Simulate Your Production and Procurement Planning with SAP LTP

  • by Jawad Akhtar, Head of SAP Delivery, AbacusConsulting
  • September 30, 2011
SAP Long-Term Planning (LTP) functionality is used to simulate various business scenarios to help in production and procurement planning using existing master data and other information. Understand the end-to-end process of running LTP and evaluating the results.
Key Concept
SAP Long-Term Planning (LTP) provides an interactive as well as institutive tool for business simulation. It offers flexibility as well as functionalities to test various business models without affecting the standard database. However, it also provides the option of moving the simulated LTP data to actual operative planning.

SAP Long-Term Planning (LTP) is a simulation tool that companies can use to test various hypothetical assumptions affecting business decisions. The advantage of using LTP, as compared to materials requirement planning (MRP), which is also known as operative planning, is the fact that it does not affect the database of results that was created while running normal MRP. In other words, it is a separate area where you can undertake all simulation-related planning. However, you can also transfer the simulative results of LTP to operative planning in standard MRP.

Here I show the steps to prepare the master data and planning data needed for LTP using a real-life business case from the fertilizer industry. At the end of the article, I cover the logistics information system (LIS) with particular reference to LTP, focusing on the purchasing and inventory controlling subsets of LIS. The LIS for each module provides a plethora of standard analysis reports. It derives the data and information from all the transactions performed in the system, thus ensuring the availability of comprehensive information for evaluation and decision making purposes. I also cover additional features and functionalities offered by LTP to cater to various business scenarios.

Jawad Akhtar

Jawad Akhtar earned his chemical engineering degree from Missouri University of Science and Technology. He has 17 years of professional experience, of which nine years are in SAP. He has completed eight end-to-end SAP project implementation lifecycles in the areas of PP, QM, MM, PM, and DMS in the steel, automobile, chemical, fertilizer, FMCG, and building products industries. He also has worked as an SAP integration manager and an SAP project manager. He has been proactively involved in a business development and solution architect role for seven years. He is the author of Production Planning and Control with SAP ERP, it's filled with in-depth infomation on discrete, process, and repetitive manufacturing types. His profile on LinkedIn is at http://pk.linkedin.com/in/jawadakhtar. You may follow Jawad on Twitter @jawadahl. Currently, he is associated with AbacusConsulting as Head of SAP Delivery.

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