M-010 Distribution Requirements Planning (DRP)
Business process narrative
M-010 Distribution Requirements Planning (DRP)
Process ID
PPS-01 M-010
Process name
M-010 Distribution Requirements Planning (DRP)
Process category
Forecast to Stock
Approver name
Craig Friesema
Approver title
Director Business Process – FTS
Description
This activity is a review of how M-010 Distribution Requirements Planning (DRP) transactions
are executed, accounted for and documented on a (timing) basis.
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Date of change
April 7, 2008
April 7, 2008
SCJ Confidential
Page 1 of 15
M-010 Distribution Requirements Planning (DRP)
Contents
Business process narrative M-010 Distribution Requirements Planning (DRP).................... 1
M-010 Distribution Requirements Planning (DRP) flowchart ............................................... 4
M-010-01a – Perform DRP: Distribution Requirements Planning (SAP APO) ....................... 5
M-010-02a – Analyze results (SAP APO) ............................................................................... 7
M-010-03a – Troubleshoot/resolve issues (SAP APO) .......................................................... 8
M-010-01r – Perform DRP: Distribution Requirements Planning (SAP R3) ........................ 10
M-010-02r – Analyze results (SAP R3) ................................................................................ 12
M-010-03r – Troubleshoot/resolve issues (SAP R3) ........................................................... 13
Change history ..................................................................................................................... 15
This activity is a review of how M-010 Distribution Requirements Planning (DRP) transactions are
executed, accounted for and documented on a (timing) basis.
What is DRP:
•
The function of determining the need to replenish inventory at branch warehouses. A timephased order point approach is used where the purchase requisitions at the branch warehouse
level are exploded via MRP logic to become gross requirements on the supplying source. In the
case of multilevel distribution networks, this explosion process can continue down through the
various levels of regional warehouses (master warehouse, factory warehouse, etc.) and become
input to the master production schedule. Demand on the supplying sources is recognized as
dependent, and standard MRP logic is applies.
•
Distribution requirements planning allows the optimization of inventory replenishment at
warehouses in a multilevel distribution network. Stock-outs and shipping costs can therefore be
reduced without an increase in overall stock levels.
Note: If MRP type is X0, then APO process must be followed, otherwise use R3 process.
April 7, 2008
SCJ Confidential
Page 2 of 15
M-010 Distribution Requirements Planning (DRP)
Triggers & timing
Inputs from any one of these processes may trigger this process:
• K-200 Maintain Forecast
•
M-050 Schedule Production
•
M-060 Deployment Planning
•
M-150 Material Master
•
M-160 Maintain Production Related Date
•
O-020 Capture & Track Orders
Key inputs/outputs
Inputs
Inputs from any one of these processes may trigger this process:
•
•
•
•
•
•
K-200 Maintain Forecast
M-050 Schedule Production
M-060 Deployment Planning
M-150 Material Master
M-160 Maintain Production Related Date
O-020 Capture & Track Orders
Outputs
Outputs into any one of these processes may result from this process:
•
•
•
•
M-020
M-060
M-050
M-040
Master Production
Deployment Planning
Schedule Production
Material Requirements Planning (MRP)
April 7, 2008
SCJ Confidential
Page 3 of 15
M-010 Distribution Requirements Planning (DRP)
M-010 Distribution Requirements Planning (DRP)
flowchart
M-150
M-160
Maintain
Production
Related
Data
Material
Master
K-200
Demand
Planning
APO
APO
M-010–03a
Troubleshoot/
resolve issues
No
APO or R3?
M-010–01r
Perform DRP:
Distribution
Requirements
Planning
M-010–02a
Analyze
results
M-010–02r
Analyze
results
DRP
results
OK?
DRP
results
OK?
