SAP Demand Driven MRP

9/1/2020
SAP Integrated Business Planning for

Supply Chain
Generated on: 2020-09-01
SAP Integrated Business Planning for Supply Chain | 2008
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Demand-Driven Replenishment
SAP Integrated Business Planning for demand-driven replenishment supports Demand Driven Materials Requirement Planning
(DDMRP) as de ned by the Demand-Driven Institute.
The ve components of DDMRP are as follows:
1. Buffer Positioning
2. Buffer Sizing
3. Dynamic adjustments
4. Demand-driven planning
5. Visible and collaborative execution.
The following gure illustrates the process:
Five Components of DDMRP
Demand-driven replenishment supports DDMRP by performing the following:
Enabling strategic inventory positioning through the creation of decoupling point buffers (buffer positioning)
Creating buffer pro les and maintaining buffer levels (buffer sizing)
Allowing for dynamic adjustments to buffer pro les (dynamic adjustments)
Creating DDMRP order recommendations and order generation (demand-driven planning)
Reviewing priorities, inventory projections, and buffer and signal integrity status (visible and collaborative execution)
The main objective with DDMRP implementations is to enable material ow through a supply chain. In DDMRP, ow is achieved in
the following three ways:
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By dampening the effect of variation across the supply chain by decoupling lead times and identifying where to buffer
quantities of inventory, and how much to buffer to ensure the shortest possible lead time and the optimum amount of
inventory.
By driving replenishment based on actual demand, rather than forecasts.
By exposing downstream inventory and demand status to upstream sources to facilitate demand-driven prioritization of
supply.
Decoupling point buffers are quantities of inventory held at a location that provide an aggregation point for demand by creating a
more stable supply funnel. Buffers also compress lead time between the buffer and the customer, which can lead to better service
percentages. That is, the lead time to the customer is decoupled from the supplier, as inventory is buffered at the decoupling
point.
DDMRP uses a dynamic, three-zone color-coded buffer for planning and execution. The levels are calculated both using individual
item properties and group settings (the buffer pro le) at a location. For more information, see Buffer Zones and Average Daily
Usage (ADU).
Placing decoupling points and their associated buffers is dependent on the supply chain and several factors, including the
following:
Critical operation protection
Customer tolerance time
Inventory leverage and exibility
Sales order visibility horizon
Potential lead time to market
Variable rate of demand and supply
Each factor should be taken into consideration when evaluating whether a node should become a decoupling point.
For example, a node that stocks multiple downstream customers that also has variable reliability in supply for items from
upstream in the supply chain may be a good candidate for a decoupling point and a buffer. By making this location a decoupling
point, that can protect a critical operation and mitigate against the variation in reliability.
 Note
For sample data, planning view templates, prede ned dashboards, con guration guides, test scripts and more pertaining to
SAP IBP for demand-driven replenishment, see SAP Best Practices for SAP Integrated Business Planning. You can download
the content at http://rapid.sap.com/bp/rds_ibp .
Key Features
The key features of IBP for demand-driven replenishment are as follows:
Recommends strategic positioning of decoupling point buffers simultaneously across the end-to-end supply chain network
Enables creation of scenarios for decoupling point decisions
Calculates Average Daily Usage (ADU) and variability of ADU using past, future or blended (past and future) time horizons
Propagates the ADU and variability of ADU from customer-facing nodes through the supply chain network, based on time-
phased BOM explosion and sourcing
Generates time-phased buffer levels simultaneously for the supply chain, including multiple-sourcing networks
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 Note
Scheduling agreements for DDRMP materials are not supported.
Implementation in SAP Integrated Business Planning

Several IBP apps, planning operators, the SAP8 planning area, and the SAP ERP, supply chain integration add-on for IBP are used
with demand-driven replenishment, for both strategic planning and tactical response.
The implementation for DDMRP in demand-driven replenishment includes the following:
SAP8 planning area for demand-driven replenishment
Demand-Driven Replenishment Pro le Fiori app
DDR planning operators: Calculate DDMRP Buffer Levels, Recommend Decoupling Points (Solve) , Map to Decoupling
Points, and Calculate Average Daily Usage.
DDMRP Buffer Analysis Fiori app
SAP ERP, supply chain integration add-on for IBP
In addition, you can use the following apps to monitor and adjust DDMRP:
SAP IBP, add-in for Microsoft Excel
SAP ERP, supply chain integration add-on for IBP
Analytics – Advanced app
Dashboard – Advanced app
Supply Chain Network app
Related Information
Demand-Driven Replenishment Process
Sample Planning Area for Demand-Driven Replenishment
Buffer Zones and Average Daily Usage (ADU)
Demand-Driven Replenishment Pro les
Using the SAP ERP, Supply Chain Integration Add-On for IBP
DDMRP Buffer Analysis
Planning with Microsoft Excel
Analytics – Advanced
Dashboards - Advanced
Supply Chain Network
Demand-Driven Replenishment Process

The demand-driven replenishment process involves several different apps and steps.
Prerequisites
Before you can perform any of the steps in the overall demand-driven replenishment process, make sure you have done the
following:
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You have a planning area set up in Integrated Business Planning. See Sample Planning Area for Demand-Driven
Replenishment for more information.
You have set up your time-series-based integration project (see Getting Started with Your Integration Project).
You have con gured SAP ERP, supply chain integration add-on for SAP Integrated Business Planning for time-series-based
integration (see Administrator’s Guide on SAP Help Portal at http://help.sap.com/ibp_erp_addon under
Administration Administrator’s Guide Con guration for Time-Series-Based Integration ).
You have switched on the business function SCM-IBP-INT-ECC-DD, Demand-Driven Replenishment in SAP ERP, supply
chain integration add-on for SAP Integrated Business Planning (see application help on SAP Help Portal at
http://help.sap.com/ibp_erp_addon under Application Help Application Help for SAP ERP, Supply Chain Integration
Add-On for SAP Integrated Business Planning 1.1 Business Functions SCM-IBP-INT-ECC-DD, Demand-Driven
Replenishment ).
High-level Demand-Driven Replenishment Process

