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7/25/2019 Sap Notes - Finals
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UNIT 11 INTRODUCTION TO APO
Introduction to Advanced Planner & Optimizer (APO)
APS Advanced Planning & Scheduling originated with Advanced Manufacturing Research
(AMR) in the early 1990s. t was created !ecause a !reed of software was !eco"ing availa!le
that failed the traditional #RP.
APS syste" hall"ar$s include
a. %ew internal users than #RP syste"s.
!. 'he use of "e"ory resident "odels in addition to traditional MS.
c. Ability to do rapid what-i !imulation
d. Planning at a finer ti"e incre"ent
e. Advanced *ro!le" notification
. Advance optimization al"orithm! !uch a! linear pro"rammin" and heuri!tic!
g. Advanced *lanning and scheduling functionality
APS software solution *roviders
+ SAP
+ , technologies+ Manugistics
+ -racle
SAP AP- is !undled with several other advanced *lanning a**lications into "ySAP SM /.0
a. AP-
!. %orecasting and re*lenish"ent Retail
c. nventory olla!oration u!d. #vent Manager
e. #2tended 3arehouse Mg"t.
So"e functionalities of SAP AP-4 esigning5 'rans*ortation Planning5 -rder Pro"ising and
elivery5 Su**ly hain Perfor"ance Mg"t.
APO A#$%I'$#'
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-6'P -nline 'ransaction Processing Syste"
SAP AP- e"and Planning "odule Su**ly networ$ *lanning
SAP 3 data warehouse
istorical data 7ey *erfor"ance indicators (7Ps)
he tran!action data and ma!ter data rom # are !tored in *$ *ive $ache. he data
low! throu"h an interace called a! the $ore Interace ($I+).
AP- need to *rotect itself fro" any live cache failures. So it !tore! in traditional #,
relational databa!e used for !ac$u* *ur*oses.
ata flows !etween R8 to AP- and !ac$.
APO DEMAND PLANNING
It is used to create a forecast of market demand for your co"*anys *roducts. t allows you to
consider "any different causal factors that affect de"and.
t is a large li!rary of statistical forecasting "odels. usto"ers can create uni:ue forecasting
"odels using a *owerful "acro tool. +oreca!t! created by APO ,P may be relea!ed to APO
Supply etwor/ Plannin" or pa!!ed to #0 or 1#P plannin".
APO UPPL! NET"OR# PLANNING
t is a very good medium term(neither short ter" nor long ter") to get a rough cut *lan for
fulfilling the esti"ated sales volu"es. t integrates *urchasing5 "anufacturing5 distri!ution and
trans*ortation so that a co"*rehensive tactical *lanning and sourcing decisions can !e si"ulated
and i"*le"ented on the !asis of a single5 glo!al consistent "odel. ;ses advanced o*ti"iation
techni:ues.
APO PRODUCTION PLANNING $ DETAIL C%EDULING &PP$D'
PP0,S i! intended to e !hort-term (1+< wee$s) detailed *lanning and scheduling tool.
'he PP portion o PP0,Sis ca*a!le of creatin" inite !upply chain!ta$ing ca*acities
into consideration.
'he ,S portionof PP=S is ca*a!le of creatin" optimized !chedulin" !e2uence!.
PP=S acco"*lishes its *ri"ary "ission !y using various advanced heuristic and linear
*rogra""ing algorith"s.
APO G(o)a( A*ai(a)(e to Promise &GATP'
ad*anced order +romisin, too(-
1. 3e can *lan availa!ility of "aterials across "ulti*le different *lants.
3. Simulation o order! ($apable-to-Promi!e)
8. Rule+!ased order *ro"ising
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APO ran!portation Plannin"0 4ehicle Schedulin" (P04S) intended to optimize the
planning and schedule inbound and outbound freight.