April 7, 2008
M-060
Deployment
Planning
M-060
Deployment
Planning
M-050
Schedule
Production
R3
M-010–01a
Perform DRP:
Distribution
Requirements
Planning
YES
M-020
Master
Production
Planning
(MPS)
O-020
Capture and
Track
Orders
R3
No
M-010–03r
Troubleshoot/
resolve issues
YES
M-050
Schedule
Production
SCJ Confidential
M-040
Material
Requirement
Planning
(MRP)
Page 4 of 15
M-010 Distribution Requirements Planning (DRP)
M-010-01a – Perform DRP: Distribution
Requirements Planning (SAP APO)
Create net requirements from one location (plant) that will be sourced from another location (plant).
These net requirements are to maintain whatever inventory strategy has been set at the receiving
location (safety stock, coverage profile, days supply, etc).
Triggers & timing
•
Batch planning: Weekend run and nightly run.
•
Interactive planning: As needed per planners’ judgment.
Key inputs/outputs
Inputs
•
•
•
•
•
•
•
Forecast
Sales orders and deliveries
On-hand inventory (including in-transit)
Planned production and purchase requisitions/orders
Safety stock (days supply)
Production Master Data
Dependent demand for subcontracting and manufacturing
Outputs
•
•
•
•
•
SNP production plan
PP/DS production plan
Capacity requirements
Distribution plan
Alert monitor (AMON1)
Work steps
Batch processing
Task
Description
1
Deletes the current deployment plan.
LCDELETE
2
Creates demand plan for all locations.
/SAPAPO/SNP01
3
Batch jobs are covered in M-000 Background batch processing.
April 7, 2008
Tcode
SCJ Confidential
Page 5 of 15
M-010 Distribution Requirements Planning (DRP)
Interactive distribution requirements planning
To re-plan supply chain network (distribution requirements).
Task
Description
1
Deletes the current deployment plan.
2
Creates requirements plan for all locations.
Tcode
ZSNP01,
/SAPAPO/SNP01
Local exceptions
No local exceptions are known.
Reports/forms
Title & Description
April 7, 2008
Standard
(Y/N)
SCJ Confidential
Page 6 of 15
M-010 Distribution Requirements Planning (DRP)
M-010-02a – Analyze results (SAP APO)
Validation of requirements flowing to right location for correct quantities.
Triggers & timing
•
Analysis is required when running planning interactively.
•
Alert monitor (AMON1) or as needed based upon communications passed to planners.
Key inputs/outputs
Inputs
•
•
Alert monitor (/SAPAPO/AMON1)
Production plan (/SAPAPO/SNP94 & /SAPAPO/RRP3)
Outputs
•
Plan evaluated
Work steps
Task
Description
Tcode
1
Review alert monitor
/SAPAPO/AMON1
2
Review planning results
/SAPAPO/SNP94,
/SAPAPO/RRP3
Local exceptions
No local exceptions are known.
Reports/forms
Title & Description
April 7, 2008
Standard
(Y/N)
SCJ Confidential
Page 7 of 15
M-010 Distribution Requirements Planning (DRP)
M-010-03a – Troubleshoot/resolve issues (SAP
APO)
Determine reason for demand/requirements not flowing as expected
Triggers & timing
When a problem is identified by the analysis.
Key inputs/outputs
Inputs
•
•
Master data – transportation lanes, quota arrangements, product master
/SAPAPO/SNP94 & /SAPAPO/RRP3
Outputs
•
Demand/requirements plan issues resolved
Work steps
Task
Description
1
Review master data.
Tcode
/SAPAPO/MAT1,
ZQMAT1,
R3: ZMM_DWNLD
2
Review forecast / forecast consumption
/SAPAPO/RRP3,
/SAPAPO/SNP94,
/SAPAPO/SDP94
3
Review other supply chain data, i.e., transportation lanes and quota arrangements
/SAPAPO/SCC01,
/SAPAPO/SCC_TL1,
/SAPAPO/SCC_TQ1,
/SAPAPO/PWBSCR1,
/SAPAPO/SNP94,
/SAPAPO/RRP3
4
Re-plan interactively as needed (M-010–01a – Perform DRP: Distribution Requirements
Planning (SAP APO))
April 7, 2008
SCJ Confidential
Page 8 of 15
M-010 Distribution Requirements Planning (DRP)
Local exceptions
No local exceptions are known.
