Planning, Purchasing and Merchandise Distribution, IRT330 Col15

This e-book introduces the key business processes and system functions for planning, purchasing, and merchandise distribution within SAP ERP Central Component 6.0 Enhancement Package 4. It provides a detailed explanation of the relationships between requirements planning, procurement, and distribution processes. The material emphasizes how to configure the system to align with business needs and ensure efficient logistics flows. Readers will gain a solid understanding of how to integrate planning and purchasing into an end-to-end process, improving supply chain coordination and transparency.

1. IRT330
Planning, Purchasing and
Merchandise Distribution
.
.
PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
.
Course Version: 15
Course Duration: 3 Day(s)
Material Number: 50138729
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place undue reliance on these forward-looking statements, which speak only as of
their dates, and they should not be relied upon in making purchasing decisions.
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3. Typographic Conventions
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5. Contents
vii Course Overview1 Unit 1: Requirements Planning3 Lesson: Requirements Planning29 Lesson: Replenishment53 Unit 2: Purchasing55 Lesson: Outline Agreement61 Lesson: Purchase Order69 Lesson: Order Optimizing83 Lesson: Release Procedure91 Lesson: Message Determination99 Unit 3: Merchandise Distribution101 Lesson: Allocation Table127 Lesson: Merchandise Distribution
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7. Course Overview
TARGET AUDIENCE
This course is intended for the following audiences:
●Data Manager
●Project Manager
●Application Consultant
●Development Consultant
●Data Consultant
●Industry / Business Analyst Consultant
●Super / Key / Power User
●Business Process Owner/Team Lead/Power User
●Developer
●Industry Specialist
●Solution Architect
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9. UNIT 1
Requirements Planning
Lesson 1
Requirements Planning
3
Lesson 2
Replenishment
29
UNIT OBJECTIVES
●Make the most important settings for requirements planning and carry out various forms
of requirements planning runs.
●Make settings in the master data
●Maintain planning calendars for time-phased planning
●Trigger a requirements planning run for a distribution center and display the result in the
current stock/requirements list
●Describe the basic concept of replenishment in SAP Retail
●Understand replenishment functions and controls as a separate method of planning
requirements
●Explain the special features of multistep replenishment
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10. Unit 1: Requirements Planning
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11. Unit 1
Lesson 1
Requirements Planning
LESSON OVERVIEW
The role of requirements planning is to guarantee the availability of goods for the recipient
(stores or customers), and therefore also for consumers. To ensure that requirement
quantities can be determined and entered on time, certain activities must be triggered in the
system, such as monitoring stocks, creating forecasts, calculating requirement quantities and
generating follow-on documents for procurement. These activities can be executed by
automatic requirements planning. In this case, purchase requisitions are generated by a
requirements planning run (MRP). These can be converted to purchase orders (automatically
if necessary) which therefore are the basis for purchasing.
Note:
Inform the course participants that they should check their changes after the
enqueue mechanism has been deactivated. For example, by displaying the entries
in the Customizing view after maintaining a new entry.
Business Example
You plan your merchandise for your distribution center at regular intervals. You use the
vendor as one selection criterion for the articles for which requirements planning is to be
carried out.
As a result of these activities, you get purchase requisitions, which can be converted into
purchase orders.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
●Make the most important settings for requirements planning and carry out various forms
of requirements planning runs.
●Make settings in the master data
●Maintain planning calendars for time-phased planning
●Trigger a requirements planning run for a distribution center and display the result in the
current stock/requirements list
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12. Requirements Planning
Figure 1: Goals of Requirements Planning
The main purpose of requirements planning in retailing is to monitor stock and automatically
generate procurement proposals for Purchasing. This aim is achieved using various
requirements planning procedures.
The system supports the use of a centralized purchasing policy, with ordering autonomy in
the hands of the head office alone, as well as local purchasing autonomy (partial or complete)
of the individual stores.
Unit 1: Requirements Planning
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13. Figure 2: Overview of Requirements Planning
The RP type plays a key role in requirements planning. It controls whether a forecast needs to
be carried out or not.
A purchase requisition is usually generated as the result of requirements planning.
Exceptions are requirements planning for perishables, replenishment and investment buying.
These methods normally result in the generation of purchase orders.
Assignment of the RP type takes place in the article's logistics view.
