IBP200 Col2505 SAP IBP Platform Features and Time Series Based Heuristics

IBP200
SAP IBP Platform Features and
Time Series Based Heuristics
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.
PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
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Course Version: 2505
Course Duration: 5 Days
Librería ERP — Sample | libreriaerp.com/us | info@libreriaerp.com

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Contents
ix Course Overview
1 Unit 1: Introduction Supply Chain Planning with SAP IBP
3 Lesson: Optimizing Supply Chain Planning Efficiency with SAP
Integrated Business Planning
13 Lesson: Implementing Time-Series-Based Supply Planning with SAP
IBP
23 Lesson: Demand Planning capabilities with SAP IBP for sales and
operations
33 Lesson: Supply Planning with SAP IBP for sales and operations
47 Unit 2: Navigating the User Interface
49 Lesson: Navigating in the SAP IBP Web UI
50 Lesson: Personalizing the SAP Fiori Launchpad
55 Exercise 1: Personalize the SAP Fiori Launchpad
59 Lesson: Configuring an SAP IBP, add-in for Microsoft Excel
63 Exercise 2: How to Configure a connection to SAP IBP, add-in
for Microsoft Excel
71 Exercise 3: Create a Planning View
77 Exercise 4: Maintain Excel User Settings
85 Unit 3: Identifying and Importing Data Integration
87 Lesson: Identifying Data Import Options
89 Lesson: Importing Data Using the SAP IBP Web UI
93 Exercise 5: Review Data Importing Using the SAP Integrated
Business Planning WebUI
101 Unit 4: Creating and Performing Microsoft Excel Planning and Reporting
102 Lesson: Creating a Microsoft Excel Template and Favorite
105 Exercise 6: Create a Microsoft Excel Template and Favorite
111 Lesson: Performing a Simulation
113 Exercise 7: Perform a Simulation
119 Unit 5: Disaggregating and Using Key Figure Functions
121 Lesson: Incorporating Disaggregation Methods in SAP IBP
125 Lesson: Fixing Key Figure Values in the Planning View
128 Lesson: Creating Planning Notes
131 Exercise 8: Create Planning Notes
© Copyright. All rights reserved. v

139 Unit 6: Modeling and Creating Analytics and Reporting
140 Lesson: Modeling a Business Process Using SAP IBP
143 Exercise 9: Create a Process Template and Instance
149 Lesson: Creating a Dashboard Chart
155 Exercise 10: Create a Dashboard Chart
161 Lesson: Creating an Analytics Drill Down Chart
163 Exercise 11: Create an Analytics Drill Down Chart
175 Unit 7: Configuring and Using Change History
177 Lesson: Configuring and Using Change History
185 Unit 8: Explaining and Analyzing Supply Planning
187 Lesson: Explaining the Key Features and Functionality of Supply
Planning
192 Lesson: Analyzing a Supply Planning Run
195 Exercise 12: Create Customer Demand and Execute Supply
Planning
205 Unit 9: Modeling Master Data Types in Supply Planning
206 Lesson: Describing General Master Data Types
211 Exercise 13: Display the General Master Data Types and Their
Data
215 Lesson: Modeling Sourcing Rules
219 Exercise 14: Model Sourcing Rules
228 Lesson: Modeling Multilevel Production
233 Exercise 15: Model Multi-Level Production
247 Exercise 16: Multisource Products
255 Lesson: Modeling Handling and Storage Resources
257 Exercise 17: Display the Model Handling and Storage Resources
273 Unit 10: Explaining Key Figures
274 Lesson: Explaining how Attributes can be Modelled as Key Figures
277 Exercise 18: Review Key Figures
281 Lesson: Explaining Input Key Figures
289 Lesson: Explaining Output Key Figures
297 Exercise 19: Execute a Planning Run with Input and Output Key
Figures
303 Lesson: Explaining Input/Output and Helper Key Figures
vi © Copyright. All rights reserved.