IBP for demand-driven replenishment facilitates DDMRP. There are ve components to DDMRP, as de ned by the Demand-Driven
Institute, and are as follows:
1. Buffer Positioning
2. Buffer Sizing
3. Dynamic adjustments
4. Demand-driven planning
5. Visible and collaborative execution.
In IBP for demand-driven replenishment, the rst three components of DDMRP are performed primarily within IBP, while the last
two are performed primarily within the SAP ERP, supply chain integration add-on for IBP. The following sections give a high-level
overview of the process. The following gure illustrates the process:
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Step 1: Data ow from ECC to IBP
The rst step in the IBP for demand-driven replenishment process is importing data from an ECC system to IBP using CPI-DS,
including the following data:
Con rmed external demand that has been aggregated to a daily quantity (including future forecast and past shipments)
Con rmed supply that has been aggregated to a daily quantity
On-hand inventories
Master data updates
You integrate this data to IBP using SAP Cloud Platform Integration for data services (CPI-DS). Use the following templates to
transfer the data:
IBP_DDR_MD_ERP_AddOn (see IBP_DDR_MD_ERP_AddOn)
IBP_DDR_KF_ERP_AddOn (see IBP_DDR_KF_ERP_AddOn)
For more information about data you can integrate from SAP ERP to IBP, see application help on SAP Help Portal at
http://help.sap.com/ibp_erp_addon under Application Help Application Help for SAP ERP, Supply Chain Integration Add-On
for SAP Integrated Business Planning 1.1 Data Integration Integrating Data from SAP ERP to IBP Time-Series-Based Planning
Areas .
Step 2: ADU Calculation in IBP
Once the data is in your planning area in IBP, the next step is to calculate the average daily usage (ADU) and manually adjust the
demand adjustment factor, if necessary.
The ADU is calculated with the Calculate Average Daily Usage operator, based on settings con gured in the Demand-Driven
Replenishment Pro le app. For more information, see Buffer Zones and Average Daily Usage (ADU) and Planning Pro les for
Demand-Driven Replenishment.
You can modify the demand adjustment factor, if needed, by using the SAP Integrated Business Planning, add-in for Microsoft
Excel.
Step 3: Buffer Positioning and Buffer Zone Sizing
Once the ADU has been calculated and adjusted, you can position the buffer by determining the decoupling point locations, then
size the buffer zones at those decoupling points.
There are two main ways you can set the decoupling points and calculate the buffer zones in IBP. You can do the following:
Run the Recommend Decoupling Points (Solve) operator in the Excel add-in. This automatically recommends decoupling
points and buffer zone values. See Using DDR Planning Operators.
Manually set decoupling points in the DDMRP Buffer Analysis app, run the scenario, then and promote it to the baseline.
See DDMRP Buffer Analysis.
 Note
You can also run the Calculate DDMRP Buffer Levels operator in the Excel add-in to set buffer levels. This operator does not
set decoupling points.
Once the buffer zone level recommendations are set, you can manually adjust them in the Excel add-in.
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Step 4: Replenishment Order Recommendation
Replenishment order recommendations are calculated automatically when you con gure the planning area for IBP for demand-
driven replenishment.
Step 5: Data ow from IBP to ECC system
The DDMRP-based pull replenishment order recommendations, for today, are transferred from IBP to the ECC system using SAP
Cloud Platform Integration for data services (CPI-DS). The template IBP_DDR_to_ERP_AddOn_via_RFC is available to
transfer data (see http://help.sap.com/ibp under Integration SAP Cloud Platform Integration Guide Templates for SAP
Integrated Business Planning Key Figure Templates for Application-Speci c Planing
Areas IBP_DDR_to_ERP_AddOn_via_RFC ).
For more information about how to integrate data from IBP to SAP ERP, see application help on SAP Help Portal at
http://help.sap.com/ibp_erp_addon under Application Help Application Help for SAP ERP, Supply Chain Integration Add-On
for SAP Integrated Business Planning 1.1 Data Integration Integrating DDR-Relevant Data from IBP to SAP ERP ).
Step 6: Run Demand-Driven Planning in the SAP ERP, supply chain integration add-on for IBP
Once the data has been transferred to the SAP ERP, supply chain integration add-on for IBP, you can use the DDR Cockpit to view
the data in the system and maintain global and plant level settings for Demand-Driven Planning. You can access the DDR Cockpit
using transaction /IBP/EDD_COCKPIT.
Run Demand-Driven Planning to run the DDMRP heuristic and generate orders using transaction /IBP/EDD_RUN_MRP. This
converts the IBP order recommendations into orders, such as planned orders and purchase requisitions. These are considered
pull-order within the decoupled lead time, and are for operational action.
The heuristic also creates demand and supply data that is used for planning. Along with on-hand inventories and master data
updates, this information ows back to IBP, as in Step 1.
Step 7: Visible and Collaborative Execution
In the SAP ERP, supply chain integration add-on for IBP, you can use Monitor DDMRP Planning Runs (transaction
/IBP/EDD_MONITOR) to analyze and view the results of the DDMRP heuristic run and review the priorities of execution tasks such
as product planning and material replenishment planning.
In IBP, you can use the Analytics - Advanced app, the Dashboards - Advanced app, the DDMRP Buffer Analysis app, and the Excel
add-in to visualize and review inventory projections, for example, to decide if an existing supply order must be expedited, an to
review buffer and signal integrity status, for example, to decide if the buffer sizing or the net ow signal need special attention and
revision .
Sample Planning Area for Demand-Driven

Replenishment
The SAP8 sample planning area supports demand-driven replenishment by providing a sample or starting point for your
implementation projects.
When creating your own planning area, you can copy the SAP8 sample planning area and then change it to suit your own
requirements.
The time pro le used for the planning area consists of the following:
Day
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Represents a calendar day
Week
Represents a calendar week
Technical Week
Represents technical weeks and is used to split calendar weeks which span over two months into two separate technical
weeks
Month
Represents a calendar month
Quarter
Represents a quarter of a calendar year
Year
Represents a calendar year
Apps for Demand-Driven Replenishment

You can use apps in demand-driven replenishment to create, view, and modify demand-driven replenishment information.
The following apps are available for demand-driven replenishment:
The Demand-Driven Replenishment Pro les app allows you to view or create pro les for the demand-driven replenishment
operators.
The DDMRP Buffer Analysis app in demand-driven replenishment allows you to determine decoupling points and set buffer
levels for a DDMRP implementation across a supply chain.
Demand-Driven Replenishment Pro les