'he ran!portation Plannin" portionof 'P=>S ena!les you to ma/e optimal u!e o the
available capacity o truc/!5 train!5 !hip! and airplane!.
he 4ehicle Schedulin" component o P04S will optimize the delivery route!.
'P=>S utilies advanced linear *rogra""ing algorith"s to acco"*lish its "ission.
>ehicle scheduling co"es u* with lower trans*ort routes.
APO A(ert Monitor
+ t is an advanced "onitoring syste" to detect !upply chain problem! at the earlie!t
po!!ible time.
+ 'he Alert Monitor is ca*a!le of o*erating within all the AP- su!+"odules (P5 S?P5
PPS=S5 'P=>S).+ Alert conditions "ay !e custo"ied !y co"*any or individual user.
@;
'he *ortion of the AP- architecture where the co"*uter "odel resides is called 6ive ache.
'he AP- "odules where forecasting is done is e"and Planning.
AP- "odule used for advanced order *ro"ising is called Blo!al A'P.
'he AP- "odule used for advanced *ro!le" notification is called Alert Monitor.
UNIT 1. T%E CORE INTER/ACE
% the AP- % is used for e2changing data !etween SAP AP- and SAP R=8 syste"s.
% will transfer !oth "aster data and transaction data fro" SAP R=8 to SAP AP- and also fro"
SAP AP- to SAP R=8.
ata *assing "ay !e real+ti"e or !atched.
T0e IT tec0no(o, used for t0e interface is t0e Remote /unction Ca(( &R/C'-
T0e +assin, of t0e data is ena)(ed!y the creation and "aintenance ofInte,ration mode(s-
A(( Inte,ration Mode(s are defined in AP R$2 &0ost sstem'-
1a!ter ,ata ran!er throu"h $I+
'he ma!ter data i! unidirectional+ "oves fro" R=8 to SAP AP-.
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AP- Master data 6ocation Master5 Product Master5 Resource Master5 PPM or R'- "aster etc.
ran!action ,ata ran!er throu"h $I+Most transaction data can low in both direction! Planned orders can !e created in R=8 and
can !e used as in*ut in SAP AP- for *roduction *lanning and detailed scheduling.
Planned orders could also !e created within AP- Su**ly networ$ *lanning to R=8 for further
*rocessing.
AP R$2 +(annin, and e3ecutionbut SAP APO can only be u!ed or plannin".
AP APO cannot )e used for e3ecution +ur+oses-
Inte"ration 1odel!
Multi*le integration "odels will !e used in connecting SAP R=8 to AP-. #ach "odel will
transfer data.
Inte,ration mode(s are a(4as defined in t0e AP R$2 sstem-
AP-+relevant "aster data=transaction data is selected in the active integration "odels of the %.
All the "aterial "asters of a *lant are *assed through the integration "odels to SAP AP-. 'he
integration "odel "ust !e active.
MATER DATA MAINTENANCE
Any "aster data originated in SAP R=8 is "aintained in SAP R=8 and any "aster data uni:ue in
AP- will !e "aintained in AP-.
e(ectin, APO P(anned Materia(s
An materia( master 40ose MRP t+e is 56 is +(anned in t0e APO sstem-
Models in AP-
All Master ata transferred using the % is auto"atically assigned to "odel 000 (Active "odel)
in live cache.
'herefore "odels in AP- contain "aster data. Since AP- "ay !e used for si"ulation or what+if
*lanning5 other "odels "ay !e created that contain "aster data different fro" the "odel 000
(active "odel).
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>ersions in AP-
All transaction data is transferred to AP- through the % is stored in >ersion 000 (Active
version). #2a"*les of transaction data would !e forecasts5 sales orders etc.
A(( master data is stored in Mode(s and a(( transaction data is stored in 7ersions-
All transaction data transferring fro" AP- to R=8 "ust !e stored in >ersion 000.
UNIT 12 MATER DATA &16 8uestions fina(s'
'he "aster data o!Cects in SAP AP- have different na"es fro" their SAP R=8 counter*arts. %or
e2a"*le5 the Material Master in R=8 is na"ed Product Master in AP-.
