), or if it is not triggered by sales orders (make-to-stock production).You can have sales orders and stock orders in the demand program. If the production time is long in relation to the standard market delivery time, you can produce the product or certain assemblies before there are sales orders. In this case, sales quantities are planned, for example, with the aid of a sales forecast.
Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data. Rough-cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets.
Use SOP to streamline and consolidate your companys sales and production operations.
SOP is particularly suitable for long- and medium-term planning
SOP constitutes the planning functionality of the LIS information systems.
You pass on SOP plans to Demand Management (PP-MP-DEM) in the form of independent requirements. In turn, this data is fed to Master Production Scheduling (PP-MP-MPS) and Material Requirements Planning (PP-MRP).
An interface with Profitability Analysis (CO-PA) allows you to use CO-PA data as the basis for sales planning in SOP.
You can also pass on the results of SOP to Profitability Analysis (CO-PA), Cost Center Accounting (CO-OM-CCA), and Activity-Based Costing (CO-OM-CCA).
Application Link Enabling (CA-BFA-ALE) supports the distribution of data to different operating units in your enterprise
I hope this information will help you.
kiran.

Similar Messages

Transfer plan to demand management

Dear All
i have maintained an active sales plan in mc93 for 30 materials.Now i can transfer plan of one material
to demend management by mc 90. But i want to transfer whole version to demend management i mean plan of all materials instead of one by one. so is it possible to transfer whole version in which so many materials are planned to demend management

Hi ahmad
with ref to your query i want to add few points which will clarify your issue upto certain extent
if youwant to transfer all 30 materials to demand management you may work with product group scenario instead of material(one)
you maycreate rough cut plan for product group save it against version make it active
you may trnasfer to demand management by using t code mc74 with respect ot active versionas well as defined version
which creatingrough mc35 you have to select w r to sales or production plan
once the sales plan or production plan trnasfer to demand management you can view the results in md62 for results
i hope it will clarify your issue for a certain extent
thanks
shaik

SOP - Flexible Planning u2013 Demand Management.

Hello Gurus
Can any one guide me SOP - Long term plannng / Flexible Planning - Transfer to demand managment Process
Thanks
JJ
Edited by: JJ_SAP_S on Jul 28, 2008 12:24 AM