You can use the Demand-Driven Replenishment Pro le app to create and view operator pro les, including settings used while
calculating the average daily usage (ADU).
You can view pro les already in the system or create new ones. To be able to create or edit pro les, your business role must
contain the business catalog Demand-driven Replenishment (SAP_IBP_BC_DDR_PC).
Demand-driven replenishment pro les de ne how the demand-driven operators work.
For the Calculate Average Daily Usage operator, the Demand-Driven Replenishment Pro le app allows you to de ne the historical
demand signal and the future demand signal inputs for the average daily usage calculation, and options for outputting the average
daily usage and coefficient of variation.
For the following operators, you can set the optional parameter Calculation Horizon in Days, which sets how many days for which
the DDMRP buffer zones should be calculated. If not set, the calculation uses the planning area horizon in weeks.
Calculate DDMRP Buffer Levels
Recommend Decoupling Points (Solve)
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For the Map to Decoupling Points operator, there are no operator settings to de ne, but a pro le for this operator must be created
to use it in your planning area.
For more information, see Planning Pro les for Demand-Driven Replenishment.
Supported Device Types

Desktop
Tablet
Smartphone
Planning Pro les for Demand-Driven

Replenishment
You can use demand-driven replenishment planning pro les to con gure operator settings, including how the average daily usage
ADU is calculated.
To de ne the pro les, you use the Demand-Driven Replenishment Pro le app. When you create a new pro le, you select the
algorithm and set different parameters that control the behavior of the algorithm.
 Note
If you upgrade to 1911 or higher and you have existing planning operators of the type Demand-Driven Replenishment ( DDR),
note the following:
All DDR planning operators created prior to 1911 are still available in display mode in the Planning Operators app, which
was previously used to con gure planning operators of the type DDR.
Existing DDR planning operators that are assigned to a planning area will be migrated automatically to the new app and
will be available as pro les. They can be displayed, edited, or deleted in the app.
Existing DDR planning operators that are not assigned to a planning area will not be automatically migrated.
To create a new pro le, in the Demand-Driven Replenishment Pro le app, choose one of the following operators from the Create
dropdown:
Calculate Average Daily Usage
Map to Decoupling Points
For the Map to Decoupling Points operator, only the general settings need to be con gured.
For the following operators:
you can set the following parameters:

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Calculation Horizon in Days – optionally, sets how many days for which the DDMRP buffer zones should be calculated. If
not set, the calculation uses the planning area horizon in weeks.
Default Buffer Pro le Set ID – sets a value to use if the Buffer Pro le Set ID attribute (PROFILESETID) is missing from
the IBPLOCATION master data type.
Update buffer levels within decoupled lead time – Sets whether to update the buffer levels within the decoupled lead time
(DLT). The default setting is checked.
If you do not want the operator to update buffers within the DLT, you can deselect the checkbox and the operator only
updates buffer zones outside the DLT. This can be an advantage because decisions related to periods inside the DLT have
been made in the past, and updating buffer levels for those periods can create signals that can no longer be reacted to.
 Note
This parameter is only enabled for planning areas created based on a copy of the SAP8 sample planning area in release
2005 and higher.
For the Calculate Average Daily Usage operator, many speci c parameters must be con gured.
Common Settings for Operators

The following table lists the common settings for all operators:
Common Operator Settings
Setting Description
Pro le Name Enter a name for the operator pro le. This is a required eld.
Description Enter a description for the operator pro le. This is an optional eld.
Planning Area Select a planning area for the operator pro le. This is the planning
area in which you want to run the operator. This is a required eld.
Parameters for the Calculate Average Daily Usage Operator

There are four sections to the parameter settings for the Calculate Average Daily Usage operator:
Historical Demand Signal
Use this section to con gure the historical demand inputs you want to be used in the average daily usage (ADU) calculation
Future Demand Signal
Use this section to con gure the future demand (forecast) inputs you want to use in the ADU calculation
Average Daily Usage
Use this section to con gure the output key gure and output parameters you want to use for the ADU calculation
Coefficient of Variation
Use this section to con gure the output key gure and input parameters you want to use for the Coefficient of Variation
calculation
The following table lists the parameters for the Calculate Average Daily Usage operator:
Calculate ADU Parameters
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Parameter Description
Historical Demand Signal
Input Key Figure Choose a key gure as the source of the historical demand signal.
This is a mandatory eld.
In the SAP8 sample planning area, two key gures are generally
used for this source, either DD Total Ordered Quantity (for ADU
calculation) (DDTOTALORDERQTYHISTORY) or Blended Demand
Quantity for ADU (DDBLENDEDDEMANDFORADU).
Note that Blended Demand Quantity for ADU

(DDBLENDEDDEMANDFORADU) reads the value from DD Total
Ordered Quantity (for ADU calculation)
(DDTOTALORDERQTYHISTORY) for past periods and DD Total
Demand Quantity (for ADU calculation)
(DDTOTALDEMANDQTYFUTURE) for current and future periods, and
if used, should also be used as the future demand signal input key
gure.
Input Horizon Attribute Select a master data attribute to de ne the horizon for historical
demand for the ADU calculation. This must be an integer value and
maintained on the Product | Location (PRODLOC) planning level.
This is an optional eld.
In the SAP8 sample planning area, this master data type attribute is
ADU Calculation Past Horizon (ADUPASTHORIZON).
Input Horizon Default Enter an integer to de ne the historical horizon for the ADU
calculation in days. This is a mandatory eld and is used when the
input horizon attribute is missing or has no value.
By default this is 21 days.
Historical Offset Enter a positive integer to use as the number of days by which to
offset the historical horizon. This is an optional eld.
Future Demand Signal
Input Key Figure Choose a key gure as the source of the future demand signal. This
is a mandatory eld.
The key gures in the SAP8 sample planing area used for this source
are DD Total Demand Quantity (for ADU calculation)
(DDTOTALDEMANDQTYFUTURE) or Blended Demand Quantity for
ADU (DDBLENDEDDEMANDFORADU).
Note that Blended Demand Quantity for ADU

