C_TS410_2022 SAP Certified Application Associate - Business Process Integration with SAP S/4HANA Free Practice Exam Questions (2025 Updated)

Demand-Driven MRP (DDMRP):DDMRP is an innovative planning method that combines aspects of traditional MRP, Lean, and Six Sigma to strategically position inventory buffers to meet customer demand while minimizing lead times and variability.

Key Features of DDMRP:

Sales Order Forecasting:DDMRP uses demand-driven planning, focusing on actual customer orders and demand signals to prioritize production and inventory management.

Inventory Buffers:Strategically placed inventory buffers absorb variability in supply and demand, ensuring optimal inventory levels to meet customer needs without excess.

Implementation in SAP:SAP S/4HANA incorporates DDMRP capabilities, allowing businesses to implement this approach for more responsive and efficient supply chain management.

References:

SAP S/4HANA Demand-Driven MRP Guide

Demand Driven Institute Resources on DDMRP

During a Material Requirements Planning (MRP) run, Sales Orders (A) are evaluated as demand elements. MRP considers sales orders to determine the required materials and quantities needed to meet customer demand, generating planned orders and purchase requisitions to cover the anticipated demand.References= SAP Production Planning (PP) and Material Management (MM) documentation.

Internal orders can be settled to various objects for cost monitoring and analysis. Two common settlement receivers for internal orders are Profit Centers (C) and Fixed Assets (D). Settling to a Profit Center allows the allocation of costs for internal reporting and performance measurement, while settling to a Fixed Asset is used for capitalization of costs associated with the construction or acquisition of assets.References= SAP S/4HANA Financial Accounting (FI) and Controlling (CO) configuration guides and help documentation.