Hi,
Transferring SOP to Demand Management :
Use:
You can pass on data planned in Flexible Planning or Standard SOP to Demand Management.
Demand Management determines the requirement dates and requirement quantities for important assemblies and specifies the strategies for planning and producing/procuring finished products. The result of Demand Management is the demand program. The demand program differentiates planned independent requirements and customer independent requirements. It gives the information needed in MPS and MRP for planning at SKU level. The placing of sales orders eventually consumes planned requirements and triggers updating to the Sales Information System. This actual data can then be used as input for future sales planning. For more information, see PP Demand Management.
Prerequisites:
The system distributes the data to the appropriate plants in Demand Management on the basis of the quotas you set in Customizing (in Define proportional distribution across plants). You can also make these settings in the Flexible Planning or Standard SOP menu by choosing Settings ® Plant distribution. Plant distribution works as follows:
If a plant or plants can be found for the material in the planning hierarchy, data is transferred to Demand Management for these plants.
If no plant can be found in the planning hierarchy, the system checks to see which plants have been maintained for the material in the material master record. It then checks to see whether distribution quotas have been maintained for the material. If quotas have been maintained, the transfer to Demand Management is based on these quotas.
If no distribution quotas are found for the material, the system checks to see whether you have set generic distribution quotas; that is, distribution quotas that apply to all materials. If so, the transfer to Demand Management is based on these quotas. If generic quotas exist for some but not all plants maintained in the material master record, the system assumes that the distribution quotas of plants without generic quotas are 0.
If no distribution quotas are found at allu2014neither material-specific nor generic onesu2014, the system splits the data equally among all the plants in the material master record.
See also:
Plant Distribution Quotas
Features
Independent requirements are created in Demand Management for all materials whose data has been transferred. These independent requirements are created in the base unit of measure of the material. The base unit of measure of the material is not necessarily the same as the base unit of measure of the information structure or the unit in which you planned the material. See also Switching Units in the Planning Table.
You can transfer SOP data to Demand Management in the following ways:
Transferring Online, Synchronously and Automatically:
You set the following information structure parameters in Customizing for Sales & Operations Planning (in Set parameters of info structures and key figures).
Field name of the key figure whose values are to be transferred
Planning version from which the data is to be transferred
Demand version to which the data is to be transferred
The system creates or overwrites independent requirements in Demand Management every time you save this planning version of the information structure in Flexible Planning.
Transferring Online, Asynchronously and Manually
You choose between the following options:
Transfer of the planning data of all members of a single-level product group from standard SOP (a single-level product group is a product group whose members are materials)
Transfer of the planning data created for one material from standard SOP
Transfer of key figure values from an information structure
You make the following general settings:
The material or product group whose data you want to be transferred
The plant of this material or product group
The planning version of the information structure in which the data is stored
The dates for which you want the data to be transferred
Whether you want to check what the data looks like as independent requirements before you transfer it
The requirements type
If you do not make an entry, the system sets the requirements type via the MRP group which is maintained in the material master record.
The version of the demand program to which you want the data to be transferred
Whether this version of the demand program is active and therefore relevant to MRP
Depending on the option you chose in step 1, you set one of the following strategies.
Transferring Planning Data from a Single-Level Product Group:
You transfer the sales plans of the materials direct.
You transfer the sales plans of the materials as proportions of their owner product group (using the proportional factors defined in the product group master record).
You transfer the production plans of the materials direct.
You transfer the production plans of the materials as proportions of their owner product group (using the proportional factors defined in the product group master record).
Transferring Planning Data of One Material from Standard SOP:
You transfer the sales plan of the material direct
You transfer the sales plan of the material as a proportion of the product group of which it is a member (using the proportional factor defined in the product group master record)
You transfer the production plan of the material direct
You transfer the production plan of the material as a proportion of the product group of which it is a member (using the proportional factor defined in the product group master record)
Transferring Key Figure Data of One Material from Flexible Planning
The information structure from which you want the key figure data to be transferred
The key figure whose values you want to be transferred
This key figure must be a quantity key figure.
For more details go to the following link :
http://help.sap.com/erp2005_ehp_03/helpdata/EN/a5/63238b43a211d189410000e829fbbd/frameset.htm
Hope this helps.
Reward if useful.
Regards,
Tejas
Hope this helps.

Transfer sales plan to md61

Dear Experts,
In my Scenario Sales Deptt. Update sales Scheduling Agreement in SAP By VA31 and then MRP is running & creating Planned orders .
Now We wants to change our Process ,
NOW Before MRP Run we wants to transfer Sales schedule to Demand management MD61 , Where we can manually change Production plan which is not equal to Sales delivery schedule .
To copy sales schedule , I am doing Edit > Copy Requirement > Sales Plan > Total sales
Here system do not copy plan and shows below given error
u201C No production plan exists for product group XYZ u201C
Please let me know that how to copy sales schedules in Demand management (MD61) .
Regards,
ashutosh

Ashutosh,
???? VA01 and VA31 are not plans, they are sales documents (execution). If your question is 'does SAP support a direct copy from sales documents (such as sales scheduling agreements) to planned independent requirements, the answer is no. It would make no sense. Sales documents usually consume planned independent requirements, depending upon your planning strategy.
If you want your production plan to be increased, for the reason of planned scrap/yield loss, you normally enter that yield loss quantity in one of the scrap or yield fields in either the Material Master, or in the Bill of Materials (depending upon your planning methods). In this way, every time MRP suggests a supply order (planned order), it will suggest quantities large enough to cover planned yield loss. It is normally considered a waste of time to have a planner manipulate these types of numbers manually for each iteration of the production plan.
http://help.sap.com/erp2005_ehp_06/helpdata/EN/f4/7d28d544af11d182b40000e829fbfe/frameset.htm
http://help.sap.com/erp2005_ehp_06/helpdata/EN/be/43bdd865f411d3b4e60004ac160649/frameset.htm
If your yield is totally unpredictable (according to your statements, this is not the case), then you would also consider using one of the standard planning tools (like Safety stock) to create some buffer stock.
Demand plans are usually not created for the sole purpose of accommodating yield issues. The most common reason to create a demand plan is to provide an orderly way to plan the entire supply chain in the most efficient manner. This is especially important when your customers demand a lead time that is longer than the total time to procure all raw materials and build all subassemblies for your finished goods.
Best regards,
DB49

