Carry Out Planning for Production Replenishment Using the Supply-to-Production Process

  • by Alok Jaiswal, Consultant, Infosys Limited
  • September 28, 2017
Learn the configuration, master data setup, and process flow for the supply-to-production process to replenish the components from a warehouse to production supply areas.
Learning Objectives

Reading this article, you’ll learn about:

  • The normal supply-to-production process
  • Configurations required in SAP ERP Central Component (ECC)
  • Master data setup needed in ECC
  • How to simulate a supply-to-production process in ECC and how to interpret the results
  • Important points to consider while implementing the supply-to-production process
Key Concept
The supply-to-production process is used to organize the physical replenishment of components for production. It is generally used in the short-term horizon and uses a control cycle and supply area to provide a time-specific overview of the stock or requirements situation in production. The control cycle determines the replenishment method to be used between the supply and demand source and the quantity required. The supply area is used for material replenishment purposes and is situated directly on the production area.

The focus of automatic supply-to-production is on monitoring stocks in production with plan production replenishment up to the minute for high-volume production scenarios. Automatic supply to production is based on the control cycle and the supply area and provides a time- specific overview of the stock requirements situation in production (the short-term horizon). It provides a planning function for automatically creating replenishment elements for production. The summarized just-in-time (JIT) call is used as the replenishment element that supports both internal and external procurement. The automatic supply to production process is executed with SAP Advanced Planning and Optimization (SAP APO) linked to Enterprise Resource Planning (ERP).

The main benefit of automatic supply-to-production is that it provides a mechanism to monitor stocks in production and then, based on this information, plan production replenishment up to the minute for high-volume production scenarios. I explain the steps that you need to complete to use the supply-to-production process.

Figure 1 shows a high-level overview of the general supply-to-production process.

Figure 1
An overview of the general supply-to-production process

The Configuration Setup in SAP ERP Central Component (ECC)

Here is the list of objects in the SAP system that you need to use in the simulation of a supply-to- production process that I describe:

  • Manufacturing plant
  • Material
  • Warehouse
  • Storage location
  • Storage type
  • Storage section/bin
  • Production supply area
  • Control cycle

I assume readers know how to create and set up plant, material, and warehouse master data objects in ECC. For this article I cover only the important master data configuration of other important objects.

The warehouse used for simulation is WM1 as shown in Figure 2.

Figure 2
Define a warehouse

The storage type used for simulation is 001 as shown in Figure 3.

Figure 3
The storage type of the warehouse

Alok Jaiswal

Alok Jaiswal is a consultant at Infosys Limited.

He has more than six years of experience in IT and ERP consulting and in supply chain management (SCM). He has worked on various SAP Advanced Planning and Optimization (APO) modules such as Demand Planning (DP), Production Planning/Detailed Scheduling (PP/DS), Supply Network Planning (SNP), and Core Interface (CIF) at various stages of the project life cycle.

He is also an APICS-certified CSCP (Certified Supply Chain Planner) consultant, with exposure in functional areas of demand planning, lean management, value stream mapping, and inventory management across manufacturing, healthcare, and textile sectors.

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