(DDBLENDEDDEMANDFORADU) reads the value from DD Total
Ordered Quantity (for ADU calculation)
(DDTOTALORDERQTYHISTORY) for past periods and DD Total
Demand Quantity (for ADU calculation)
(DDTOTALDEMANDQTYFUTURE) for current and future periods, and
if used, should also be used as the historical demand signal input
key gure.
Input Horizon Attribute Select a mater data attribute to de ne the horizon for future
demand for the ADU calculation. This must be an integer value and
maintained on the Product | Location (PRODLOC) planning level.
ADU Calculation Future Horizon (ADUFUTUREHORIZON).
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Input Horizon Default Enter an integer to de ne the future horizon for the ADU calculation
in days. This is a mandatory eld and is used when the input horizon
attribute is missing or has no value.
Average Daily Usage
ADU Output Key Figure Choose the key gure where you want the ADU calculation output to
be written. This is a mandatory eld.
It must be a stored key gure on the Day | Product | Location

(DAYPRODLOC) planning level.
The key gure in the SAP8 sample planning are used for this is DD
Total Average Daily Usage (DDTOTALADU).
Calculation Horizon Set to determine how many days the ADU (and respective DDMRP
outputs) should be calculated.
We recommend setting a sufficiently large horizon. If you set too

small a horizon, the operator may return no data.
The default is 180 days.
Outlier Detection Choose whether data points that are outliers are identi ed and
excluded from the average daily usage calculation. There are four
options:
Future - detects and excludes outliers from future periods
History - detects and excludes outliers from past (historical)

periods
History and Future - detects and excludes outlier from both

past and future periods
None - does not detect outliers.
By default, History and Future is selected.
Offset Calculated Average Daily Usage by Select a key gure to use as a value for how many periods into the
future to offset the ADU output. This is an optional eld.
We recommend using Decoupled Lead Time (in days)

(DECOUPLEDLEADTIMEDAYS).
Replace Nulls with Zero Select if you want missing periods (that is periods that have null as
a value) to be considered to have a value of zero when calculating
the ADU.
By default, Replace Nulls with Zero is selected.
Outlier Multiplier Enter a value for the outlier multiplier. The outlier multiplier de nes
the multiplier used for detection of an outlier in the Inter Quartile
Range (IQR) test.
The default value is 1.5.
Rolling Select if you want a rolling time window used for the calculation of
the ADU at every period, otherwise the ADU calculated for the
current period is repeated for all future periods.
By default, Rolling is selected.
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Disregard Leading Nulls Select if you want null periods at the beginning of the historical
horizon to be dropped. When not selected, the periods are
considered null and the setting for the Replace Nulls with Zero
parameter are applied to these periods (as well as other null
periods).
By default, Disregard Leading Nulls is not selected.
This setting is applied to both the ADU and the coefficient of

variation calculations.
Outlier Output Key Figure Choose a key gure to store the identi ed outlier periods.
Coefficient of Variation
CoV Output Key Figure Choose the key gure where you want the coefficient of variation
calculation output to be written. This is an optional eld.
The key gure in the SAP8 sample planning are used for this is
Demand Coefficient of Variation (DDTOTALADUCV).
Replace Nulls with Zero Select if you want missing periods (that is periods that have null as
a value) to be considered to have a value of zero when calculating
the coefficient of variation.
By default, Replace Nulls with Zero is selected.
Outlier Detection Choose whether data points that are outliers are identi ed and
excluded from the coefficient of variation calculation. You can select
Yes or No.
By default, Yes is selected.
Input Horizon Attribute Select a master data attribute to de ne the horizon for historical
demand for the coefficient of variation calculation. This must be an
integer value and maintained on the Product | Location (PRODLOC)
planning level. This is an optional eld.
Coefficient of Variation Horizon ( COVHORIZON).
 Note
The input key gure used to calculate the coefficient of variation
is the input key gure provided for the historical demand signal.
Input Horizon Default Enter an integer to de ne the historical horizon for the coefficient of
variation calculation in days. This is a mandatory eld and is used
when the input horizon attribute is missing or has no value.
Outlier Output Key Figure Choose a key gure to store the identi ed outlier periods.
Examples of Rolling Calculations
 Note
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The Calculate Average Daily Usage operator uses its own rolling aggregation logic, and does not rely on the logic found in the
Rolling Aggregation section of the model con guration guide. If you've created your own con guration for ADU calculation
using the logic found in the model con guration guide, your results may not match the examples below.
This section provides some examples of rolling calculations to explain how this ag works with various other ADU calculation
settings.
Rolling Calculations With the Same or Different Historical and Future Demand Signal Inputs
In the SAP8 sample planning area, the key gure Blended Demand Quantity for ADU (DDBLENDEDDEMANDFORADU) reads the
value from DD Total Ordered Quantity (for ADU calculation) (DDTOTALORDERQTYHISTORY) for the past periods, and from DD
Total Demand Quantity (for ADU calculation) (DDTOTALDEMANDQTYFUTURE) for the current and future periods. If this or any
other single key gure is used for both the historical and the future demand signal inputs, and Rolling is selected, ADU is
calculated considering a rolling window that in every period contains the same number of data points, as shown in the following
gure:
Rolling calculation with the same inputs for historical and future demand signals
If two different key gures are used for the historical and the future demand signal input, and Rolling is selected, then the
historical time window for every next period contains one less data point, as shown in the following gure:
Rolling calculation with two different inputs for historical and future demand signals
In this case, the rolling average is calculated with the historical time window always ending on 4/30/2019.
Rolling Calculations With or Without an Offset
The following gure in an example of a rolling ADU calculation when the Offset Calculated Average Daily Usage by parameter is
not set, and two separate inputs are used for the historical and the future demand signals:
Rolling calculation with no offset
The following gure is an example of a rolling ADU calculation when the Offset Calculated Average Daily Usage by parameter is
set to Decoupled Lead Time (in days) (DECOUPLEDLEADTIMEDAYS) and the value for that key gure is 3:
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Rolling calculation with an offset of 3 days
Here, the ADU outputs are offset by the decoupled lead time. You might offset the ADU for buffer setup purposes. Buffers related
to periods from today to the end of decoupled lead time are not relevant for decisions that are made from today. They are relevant
for decisions already made. Therefore, the rst relevant period for the ADU calculation is at the end of decoupled lead time.
DDMRP Buffer Analysis

