Venkadesh Seetharaman Demand Planning with SAP® IBP Imprint This e-book is a publication many contributed to, specifically: Editor Megan Fuerst Acquisitions Editor Emily Nicholls Copyeditor Julie McNamee Cover Design Graham Geary Shutterstock.com: 397658197/© marcin jucha Production E-Book Hannah Lane Typesetting E-Book Satz-Pro (Germany) We hope that you liked this e-book. Please share your feedback with us and read the Service Pages to find out how to contact us. The Library of Congress has cataloged the printed edition as follows: Names: Seetharaman, Venkadesh, author. Title: Demand planning with SAP IBP / by Venkadesh Seetharaman. Description: 1st Edition. | Boston : Rheinwerk Publishing, 2022. | Includes index. Identifiers: LCCN 2022024019 | ISBN 9781493222483 (hardcover) | ISBN 9781493222490 (ebook) Subjects: LCSH: Demand (Economic theory) | Business planning. | SAP IBP. Classification: LCC HB801 .S374 2022 | DDC 330.1-- dc23/eng/20220718 LC record available at https://lccn.loc.gov/2022024019 ISBN 978-1-4932-2248-3 (print) ISBN 978-1-4932-2249-0 (e-book) ISBN 978-1-4932-2250-6 (print and e-book) © 2022 by Rheinwerk Publishing Inc., Boston (MA) 1st edition 2022 Dear Reader, Any cat owner can tell you that it’s difficult to predict demand. When I adopted my cat, Goose, I might have gone overboard at my local pet supplies shop. I filled my basket to the brim with odds and ends that promised me “endless hours of fun for your feline!”: toy mice, balls that jingle as they roll around (and under your couch), wands with feathers, expandable tunnels, a motorized, interactive fish, scratching posts, and of course, the classic laser pointer. The result? To be generous, minutes of fun, before Goose lost interest in her gifts in favor of more exciting options, like jumping into the discarded plastic wrapping. Fast forward five years, and her favorite toys include empty paper bags, stray bottle caps, and hair scrunchies. I’ve gotten better at predicting what will hold her interest —a cat bed holds no value, while a climbable cat post is worth exploring—but the success of any new toy from the pet store is always a gamble. Customer demand may be somewhat less mysterious; however, that’s not to say planning for it is easy! Demand planning is critical so your organization can manufacture products at the right time and in the right quantities to improve overall profitability. With SAP IBP for demand, your business can perform long-, mid-, and short-term forecasting to optimize demand planning and sensing, and with this book, you have the expert guidance you need. If only there were such a guide for cat owners! What did you think about Demand Planning with SAP IBP? Your comments and suggestions are the most useful tools to help us make our books the best they can be. Please feel free to contact me and share any praise or criticism you may have. Thank you for purchasing a book from SAP PRESS! Megan Fuerst Editor, SAP PRESS [email protected] www.sap-press.com Rheinwerk Publishing • Boston, MA Notes on Usage This e-book is protected by copyright. By purchasing this e-book, you have agreed to accept and adhere to the copyrights. You are entitled to use this e-book for personal purposes. You may print and copy it, too, but also only for personal use. Sharing an electronic or printed copy with others, however, is not permitted, neither as a whole nor in parts. Of course, making them available on the internet or in a company network is illegal as well. For detailed and legally binding usage conditions, please refer to the section Legal Notes. 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Table of Contents Dear Reader Notes on Usage Table of Contents Preface 1 Introduction to Demand Planning 1.1 What Is Demand Planning? 1.1.1 Importance of Demand Planning in the Supply Chain 1.1.2 Key Elements and Steps of Demand Planning 1.1.3 Future of Demand Planning 1.2 Demand Planning with SAP 1.2.1 SAP IBP Solution Portfolio 1.2.2 SAP IBP for Demand 1.2.3 Demand Sensing 1.3 Summary 2 Configuring the Demand Planning Data Model 2.1 Architecture 2.2 Attribute and Master Data Type 2.2.1 Attributes 2.2.2 Master Data Types 2.3 Time Profile and Planning Area 2.3.1 Time Profile 2.3.2 Planning Area 2.3.3 Manage the Planning Area 2.4 Planning Level and Attribute as Key Figure 2.4.1 Planning Level 2.4.2 Attribute as a Key Figure 2.5 Key Figures 2.5.1 Key Figure Types 2.5.2 Manage Key Figures 2.5.3 Key Figure Calculations 2.5.4 Calculation Chain 2.5.5 Calculation Function and Expressions 2.6 Version Management 2.7 Planning Operators 2.7.1 Planning Operator Types 2.7.2 Advanced Copy Operator 2.7.3 Snapshot Operator