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Distribution requirements planning (DRP) in Service Parts Planning (SPP) organizes replenishment planning within bills of distribution (BODs) (see Bill of Distribution (BOD)).

DRP determines the new demands of all locations in your BOD, rounds them, and aggregates them along the BOD to the entry location. On the basis of this it creates scheduling agreement releases and purchase requisitions. DRP also allows for efficient checking of the planning results and a multilevel release process as required.

Other additional functions (see More Functions in DRP), such as stability rules and anticipated demand coverage, ensure that planning runs optimally, products are available at demand, and that you can thus achieve a high level of service for your customers.

Prerequisites

  • You have set up the master data for DRP (see Setting Up Master Data for DRP).

  • You have executed all Customizing activities for DRP. For more information, see Customizing for Advanced Planning and Optimization, under   Supply Chain Planning   Service Parts Planning (SPP)   Distribution Requirements Planning (DRP)  .

  • You have defined packaging specifications for rounding on the SAP Easy Access screen, under   Advanced Planning and Optimization   Service Parts Planning (SPP)   Environment   Packaging Specification   Maintain Packaging Specification  . For more information, see Rounding Settings.

  • You have defined a planning profile in Customizing for SCM Basis , under   Planning Service Manager   Define Planning Profile   that contains the planning service SPP: DRP Service (SPP_DRP).

  • You have implemented SAP Note 801109 to allow SPP to distinguish receipts from purchase orders within the network as opposed to receipts from purchase orders from suppliers.

Process

  1. The system calculates the unrounded net demand for a location product. For more information, see DRP Matrix.

  2. The system rounds the net demand calculated in step 1.

    For more information, see DRP Rounding Rules.

  3. The system aggregates the net demands along the BOD from the child locations via the parent locations to the entry location. For more information, see Aggregation of Demands Within the BOD.

  4. The system performs backwards scheduling over the procurement lead time (see Procurement Lead Times in Service Parts Planning). The procurement lead time is dependent on the deployment indicator (see Deployment Indicators).

    For more information, see Calculation of Lead Times in DRP.

  5. The system checks whether it can perform product group procurement (see Product Group Procurement) for the product to optimize the total ordering and stockholding costs.

  6. The system creates DRP stock transport requisitions, scheduling agreement delivery schedule lines, and purchase requisitions.

  7. The system performs DRP approval (see DRP Approval). In this independent process step, the system compares the DRP planning results with certain rules in an automatic approval process after the DRP run, before the results are released for the supplier.

  8. The system generates releases by informing external suppliers about approved scheduling agreement releases and purchase orders. At regular intervals, the system automatically transfers all approved scheduling agreement releases and purchase requisitions, and triggers the creation of scheduling agreement releases and purchase orders. In addition to automatic transfer, you can also create scheduling agreement releases and purchase orders manually.

    For more information about the APO scheduling agreement, see Procurement via an APO Scheduling Agreement.