The DDMRP Buffer Analysis app in demand-driven replenishment allows you to determine decoupling points and set buffer levels
for a DDMRP implementation across a supply chain.
You can launch DDMRP Buffer Analysis app from your Fiori Launchpad.
Key Features
You can create scenarios and view scenarios created in the DDMRP Buffer Analysis app or in the add-in for Microsoft Excel to
compare results versus the baseline for the following:
Decoupled Lead Time
Average On Hand Quantity
Average On Hand Value
The app includes, the following features:
List of scenarios and their relevant information
Ability to create a new scenario from a planning area
Scenario details page where users can perform the following:
Edit a scenario
Save scenarios
Start a scenario run
Review baseline compared to scenario results
Filter results
Supported Device Types

Desktop
Tablet
Decoupling Points and Buffer Placement
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The DDMRP Buffer Analysis app helps you determine where to strategically decouple and position buffers in your supply chain by
allowing you to view buffer pro les and levels and run simulations to see how changes in decoupling points may affect the ow of
stock.
Placing decoupling points and their associated buffers is dependent on the supply chain and several factors, including the
following:
Critical operation protection
Customer tolerance time
Inventory leverage and exibility
Sales order visibility horizon
Potential lead time to market
Variable rate of demand and supply
You should take each factor into consideration when evaluating whether a node should become a decoupling point.
For example, a node that stocks multiple downstream customers, which also has a variable reliability in supply for items from
upstream, may be a good candidate for a decoupling point and a buffer to protect a critical operation and to mitigate against the
variation in reliability.
When you create a scenario with the DDMRP Buffer Analysis app, you can choose which nodes are decoupling points and which
are not, then run the scenario and compare the results against the baseline scenario to see the results of your choices.
Creating and Running Scenarios in DDMRP

Buffer Analysis
In the DDMRP Buffer Analysis app, you can create and run scenarios to view how decoupling point decisions affect leadtime,
average on hand, and average on-hand value for your supply chain.
Creating a scenario with DDMRP Buffer Analysis

1. Choose Create Scenario.
2. In the dialog box, enter a name for the scenario and choose a planning area. Optionally enter a description and choose a
version.
 Note
If there are no versions available, the base scenario is used. You must choose a planning area that is con gured for
DDMRP.
3. Choose Create.
4. When the scenario page opens, you can switch on and off decoupling points for a node in the Scenario column. To do this
you:
a. Select the nodes you want to either switch on or off. You can select multiple rows.
 Note
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You can choose Show Filters to show and use lters to narrow the nodes displayed. If you have not speci ed any
time period lter information, the summary and detail table results are ltered to the current day.
b. Select Edit.
 Note
When you use lters, any edits you've made to the nodes are remembered when you change lters. When you
save the scenario, the cumulative changes are saved. For example, if you lter for Product A and make changes,
then lter for Product B and make changes, the changes you made for both products are remembered.
c. In the Make Decoupling Point dialog box, if you want to make the selected nodes decoupling points, set the switch
to on. If you want to remove to remove the selected nodes as decoupling points, set the switch to off.
 Note
All of the nodes you've selected are either set to on or off, depending on what you've chosen, regardless of their
previous setting.
d. Choose OK to save or Cancel to reject your changes.
 Note
You can reset the decoupling points to the baseline settings by choosing Reset.
5. Once you have chosen which nodes to set as decoupling points, choose Save Scenario to save the scenario.
Running a Scenario
1. Select the scenario you want to run from the list of scenarios.
2. Once the scenario loads, choose Start Scenario.
3. In the dialog box, select the subnetworks you want to process.
4. Verify the choice of operator to use to run the scenario.
5. Choose Run Scenario.
The app runs the scenario and a dialog box displays while the calculations are running. Selecting Back closes the dialog box and
returns you to the scenario list, but does not cancel the calculations from running.
The results for the scenario display on the scenario page. The columns under Total Results display the results for the scenario
against the baseline for the end-to-ed supply chain, while the columns under Filtered Results display the results for the scenario
against the baseline for the ltered value selections.
If you have not speci ed any time period lter information, the summary and detail table results are ltered to the current day.
Saving a Scenario to Baseline

If you are satis ed with the results of your scenario, you can save the scenario output key gures to the baseline by choosing Save
to Baseline. This updates the master data for the planning area to match the scenario values. That is, the scenario becomes the
baseline.
Deleting a Scenario
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If you no longer need a scenario, you can delete it. Select the scenario and choose Delete Scenario.
 Note
You can only delete scenarios that you created.
Buffer Zones and Average Daily Usage

(ADU)
Average Daily Usage (ADU) represents the rate of demand use, that is the throughput or ow, of a product or material, and is
critical to the calculations that determine the buffer zones for DDMRP.
Average Daily Usage (ADU)

The ADU is a key component to calculating the buffer zones and their levels, and therefore critical to calculate before
recommending decoupling points and calculating the buffer levels.
ADU is a characteristic of each product and:
Represents the rate of demand use (throughput)
Is a major part of the equations to formulate the buffer levels and zones
Signi cant changes to a product's ADU cause signi cant impact to the calculated buffer zones
IBP for demand-driven replenishment calculates the ADU using the Calculate Average Daily Usage operator. You can con gure
the operator settings using the Demand-Driven Replenishment Pro le app and run the planning operator using the IBP add-in for
Microsoft Excel. For more information, see Demand-Driven Replenishment Pro les and Using DDR Planning Operators.
Buffer Zones
Buffers are levels of inventory that are sized and maintained so that the inventory remains at the optimum stocking levels.
DDMRP uses a dynamic, three-zone color-coded buffer for planning and execution. The levels are calculated using individual item
properties and group settings (buffer pro les) for that location.
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The buffer zones are:
Green zone
Determines the average order frequency and typical order size. There are three ways the green zone can be calculated:
Set to the minimum order quantity
The ADU multiplied by the order cycle
The ADU multiplied by the decoupled lead time multiplied by the lead time factor
Yellow zone
Used for inventory coverage. It's calculated as 100 percent of the ADU multiplied by the decoupled lead time.
Red zone
Used to create safety in the buffer. It's calculated by rst establishing a base level by multiplying the lead time factor by the
ADU by the lead time. Then a safety level is calculated by multiplying the base by the variability factor. The red base and the
red safety are then added together to determine the red zone level.
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These zone parameters are calculated by the DDR Planning Operators and stored as output key gures. For more information, see
Key Figures.
Related Information
Sample Planning Area for Demand-Driven Replenishment
Using DDR Planning Operators
Using DDR Planning Operators

