Total Demand?

[Former Member]

Hi,

APO DP integrates Sales, Purchasing and Inventory modules. If i would like to know my current month demand? how can i know that?

1. Sales Order Quantity from SD

2. Planned independent requirements from MRP (which will create Purchase Orders i guess, which will reduced with Good Receipt creation)

3. Material Reservation

I thinking above 3 will give current demand. Can any body explain in detail about those. Is there any other components for Demand other than these 3? is material reservation comes under IM? How planned inde. requirements will be generated( i know because of MRP runs, what made MRP Runs generating Planned Independent requirements, what exactly meanig of this.)

Strictly speaking i would like to know more about Demand Management. How can i measure Demand for my company. I waould like to know all possible options.

Thanks in advance.

Nagesh Ganisetti.

[somnath_manna · Accepted solution]

Strictly speaking APO DP is not about integrates Sales, Purchasing and Inventory modules. It is just a very flexible tool through which you can come up with Demand for products of your company. The Demand you get (ready for passing to Supply Network Planning) is totally dependent on the business process you choose for Demand Generation & Management.

To know more you can look into [SCM BPX|https://www.sdn.sap.com/irj/sdn/bpx-scm?rid=/webcontent/uuid/240738f8-0a01-0010-4889-bd254c570cd4] [original link is broken];.

If you have good Sales History data then you can use Statistical Forecasting methods to generate Independent Demand. If you get good field / customer Forecasts then you can incorporate the same through Web-based Interactive Planning or through custom Interfaces loading the Forecast via APO DataMart (Infocubes) to the DP Planning Area. In case of package products you can use DP-BOM functionality to generate the Dependent Demand and add it to Independent Demand to get the Total Demand for a product.

Actually PIRs from R/3 and Manual Reservations should not be an input to the Demand Management process. The primary aim of APO DP is to generate the Unconstrained Forecast which is Constrained by releasing to SNP and applying the Material and Capacity constraints through S&OP.

Hope this gives some idea.

Somnath

[Former Member · Accepted solution]

Appreciated your Quick Response!

I'm not convinced with what you mentioned. I want to forecast my demand which unconstrained can be constrained by releasing to SNP.

I'm working as BW Consultant, I want to send data from BW to DP i.e. Actual Data. Give me What data you want me to send to DP from BW to forecast my Demand.

i'm assuming, Sales Orders, Purchase Orders (scheduling Agreements) etc. Please explain me how to measure my Demand for Last month or year or any time line ?

I hope you understand my Question. i don't like to know what we do in DP or how we plan in DP? How to calculate my Past Demand... what are the possible business Processes (i.e.. Sales Orders etc).

Nagesh Ganisetti.

[Former Member · Accepted solution]

Hi,

Demand Planning, Is used to create demand from history.

There would be no meaning for you to send Demand to DP.

By the way if you are sending past demand, then it would make sense. Depending on what the business user want, you can consider past Sales orders. I am not very sure about using past reservations, as reservations are made on sales orders themselves. and reservations are internal documents, I donot understand why would you plan your demand on internal documents. Demand comes from market inteligence and past history.

So please check again with your people

1) If they want to send History from BW to APO to create future demand or not?

2) Also ask them why do they want to include demand management data into History.Because Demand management is a tool which creates Demand (In R/3 Production Purposes). and Demand Planning is also a tool in APO to create demand. Do they want to compare both the demands?

Ask them why would they need two tools to do the same task.

3) Also be clear on the requriements they are giving . Because what ever you send from BW to APO BW really does not matter, Because DP planning is done with objects in Livecache, we can always manipulate APO BW info Cubes to give accurate history.

Let us know what they are expecting from BW.

Mythilee

[Former Member · Accepted solution]

You might consider including, Sales orders, deliveries or anythign related to Sales documents.

And this information should be given by the Business User, based on what they want to plan, I think you can directly ask them.

[Former Member · Accepted solution]

Simple Question... tell me how to calculate my Past Demand? What Components will supply demand? I know Demand from Sales Orders and Purchase Order of type Scheduling Agreements i guess etc. Tell me any other ways to calculate my past demand.

Suppose if your User ask this Question (Tell me my Past Demand till date), how will u calculate. What are components do you consider (you need to consider Sales, Purchasing etc).? Hope this is clear.

Nagesh Ganisetti.

[somnath_manna · Accepted solution]

Nagesh,

Tell me my Past Demand till date - this is for the business to decide not by IT. Business should be clear about what they mean by Demand. I can add Deliveries as one transaction data that can be a proxy for demand but then if your deliveries are getting delayed and there are backorders or lost sales (no deliveries) then system is loosing the actual demand.

What are components do you consider (you need to consider Sales, Purchasing etc).?

Sales yes but Purchasing - I am not sure. If you are referring to Scheduling Agreement then it is not really Purchasing. It is still a Demand element for your company and hence part of Sales. purchasing will be what you procure to make your Finished products.

Unfortunately its not a simple question. Please note there is a concept of Sell-In and Sell-Through especially in Consumer Goods sector. Sell-In is what your company (manufacturer of the Consumer Goods) sells to the Distributors/Stockists. This is typically the Sales Orders or more importantly

Deliveries against the Sales Orders.

Sell-Through is the actual sale happening at the Retail Store to the end-consumer. Some of the major retailers provide this POS (Point-of-Sale) information to the Consumer Goods company as a better representation of customer demand. This will typically be a flat file coming through EDI or suitable interface and not some transaction data in R/3.

Hope this gives some perspective.

Somnath