Reports/forms
Title & Description
April 7, 2008
Standard
(Y/N)
SCJ Confidential
Page 9 of 15
M-010 Distribution Requirements Planning (DRP)
M-010-01r – Perform DRP: Distribution
Requirements Planning (SAP R3)
Create net requirements from one location (plant) that will be sourced from another location (plant).
These net requirements are to maintain whatever inventory strategy has been set at the receiving
location (safety stock, coverage profile, days supply, etc).
Triggers & timing
•
Batch planning: Weekend run and nightly run.
•
Interactive planning: As needed per planners’ judgment.
Key inputs/outputs
Inputs
•
•
•
•
•
•
•
Forecast
Sales orders and deliveries
On-hand inventory (including in-transit)
Planned production and purchase requisitions/orders
Safety stock (days supply)
Production Master Data
Dependent demand for subcontracting and manufacturing
Outputs
•
•
•
•
•
Requirement to MPS production plan
Requirement to MRP
Capacity requirements
Distribution plan
Exception Messages
Work steps
Batch processing
Task
Description
Tcode
1
Deletes the current deployment plan.
ZDELDRPw
2
Creates demand plan for all locations.
MD01,
MDBT
3
Batch jobs are covered in M-000 Background batch processing.
April 7, 2008
SCJ Confidential
Page 10 of 15
M-010 Distribution Requirements Planning (DRP)
Interactive distribution requirements planning
To re-plan supply chain network (distribution requirements).
Task
Description
1
Deletes the current deployment plan.
2
Run DRP
Tcode
ZDELDRPM
MD02,
MD03,
ZMD01
Local exceptions
No local exceptions are known.
Reports/forms
Title & Description
April 7, 2008
Standard
(Y/N)
SCJ Confidential
Page 11 of 15
M-010 Distribution Requirements Planning (DRP)
M-010-02r – Analyze results (SAP R3)
Validation of requirements flowing to right location for correct quantities.
Triggers & timing
•
Analysis is required when running planning interactively.
•
Exception messages or as needed based upon communications passed to planners.
Key inputs/outputs
Inputs
•
•
•
DRP plan results
Exception messages
DRP Master Data
Outputs
•
Plan evaluated
Work steps
Task
Description
Tcode
1
Review exception messages and traffic lights
MD07,
MD04
2
Review planning results.
MD04,
MD07
Local exceptions
No local exceptions are known.
Reports/forms
Title & Description
April 7, 2008
Standard
(Y/N)
SCJ Confidential
Page 12 of 15
M-010 Distribution Requirements Planning (DRP)
M-010-03r – Troubleshoot/resolve issues (SAP
R3)
Determine reason for demand/requirements not flowing as expected
Triggers & timing
•
When a problem is identified by the analysis.
Key inputs/outputs
Inputs
•
•
Master data – DRP PIR’s, Source Lists, quota arrangements, material master
Stock Requirements List
Outputs
•
Demand/requirements plan issues resolved
Work steps
Task
Description
Tcode
1
Review Master Data
MM03,
ME1M,
ME0M,
MEQ1
2
Review forecast / forecast consumption.
MD79,
MD04,
MD07
3
Re-plan interactively as needed (M-010–01a – Perform DRP: Distribution Requirements Planning
(SAP APO))
Local exceptions
No local exceptions are known.
April 7, 2008
SCJ Confidential
Page 13 of 15
M-010 Distribution Requirements Planning (DRP)
Reports/forms
Title & Description
April 7, 2008
Standard
(Y/N)
SCJ Confidential
Page 14 of 15
M-010 Distribution Requirements Planning (DRP)
Change history
Revision date
Requestor
Reason for change
January 13, 2006
Greg Peterson, Director
Business Process - FTS
Initial Release
March 8, 2007
Craig Friesema, Director
Business Process - FTS
Reformatted to new business process narrative template
April 7, 2008
Cheri Neustifter, Learning
Advisor Global Business,
Process and Technology
Add links to Training Material Changes, Training Signoff, and
Control Signoff forms.
April 7, 2008
SCJ Confidential
Page 15 of 15