Transfer SOP plan to Demand Mgmt

Dear friends,
I have created SOp through MC88. And i wants to transfer SOP plan to demand management through t.code MC74.
While filling the data in the fields, i do not know what to enter in the field "Version" either "00" or "GP".
Please guide me what data to be entered in the "version" field?
Thanks
Shri

If i understand clear on your querry you want to transfer the SOP plan to the demand management.
1.In such case you can use any version.
2.But the version needs to be active .
version in Demand Management:
1. these are used to just manage the diff types of demand in the demand table just for recognising them
2. If they are active then they will be included int he MRP ELSE no.
let me know if you need more answers
reg
DSK

Demand management planning strategy

Hi there,
I am trying to set up demand management for simple make to stock. I am using standard requirements type LSF which is linked to requirements class 100.(OMP1) The requirements class has a planning indicator (PLNKZ) set to "1" (net requirements planning) in OMPO. This is what I want as we want the warehouse stock to be taken into account when procurement proposals are generated. The planning strategy assigned to the material master has the "1" setting (net requirements planning). However when I run MRP after entering planned independent requirements for LSF (MD61), the purchasing requisitions proposed are just for the independent requirements and ignore warehouse stock. There is a line in the Stock / Requirements list that says "Gross Requirements Planning" Does anyone know where it is picking up "Gross Requirements Planning" instead of Net Requirements Planning (i.e. check what is in stock before creating procurement proposals)
Any assistance is appreciated.
thanks
D

Hi Suhas,
I don't want mixed MRP as such but when I cannot get any procurement proposals (requisitions) when the setting is blank. It may be elsewhere that the procurement proposal is - I am still checking.
However, when I choose "2" for mixed MRP, it does generate requsitions (but gives me the other problem where warehouse stock is not taken into account)
The requirements class 100 has an entry "1" for planning indicator and "1" for requirements category. All other columns are blank at the moment. I am in the process of experimenting with these next.
thanks for your help so far.
Donal

Release of APO Demand Planning to R/3 Demand Management

Hi All,
Is there a way to release the forecast in Demand Planning in APO to R/3 Demand Management without passing overwriting the historical buckets in R/3. I have created a special data view that does not contain any historical weeks. However, if we are in week 2 of the month, it overwrites week one of the month in Demand Management with a 0 value when we execute the forecast pass to r/3 job. I don't want to overwrite week one and we actually want to keep the old value there, How can we prevent this from being overwritten?
I have created a data view that does not contain any historical buckets and I am using this in the
Regards,
Rumi,

Hi,
For releasing from DP to ECC , you have taken care of:
○ A future planning horizon only
○ A planning buckets profile with one periodicity only.
I assume you are using "Week" bucket , please confirm.
In SAP ECC Demand Management, planned independent requirements are created in the same buckets as those of the data view on which the mass processing job is based.
With above things in mind, it not clear why APO DP release shoud overwrite historical week data, unless you are releasing in monthly buckets rather than weekly buckets.
Regards
Datta

Transfer to demand management - Flexible Planning

Hi everyone,
I was wondering whether someone has carried out the next process in the following scenario. I am working with flexible planning in SOP (level-by-level planning and dual level planning type, since I am working with product groups).
Now I would like to transfer to demand management some data stored in a ratio associated to one field (disaggregated value) in my planning table.
I tried to do it using the online mode but I just could transfer aggregated level values. I also tried to do it with batch processing (by creating a trannfer profile, then an activity, then a job and finally scheduling and executing the job) but there was an error message that looks like "No dual planning requirements allowed".
I would be very grateful if someone could give some useful information about how to solve my problem. I guess that someone in this forum has faced this challenge formerly.
Thanks in advance and best regards.
Ben.

