Supply Planning Algorithm Comparison (SAP IBP)

Recently SAP has released the latest version of SAP IBP (2308). With every release SAP is enhancing supply planning engine capabilities within SAP IBP.


SAP Help provides Supply Planning engine comparison within TS or OBP only.

1. SAP Help link for Time Series Supply Planning

2. SAP help link for Order Based Planning

In this blog, we have tried to merge both the comparisons to provide combined TS and OBP view which is the most sought after comparison specially needed during Explore/Design phase of any new IBP implementation project.

We have considered key design inputs and functionality areas comparing different planning algorithms which the IBP Response and Supply module offers.

IBP Response and Supply offers 2 main types of planning approaches. Each one of them has different algorithms.

Time series Based Planning (Comes in SAPIBP1 / SAP4 planning area and mainly used for Tactical Supply Planning)

1. Heuristic – This algorithm creates an infinite supply plan without shortages, whereas it does not consider capacity and material constraints. Here all demands are fulfilled regardless of available supply.

2. Optimizer – This algorithm creates a finite cost-optimized supply plan considering capacities and material constraints.

3. Finite Heuristic – This algorithm creates a priority-based finite supply plan in which demands are fulfilled depending on available supply

Order Based Planning (Comes in SAP7/SAP7F Planning area and mainly used for Operational Supply Planning)

1. Rule Based Finite Heuristic – This algorithm considers demand in a prioritized sequence and tries to meet them; it also considers safety stock as secondary demand. This considers capacity and material availability constraints.

2. Optimizer – This algorithm provides cost optimized Supply plan; it also considers safety stock as secondary demand. This considers capacity and material availability constraints.

Note –
1. This comparison does not mention to what extent functionality available in the IBP can met exact customer requirement (Example Fair share distribution available in IBP Time Series Optimizer, but it may or may not meet the detailed requirement)
2. We have tried to cover only the important functional parameter but there could be many more which may me relevant for specific projects.

 If you are interested to learn and explore more on SAP IBP then contact us on info@smartcons.nl

Supply Planning Algorithm Comparison (SAP IBP)

2 thoughts on “Supply Planning Algorithm Comparison (SAP IBP)

  1. Hey Team,

    This is a really nice comparison, just that would appreciate if you can post a high quality picture of this comparison to be referred. The picture is blurred to the extent that its not legible.

    thanks!

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