AP- has "any other "aster data fields that do not have counter*arts in R=8. 'hese "aster data
fields are needed to *erfor" the APS functionality that does not e2ist in R=8.
Plant5 $u!tomer and Supplierfro" R=8 !eco"es *ocation 1a!ter in APO.
1aterial ma!ter rom #0is called as the Product 1a!ter in APO.
6or/ center!!eco"e re!ource ma!ter!.
#outin"0O1 ma!ter!eco"es PPM or R'- Production Proce!! 1ar/!
Trans+ortation (anes in APO do not 0a*e a counter+art in R$2-
Purc0asin, Info Record and c0edu(in,A,reement !eco"es Procurement Re(ations0i+ in
APO-
LOCATION MATER
rucial for SM !ecause it is the !uilding !loc$ for so "any other relationshi*s.
a. Plant5 usto"er5 Su**lier and "any others fro" R=8 are housed in AP- 6ocation Master.
6ocation ty*e will distinguish !etween the different location "asters. n AP- we can have
several calendars !ut in R=8 we can have only one calendar.
ran!portation *ane
t does not have an R=8 counter*art
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efines all valid trans*ortation "ethod !etween two locations.
'6s "ay !e defined for all *roducts "oved !etween two locations or "ay !e s*ecific to a
*roduct.
I no * e7i!t!5 then one location can8t be a !ource o !upply to the other . '6 "ay define
"ulti*le valid trans*ortation "eans (truc$5 rail5 air) along with trans*ortation ti"e and costAP- sourcing algorith"s will e2a"ine the '6 for cost and ti"e data to deter"ine the
o*ti"u" "ethod.
9uota Arran,ement
,etermine! the !ource and 2uantity demanded when !everal po!!ible !upplier! are
available.
It e7i!t! in #0 but are not u!ed in APO.
'hey are defined for all *roducts sourced fro" a location or it "ay !e *roduct s*ecific.
Product s*lits "ay !e defined as
a. %i2ed s*lit
!. eter"ined !y a heuristic algorith"
c. eter"ined o*ti"ally and then re"ain fi2ed.
If t0ere is on( one source of su++(: t0en no 8uota arran,ement is needed-
Product 1a!ter
'he AP- *roduct "aster is the direct e:uivalent of the R=8 Material "aster.
he product ma!ter will al!o contain data element! that do not e7i!t in #0. 'hey areA. Penalty co!t! the!e relect the relative co!t o mi!!in" an order due date.. Storage costs the relative cost of storing a *roduct
. Bood recei*t=issue costs
'hese costs are used to influence the -*ti"ier *rogra" in Su**ly ?etwor$ Planning.
Production Data tructure
Standard Solution (as of SAP AP- D.1) for
a. >ariant configuration!. #ngineering hange Manage"ent (ate effectivities)
PP1 wor/! or 1a!ter #ecipe! and $o-product! but not or 'n"ineerin" $han"e
1"mt. and variant coni".
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asis for integrated *roduct and Process #ngineering (iPP#) as the "anufacturing "aster data
a. -M
!. Routing
c. 6ined. Reci*e
T4o t+es of PD
9. P,S or SP will contain critical material! and re!ource!.
3. P,S or PP0,S will contain all material! and re!ource!.
@;
1. A *urchasing info record in R=8 that *asses through the core interface will auto"atically
create what AP- Master data o!Cect.
Answer Procurement relation!hip and ran!portation lane.,. 'he AP- "aster data o!Cect that co"!ines the R=8 -M and routing together is
Answer Production ,ata Structure (P,S)8. 'he AP- "aster data o!Cect that defined a valid sourcing relationshi* is
Answer Procurement relation!hip
UNIT 1; DEMAND PLANNING
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T!PICAL INDUTR! /ORECATING PROCE
;*date istory Auto"atically generate forecast+Review=orrect forecast Reach onsensus
forecast A**rove forecast.
