In our initial Integrating Business Planning (IBP) post we provided an introduction to new features in SAP IBP. In this post we’ll walk through our first scenario where there are no constrains and total demand is always filled.

Dependent demand from customer to DC

Dependent location demand from plant to DC

Total production receipts in Plant P100

Analysis:

In the simple example a total of 800 qty. is required to be manufactured at plant P100, to cater to three distribution centers in the quantities of 200, 300 and 300. Note, the projected stock is “0” and the qty. has been offset by 3 weeks due to lead time. This is a very ideal scenario where there are no constraints and the total net demand is always fulfilled. The result is summarized below.

In our next IBP post we’ll walk through when there is a shortage in production and discuss an analysis for each situation.