Search Results for: supply-planning

  • What is SAP IBP Used For?

    ByPrimary Researcher

    … market to other vendors due to the relatively low uptake of IBP.
    What is SAP IBP Used For?
    However, one clear thing is that IBP is not merely used for S&OP. It is not clear that S&OP is its primary use.
    One can also perform mainline demand and supply planning in IBP, and mainline demand and supply planning projects have a lower failure rate than S&OP projects. S&OP projects can bring software live, but it does not mean that an S&OP process is followed. Sales, for example, is notorious for not necessarily wanting to play …

  • What is SAP IBP?

    ByPrimary Researcher

    … time” supply chain management. The real-time part of supply chain management is doing things like expediting or processing recommendations.
    Powered by in-memory computing technology within SAP HANA, the SAP Integrated Business Planning for Supply Chain (SAP IBP for Supply Chain) solution supports sales and operations; demand, response, and supply planning; and inventory optimization.
    HANA powers IBP. However, there is no reason why this should do much for the performance of IBP or set it apart from other systems. HANA is optimized for analytics performance, but even here, there is no evidence that HANA outperforms competing databases.
    Cloud deployment …

  • Should You Implement EOQ Without Knowing the Assumptions of EOQ?

    ByPrimary Researcher

    Executive Summary

    EOQ is built on a series of assumptions that are most often unquestioned.
    We answer the question of what are EOQ assumptions.

    Video Introduction: What Are the Assumptions of EOQ?
    https://youtu.be/z_q-n_4y9ig
    Text Introduction (Skip if You Watched the Video)
    EOQ is most often presented as a method of performing supply planning, but it is most common to skip the formula’s assumptions. However, the question of EOQ assumptions is essential before deciding upon a course of action with EOQ because, in many cases, the assumptions that make the EOQ formula valid are …

  • When Can EOQ Be Implemented?

    ByPrimary Researcher

    … based upon the minimum order quantity). From there, the EOQ is calculated, which accounts for the typical demand as well as the average lead-time. However, more often, the order batching is related to something else, like package or shipping minimums and not the EOQ formula.
    EOQ and Pre MRP Supply Planning Systems
    Before the development of procedural supply planning systems, EOQ and reorder points were commonly used for the initial supply plan and deployment. MRP did not come around until the late 1970s and was very lightly implemented until the mid-1980s.
    The Coverage of EOQ
    There are very …

  • How Does Reorder Point Work in SAP?

    ByPrimary Researcher

    Executive Summary

    The question of how does reorder point work in SAP is important to using it properly.
    We cover how does reorder point work in SAP in both ERP and APO.

    Introduction
    Reorder points have a poor reputation. Many people that critique them do so on the basis that they do not “look forward.” Reorder points are underused. However, they are appropriate under certain circumstances. MRP is a forecast based planning method. Reorder points are a non-forecast or consumption-based planning method. That is, they are triggered by stock dropping below the reorder point. Each supply planning method …

  • What Specific EOQ Model Types Can Practically Be Used?

    ByPrimary Researcher

    … $50) + 45 or $9,245
    However, if the quantity discount kicks in at 200 units and this discount is 15%, 16 more units could be obtained for $8,538.
    This would be a missed opportunity. This can be easily calculated for an individual item, but this cannot be systematized because supply planning applications do not have EOQ functionality or even step function min lot sizes. Typically, this is handled by procurement as they are up to date on the volume discounts and will increase the orders to meet the discount.

    This is the well-known saw tooth pattern, a feature …

  • Where Can EOQ be Implemented?

    ByPrimary Researcher

    … to apply this approach.
    We cover the background of EOQ.

    Video Introduction: Where Can EOQ be Implemented?
    https://youtu.be/MtICxTIz5QE
    Text Introduction (Skip if You Watched the Video)
    The question of where can EOQ be implemented is critical to determine when to use a non-forecast based method of supply planning (reorder points) and forecast based planning (like MRP). EOQ stands for Economic Order Quantity and is a formula that is sometimes used to set the reorder quantity. You will learn some history around the development of EOQ where EOQ is set up in some well-known supply planning …

  • The Definition of Reorder Point

    ByPrimary Researcher

    Executive Summary

    Reorder points are one of the oldest methods of supply planning.
    We cover the definition of reorder point as well as their origin.

    Video Introduction: The Definition of Reorder Point
    https://youtu.be/Dg6vL3y22yM
    Text Introduction (Skip if You Watched the Video)
    The definition of a reorder point is necessary to understand a major method of supply planning. Reorder point was the first of the supply planning methods, and it became considered passe after forecast based planning methods like MRP appeared on the scene. However, reorder points are still valid today and in some cases will outperform forecast …

  • Introduction to LaunchPad SAP SNP Support

    ByPrimary Researcher

    … for SNP Support?
    We cover the following for SNP in our support.

    Supply Network Planning with Optimizer
    CTM or Heuristics
    Deployment with Heuristics
    Addressing Deployment Optimizer Limitations
    All Upgrades (DS, LC, OS, Kernel, Security, Patches, Ehp)
    User Security Self Help Templates
    APO Security Patches
    APO Database Refresh
    Management Summaries of Supply Planning
    Master Data Maintenance and Reconciliation
    Mass Maintenance Boosters for Maintenance of Transportation Lanes, PDS, External Proc Relationship, Product-Location Master, Quotas, and Profiles

    Notice that many of these items are not covered by SAP. However, we cover all of these and more.

    We also offer Boosters to improve …

  • Introduction to LaunchPad SAP Support

    ByPrimary Researcher

    … Tower
    Mobile Applications for Demand and Supply Planners
    Notifications and Alerts of Critical Situations etc.
    Management Summaries of Demand and Supply Planning

    Notice that many of these items are not covered by SAP. However, we cover them and more.
    Our Research Background
    LaunchPad Support based upon research by Brightwork Research & Analysis, which has the most research and the most accurate research on SAP available anywhere. The BR&A articles on SAP that discuss functionality are routinely are some of the most popular in their area. BR&A has identified many areas of SAP that are open issues on SAP …