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What is "Dependent Demand" ?

Hi Gurus,

We are working on a S&OP Demo, we understand that Cost Per Unit Key Figure shows the cost of an end-product, but it's only updated when Dependent Demand exists for the concrete time-period.

What is the definition of Dependent Demand Key Figure? and Which is the relation with Cost Per Unit?

Thanks in advance!

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1 Answer

  • Oct 26, 2015 at 09:58 PM

    Hi Albert

    Dependent Demand Qty(DEPENDENTDEMAND) with Base Planning Level as PERPRODLOC. Description from SAP2 model says - "Editable and Equal to Consensus Demand Plan qty times the Sourcing Ratio pct at Product#Location or Product#Customer#Location if pegging!"

    It is a output keyfigure which stores sum of all dependent demands including Outbound Customer Demand, Outbound Location Demand and Outbound Production Demand for location-product. It is important keyfigure as it is used during Supply Planning Run(Heuristics) to calculate Net Demand Keyfigure.

    Regarding it is relation with Cost Per Unit Keyfigure, please refer Calculation Definition Table or Graph.

    Hope this will help.

    Thank you

    Satish Waghmare

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    • Hi Albert,

      Yes, that`s right, Cost per Unit is not supply algorithm related. There will be no impact on Optimizer`s output if you decide to maintain or not this key figure.

      Cost per unit is needed when you integrate also finance into your model. For example, Gross Profit is calculated by deducting the costs of goods sold from the revenue.