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Supply & Demand Planning


Supply & Demand Planning scenario describes an integrated planning process that is executed on a medium to long term basis including the elements of flexible planning, standard SOP, long term planning, material requirement planning and capacity planning.


Flexible planning module, where the marketing or sales department forecasts the expected sales for a given planning period. System provides a statistical forecast and history. The sales forecast provides the information for determining production quantities in production planning


Sales & Operations Planning (SOP) is a forecasting and planning tool with which sales, production, and other supply chain and logistics targets can be set.

Sales’ planning provides the input for production planning.


Production planning consists of the rough-cut plan and, in the next step, long term planning, which is simulated using different inactive versions of the production plan. Capacity planning can be used to support production planning for evaluating the capacity of single resources available, and for determining and comparing capacity requirements.


Flexible Planning –


The relevant sales data from information structure S003 can be copied to S999 self defined Info Structure .


Use transaction MCSZ LIS Copy Management


Statistical Data of Info Structure S003 to copy in  S999 self defined Info Structure .




After execution you will get message for number of records copied or converted.


Generate Planning Hierarchy Master Data –

Generate the characteristic combinations which will be used in the flexible planning.

generation of the planning hierarchy will be the sales history data which is stored in the information structure S999.

Use transaction MC9A



Calculate Proportional Factors –


This is required to calculate the proportional factors. These factors will be used to disaggregate the planning data to the lower levels with the correct proportions.

Use transaction MC8U



Use the key figure Actual Billing quantity for calculation of proportional factor




Reset Generation Time Stamp –


Reset generation time stamps for all planning relevant programs and screens.

Use transaction MCSY



Set Status of Background Job for Statistical Forecast

Transaction MC8E



Check Sales History in Planning Type

Use transaction MC94


Make sure that entries are available in the line Actual Billing quantity.

Calculate Statistical forecast –

Use transaction MC8G


Planner can do the delta-correction and a review on the consolidated  plan data in MC94


Sales planner can modify the monthly displayed data in the Global Planning key figure for the material



After that modification of global plan by planner need to be transferred to Global fixed plan

Use transaction MC8G



It will copy the data of the global plan to fixed global plan data and the consolidation of sales data will be created.


Transfer data to SOP –


Use transaction MCSZ to transfer data from S999 info structure to SOP S076 info structure



Sales data is transferred from the info structure S999 to the info structure S076


Production Planning –

Sales & Operations Planning (SOP) and Long-Term Planning are used to create a one-year planning basis for material and to determine the amounts of the capacities required to meet the sales targets.


Create Rough-Cut Plan – The rough-cut plan is used to create a one-year planning basis for material and to determine the amounts of the capacities required to meet the sales targets

Use the transaction MC82



Copy sales plan to production. The planned monthly production quantities are saved in the active version A00.


Disaggregating Planning Data –


Disaggregate the planning data from the high level product group to lower level product group according to predefined or manual entered proportion

Use transaction MC76



On the Macro Selection screen, choose selection Disaggregate production –> production.




Production planning data is disaggregated to the lower level product group. The planned monthly production quantities are saved in the active version A00.


Transfer Planning Data to Demand Management –

Demand Management determines the requirement dates and requirement quantities for important assemblies and specifies the strategies for planning and producing/procuring finished products

The demand program differentiates planned independent requirements and customer independent requirements. It gives the information needed in MRP for planning. The placing of sales orders eventually consumes planned requirements. This actual data can then be used as input for future sales planning.


Use transaction MC76



The inactive version of demand management is used for simulated planning runs (for example, Long-Term Planning). The active version of demand management is used in MRP planning.


Long-Term Planning: Single-Item, Multi-Level –


To carry out an annual planning you require information on the future stock and requirements situation. This means you need to know how a rough-cut production plan based on the annual sales planning influence resources.

That is, whether the results of sales planning can actually be produced with capacity on hand. If such information is available it is possible to decide at an early date whether additional work centers will be required to cope with bottlenecks, or whether additional machinery will have to be purchased to reach the sales target.

The purchasing department can also use the results of long-term planning. They use the information on the future requirements quantities to estimate future orders. This provides them with a basis for negotiating delivery schedules and contracts with vendors. Vendors also gain from long-term planning as they are sent a preview of future purchase orders.


Use transaction MS02.


Planned orders and/or purchase requisitions are created. The BOM explosion ensures that all BOM levels are included in the plan. The result is saved in the Planning Scenario 001 used here.


Capacity Leveling –


Capacity Leveling is carried out to verify if the rough-cut production plan, based on annual sales is possible with the capacity on hand.

Use transaction CM38


A standard overview of the calculated capacity requirements based on the rough-cut production plan will be given.


Set up Purchasing Info Data from Long-Term Planning –


By selecting the function Set up data, the data is transferred to the purchasing information system where it can be analyzed in more detail using the various standard analyses. The data is saved in the information structure S012 of the purchasing information system under a planning version number.

Use transaction MS70



Long-Term Planning – Material Analysis


The planned material requirement enables Purchasing to conduct preliminary planning (for possible negotiations with vendors about outline agreements). If a vendor was also assigned to the material, then the vendors and the assigned key figures ‘effective order value’ and ‘order price’ can also be displayed in the analyses in addition to the material requirement (order quantity).

Use transaction MCEC



Transfer Demands to Material Requirements Planning –


By copying the planned independent requirements to the requirements plan, the data are available for the material requirements planning

Use transaction MS64



Independent requirements are transferred to active version and therefore available for material requirements planning (MRP)


MRP Run –


The function of material requirements planning is to guarantee material availability. It is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the automatic creation of procurement proposals for purchasing and production.

Use transaction MD02



Planned orders and/or purchase requisitions are created. The BOM explosion ensures that all BOM levels are included in the plan.

You can further check results through stock requirement list MD04.


Capacity Planning –


The capacity planning can be used to support the production planning.

In the capacity evaluation on single resources, available capacity and capacity requirements are determined and compared with each other.

With capacity leveling the optimal capacity commitment for the resources has to be found. Dispatching operations is the main function of capacity leveling. Operations are dispatched to the time when there is sufficient capacity on the resource for them to be executed.

Find Capacity Overloads

The capacity overload analysis shows resources with capacity requirements exceeding the available capacity.

Use transaction CM01 or CM05


On the Capacity Planning: Standard Overview screen select one entry and choose Cap. details/period.

Available capacities and capacity requirements can be selected according to various criteria and cumulated using any period split you choose.


Capacity Leveling (Detailed Scheduling) –

Capacity leveling allows to check individual work centers for overloads and if necessary to dispatch planned orders at other times or with other quantities.

The capacity situation also provides an overview of available capacity and the load for the individual work centers.

In the capacity planning table you can dispatch the capacity requirements for detailed planning continuously through time and for specific operations.

Use transaction CM25.


Finite scheduling forw./all functs.activ screen in the Pool area, orders with capacity requirements are displayed and can be dispatched on the resources in the Resources area by drag and drop or selecting an operation and choosing Functions Dispatch from the menu.

For more details please refer the building blocks SAP Best Practices for chemical 900 – Supply and Demand Planning.

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