#le"ents of a good forecast
a. Timely
b. "eliable
c. %ccurated. Meaningful
e. 'ritten
f. asy to use
A++roac0es to /orecastin,
a. ualitative method su!Cective in*uts (E;B#M#?'A6 consu"er surveys5 sales
staff="anagers=e2ecutives=e2*ert *anels)
Su!Cective in*uts soft info (hu"an factors5 *erson o*inion5 hunch)
t is hard to :uantify!. uantitative Method o!Cective or hard data ('M# S#R#S uses historical data
assu"ing the future will !e li$e the *ast)ProCection of historical data. A!!ociative model!utiliing e2*lanatory varia!les
'i"e series forecast ti"ed ordered se:uence of o*erations
'rend long ter" u*ward=downward "ove"ent in data.
Seasonality + short+ter" regular variations in data ycle wave+li$e *attern of "ore than one years duration
rregular >ariations caused !y unusual variations
Rando" variations caused !y chance
'echni:ues for Averaging
istorical data has white noise or variation
Averages s"ooth variations
8 techni:ues
a. Moving average!. 3eighted "oving average
c. #2*onential s"oothing
1ovin" Avera"e!
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'echni:ue that averages a nu"!er of recent actual values5 u*dated as new values !eco"e
availa!le. 'he "ore ti"e *eriod we average5 the less res*onsive the "oving average is to the
actuals. t "ay !e good or !ad de*ends on the *roduct and the *rofit "argins. So"eti"es it gives
you a *rotection during uncertainties.
6ei"hted 1ovin" Avera"e:
More recent values in a series are given "ore weight in co"*uting the forecast.
'7ponential Smoothin":
ased on *revious forecast *lus a *ercentage of the forecast error.
A(+0a smoot0in, factor is ,reater t0an or e8ua( to >ero )ut (ess t0an or e8ua( to 1-
*ow %lpha + stable average
,igh %lpha + -hanging average
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UNIT 1@ APO DEMAND PLANNING &11 8uestions fina(s'
+le7ible plannin" in #0 u!e! *IS *o"i!tic! Inormation Sy!temwhere we store our
historical data.
+oreca!tin" in APO ,emand plannin" would be u!in" u!ine!! 6arehou!e (6) as a
source to store the historical data.
3 infrastructure is integral with AP- P.
#2ce*tion handling is integrated and you can design your own alerts.
Planning is !ased on the "ain "e"ory. %le2i!le navigation in the plannin" table5 varia!le drill+
down. #na!les colla!orative *lanning and evaluation5 li$e "odelling. 3ide range of forecasting
techni:ues.
e"and Planning -M.
3hat influences the %orecastF
Sales5 Price and Ad Manufacturer
Pro"otions5 Price and Sales istri!utor
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Season5 3eather usto"er
ARA'#RS'
n AP- P5 a c0aracteristic is an or,ani>ationa(: or master data fie(d-%or e25 "aterial
(*roduct)5 *lant5 custo"er5 or sales organiation.
C0aracteristics are used to determine t0e (e*e( at 40ic0 ou are forecastin,. AP- P has a
!uilt+in li!rary containing "any co""only used characteristics. usto"er uni:ue characteristics
can also !e created.
> + haracteristic >alue o"!inations4 $4$! are !tored in Plannin" Ob;ect Structure
(POS). $4$! repre!ent the ma!ter data or APO ,P.
istorical data is stored in the AP- 3 info cu!e and is organied !y di"ensions
(characteristics). -nce historical data is stored5 it "ay !e analyed to create historical facts of
characteristic co"!inations.
