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Inventory Optimization with SAP (2nd Edition)

Автор

Marc Hoppe

Аннотация

How can you reduce expensive warehouse stock without risking your customer satisfaction, ability to deliver, and market position? This book teaches you how by providing clear, straightforward details about the SAP system options for implementing efficient inventory management.

You'll learn about all of the different functions of SAP ERP and SAP SCM (SAP APO) that are needed to master inventory optimization. In addition, you'll learn about the critical factors that affect your inventory, from inventory analysis, demand planning, and MRP, to service level, lot size, production, and inventory monitoring.

This completely updated and expanded second edition includes new sections on MRP and inventory controlling, and is based on SAP ERP 6.0 and SAP SCM 5.1.

Highlights

Why Is Inventory Necessary?
Inventory Analysis Options: ABC and XYZ Analysis
Demand Planning and Forecasting: Overview of Forecast Methods, Running a Forecast
Material Requirements Planning: Make-to-Stock Production, Maketo- Order Production, Consumption- Based MRP, VMI, and SMI
Safety Stocks and Service Level: Safety Stock Planning in SAP ERP, Global ATP, SAP APO PP/DS and DP/SNP
Lot Size Optimization: Lot-Sizing Procedures in SAP ERP and SAP APO
Production: Backlog and Missing Part Reduction, MRP II, and SAP APS
Controlling and Inventory Monitoring: Analyses using SAP APO, SAP LIS, and SAP NetWeaver BI

About the Author(s)

Marc Hoppe holds a degree in business administration and has many years of experience as a management consultant in the SAP environment. He currently works as a senior consultant with a focus on logistic issues at the consulting firm SAP Deutschland.

ISBN

ISBN 978-1-59229-205-9

Обложка

Hardcover

Объём

710 страниц

1 ... Why Inventory is Necessary	25
... 1.1 ... Inventory Concepts	26
... 1.2 ... How to Deal With Uncertainties	38
2 ... Factors Influencing Inventory	43
... 2.1 ... Five Instruments	43
... 2.2 ... Controlling by Inventory Monitoring	50
3 ... Inventory Analysis	51
... 3.1 ... Inventory Analysis Options	51
... 3.2 ... ABC Analysis with SAP	60
... 3.3 ... XYZ Analysis in the SAP System	81
... 3.4 ... Combining ABC and XYZ Analyses	83
... 3.5 ... Summary	98
4 Demand Planning and Forecasting	99
... 4.1 ... The Influence of Demand Planning on Inventories	99
... 4.2 ... The Bullwhip Effect	102
... 4.3 ... Optimization Potentials for the Forecast	104
... 4.4 ... Selecting the Forecast Method	140
... 4.5 ... Details of the Individual Forecast Methods	157
... 4.6 ... Running a Forecast	189
... 4.7 ... Forecast Accuracy and Alert Functions	206
... 4.8 ... Summary	231
5 Material Requirements Planning	233
... 5.1 ... Objectives of MRP	233
... 5.2 ... Requirements Calculation	235
... 5.3 ... Accumulated Balances	239
... 5.4 ... Order Calculation	241
... 5.5 ... Impact of MRP on Inventory	249
... 5.6 ... Tools for Selecting the Optimal MRP Parameter	258
... 5.7 ... Strategic vs. Operative MRP	260
... 5.8 ... Strategies for Make-to-Stock Production in SAP ERP	266
... 5.10 ... Strategies for Make-to-Order Production in SAP ERP	289
... 5.11 ... Consumption-Based Material Requirements Planning
Using SAP ERP	294
... 5.12 ... Requirements Strategies in SAP APO	303
... 5.13 ... VMI and SMI MRP Procedures	305
... 5.14 ... Potential for Optimization in Material Requirements Planning	327
... 5.15 ... Summary	334
6 Service Level and Safety Stocks	335
... 6.1 ... Relationship Between Stock and Service Level	335
... 6.2 ... Service Level	338
... 6.3 ... Replenishment Lead Time	366
... 6.4 ... Forecast Quality	373
... 6.5 ... Safety Stock	378
... 6.6 ... Safety Stock Planning in SAP APO SNP	404
... 6.7 ... Safety Stock Planning Using SAP APO CTM	436
... 6.8 ... Safety and Target Stock Planning in SAP APO PP/DS	440
... 6.9 ... Parameter-Dependent Safety Stock in SAP APO DP and GATP	446
... 6.10 ... Summary	449
7 Lot Sizes	451
... 7.1 ... How Do Lot Sizes Affect Stocks?	451
... 7.2 ... Stochastic (Static) Lot-Sizing Procedures in SAP ERP and
SAP APO	453
... 7.3 ... Deterministic (Periodic) Lot-Sizing Procedures in SAP ERP
and SAP APO	463
... 7.4 ... Optimal Lot-Sizing Procedures in SAP ERP and SAP APO	481
... 7.5 ... Restrictions in the Lot-Size Calculation	501
... 7.6 ... Selecting Lot-Sizing Procedures	503
... 7.7 ... Summary	506
8 Production	507
... 8.1 ... How Do Backlogs in Production Affect Stocks?	508
... 8.2 ... Why Do Backlogs Occur in Production Planning?	514
... 8.3 ... Reducing of Backlogs	519
... 8.4 ... Missing Parts Management in Production	535
... 8.5 ... Finite Planning and Optimization in SAP APO	547
... 8.6 ... Heuristics for Inventory Optimization	596
... 8.7 ... Alerts and Their Processing	607
... 8.8 ... Simulation and Comparison of Planning Results	610
... 8.9 ... Capable to Promise (CTP)	616
... 8.10 ... Embedding Superordinate and Subordinate Planning Levels	618
... 8.11 ... Best Practices for Using SAP APO PP/DS	622
... 8.12 ... Summary	623
9 Inventory Controlling	625
... 9.1 ... Why Inventory Monitoring?	625
... 9.2 ... Introduction to Logistics Controlling	626
... 9.3 ... The Information System According to Ehrmann	628
... 9.4 ... The Information System of the SCC	632
... 9.5 ... Problems with Data Collection	637
... 9.6 ... Important Inventory Key Figures	638
... 9.7 ... Tools for Inventory Analysis	652
... 9.8 ... Inventory Monitoring in SAP ERP	656
... 9.9 ... Inventory Controlling with SAP APO and SAP NetWeaver BI	660
... 9.10 ... Summary	678
Appendix	681
... A ... Literature	683
... B ... Author	691
... C ... SAP ERP Add-ons	693
... C.1 ... Forecast Monitor	693
... C.2 ... MRP Monitor	693
... C.3 ... Replenishment Lead Time Monitor	693
... C.4 ... Backlog Monitor	693
... C.5 ... Service Level Monitor	693
... C.6 ... Missing Parts Monitor	694