What are the disadvantages of implementing APO- Demand Planning without improvements or cleaning up the MRP. in other words is DP implementation dependant on MRP process. Gurus please advise

[Former Member]

HI All. What are the disadvantages of implementing APO- Demand Planning without improvements or cleaning up the MRP. in other words is DP implementation dependant on MRP process. Gurus please advise

[marianoc]

Hi Amol,

DP is the demand planning machine, here you estimate your forecast (future sales).

The MRP is a supply planning machine, here you use estimate the replenishment.

Both machines in a technical perspective are independent one each other. Now in a business perspective they are not: The problem that you will have if you don´t clean your MRP elements is not a problem in DP itself. I mean, you can have a very success implementation in DP, your forecast accuracy will be very good.. and you will get a very good forecast, but when the MRP run and estimate the replenishment, the effort that you made in DP will not be translated in good results and your planning situation will be still not good.

Kind Regards,

Mariano

[Former Member]

Hi Amol,

APO DP is similar to SOP in ECC with some enhancement. APO DP is a forecasting tool, whose output is forecast or plan independent requirement. MRP is the supply planning tool and plan independent requirement is the input for MRP process.

regards

Kishor

[former_member190993]

Hi Amol,

The APO DP functionality is similar to demand planning in R/3 with added functionalities.

The APO-DP is independent of the MRP planning. Like MRP in R/3, APO has SNP and PPDS planning.

Regards,

Umesh

[Former Member]

Thanks Umesh

Got you point but then why is it advisible to have integrity of MRP master data (cleanup the MRP) even thou most of the FG, SFG and RM planning is done in APO

[former_member190993]

Hi Amol,

The DP being the forecasting module, generates the forecast or PIRs (planned independent requirements). These PIRs are then used as input for the operative planning (SNP/PPDS) in APO. The master data that exist in ECC (relevant to MRP); the same data is required in APO for this operative planning (alongwith the additional master data that only exist in APO). The master data required for DP in APO is the CVCs (Characteristic value combinations) only, not the ECC master data.

Hope this helps!

Regards,

Umesh