APO u!ine!! 6arehou!e (6)
nfo cu!e contains two "aCor ele"ents info cu!e is a "ulti+di"ensional "ini data warehouse.
a. ,imen!ional table! these ta!les contain location5 *roduct hierarchy5 region etc.!. %i!torical data inco"ing order5 :uantities and values of invoices etc.
nfou!es are used for storingg actual data fro" -6'P syste"s in AP-.
%orecasting Methods availa!le
a. ;nivariate (statistical) only one inde*endent varia!le availa!le and forecast is done.
!. Multi*le 6inear Regression "ore than one inde*endent varia!le. (M6R)c. o"*osite
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t is used to *erfor" a *articular !usiness function. t also defines how we organie the colu"ns
!y wee$5 "onth etc.
Plannin" Area! $haracteri!tic! and
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a. Moving avg.
!. onstant "odels5 trend "odels.
c. #2*onential s"oothingd. rostons "ethod s*oradic de"and
e. Auto"atic selection
f. Seasonal linear regressiong. 'he olt+3inters "ethod.
1a!ter +oreca!tProile It tell! demand plannin" how to oreca!t. ,einition o the /ey
i"ure to be oreca!t. ,einition o the pa!t and oreca!t horizon!. Procedural s*ecification for
the following forecasting ty*es4 ;nivariate5 Multi*le 6inear regression5 o"*osite.It indicates
40at statistica( met0ods to use-
1ultiple *inear #e"re!!ion (1*#)
AP- P su**orts Multi*le 6inear Regression as a forecasting techni:ue.
M6R is used to deter"ine how a de*endent varia!le such as sales5 is connected with inde*endent
varia!les called casual varia!les5 such as *rices5 advertising and seasonal factors.
$ollaborative +oreca!tin" cu!tomer! will view your !tati!tical oreca!t and can "ive
eedbac/ on whether it i! too hi"h or too low.'he result can !e i"*roved forecast accuracy.
olla!orative *lanning re:uires a strong !usiness relationshi* !etween trading *artners and "ost
of 'R;S'.
$on!en!u! a!ed +oreca!tin"
t "ay !e *erfor"ed various ways including4
+ ifferent *lanning !oo$s for different forecasting organiations
- $on!en!u! oreca!tin" bu!ine!! meetin"! where all partie! participate in arrivin" at
the be!t po!!ible oreca!t.
Alert 1onitor
t "ay !e used to send alerts regarding i"*ortant a!nor"al situations.
%or e"and Planning5 the i"*ortant a!nor"ality is a forecast error that e2ceeds a *re+defined
threshold level.
Alerts "ay !e delivered via several "edia including e"ail.
P6M
%orecasting the de"and for new *roducts is difficult due to lac$ of historical data.
%orecasting the end+of+life *roducts can also !e done.
Promotional Plannin" It can be created to apply pattern! to the demand oreca!t. 'he
*atterns can !e stored in the *ro"otion *attern li!rary and used5 as re:uired ("ulti*le ti"es).
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'he function is also availa!le to detect *ro"otion *atterns in historical data and to create
*ro"otion *atterns !ased on the".
@ui
A *lanning o!Cect structure in AP- P will store haracteristics and >.
haracteristics are "ade u* fro" -rganiational data ele"ents and Master ata ele"ents.
+oreca!t proile in APO ,P indicate! what !tati!tical oreca!t method to u!e.
UNIT 1? RELEAING T%E DEMAND PLAN
%fter the &P has been approved1 it must be released for operations planning.
After the release *rocess5 the forecast re:uire"ents will !e classified as *lanned inde*endent
re:uire"ents (PR).
'he forecast release will al"ost always contain D !asic *ara"eters4
a. Product
!. 6ocation
c. @uantityd. 'i"e
MRP in R=8 or S?P in AP- "ay act on PRs to create re*lenish"ent *lanned orders.
APO re(ease arc0itecture
+ 'i"e series ($ey figures) to -rder o!Cects (ategory %A).- ime buc/et proile! are u!ed to create planned independent re2uirement!.
