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Learn how to simulate your production and procurement planning with SAP LTP

by Laura Casasanto

October 5, 2011

In an article recently posted to the SCM Expert knowledgebase, Jawad Akhtar explained how to simulate production and procurement planning with SAP Long Term Planning (LTP). Jawad described how to set up master data and planning data in your SAP system, how to use LTP, and additional LTP functionality such as manually creating a simulative planned order and firming the simulative planned order using a firming date.

I wanted to share with you an excerpt from that article in which Jawad explains how to create a planning scenario to begin the LTP process:

 

Long-Term Planning Process 

Having covered the master data as well as the planning data needed to set up LTP, I now address the series of steps you take to use LTP. The LTP process begins with creating a planning scenario in which you define all the details related to planning parameters. Planning quantities in PIR are defined next. Then, the LTP run is executed and the results are saved. These results are finally evaluated in detail in an LTP stock/requirements list. Take the following series of activities in sequential order:  

  1. Create a planning scenario
  2. Enter PIRs in simulative version
  3. Run LTP (simulative MRP) and save the results
  4. Evaluate the LTP stock/requi rements list   

I now explain the step-by-step procedure for running the LTP process.  

1. Create a Planning Scenario

To create a planning scenario, follow SAP menu path Logistics > Production > Production Planning > Long-Term Planning > Planning scenario > Create or use transaction code MS31 (Figure 3). These are the important steps in creating a planning scenario:

  1. Define the planning scenario. In my example, I define the planning scenario as 001.
  2. Give a planning period for the LTP. I use the planning period from 01.01.2011 to 31.12.2011.
  3. Define the opening stock. I select option 2, which is the plant stock at the time of planning.
  4. Select other parameters as deemed appropriate.
  5. Select the respective BOM ID. In my example, I use BOM ID 01, which is the production BOM. If a separate LTP-specific BOM usage is defined previously, then this is the time to assign it.
  6. Select the plants for which the LTP will be applicable. The Plants button is located on the top section of the Create Planning Scenario screen.
  7. Select the PIR and assign the simulative version (I use 02). The Planned Independent Requirements button is also located on the top section of the Create Planning Scenario screen.  
  8. Click the Release + Save button to save the planning scenario.

 

Figure 3 Planning scenario creation screen, in which you define the relevant parameters

 

Check out the rest of the LTP process steps and everything Jawad has to share on the topic in the full article here. If you have any questions about Long Term Planning in SAP, post them below in the comments section or email me.

-Laura, SCM Expert

 

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