How much inventory is ideal? From setting service target levels and lead times to managing demand variability, learn to calculate and plan the best way to handle your inventory. Configure SAP Integrated Business Planning for inventory and model your supply network. Then optimize your inventory practices and measure your performance through KPIs, reports, and dashboards. Plan and control your stock levels with this all-in-one guide!Highlights:1) Master data2) Planning areas3) Supply network models4) Replenishment5) Lead times6) Safety stock7) Inventory types8) What-if analysis9) Integration10) Implementation planning11) Case studies

Lei Wang is the director of product management, supply chain, at SAP and the product owner for the underlying supply chain algorithm library beneath SAP Integrated Business Planning for inventory and demand. He has more than a decade of experience in the research and development of enterprise inventory and service optimization solutions. He has also worked with expert users, planners, supply chain analysts, and consultants on various SAP Integrated Business Planning for inventory implementations. Lei Wang has a Ph.D. in industrial and systems engineering from the University of Minnesota.

... Who This Book Is For ... 15 ... How This Book Is Organized ... 15 ... Acknowledgements ... 18 ... Conclusion ... 19 1.1 ... What Is Inventory? ... 22 1.2 ... Where Is Inventory Held? ... 28 1.3 ... Building an Inventory Management Approach ... 29 1.4 ... Objectives of Inventory Planning and Optimization ... 34 1.5 ... Role of Technology in Inventory Planning and Optimization ... 36 1.6 ... Introducing SAP Integrated Business Planning ... 40 1.7 ... Summary ... 56 2.1 ... Primary Factors that Drive Inventory ... 57 2.2 ... Breakdown of Variability Drivers ... 75 2.3 ... Additional Factors that Influence Inventory ... 92 2.4 ... Summary ... 104 3.1 ... Architecture ... 105 3.2 ... Building Blocks ... 106 3.3 ... Planning Area Setup Using Predelivered Content ... 134 3.4 ... Versions ... 139 3.5 ... Scenarios ... 142 3.6 ... Planning Operators ... 143 3.7 ... Reason Codes ... 146 3.8 ... Data Integration ... 148 3.9 ... Planning Views ... 148 3.10 ... Dashboard and Analytics ... 153 3.11 ... Summary ... 156 4.1 ... Introduction to Supply Networks ... 157 4.2 ... Supply Network Complexity ... 159 4.3 ... Elements of a Supply Network ... 164 4.4 ... Visualizing Supply Networks in SAP IBP ... 181 4.5 ... Summary ... 184 5.1 ... What Is Network Inventory Optimization in SAP IBP? ... 185 5.2 ... Building Blocks for Inventory Calculation ... 187 5.3 ... Network Multiechelon Inventory Calculation ... 201 5.4 ... Summary ... 230 6.1 ... Types of Inventory ... 231 6.2 ... Further Decomposition of Safety Stock ... 237 6.3 ... Calculating Inventory Components ... 241 6.4 ... Summary ... 251 7.1 ... Centralized and Decentralized Inventory Planning Teams ... 253 7.2 ... Frequency of the Inventory Planning Cycle ... 255 7.3 ... From Reactive to Proactive Planner Tasks ... 257 7.4 ... Inventory Planning in Sales and Operations Planning ... 258 7.5 ... Sequence of Planning Tasks ... 260 7.6 ... Segmentation ... 270 7.7 ... Role of the Inventory Planner ... 272 7.8 ... Summary ... 273 8.1 ... Example Supply Chain for Inventory Planning ... 275 8.2 ... Key Performance Indicators for Inventory Optimization ... 279 8.3 ... Validate Input Quality ... 281 8.4 ... Review Inventory Plan ... 287 8.5 ... Assess Inventory Drivers ... 289 8.6 ... Finalize Inventory Plan ... 294 8.7 ... Create Custom Inventory Alerts ... 299 8.8 ... Summary ... 310 9.1 ... What-If Analysis with Versions and Scenarios ... 312 9.2 ... Perform What-If Analysis ... 313 9.3 ... Simulating Situations ... 319 9.4 ... Intuition Building ... 332 9.5 ... Strategic What-If Analysis ... 334 9.6 ... Tactical What-If Analysis ... 337 9.7 ... Summary ... 338 10.1 ... Data Integration Technologies ... 339 10.2 ... Manual Data Integration Using the Web UI ... 342 10.3 ... Integration using SAP Cloud Platform Integration for Data Services ... 350 10.4 ... With SAP IBP Applications in the Unified Planning Area ... 361 10.5 ... With SAP ERP and SAP S/4HANA ... 362 10.6 ... With SAP APO ... 365 10.7 ... With Non-SAP Systems ... 366 10.8 ... Exporting Data Using OData Services ... 367 10.9 ... Summary ... 367 11.1 ... Cloud Software Considerations ... 369 11.2 ... Manual versus Automated Workflow ... 374 11.3 ... Agile versus Waterfall Implementation Methodology ... 382 11.4 ... Roles and Responsibilities ... 389 11.5 ... Summary ... 391 12.1 ... Case Study 1: Manufacturing Industry ... 393 12.2 ... Case Study 2: Consumer Goods ... 396 12.3 ... Case Study 3: High-Tech Company ... 399 12.4 ... Case Study 4: Consumer Products ... 402 12.5 ... Summary ... 406