You can use the DDR planning operators to recommend decoupling points and compute DDMRP buffer levels.
You can run the DDR planning operators in the Application Jobs app and in the SAP Integrated Business Planning, add-in for
Microsoft Excel.
In addition, you can run the Calculate DDMRP Buffer Levels operator from the DDMRP Buffer Analysis app.
The DDR planning operators support the following:
The ability to schedule the operators to run as a reoccurring jobs
Creation of scenarios in batch mode
Version-speci c master data and key gures
Subnetwork planning
The DDR operators support the following:
Batch mode run in both the Application Jobs app and in the Excel add-in.
Creation of scenarios in batch mode
Version-speci c master data and key gures
Planning unit-based planning (subnetwork planning)
Planning pro le framework
 Note
The DDR planning operators do not support simulation in the Excel add-in. In addition, the operators do not support effectivity
or validity dates for sources of supply master data. The operators do not support direct UOM conversion on the
DDADJUSTEDADU key gure or on the key gures used for the average daily usage calculation.
Related Information
DDR Planning Operators
Creating and Running Scenarios in DDMRP Buffer Analysis
Scheduling DDR Planning Operators to Run as a Reoccurring Job
Using the SAP ERP, Supply Chain Integration

Add-On for IBP
The SAP ERP, supply chain integration add-on for IBP is part of IBP for demand-driven replenishment.
9/1/2020
Once data has been transferred to the SAP ERP, supply chain integration add-on for IBP, you can use the following transactions to
maintain data, run the DDMRP heuristic, and monitor results:
DDR Cockpit - Use to maintain global, plant, and material settings. Access with the transaction /IBP/EDD_COCKPIT.
Demand-Driven Planning - Used to run the DDMRP heuristic. Access with the transaction /IBP/EDD_RUN_MRP.
Monitor DDMRP Planning Runs - Used to monitor the DDMRP heuristic runs. Access with the transaction
/IBP/EDD_MONITOR.
Display DDMRP Element List - Used to view DDMRP data. Access with the transaction /IBP/EDD_ELEM_LIST.
Related Information
Using the DDR Cockpit
Running Demand-Driven Planning
Monitoring DDMRP Planning Runs
Displaying the DDMRP Element List
Using the DDR Cockpit

The DDR Cockpit, part of the SAP ERP, supply chain integration add-on for IBP, allows you to view master and transactional data
transferred from IBP.
You can also maintain global, plant, and material level settings.
Related Information
Maintaining Global and Plant Settings
Maintaining Global and Plant Category Mapping
Maintaining Material Settings
Maintaining Global and Plant Settings

You can maintain global and plant settings in the DDR Cockpit.
Context
Global settings are mandatory and are applied to all plant/material combinations when no speci c data is maintained in the DDR
Cockpit.
Plant settings allow you to maintain DDMRP customization on a more detailed level. Plant settings override global setting for that
plant.
Procedure
1. Use the transaction /IBP/EDD_COCKPIT to access the DDR Cockpit.
2. In the Options pane, select Global Settings or Plant Settings, depending on which you want to set.
3. Select the Display/Change icon to enter edit mode.
4. Enter any changes you wish to make in the table on the right. You can maintain the following elds:
Quali ed MRP Type – De nes the plant/material combination to be relevant for DDMRP, and is used to differentiate
DDMRP materials from non-DDMRP materials. We recommend that you use an MRP type that is not valid for
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standard MRP.
Planning MRP Type – A value that’s maintained to access the standard functions that are necessary to run the
DDMRP heuristic. We recommend that you use the standard MRP type PD as the planning MRP type, as it will not
affect the DDMRP run. Other MRP types may affect the DDMRP run.
Pull Category Purchase Requisition – This eld must be maintained for cases where the heuristic uses different
purchase requisition types for pull and push elements.
Pull Category Planned Orders – This eld must be maintained for cases where the heuristic uses different planned
order types for pull and push elements.
Default Lot Size – If the lot size procedure of the material is not valid for DDMRP planning, then this default lot size
is used by the heuristic. We recommend you use the standard lot size procedure EX, or any other lot size procedure
that is lot-for-lot. Other lot sizes may affect the DDMRP result.
Coverage Pull Horizon – For orders created inside the decoupled lead time, this de nes how the heuristic behaves
when more than one supply element must be created to ll to the top of green. The settings are as follows:
Undercoverage – Lots are created and to equal or more than top of green, and if the last lot can be deleted
without the projected stock falling below the top of yellow, the last lot is deleted.
Overcoverage – Lots are created and to equal or more than top of green.
Optimized coverage – Lots are created and to equal or more than top of green, then the delta between the
projected stock after lot creation and the top of green is determined. Then the last lot is removed, and the
delta again is determined. The heuristic uses the number of lots that minimizes the delta between the
projected stock and the top of green.
No lot size settings considered – all relevant lot size information is deleted.
Coverage Push Horizon – For orders created outside the decoupled lead time, this de nes how the heuristic
behaves when more than one supply element must be created to ll to the top of green. The settings are as follows:
No lot size settings considered – All relevant lot size information is deleted.
Fix Elements in DLT – Order that are xed in the decoupled lead time are not deleted before the next heuristic run.
There are three settings, as follows:
No setting
Do not x elements in DLT – Orders are not xed in the decoupled lead time
Fix elements in DLT – Orders are xed in the decoupled lead time.
5. When nished, select the Save icon.
Results
Your changes to the global and plant settings are saved.
9/1/2020
Maintaining Global and Plant Category