309 Unit 11: Describing Supply Planning Operators Heuristic
311 Lesson: Describing the SAP Supply Chain Management Operator
313 Lesson: Describing Types of Algorithms
321 Exercise 20: Create a Planning Operator Using an Algorithm
Type
325 Lesson: Describing Other Parameters for the Heuristic
335 Exercise 21: Add Parameters to a Planning Operator
349 Unit 12: Planning with Lot Sizes
350 Lesson: Modeling Lot Size
353 Exercise 22: Execute a Planning Run with Lot Sizes Using the
SAP Sales and Operation Planning Heuristic
367 Unit 13: Explaining In-transit and Downstream Figures
369 Lesson: Explaining In-Transit Key Figures
371 Lesson: Explaining Downstream Key Figures
377 Exercise 23: Plan Using In-Transit and Downstream Key Figures
383 Unit 14: Adjusted Key Figures in Supply Planning
384 Lesson: Explaining Adjusted Key Figures
389 Exercise 24: Plan with Adjusted Key Figures Using Infinite
Planning
401 Unit 15: Modeling, Controlling, and Consuming Advanced Supply
Planning
402 Lesson: Modeling Co-Products
407 Exercise 25: Plan Co-Products
411 Lesson: Modeling Production Lead Time
413 Exercise 26: Model Production Lead Time
417 Lesson: Controlling Component Offset
421 Exercise 27: Control Component Consumption
426 Lesson: Consuming Capacity Accurately
431 Exercise 28: Set Capacity Consumption Policy
443 Unit 16: Describing Subnetwork Planning
445 Lesson: Describing Subnetwork Planning
© Copyright. All rights reserved. vii

Course Overview
TARGET AUDIENCE
This course is intended for the following audiences:
● Business Analyst
● Business Process Architect
● Business Process Owner/Team Lead/Power User
● Database Administrator
● Help Desk/CoE Support
● Solution Architect
● System Architect
● Trainer
© Copyright. All rights reserved. ix

UNIT 1 Introduction Supply Chain
Planning with SAP IBP
Lesson 1
Optimizing Supply Chain Planning Efficiency with SAP Integrated Business Planning 3
Lesson 2
Implementing Time-Series-Based Supply Planning with SAP IBP 13
Lesson 3
Demand Planning capabilities with SAP IBP for sales and operations 23
Lesson 4
Supply Planning with SAP IBP for sales and operations 33
UNIT OBJECTIVES
● Effectively use SAP Integrated Business Planning (IBP) tools to create initial supply and
demand plans.
● Apply time-series-based algorithms using SAP IBP tools to develop accurate supply and
demand plans.
● Use SAP IBP forecasting algorithms in the Manage Forecast Models application to
generate accurate demand forecasts.
● Describe Unconstrained Planning with the Sales and Operations heuristic
© Copyright. All rights reserved. 1

Unit 1: Introduction Supply Chain Planning with SAP IBP
2 © Copyright. All rights reserved.

Unit 1
Lesson 1
Optimizing Supply Chain Planning Efficiency
with SAP Integrated Business Planning
LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Effectively use SAP Integrated Business Planning (IBP) tools to create initial supply and
demand plans.
SAP Integrated Business Planning
Figure 1: Supply Chain Monitoring and Integrated Business Planning
The standard delivered planing areas of SAP Integrated Business Planning (SAP IBP) and
other elements of the Rapid Deployment (templates, sample analytics, sample datasets, and
so on) are configured to support the design and implementation process as follows:
● Current process and tools are embedded
● Ease of setting up a proof of concept model and conducting mockups with business users
● Flexible configuration capabilities for demos in 3 to 5 sprints before go-live

Figure 2: Out-of-the-Box Models
A planning model is a master plan that defines how information is stored and aggregated in a
system. The SAP IBP solution includes the following sample planning models:
● SAP3 - Inventory
● SAP4 - Supply (and some S&OP)
● SAP 4C – Business Network Collaboration
● SAP 4S – Time Series Shelf Life Planning Heuristics
● SAP6 - Demand
● SAP9 - MRO
● SAP7F – Response
● SAP8 – DDMRP Buffer Planning
● SAPIBP1 – Unified Planning Area
You can start creating your own model by copying one of the sample models and then
extending it as necessary to meet your particular business needs. You can add your own
master data types, key figures, calculations, and attributes or adapt existing ones as required.
With release 2305 the sample planning area SAP7 has been removed and only planning area
SAP7F will be available for order-based planning.
A company's ability to swiftly and effectively adapt to changing market conditions often
defines its competitive advantage. In this context, it is essential to explore Integrated
Business Planning (IBP), specifically focusing on how SAP facilitates this process.
Integrated Business Planning is a critical mechanism for addressing challenges, risks, and
opportunities within the supply chain. While SAP Sales and Operations Planning (S&OP)
traditionally focuses on balancing supply and demand, IBP extends S&OP principles across
the entire supply chain. This is achieved through advanced demand and supply planning
integrated with financial plans, linking strategic planning to operational execution.