Hi,
Yes, dual level was specified in the MC8A.
Thanks.

Tranfser from demand management to SOP

Hello All,
is it possible to send data from demand management (eg.MD61) to SOP - standard information structure S076 or flexible planning ?
The idea is to put values directly to MD61 and use them later in flexible planning
thanks a lot
KS

Dear,
It is not possible. In sap, the planning cycle will be SOP -> Demand management -> MRP
SOPu2019 is a forecasting tool enabling you to set up sales, production, and other supply chain targets based on existing, future, or historical data. SOP is most suitable for planning finished goods. SOP plans are passed on to Demand Management in the form of independent requirements (MD61), which in turn is fed in to MRP (Material Requirements Planning).
Hope it clear your doubt
Regards / US

Demand management table

Sir,
We are following the process of SOP in REM as follows:-
1) Creation of Product group.
2) Upload the Sales plan for product group
3) Desagregation of products
4) Copy to active version from inactive version
5) Transfer to demand management
we reqire the table for Sales and operation plan and also after transherring to demand management which table is updated. This is required as we are preparing a report for Sales Plan v/s Production plan.
Thanks & Regards,
Nilesh

Dear Nilesh,
Check these tables,
P445V                            Sales and Operations Planning: Versions
PGMI                             Product Group/Member Allocation
PGPL                             Sales & Operations Planning (SOP)
PGPLE                            SOP Characteristic Values
PGZU                             Product Group/Member Quantity Conversions
Regards
Mangalraj.S

Demand Management Through SOP

Hello Everyone,
I have a scenario where I receive an 8 week rolling forecast from marketing. This is transferred to production. 2 weeks before actual production the plan is firmed.
I was hoping to implement this using SOP transfer to demand management. I was also planning to use an MRP type with a planning time fence. But am not exactly sure of the best practice to transfer Rough cut plann data to demand management. Do I directly transfer the Rough cut plan to a "requirements plan" version?
If not what would be the best possible solution to run SOP?
Also Please suggest as to any specific configuration settings to be maintained for SOP.
Any help in this regard would be greatly appreciated.
Sincerely,
Aji Kurian Mani

Hi
It depends on at which aggregation level you are receiving the Forecast.
if you are receiving at Plant -Material level. I would advice you to directly upload in to MD61.
SOP is required, if you need to do any forecasting in SAP.
or if you need to publish , analsyse the Historical and Forecasting Values at diffrent Org Levels(Plant, cutomer, Material,Sales org....etc)
using the planning tables you can maintain the Figures at one Level, which gets aggregated automatically.
Regards
Ratan

Demand Management: single Supplying Plant to multiple Demand Plant

Dear All,
I have following scenario to mapp:
There is one supplying plant (Plant A) and 3 demand plants (Plant B,C,D). Out of 3 demand plant, two plants (Plant C and D) are assigned to different company code then supplying plant while one demand plant (Plant B) is assigned to same company code as of supplying plant (Plant A).
Material M1 produced at plant will be consumed at plant A to produce material M2 as well as will be supplied to plant B.
Material M2 produced at plant A will be supplied to all three demand plant B, C and D.
As plant A and plant are assigned to same company code and are in same campus, materials will be transferred using Transfer Posting (material movement 301).
Material from plant A will be supplied to transfer to Plant C and plant D using Stock Transfer (movement type 351) or using standard sales cycle.
Plant A will use total SAP but plant B,C and D don't want to use any planning functionalities of SAP (no MRP run) as they are using i2 product for planning.
As except plant A no other plant wants to use SAP for planning run, it was suggested to enter demand at Plant A directly for all plants using Demand Management functionalities using different planning versions. But now the issues are:
A) As demand from each plant (plant C and D) will be entered at Demand Level using different planning version for each demand plant, how to reduce PIR of corresponding demand version for delivery against sales order of corresponding plant.
B) As materials will be transferred from plant A to plant B using transfer posting and not stock transfer, how to reduce PIR. As PIR is not reduced but stock reduces then system will create new planned order for PIR which already supplied to plant B.
Any help will be appreciated.
Thanks and regards,

