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Difference between MRP in S4 HANA & MRP in IBP S&OP / IBP S&R

Functionalities of IBP suite being fully clear.

Specifically with respect to MRP

What is the difference between MRP algorithm in S4 HANA & the MRP algorithm in IBP S&OP or S&R. Which one is superior, in terms of scalability, performance, planning results

There is a lot of material available on the differences between MRP in ECC & MRP in APO. Currently there are no details available in the service market place or elsewhere.

The question is if as a customer the MRP can be run in S4 HANA, say sequentially plant by plant to achieve network planning, why they must invest in IBP?

Any info on this is welcome

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  • Best Answer
    Posted on Oct 17, 2018 at 01:15 PM


    What is the difference between MRP algorithm in S4 HANA & the MRP algorithm in IBP S&OP or S&R. Which one is superior, in terms of scalability, performance, planning results?

    S/4HANA MRP two type classical MRP and Live MRP:

    Classical MRP application server calls the database server multiple times to read the lots of data. This data is then transferred from the database server to the application server. All tables are read sequentially one after another.

    Live MRP many tables are read parallel using the parallelization capabilities of SAP HANA. The data is not transferred back to the application server but used to compute material shortages directly in the database server.

    Both the MRP contains the best user experience and simulation capabilities.

    IBP MRP:

    IBP Sales and Operations Planning offers a set of planning algorithms to compute a complete plan for the supply chain network. S&OP allows you to generate supply plan using two algorithms types: Heuristics and Optimization.

    Heuristics: The heuristic algorithm supports Unconstrained Demand and Supply Planning mode. In Unconstrained Heuristic, resource capacities are not taken into account to compute supply. Unconstrained planning mode does not compute a feasible plan.

    Heuristic offers multiple algorithms like Infinite WithoutShortage, Infinite Demand and Supply Planning, Finite Demand & Supply Planning.

    Optimizer: The objective of the Optimizer is to minimize the total costs of the supply plan. Optimization is performed via a transformation of the S&OP-model into a mathematical model (Mixed Integer Linear Programming (MILP)-model). The output is an optimal and feasible production, distribution and procurement plan for the entire supply chain network taking into account the constraints.

    Optimizer offers two different algorithms like ProfitMaximization and Cost Minimization for Full Delivery.

    Scalability: S/4HANA and IBP have its own capabilities to consider the multiple inputs and provide the results at multiple lengths. IBP has more overlook the supply network perspective and provides proposals.

    Performance: The Innovation in MRP live (transaction MD01N) is designed to perform MRP for a large set of materials in one or even multiple locations with the fast runtime. It is observed that real performance improvements with MRP live happens when planning is done for more than 100 materials. Classic MRP if the number of materials for planning is low (<100), then classic MRP provides better speed and performance.

    IBP runs considering the planning objects and generates optimal plan quickly for the low volume of data.

    Overall performance waise MRP lives generated receipts quickly.

    Planning results: S/4HANA MRP results are mover over operations based for certain buckets. IBP results are short to mind and long-term planning considering the supply chain networks.

    Best Regards,


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  • Posted on Oct 04, 2018 at 05:20 PM

    Hi Sridhar - I think IBP MRP has got lot more features compared to ECC MRP, right? Multi sourcing (quota), lot sizing policies (static/dynamic/production cycle), inventory considerations (INVENTORYCORRECTION, (sub)periods of coverage), subnetwork planning, co production, minimum receipts etc. In addition, all the parameters that we have got in IBP Heuristic like balance receipts, initialise lead time horizon of transports are, per my knowledge, not available in classic MRP - you may correct me though. Also, we have got Supply Propagation feature in 1802 IBP release which will propagate the shortages across your supply chain all the way till destination unlike MRP which is location by location.

    Not sure if I am thinking in the right way for your question, these are some quick things I can think of from the features point of view based on which I can showcase some results of supply plan and help vendors ask for more things on what they are looking and how IBP can fulfil the same.


    Regards - Guru

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