Figure 3: Balancing Demand
Balancing demand with supply is an essential process for effective supply chain management.
This process involves integrating demand, supply, and financial models at both aggregate and
detailed levels to create a comprehensive and scalable model. This model serves as the
foundation for efficient demand and supply management, ensuring that businesses can adapt
to varying needs and conditions.
One of the critical components of this approach is real-time "What If" scenario planning. This
capability allows businesses to simulate different scenarios and analyze their potential
impacts on the entire model, enabling quick and informed decision-making.
Collaboration plays a vital role in this process, promoting transparent communication and
ensuring that all decisions are recorded and accessible to all stakeholders. This collaborative
environment helps teams to align their efforts and work together seamlessly.
Additionally, having an intuitive user interface (UI) that is accessible anytime via web, Excel,
and mobile devices is crucial. This accessibility ensures that users can interact with the model
and make necessary adjustments regardless of their location or device.
Figure 4: Balancing Demand Stages
The process of balancing demand with supply involves several stages: sales and marketing
forecasting, consensus demand planning, inventory target setting and projections, material
Lesson: Optimizing Supply Chain Planning Efficiency with SAP Integrated Business Planning

and capacity-constrained planning, planning and profit impact, executive review and real-time
analytics, and adjusting and responding to supply and demand changes. Each stage
represents a critical step in the overall process, contributing to a comprehensive and dynamic
approach to managing demand and supply effectively.
Key Topics
Figure 5: Key Topics
As you progress through this lesson it's important to concentrate on several key topics that
are crucial for mastering the content. These areas of focus are not just topics to be learned—
they are your stepping stones to a deeper understanding and successful achievement of the
course's learning objectives. By emphasizing these crucial areas, you will develop a robust
knowledge base that will enhance your proficiency and effectiveness in supply chain
management.
● Forecast Error:
The difference between the forecasted demand and the actual demand, used to assess the
accuracy of demand planning.
● Heuristic Supply Review:
A method of supply planning that uses rules and guidelines to find a satisfactory solution
that is not guaranteed to be optimal but is sufficient for decision-making
● Reconciliation Review:
A process that ensures consistency and alignment between different plans, such as
demand, supply, and financial plans.
● Footprint Analysis:
An assessment of the distribution and impact of supply chain activities across different
geographic regions and markets.
● Inventory Planning:

The process of determining the optimal quantity and timing of inventory to meet demand
while minimizing costs.
● Response Management::
The capability to react quickly and effectively to changes in supply and demand conditions,
ensuring that customer needs are met.
Supply Chain Monitoring and Integrated Business Planning
SAP offers a comprehensive Integrated Business Planning solution, some of its features
include:
● Holistic Model:
This model encompasses demand, finance, and supply chain planning. It is flexible and
accessible via Microsoft Excel and can be easily reconfigured as needed. Built on SAP
HANA, this "in-memory" data and analytical solution supports scalability and handles large
volumes of data and calculations.
● Real-Time Scenario Planning:
The platform enables real-time scenario planning and comparison of various plans at both
granular and aggregated levels. Powered by SAP HANA, it offers highly flexible and
efficient analytic capabilities. The "what-if" simulation feature allows planners to explore
strategic decisions. SAP HANA's high-speed, in-memory computing sets it apart in the
market.
● User-Friendly Interfaces:
Available across multiple platforms—web-based desktop browsers, Microsoft Excel, and
mobile applications—these interfaces provide quick access and immediate visualization of
planning data, enhancing user experience.
Introduction to SAP-Integrated Business Planning for Sales & Operations Planning
Figure 6: SAP Integrated Business Planning Solution
SAP Integrated Business Planning (SAP IBP) is a world-class solution for:

● Sales and operations planning (S&OP)
● Supply chain monitoring
● Demand management
● Inventory planning
● Supply planning
● Response management
It is important to note that S&OP is the core of Integrated Business Planning. This process
aligns demand and supply to drive a business outcome.
It has become increasingly important for businesses to power growth, resiliency, and
efficiency. Several maturity models have been developed by analytical consultancy/corporate
entities. These models facilitate the determination of the different stages of S&OP, which
include the following:
1. Creating a feasible plan
2. Matching demand with supply
3. Driving the most profitable response
4. Building demand-driven supply chain capabilities
5. Orchestrating through market driven value networks
6. Optimizing inventory
Key Capabilities.
SAP provides a solution to cover all six stages of the above planning process. This approach
includes the following key capabilities:
● Analytical Capabilities:
Embedded analytical and integration tools in the planning process allow users to quickly
assess and study the effects of various supply and demand scenarios without switching
between systems.
● User-Friendly Interface:
The interface combines the familiarity of Microsoft Excel with the power of the SAP IBP
solution, eliminating the need for separate spreadsheet-like programs and enhancing user
experience.
● Real-time scenario planning
Built on the SAP HANA platform, it streamlines access to planning data with in-memory
database structures, allowing efficient real-time adjustments.
● End-to-End Integration:
SAP IBP allows seamless integration with various systems, enabling the exchange of
diverse data types (e.g., master data, order data, POS data) and ensuring cohesive
synchronization between SAP Business Suite and external third-party tools.
Functional Areas.

The following lists the planning provided by the out-of-the-box SAP Integrated Business
Planning for Sales and Operations model provided by SAP:
● Demand review
● Supply review – heuristic
● Reconciliation review
● Management business review
● Forecast error calculation and analysis
● Time-series-based forecast consumption
● Footprint analysis
Personal Reflection
Reflect on a time when you were involved in a project or task that required coordination
between different departments or teams. How did you manage the communication and
alignment between these groups to achieve your goals? What challenges did you face, and
how did you overcome them? Relate your experience to the principles of Integrated Business
Planning (IBP) as discussed in the lesson.
Out-of-the-Box Configuration SAP Integrated Business Planning For Sales and
Operations
In the figure, Out-of-the-Box Configuration SAP Integrated Business Planning for sales and
operations — Calculations, you can see how key figure calculations are built on the SAPIBP1
model. This model can be reconfigured using Planning Areas Model Configuration app in the
Web UI.
Figure 7: Out-of-the-Box Configuration SAP Integrated Business Planning For Sales and Operations —
Calculations

Expert Response
In my role as a supply chain manager, I was tasked with launching a new product line, which
required close coordination between the marketing, production, and finance departments.
To manage communication and alignment, I implemented regular cross-functional meetings
where each department provided updates and discussed potential issues. We used
collaborative tools to ensure everyone had access to the latest data and could provide real-
time input.
One significant challenge was aligning the production schedule with marketing's promotional
activities while staying within budget constraints set by finance. To address this, we utilized
scenario planning to evaluate different production timelines and marketing strategies,
ensuring we could meet demand without overextending our resources.
By applying principles of IBP, such as real-time scenario planning and end-to-end integration,
we achieved a successful product launch that met our sales targets and stayed within budget.
This experience highlighted the importance of cohesive planning and communication across
all departments to achieve strategic business goals.
Lesson Wrap-Up
In this lesson, we explored the importance of Integrated Business Planning (IBP) and how
SAP's IBP solution facilitates effective supply chain management.
Key points covered include:
● Integrated Business Planning (IBP):
A strategic process that aligns demand, supply, and financial planning across the supply
chain to enhance decision-making and performance.
● SAP HANA Platform:
The backbone of SAP IBP, offering high-speed, in-memory computing for real-time data
processing and analytics.
● Key Features of SAP IBP:
Holistic model integrating demand, finance, and supply chain planning, accessible through
familiar tools like Microsoft Excel. Real-time scenario planning and "what-if" simulations to
support strategic decision-making. User-friendly interfaces available across web-based
browsers, Microsoft Excel, and mobile applications for quick data visualization. End-to-end
integration with various systems, enabling seamless data exchange and synchronization.
● Core Functional Areas:
Sales and operations planning (S&OP), supply chain monitoring, demand management,
inventory planning, supply planning, and response management.
● Stages of S&OP:
Creating feasible plans, matching demand with supply, driving profitable responses,
building demand-driven capabilities, orchestrating value networks, and optimizing
inventory.
● Analytical Capabilities:
Embedded tools for swift analysis of supply and demand scenarios without switching
between systems.

IBP200 Col2505 SAP IBP Platform Features and Time Series Based Heuristics

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