Dear Mario,
Thanks for your reply.
Can you explain in bit detail what is option 2 and how can I do same in system....
I tried using Special Procurement Key 40 in demand plant and maintained PIR in demand plant with MD61 which results into Stock Transfer Order created in demand plant. Now the problem is when I issued material from supply plant to demand plant against stock transfer order, system also reduced the PIR for external sources I maintained in supplying plant. Hence there was two reduction in Supply Plant, one for Stock Transfer Order reservation and second for PIR maintained for external demands (other than demand plants).
How can I stop reduction of PIR maintained for external sources while delivering against stock transfer order?
Thanks in advance.
Regards.........

SOP and transfer to Demand management for MTO material

Hi all,
I have the following situation:
I have a material, a finished goods product with planning strategy 20 Make to order defined in the material master. I enter a sales forecast for the material in SOP in SAPECC (transaction MC87), works fine.
But when I try to release the forecast to Demand Management (MC74), I get the following error message: "No requirements type exists for material 110100 1 in plant 2". I can see that planning strategy 20 MTO does not have any requirement type defined.
But what is the best practice then to forecast on MTO materials (with strategy 20 MTO)?
What I want to do is to bring down the requirements of the MTO material to Long term planning to get a BOM explosion for the components. I realize that I should not start a production plan for the MTO material, but I want to plan the requirements for components several months ahead.
What is the best practice? Should I use a different production strategy? Am I missing config or any fundamental thinking here?
I need to have the material as a MTO strategy, but I want to plan the components.
Please, give me input on this if you have any solution.
Regards,
Lars

Hi Lars,
Here's what you need to do:
1. Instead of pure 20, customize a strategy group that has in it 20 and 10, and attach this strategy group to your material.
2. In MC74 specify requirements type LSF, demand management version, and make sure to uncheck the "active" box (otherwise you will get requirements in the operative system, and not only in LTP).
3. Do the transfer, and include the version in a LTP scenario.
Regards,
Mario

Splitting of requirement in Demand Management as per Factory Calendar

Dear Gurus,
Monthly requirements are loaded as 3 months rolling sales plan at the Sales Plant.
Am carrying out automatic splitting while transfering this to demand management. The demand for the month is split into 4 equal parts (Weekly). However, the requirement date is always the first day of the week (Monday).
Am working in a region where the first working day of the week is Saturday.
Your inputs please.
Thanks
Tarang Machhar
P.S. - Have tried to assign an appropriate Factory calendar. But it does not help.

Hi Tarang,
one option would be to use period based lot size in the material master of the said materials for the said regions.
you need to maintain a planning calender(MD25) that shifts the requirement dates to the previous saturday.
please let me know if u need more details.

Demand Management Reorganization QN

Hi
When we are trying to remove the demand management for one week , the values stick on that week. We have more sales then the requirement for that week.
Parameters : We have 10 days as the key date. / Backward consumption for 999 days / Planning strategy is 40 .
QN : 1) What is the intention of 999 days ?
2) Why reorganization is not deleting for that week?
3) Suppose if one week demand is not consumed, then how it can be consumed by the adjacent week.?
Thanks for reading
Nick

Hi
Go to OMP8 t.code and Define the reorganization interval for your plant.
Define the reorganization interval
The reorganization period specifies the key date for the reorganization of the planned independent requirements. The key date is calculated by subtracting the specified time from the current date. The planned independent requirements that lie before the resulting date are reorganized.
Thanks
S.Murali

Sales Planning vs Demand management

Similar Messages

Maybe you are looking for