Mapping
You can map speci c supply categories for planned orders or purchase requisitions to requirement categories.
Context
Category mapping determines which supply category the heuristic creates when a supply element has been created against one
or more requirement elements.
You can set a priority for cases where the supply element was created to cover different types of requirements. The priority
determines which category should be used by the heuristic. The higher the value, the higher the priority.
Procedure
2. In the Options pane, under Global Settings or Plant Settings, select Category Mapping.
4. Make any changes you wish to make in the table on the right. You can maintain the following elds:
Object Type – Either Planned order or Purchase requisition.
Decoupling Point – Indicated whether the product location is a decoupling point.
Requirement Element – De nes the type of MRP element to use.
Requirement Type – De nes an identi er to differentiate between the different type of requirements for a given
MRP element.
Target Order Type – De nes an identi er to differentiate between the different types of planned orders and
purchase requisitions.
Priority – De nes the preference of a target type to be used for order creation. If several different requirement types
lead to the creation of one supply element, the target category that is maintained with the highest priority de nes
the category of the new supply element.
Results
The category mappings are saved.
Example
The following table serves as an example to set up category mapping in the DDR Cockpit, applying the same rule to in-house
production and external procurement:
Object Type Decoupling Point Requirement Requirement Type Target Order Type Priority
Element
1 No * * ZPSH 0
1 No U1 * ZPLL 1
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Object Type Decoupling Point Requirement Requirement Type Target Order Type Priority
Element
1 No * ZPLL ZPLL 1
1 Yes * * ZPSH 0
2 No * * ZPSH 0
2 No U1 * ZPLL 1
2 No * ZPLL ZPLL 1
2 Yes * * ZPSH 0
By applying these settings, you do the following:
For decoupling points:
You assign the ZPSH (Push) category to all supplies created outside DLT independently of the requirement type.
For non-decoupling points:
You assign the ZPLL (Pull) category to supplies created outside DLT which are pegged to:
dependent demands (*) with the requirement type ZPLL (such as stock transfer requisitions and
components of planned orders)
dependent demands caused by stock transfer orders (U1)
You assign the ZPSH (Push) category to supplies created outside DLT which are pegged to any other demand types
(such as forecast).
Maintaining Material Settings

Material settings allow you to maintain the DDMRP customizations at the material level.
Context
Material level settings override global and plant level settings.
Procedure
2. In the Options pane, select Material Settings.
3. Use the search to lter for the material and plant for which you want to maintain the settings. A table displays of the
materials and plants that meet your search criteria.
5. 5. Make any changes you wish to make in the table on the right. You can maintain the following elds:
Coverage Pull Horizon – For orders created inside the decoupled lead time, this de nes how the heuristic behaves
when more than one supply element must be created to ll to the top of green. The settings are as follows:
9/1/2020
Coverage Push Horizon – For orders created outside the decoupled lead time, this de nes how the heuristic
behaves when more than one supply element must be created to ll to the top of green. The settings are as follows:
Fix Elements in DLT – Order that are xed in the decoupled lead time are not deleted before the next heuristic run.
There are three settings, as follows:
No settings
Do not x elements in DLT – Orders are not xed in the decoupled lead time
Fix elements in DLT – Orders are xed in the decoupled lead time.
Results
The material settings are maintained.
Running Demand-Driven Planning

Demand-Driven Planning, part of the SAP ERP, supply chain integration add-on for IBP, allows you to run the DDMRP heuristic.
Context
The DDMRP heuristic generates converts the IBP order recommendations into orders, such as planned orders and purchase
requisitions. These are considered pull-order within the decoupled lead time, and are for operational action. The heuristic also
creates demand and supply data that is used for planning.
Procedure
1. Use the transaction /IBP/EDD_RUN_MRP to access Demand-Driven Planning.
2. In the Material section, enter the plant and material combinations for which you want the heuristic to run.
3. Use the Planning Scope section to restrict the scope of the heuristic. You can restrict the scope to one of the following:
Net change – when set, the heuristic plans materials only for those that have the netchange indicator set.
Plan DDMRP materials only – When set, the heuristic only runs against materials in the DDMRP scope.
4. Use the Parallelization section to control parallel processing. You can set the following options:
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Parallel Processing – When checked, switches on parallel processing for the heuristic run.
Maximum Number of Processes – sets the maximum number of processes the heuristic uses in parallel.
Package Size for Parallel Task – sets the number of plant materials that are contained in a parallel task.
5. Use the Control Parameters section to de ne what the heuristic creates. You can set the following options:
Create Purchase Requisitions – Sets which category of supply elements are created during the heuristic run,
either:
1 – Purchase requisitions
2 – Purchase requisitions in opening period
3 – Planned orders
Schedule Lines – Sets whether the heuristic creates schedule lines only in opening period, in the complete planning
horizon or never creates schedule lines. You can choose one of the following:
1 – No schedule lines
2 – Schedule lines in the opening period
3 – Schedule lines
Scheduling – Sets whether the heuristic should determine basic dates for planned orders or whether the heuristic
run should use lead time scheduling and capacity planning. You can set one of the following options:
1 – Determination of Basic Dates for Planned Orders
2 – Lead Time Scheduling and Capacity Planning
Planning Mode – Sets whether existing planning data should be adapted, only a BOM-re-explode and routing
should be executed, or if all elements should be deleted and re-created by the heuristic run. You can set one of the
following:
1 – Adapt planning data (normal mode)
2 – Re-explode BOM and routing
3 – Delete and recreate planning data
Create MRP List – Sets whether to create the MRP list, either:
1 – MRP list
2 – Depending on the exception message
3 – No MRP list
6. Use the Extended Log Settings section to set the extended log parameters. You can set the following:
Display Application Log – When set, after the heuristic run, the application log displays.
Scope for MRP List Logging – Sets the scope for MRP list logging, either:
1 – Do not log MRP lists
2 – Log MRP lists for DDMRP materials
3 – Log MRP list for DDMRP and non-DDMRP materials
 Recommendation
9/1/2020
We recommend that you run DDMRP with the selected 1 - Do not log MRP lists setting in Scope for MRP List
Logging unless detailed logging is required to troubleshoot a particular run.
Remember to delete your logs regularly by running either the transaction /IBP/EDD_MONITOR or the report
/IBP/EDD_MON_DEL. Note that you can schedule the report to run automatically.
You can keep individual runs that are required to be preserved for business and technical reasons by selecting
the Keep Run checkbox for this run in the transaction /IBP/EDD_MONITOR and choosing the Save icon.
7. If needed, you can use the User Exit: Selection of Non-DDMRP Materials section to specify a user exit key and parameter
to be used in the standard MRP processing.
8. Select the Execute icon to run the heuristic.
Results
Once the heuristic runs, the Demand-Driven MRP Log opens. You can view the messages generated by the heuristic and whether
there were any problems with the run.
Monitoring DDMRP Planning Runs