+ 'he location shi**ing calendar is used to deter"ine wor$days.
+ 6ocation s*lit and Product s*lit.
+ aily !uc$et *rofile when the P storage !uc$ets *rofile does not contain days.
UNIT 1B UPPL! NET"OR# PLANNING &11 8uestions in fina( e3am'
Part A
ntroduction to Su**ly ?etwor$ Planning
t is an intermediate time rame plannin" unction. ts *ri"ary *ur*ose is to create a good
rough+cut su**ly *lan across the entire su**ly chain. t can u!ed or either inite or ininite
capacity plannin".
'hree se*arate and uni:ue re*lenish"ent *lanning engines are !undled into S?P4
'hey are
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a. euristic
!. a*a!le+to+Match ('M)
c. -*ti"ier
n addition to su**ly and de"and "atching5 S?P is ca*a!le of *erfor"ing two additional su**ly
"anage"ent functions.
a. e*loy"ent
!. 'rans*ortation 6oad uilder
Production %orizon
- t is a given nu"!er of days relative to todays date and any date that ari!e! "reater
than thi! horizon i! ta/en care by Supply etwor/ Plannin".
- Anythin" in!ide o production horizon i! ta/en care by PP0 ,S.
SP Proce!! +low
Release the de"and *lan + *erfor" an S?P heuristic run5 o*ti"iation run or 'M run Review*lan= solve *ro!le"s %inalie the S?P *lan ("a$e availa!le to PP=S) Release the feasi!le
S?P *lan to P Run e*loy"ent Run '6 Manually *rocess unconverted de*loy"ent
stoc$ transfers.
NP PLANNING ENGINE
1edium to *on"-term Plannin" Strate"ie!
+ Ininite plannin" %euri!tic4 Resources and "aterial availa!ility are not chec$ed when
creating *lanned orders and stoc$ transfers.
+ +inite Plannin" $apable-to-match ($1) and optimizer4 Si"ultaneous :uantity and
finite ca*acity scheduling4 S?P resources and "aterial availa!ility are chec$ed duringcreation of orders.
Short-term #epleni!hment Plannin" (,eployment)
+ %euri!tic and Optimizer:AdCust stoc$ transfers according to the current de"and and
recei*t situation.
+ ran!port *oad uilder (*):Brou*s together stoc$ transfers.
S?P architecture
Planning Area holds haracteristics and 7ey figures.
Master *lanning o!Cect structure holds S?P characteristics and P characteristics5 Aggregates.
he APO ,P !tore! it! oreca!t in ime Serie! *ive $ache.
ata view is a su!set of a wor$!oo$.
-rder !ased live cache All tran!action data i! !tored a! order! in the order live cache.
A'P categories are used to differentiate orders.
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A'P categories can !e grou*ed together into A'P category grou*s.
PART < APO u++( Net4ork P(annin,'he role of heuristic *lanning is to *lan the su**ly to "eet de"and throughout the entire su**ly
chain.
euristic *lanning is a :uantity+!ased *lanning. t will create a su**ly :uantity for a s*ecific
ti"e *eriod regardless of the actual order :uantities.
S?P heuristic *lans in a level+level *lanning "ethod si"ilar to MRP in SAP R=8.
%euristic +(annin, assumes infinite ca+acit 40en+(annin,.
Sourcin" deci!ion! (that i!5 what location! !hould be u!ed a! !upplie!) i! driven primarily
by 2uota arran"ement!.
S?P creates *lanned orders and stoc$ transfers in the networ$.
9uota Arran,ements in %euristic
Inbound 2uota arran"ement!control di!tribution o demand!.
Outbound 2uota arran"ement!control di!tribution o receipt!.
'here are :uota arrange"ents for individual *roducts and selections.
e"ands can !e s*lit ("in :uantity) and grou*ed together for ti"e *eriods.