Lesson: Requirements Planning
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14. Figure 3: Forecast
For articles planned using automatic reorder point planning, the reorder point and safety
stock can be checked with each forecast run and then adjusted to the expected requirement
accordingly.
For articles planned using time-phased planning, the forecast estimates the future
requirements directly.
If the target stock has to be determined dynamically, a forecast is needed for replenishment.
The following forecast models are available:
●Constant model
●Trend model
●Seasonal model
●Seasonal trend model
The forecast parameters are defined in article master maintenance. You use them to define
the time interval of the forecast, the number of historical values used, the number of periods
forecast, and so on.
Each of these forecast models requires a certain minimum amount of consumption values.
New articles can make use of the historical values of another article for a certain period of
time.
Unit 1: Requirements Planning
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15. Figure 4: Model Selection in the Forecast
Before the first forecast, you must define the model the system is to use to determine
forecast values. You can select the model using one of three methods:
●Manual model selection
●Automatic model selection
●Manual model selection with an additional, automatic test
If you wish to select the forecast model manually, you must first analyze the series of
consumption values. This method is advised for mass articles.
With automatic model selection, you can make system settings that have the system analyze
the consumption sequence and select the model that best forecasts future consumption. For
reasons of performance, you are advised to only use this method for selected articles.
In the case of manual selection with the additional, automatic test, you enter a model
manually and have the system test for the trend, season, or seasonal trend.
Lesson: Requirements Planning
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16. Figure 5: Prerequisites for the Forecast
If you wish to carry out the forecast for an article, you must first define the forecast data for
this article in the article master record.
A forecast can only be carried out if historical consumption values exist for the article. The
system generally updates consumption values in the article master when stock is removed
from the warehouse, and these values can be checked and, if necessary, corrected before the
forecast is carried out. In addition, it is possible to enter historical consumption values
manually as the base values for the first forecast.
If the consumption statistics required for the forecast are not yet available for an article, it is
possible to carry out a forecast with reference to another article.
The results of the forecast are used for requirements planning only if the forecast indicator is
set in Customizing for the RP type.
Unit 1: Requirements Planning
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17. Figure 6: Data Basis for the Forecast
The RP type controls which source is used.
In the standard delivery, an SAP NetWeaver Business Intelligence connection to SAP Retail is
provided.
Other data sources can be connected by means of existing BAdIs (Business Add-Ins).
In delivery relationship maintenance, you can assign all recipients to one or multiple supplying
sites.
Lesson: Requirements Planning
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18. Figure 7: First Forecast
For the first forecast for an article, the necessary model parameters (base value, trend value,
season indices) are determined for the relevant forecast model. This model initialization
happens automatically at the time the forecast is generated and must be carried out again in
case of a structural change, that is, if the forecast model used ceases to be valid.
Parameter optimizing is used to optimize the smoothing factors. The system searches
through various parameter combinations and selects the one with the lowest mean absolute
deviation.
The ex-post forecast is a forecast for historical periods. More recent consumption values are
forecast on the basis of older consumption values and compared with actual consumption
values, so that the model parameters are adjusted in line with actual consumption as
effectively as possible.
Unit 1: Requirements Planning
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19. Figure 8: Ex-post Forecast
For the initial forecast, the system carries out an ex-post forecast if more historical values are
available than are needed or should be used for initialization. The series of historical
consumption values is split into two areas. The first set of values (that, with the earliest group
of values) is used for model initialization. For the second set, a forecast is carried out in
retrospect, which means that forecast values are calculated for the past period and compared
with the actual consumption values. This ensures that the model parameters are better
adjusted to most recent developments.
The ex-post forecast is used:
●for models with exponential smoothing
●to optimize parameters
●if forecast periods are intentionally omitted
●to evaluate the quality of the forecast
Lesson: Requirements Planning
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20. Figure 9: Forecasting Process
There are various ways of carrying out the forecast for articles:
●Individual forecast (interactive/not interactive)
●Total forecast (online/in the background)
The interactive individual forecast is executed on the Forecast screen in article master
maintenance. The forecast settings can be changed online as required before the result of the
forecast is stored. An interactive graphical feature is available for checking and changing the
forecast values.
A total forecast is carried out for a particular site and period indicator. To keep the system
load as low as possible, you are advised to carry out a total forecast in background mode.
Once the forecast run has finished, you receive a list of all articles for which the forecast was
carried out if you selected the Log record indicator. If you did not select this indicator, a list is
not created.
Unit 1: Requirements Planning
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