Monitor DDMRP Planning Runs, part of the SAP ERP, supply chain integration add-on for IBP, allows you to view information
about the DDMRP heuristic planning runs.
Context
You can use Monitor DDMRP Planning Runs to view the outcome of the DDMRP heuristic runs and any warnings or errors that
may have occurred.
Procedure
1. Use the transaction /IBP/EDD_MONITOR to access Monitor DDMRP Planning Runs.
2. If needed, use the lters on the left to limit the list of runs on the right.
3. To view a DDMRP planning run, double click on the run on the right side of the screen.
A detailed view that contains elements listed by plant/material combinations is displayed. You can view whether the
heuristic ran successfully, and any errors. The symbols and their meanings are as follows:
A green rectangle means the heuristic ran successfully. You can see more information by double clicking on the line.
A yellow triangle means the heuristic has run, but with warnings. You can view more information by double clicking
on the line.
A red circle means that the heuristic has run, but with errors, that is, at least one material could not be planned due
to an error. You can view more information by double clicking on the line.
4. To lter the list of elements by plant/material combinations, select the Adjustment Selection, enter lter characteristics,
and click Apply Selection.
5. To view a list of the materials planned, select Application Log. The Demand-Driven MRP – Log opens and allows you to
view the application log for that run.
6. To access pegging details for elements, select Element View. You can select the following:
Select the Element List tab to view DDMRP information, such as planned receipts.
Here you can also nd information on push supply orders on decoupling points that were generated based on the
projection of the net ow and the ADU to harmonize the data between IBP and SAP ERP. For push supply generation
after the end of DLT, demand and supply elements from the current day to the end of the DLT are ignored, and
today's net ow is reduced at the end of DLT by the total of ADU * DLT coming from IBP. For order spikes outside of
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the DLT, as they are part of today's net ow, fake supply elements are created at their planned date to ensure they
don't reduce the projected net ow. On the other hand, for open con rmed supply orders outside the DLT, since they
are part of today's net ow, fake demand elements are created at their planned date to ensure they don't increase
the projected net ow.
Select the Pegging Overview tab to view the pegging relationship between demand and supply elements
Displaying the DDMRP Element List

Display DDMRP Element List, part of the SAP ERP, supply chain integration add-on for IBP, allows you to view information in the
DDMRP element list and delete planned orders.
Context
The DRP Monitor Element List is based on the stock/requirement list.
Procedure
1. Use the transaction /IBP/EDD_ELEM_LIST to access DDMRP Element List.
2. In the Location Product Selection section, enter a material and plant combination.
3. Select the Execute icon. A table with the desired data displays.
4. To refresh the table with the latest data, select Refresh.
5. To delete a planned order, select a row in the table, and then select the Delete icon.
6. To display the MRP settings of the location product, choose the Display MRP Data icon.

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SAP Integrated Business Planning for

SAP Integrated Business Planning for Supply Chain | 2008

Original content: https://help.sap.com/viewer/feae3cea3cc549aaa9d9de7d363a83e6/2008/en-US

For more information, please visit the https://help.sap.com/viewer/disclaimer.

The ve components of DDMRP are as follows:

5. Visible and collaborative execution.

The following gure illustrates the process:

Five Components of DDMRP

Demand-driven replenishment supports DDMRP by performing the following:

Allowing for dynamic adjustments to buﬀer pro les (dynamic adjustments)

Creating DDMRP order recommendations and order generation (demand-driven planning)

By driving replenishment based on actual demand, rather than forecasts.

Critical operation protection

Customer tolerance time

Inventory leverage and exibility

Sales order visibility horizon

Potential lead time to market

Variable rate of demand and supply

Enables creation of scenarios for decoupling point decisions

Implementation in SAP Integrated Business Planning

The implementation for DDMRP in demand-driven replenishment includes the following:

SAP8 planning area for demand-driven replenishment

Demand-Driven Replenishment Pro le Fiori app

DDMRP Buﬀer Analysis Fiori app

SAP ERP, supply chain integration add-on for IBP

SAP IBP, add-in for Microsoft Excel

SAP ERP, supply chain integration add-on for IBP

Analytics – Advanced app

Dashboard – Advanced app

Supply Chain Network app

Demand-Driven Replenishment Process

High-level Demand-Driven Replenishment Process

5. Visible and collaborative execution.

Step 1: Data ow from ECC to IBP

Con rmed supply that has been aggregated to a daily quantity

Master data updates

IBP_DDR_MD_ERP_AddOn (see IBP_DDR_MD_ERP_AddOn)

IBP_DDR_KF_ERP_AddOn (see IBP_DDR_KF_ERP_AddOn)

Step 2: ADU Calculation in IBP

Step 3: Buﬀer Positioning and Buﬀer Zone Sizing

Step 4: Replenishment Order Recommendation

Step 5: Data ow from IBP to ECC system

Step 7: Visible and Collaborative Execution

Sample Planning Area for Demand-Driven

Represents a calendar week

Represents a calendar month

Represents a quarter of a calendar year

Represents a calendar year

Apps for Demand-Driven Replenishment

The following apps are available for demand-driven replenishment:

Demand-Driven Replenishment Pro les

Demand-driven replenishment pro les de ne how the demand-driven operators work.

Calculate DDMRP Buﬀer Levels

Recommend Decoupling Points (Solve)

Supported Device Types

Planning Pro les for Demand-Driven

Calculate Average Daily Usage

Calculate DDMRP Buﬀer Levels

Map to Decoupling Points

Recommend Decoupling Points (Solve)

For the following operators:

Calculate DDMRP Buﬀer Levels

Recommend Decoupling Points (Solve)