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This document covers frequently asked questions from Consultants, Partners and Customers about SAP Integrated Business Planning Solution order-based planning. The purpose of this document is to cover important questions that come up during our webinar series on all areas covering order-based-planning like Planning Algorithm, rules….

This page will be updated frequently


-         Find additional information at the Partner Edge Portal (S-User required) incl. recording of webinars https://partneredge.sap.com/en/products/ibp/about.html

      

 

Demand/Supply Prioritization

Q: Do we have the possibility to change planning rules? For example, if we want to sort the orders based on creation date and not delivery date (demand date)?

* Demand prioritization rules can be defined in Planning Run Profile. You can find details here: Planning Run Profile: https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/LATEST/en-US/b8349e1f-6a99-4e7a-87fb-b7481245f0df.html

Q: How does the system determine priority or sequence of secondary demand?

* Engine plans primary demands by priority. Dependent demand of prio 1 (primary demand) is higher prioritized than dependent demands of prio 2 (primary demand)

Q: Dependent demand priority. if primary demand generates two dependent demands, how does algorithm determine which search will be run first?

* Primary demand is planned in depth first, before next primary demand is planned. There is no planning level by level.

Q: How to define the priority of supply element? How to maintain preference of supply component?

* With Release 1808 we introduced the Pegging Strategy. for more information see the  official help page .

Response Engine - Planning Algorithm/Master Data/constraints

Q: How far in the past does the system check for utilizing the SOS with highest priority? Is this controllable via a "horizon" parameter as well?

* Since 1911 release, it is possible to use Alternating SOS. It means instead of using the highest priority source of supply, consuming constraints on this level for the full horizon, planning switches to lower priority sources of supply which can fulfill the demand nearer to the demand.

Q: What is the tcode to maintain SOS priorities in ECC/S4?

* PDS_MAINT for PDS, and /IBP/ECC_TLANE for TLANES

Q: When will BOM offset for component be available?

* It was delivered with 1808

Q: Does the data model take into account alternative BOM's components (with different quantities) and alternative resource (with different run time)?

* There are workarounds, but not in standard data model

Q: Can location specific calendar be taken from ECC for break times/holidays?

* Yes

Q: Is the calendar resource specific or only location specific?

* If you have assigned factory calendars in your SAP ERP or SAP S/4HANA on-premise system for use as factory, shipping, receiving, or transportation calendars in order-based planning, these are integrated into IBP via SAP HANA Smart Data Integration. In Addition, You can use the new Planning Calendars app to display/create planning calendars. Using this app, you can view the number of working and non-working days in the current and previous years, and display workday-related details of the factory calendar on which the planning calendar is based.​

Q: Are the buckets capacities in pieces?

* This depends on the resource's UoM. There are different options.

Q: Is it not possible to consume capacity at start of planned order - the way we have in time series planning?

* No, currently only at the end

Q: Could you briefly explain the necessity of Prioritizing SOS and how it brings about value addition in terms of Fulfillment?

* Priority of SOS is needed to find a fast, responsive supply planning result.

Q: Does days of supply work for order based?

* It was delivered with 1902

Q: Will any quota arrangements be considered?

* Inbound Quota is supported as one way of Source of Supply Selection. 

Q: Are lot sizes depending only on material location data, or as well depending on SOS data, e.g. vendor constraints?

* Lot sizes are SOS specific.

Q: Is lot size information considered from product master?

* 1.) lot size is taken from Product Master in ERP/S4 by default.

 2.) (optional) you can further detail it out and maintain them on PDS and TLANE level

finally, lot sizes are stored SOS specific and integrated to IBP

Q: How many sources can have priority .. basically limit for number of possible supply does priority 1 means higher than 2 and then how many sources we can specify, is there restrictions on specifying number of possible Sources that we can specify priority is limit is 99?

* Yes the lower the number the higher importance. The technical field name is PROC_PRIO (type Dec 13,2) Limit is 99.999.999.999,99

see here the official help page:

https://help.sap.com/viewer/5f32337222fb4760ab2259bc943bdc40/1802/en-US/9d0d39d8625048f5af5c6c9a5805f78b.html

Q: Where is the frozen horizon maintained if it is SOS specific?

* It is maintained at Location Product level, different freeze horizons for Distribution and Production

see here the official help page: https://help.sap.com/viewer/ce74cb613bb44bc1925126c84b191ad9/1.0/en-US/217ff15562e37b43e10000000a4450e5.html

Q: Is Safety Stock calculated based of Multi-stage Inventory Optimization in IBP for inventory?

* Yes, IBP Inventory can determine the optimal requested safety stock, IBP R&S is considering the safety stock to this level

Q: Are these order series "safety stock" Qty or time series? Will they be pegged to a specific supply?

* Safety stock is maintained by a) static, MD value for Safety Stock or b) time-dependent, as a TS-KF

Q: Is heuristic unconstrained?

* Heuristic is doing constrained planning. However, it is possible to use a Planning Run Profile which has constraints switched-off. More details of switchable constraints can be found here: https://help.sap.com/viewer/87c18d0cc53b4d6288e07d52d94bc505/LATEST/en-US/ea90fdec0d624927831070d8e38003ee.html

Q: Will it create one order for one bucket?

