Requirements Planning (SAP Library

Requirements Planning

Purpose

Requirements planning involves ensuring that goods are available when recipients (stores or customers) and consumers require them. The quantities required have to be procured in good time. The following activities are required:

Monitoring the stock
Taking sales and purchase orders of recipients into account
Creating forecasts
Calculating requirement quantities
Creating follow-on documents for procuring the merchandise

The stock planner has to define the suitable forecast, requirements planning and lot sizing procedures for each article.

This graphic is explained in the accompanying text

The logistics concept underlying SAP Retail supports the following processes:

· Direct delivery (third-party)

The vendor delivers direct to the recipients. In this case, purchase orders are placed by either the recipient or the distribution center.

· Delivery via the distribution center

The vendor delivers to a distribution center. The distribution center handles all further supplies to the recipients. Supplies can be handled as follows:

- Putaway/removal from storage

The goods are put into storage following goods receipt and later removed from storage for delivery to the recipients.

- Cross-docking/flow-through

The goods are not put away, but flow through and out of the distribution center. In the case of cross-docking, entire shipments (such as full pallets) are brought from the goods receipt zone to the goods issue zone.

In the case of flow-through, the shipments are broken down into smaller units before they can be assigned to a particular recipient (for example, when a recipient is only to receive half a pallet).