PART I ... Materials Planning Basics ... 15§§1 ... Materials Planning Basics ... 17§§1.1 ... The Process of Materials Planning ... 18§§1.2 ... The Materials Controller ... 21§§1.3 ... Strategic and Tactical Materials Planning ... 23§§1.4 ... Portfolio Segmentation for Decision Making ... 29§§1.5 ... Lean and Agile Supply Chains ... 37§§1.6 ... Summary ... 43§§2 ... The Past and the Future of Materials Planning ... 45§§2.1 ... Past Problems with Materials Requirements Planning ... 45§§2.2 ... Today's Problems with Material Requirements Planning ... 52§§2.3 ... A Word on Customizing ... 53§§2.4 ... The Old Paradigm and the New ... 55§§2.5 ... Future Potential in Operations, Supply Chain, and Materials Management ... 60§§2.6 ... Planning the Future with an Unconstrained Supply Plan ... 64§§2.7 ... Summary ... 71§§3 ... Building Blocks of Materials Planning ... 73§§3.1 ... Modeling ... 74§§3.2 ... Strategic and Tactical Materials Planning ... 90§§3.3 ... Scientific Theories and Global Integration ... 94§§3.4 ... Summary ... 99§§PART II ... Materials Planning in SAP ERP ... 101§§4 ... Principles of Effective Materials Planning ... 103§§4.1 ... Supply Chain Strategy and Performance Boundaries ... 105§§4.2 ... Developing User Guidelines and a Policy Playbook ... 115§§4.3 ... Setting Control Limits ... 117§§4.4 ... The Competent Materials Controller ... 120§§4.5 ... Summary ... 124§§5 ... Prioritized Portfolio Management ... 125§§5.1 ... Portfolio Basics in SAP ... 125§§5.2 ... Responsibilities and Accountability ... 132§§5.3 ... Using Buckets ... 137§§5.4 ... Monitoring Your Portfolio ... 138§§5.5 ... Summary ... 149§§6 ... Automated and Periodic Policy Setting ... 151§§6.1 ... Employing Strategies and Policies in an Enterprise ... 152§§6.2 ... Segmenting a Materials Portfolio ... 154§§6.3 ... Replenishment Policies ... 161§§6.4 ... Planning Policies ... 208§§6.5 ... Setting Policy ... 243§§6.6 ... Using the SAP Add-On Tools for Segmentation and Policy Setting ... 245§§6.7 ... Summary ... 251§§7 ... Intelligent Exception Monitoring ... 253§§7.1 ... Exception Monitoring in SAP ERP ... 254§§7.2 ... Building a Monitoring System for Exceptional Situations ... 274§§7.3 ... Using the SAP Add-On Tool MRP Exception Monitor ... 295§§7.4 ... Summary ... 302§§8 ... Sustainable Inventory Optimization ... 305§§8.1 ... Performing Inventory Analysis ... 308§§8.2 ... Employing Inventory Strategies with Meaningful Key Performance Indicators ... 351§§8.3 ... Making Inventory Optimization Sustainable ... 360§§8.4 ... SAP Add-On Tools for Inventory Optimization ... 365§§8.5 ... Summary ... 372§§PART III ... Evaluating, Measuring, and Improving Materials Planning ... 375§§9 ... Key Performance and Supply Chain Indicators ... 377§§9.1 ... The Balanced Scorecard ... 378§§9.2 ... The Supply Chain Performance Index Framework ... 381§§9.3 ... Putting It All Together ... 399§§9.4 ... SAP Add-On Tools for Performance Measurement ... 402§§9.5 ... Summary ... 406§§10 ... Traditional Inefficiencies ... 409§§10.1 ... Dealing with an Unmanageable Amount of Exception Messages ... 411§§10.2 ... An Isolated Sales Department ... 414§§10.3 ... A Buyer without a Cause ... 421§§10.4 ... Fiddling with Policy ... 421§§10.5 ... Capacity Planning ... 422§§10.6 ... Using Sales Orders for Intercompany Stock Transfers ... 423§§10.7 ... Chasing Demand ... 426§§10.8 ... Hiding the Buffer ... 427§§10.9 ... The Reorder Point Dilemma When Sourcing from Another Plant ... 428§§10.10 ... The Hang-from-the-Ceiling Strategy ... 429§§10.11 ... Summary ... 430§§11 ... Improvement and Optimization Programs ... 433§§11.1 ... Benchmarking the Current State ... 434§§11.2 ... Developing Improvement Initiatives ... 443§§11.3 ... Measuring Progress ... 446§§11.4 ... Summary ... 449§§PART IV ... Modeling Materials Planning ... 451§§12 ... Scienti