SAP Disposition – Definition and Tasks
SAP Disposition – From our experience, scheduling in SAP ERP is one of the most demanding tasks. At the same time, however, it is often underestimated in practice. This is reflected in a misrepresentation of the position of dispatcher, in insufficient attention during the introduction and in the current operation, up to a lack of further training in this area. Even experienced SAP consultants regularly reach your limits as part of an introduction and optimization here. Customers like to look for a simple switch or one setting that makes it easy to solve this task. Unfortunately, we have to disappoint you at this point. They will not find a simple solution here. With this article we would like to give you an introduction to the world of material planning. Every journey, however long, begins with the first step. Learn about the basic terms and basics here. We wish you every success in this.
The main task of material planning is to procure the right material in consistent and prescribed quality, neither too early nor too late in terms of quantity. The material disposition is intended to
- through material requirements planning
- and order invoice
- optimal orders
- and ensure sufficient willingness to deliver.
Material scheduling can refer to individual parts or assemblies.
It includes all the products needed for the manufacture of a product or service, regardless of their final destination within the company: raw materials (including wood, steel, concrete, paper), semi-finished products, parts and assemblies, finished products, assemblies and parts and so on …
Material requirements planning according to Gabler
Definition of Materials Requirement Planning
Material requirements planning is the presentation of the materials required in a planning period according to type, quantity, quality and time structure (secondary, tertiary requirements). The aim of material requirements planning is the realization of a cost-optimal material supply; in the optimum, only as much material is available as is needed at short notice.
Sub-areas of demand planning
Requirements determination: Comparison of gross demand and material inventory shows the procurement requirement (net demand) on material supply planning: Determination of demand dates taking into account the respective demand structure and the conditions on the procurement markets Assortment planning: Substitution planning, make-or-buy decision, limitation of material types
Requirements types in material requirements planning
Gross demand, net demand, primary demand and dependent demand
In DEMAND planning, you distinguish between the requirement types Gross Demand, Net Demand, Primary Demand, and Dependent Demand:
- Gross requirements: The quantity requirements for products, semi-finished products and raw materials resulting from sales orders or forecast orders, without taking into account any existing stocks or quantities already in supply.
- Net demand: Results from the gross demand minus the available stock. The on-hand inventory is the balance from the physical inventory plus purchase order stock minus reservation stock.
- Primary requirements: The primary requirement includes all finished products or products of the product range that are required in a planning period. The primary requirement consists of the market requirements for products and spare parts and is therefore the demand of the highest structural level, which comes from a forecast or a specific customer order.
- Dependent requirements: The dependent requirement includes all components and also assemblies that are required for the production of the products. These parts can be manufactured in-house or purchased externally (make-or-buy). The secondary requirement is determined by BOM resolution and is the requirement that is necessary to meet the primary requirement.
Tasks of material requirements planning
Tasks of material requirements planning
- the monitoring of stocks
- the preparation of procurement proposals for purchasing and production
- Dissolution of BOMs
- best possible delivery readiness
- Minimizing costs
- Minimization of capital commitment
- Material requirements planning / scheduling = strategic control center for the entire logistics chain in the company
Delimitation of demand planning for programming
The production program is the starting point for material requirements planning.
Do you have any questions or would you like an SAP System Live demo? We would be happy to advise you in a personal conversation. Contact us. We are happy to advise you!