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. View or download printable PDF of this documentation Go to change history View or download control framework spreadsheet Go to Spider home page Go to Training View Sign-offs: Training Material Change Request Control Sign-off Training Sign-off Change history 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