* Depending on Demand/Supply and MD Settings yes.

Gating Factors

Q: Is demand filled by gating orders till seen as a shortage?

* When demands cannot be fulfilled, Gating Factor analysis is done. This helps user to understand the root cause why demands are not fulfilled. It is done always.

Q: Is it possible to convert a gating order to a normal order?

* No

Q: Does gating order for Finished Good create dependent / distribution demand for lower level sub-assemblies and raw materials?

* Yes, it is going down to the lowest level to figure out what are all the constraints. i.e. if you resolve all the mentioned problems you should meet the demand.

Q: If there is shortage at 2 levels, will gating order reflect both level gating factor or it will be showing last level only.?

* Gating factors show for both levels. It is going down to the lowest level to figure out what are all the constraints.  i.e. if you resolve all the mentioned problems you should meet the demand.

Q: Does the system create temp demand for safety stock demand, can we prioritize safety stock demand with forecast?

*The safety stock demands cannot be handled in Rules. Thus, you cannot prioritize Safety Stock vs. FCST. That is a future roadmap topic.

Q: Gating orders are created for shortage of safety stock demand?

* Currently there are no Gating Factors for Safety Stock. This is a future roadmap topic.

Pegging

Q: Which app displays the detailed pegging information.

* You can analyze this with Analyze Supply Usage, Gating Factors APP and also to some degree in IBP Excel
see SAP Integrated Business Planning - Analyze Supply Usage at: https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/1805/en-US/38976f5e63084628a11778518a54d620.html?q=analyze%20supply%20usage

Q: Is this detailed pegging used to generate supply shortage alert at the finished product?

* It’s rather that detailed pegging helps you to understand at upstream SC Tiers what demand you are serving. E.g. as a raw material planner you like to know if a requested supply is consumed by a Sales order or Forecast Demand. This is very helpful in case of shortage or delay.

Q: Is pegging always dynamic or can it be fixed so that the supply is not later pegged to another (higher priority) demand?

* Pegging will be newly calculated in every new planning run based on the newest supply and demand situation. It is possible to define conditions in Planning Run Profile in order to prioritize confirmed orders.

Fair Share

Q: Can the engine determine the Fair Share quantity based on the demands independently or do you have to maintain the Fair Share Factor?

* Fair share factor must be provided. This factor is maintained in IBP Key Figures and can be calculated by KF calc, L-Code or even maintained by user. This allows very flexible options to do Fair Share.
see SAP Integrated Business Planning - Demand Fair Share at: https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/1805/en-US/8c7bdff4dbff4e969072d8fc2280f62b.html?q=demand%20fair%20share

Q: Where is the fair share factor maintained?

* It´s maintained in IBP Planning Area Key Figures.

Q: Can fair share factor be % of total demand?

* No, the factor is absolute, because this factor determines how much supply is allocated in each round of fair share.
see here: https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/1805/en-US/8e451ed4e1cb44fa95a7b2daef4180ed.html

Q: Isn't that too much work to maintain "fair share factor" for each order?

* Factor is maintained on a Bucket level - that Factors are typically static across the entire horizon. If you like to hear more about Fair share watch this video: https://sapvideoa35699dc5.hana.ondemand.com/?entry_id=1_n3xt7isp

Q: Does fair share logic work for multiple orders for same FG or can it also apply to multiple FGs made on the same constrained resource?

* Both. Watch this video for more details: https://sapvideoa35699dc5.hana.ondemand.com/?entry_id=1_n3xt7isp

CTM

Q: All this is similar to what APO CTM does. What does SAP IBP that APO CTM cannot and what SAP APO CTM can do but IBP Response Order based planning cannot yet do ... What are the innovations in IBP algorithm?

* Yes, there are similarities. Innovations are: additional processes are supported (out of the box): allocations planning (constrained forecast can be planned); response planning (order confirmations can be planned); faster planning run; simulation/scenario capabilities (e.g. simulate sales order); …

Q: Is there any scope to mention how late fulfillment is allowed? Is there late handling horizon? Is it something like the planning horizon. I know the frozen horizon Like CTM, do we have controls on how late is acceptable?

* In a Planning Run Profile you can configure the maximum allowed lateness of primary demands. Lateness can be configured by segment. Each segment is defined by a condition, e.g. by material number or location number. Different demands can have different maximum lateness settings, according to their segment condition. 

MISC

Q: Is/will there be an option to execute this algorithm with a "regen" option (like a regenerative MRP run where unfixed items are deleted) to delete planned orders?

* This is not possible today. The RM Engine always plans all demands and there are no options to only plan specific demands. Thus, also not to delete supply elements.

Q: In which sample planning area to use for order based planning? SAP7, SAP74?

* SAP recommends SAP7, but SAP74 would also support this.

Q: Does the 1805 release include order-based optimization?

* Yes, IBP1805 includes a first step for order-based optimization. See also https://go.support.sap.com/innovationdiscovery/#/innovation/6EAE8B27FCC11ED7B9CA6CB9E7DEA0C6



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