Material Supply Planning

1) A material in your company is planned with planning strategy 70 (Planning at assembly level). The consumption mode has been set to backward with a consumption period of 12 days.  Starting from when are the 12 days counted backwards?

a. From the dependent requirement date of the material
b. From the availability date of the related finished good
c. From the requested delivery date of the related finished good
d. From the planned independent requirement date of the material

Which is the correct answer?

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2) Which supply chain planning components can you find in SAP S/4HANA?
Note: There are 2 correct answers to this question.

a. Advanced Planning
b. Supply Network Planning
c. Supply Chain Control Tower
d. Capacity Requirements Planning

Which is the correct answer?

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3) You run MRP for a material that was planned using Demand-Driven Replenishment.
Toward which buffer level does the MRP run create a replenishment proposal?

a. Top of Red Base
b. Top of Red
c. Top of Yellow
d. Top of Green

Which is the correct answer?

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4) What generates capacity requirements in a process order?

a. Resources
b. Operations
c. Phases
d. Relationships

Which is the correct answer?

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5) You are creating a production order manually.
What activities are involved in this process?
Note: There are 3 correct answers to this question.

a. Planning selection
b. Master data selection
c. Capacity requirements determination
d. Order type determination
e. Actual cost calculation

Which is the correct answer?

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Answers

1) a

2) a, d

3) d

The key concepts of Demand-Driven Replenishment (DDR) in SAP S/4HANA Cloud:

Average Daily Usage (ADU)

  • Definition: ADU represents the rate at which a product is used or demanded daily. It's a critical metric for calculating buffer zones in DDR.

  •  
  • Importance: ADU helps determine the optimal stock levels needed to meet demand without overstocking or stockouts.

  •  
  • Calculation: The system calculates ADU using historical data and demand forecasts. Significant changes in ADU can impact buffer zones.
Buffer Zones

Buffer zones are levels of inventory maintained to ensure optimal stocking levels. DDR uses a dynamic, three-zone color-coded buffer system:

  1. Green Zone:

  2.  
    • Purpose: Determines the average order frequency and typical order size.
    • Calculation: Can be set to the minimum order quantity, ADU multiplied by the order cycle, or ADU multiplied by the decoupled lead time and lead time factor.

    •  
  3. Yellow Zone:
    •  
    • Purpose: Provides inventory coverage.
    • Calculation: 100% of the ADU multiplied by the decoupled lead time.

    •  
  4. Red Zone:

  5.  
    • Purpose: Creates safety in the buffer.
    • Calculation: Base level is established by multiplying the lead time factor by the ADU and lead time. A safety level is then calculated by multiplying the base by the variability factor. The red base and red safety are added together to determine the red zone level.
4) c

5) b, c, d
 

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See also
Planned Order Split For Material During MRP RUN

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