'he following can !e included in a :uota arrange"ent4
a. #2ternal *rocure"ent
!. Stoc$ transferc. n+house *roduction
Other APO 1a!ter data u!ed in %euri!tic
'rans*ortation lanes valid "ove"ents in the su**ly chain.
@uota arrange"ents *ercentage assign"ent of de"ands to sourcing locations
6ot Siing lot for lot5 fi2ed5 target days su**ly5 *rofiles5 rounding values.alendar5 Safety stoc$5 scra* and PPM.
I tran!portation! lane! are e2ual and there are no 2uota arran"ement!5 then we co"*are
the *roduct cost through PPM and choose the lowest *rice.
% :uota arrange"ent is defined5 heuristic will not use trans*ortation lane or PPM.
NP CAPACIT!
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t is !ased on the a!!umption that re!ource! have an ininite capacity.
After the S?P euristic run is co"*lete5 the *lanner can "a$e a ca*acity chec$5 which allows
the *lanner to see the i"*act that *lanned orders will have on resources and to :uic$ly deter"ine
whether or not the *lan is feasi!le.
f ca*acity overload5 an alert is dis*layed.
'he *lanner can decide how to "odify the *roduction *lan to "eet de"and !efore actually going
into *roduction.
CAPACIT!
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Constraints
$on!traint! repre!ent realitie! that e!!entially bound the !olution option! to that the
re!ult i! ea!ible.
#2a"*les include4
a. e"ands "ust !e "et
!. annot e2ceed ca*acityc. Storage ca*acity is li"ited
?on+6inear Progra""ing 3hen the o!Cective function is a non+linear function.
Mi2ed+nteger 6inear *rogra""ing (M6P)
Mi2ed+nteger non+linear *rogra""ing (M?6P)
SAP APO !upport! *P and 1I*P problem!.
APO NP OPTIMIER
'he -*ti"ier or solver in AP- S?P uses 6P to consider all relevant factors si"ultaneously.
SAP ha! an embedded rdparty !olver I*O> $P*'into the SAP syste". 'he o*ti"ier
co"*ares alternative solutions using costs that would !e incurred.
Most cost+effective solutions chosen !ased on constraints and o!Cective function defined in the
syste".
Penalty co!t! are u!ed to prioritize demand!. I a product brin"! hi"h !ale! revenue!5 you
!et hi"h penalty co!t!.
Result due dates are violated or that safety stoc$s are not re*lenished.
ost "ay include4 *roduction cost (PPM)5 storage costs (*roduct "aster) and *enalty costs
(*roduct "aster).
Ca+a)(e to Matc0 &CTM'
t is an order?)ased +(annin, met0od- #very single sales order or *lanned PR is *lanned
se*arately.
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'M uses demand prioritie!as the *ri"ary !asis *erfor"ing su**ly networ$ *lanning.
$1 doe!n8t perorm optimization. It terminate! when it ind! the ir!t ea!ible !olution to
the problem.
e"and *riorities "ay !e defined using "ulti*le "ethods consistent with cor*orate *olicy or
culture.
$1 proce!! include! ,emand Prioritization and Supply $ate"orization.
PART D UPPL! NET"OR# PLANNING
Safety stoc$ *lanning
'he uncertainties occur during *lanning
a. e"and uncertainty (forecast)!. Re*lenish"ent lead ti"e
Safety stoc$ can !e used to safeguard against these uncertainties.
a. Maintaining the safety stoc$ "anually in the *roduct "aster!. alculate the ti"e+inde*endent safety stoc$ in an S?P $ey figure in the nteractive
Planning 'a!le.
c. reate a "odel inde*endent safety stoc$ to achieve a certain custo"er service level.
APO NP +ro*ides more so+0isticated safet stock +(annin, t0an R$2-
Model+de*endent Safety stoc$
a. 'he service level (S6) of the *roduct "aster is used to deter"ine the safety factor.
!. nfor"ation fro" trans*ortation lanes and PPMs is used to calculate the re*lenish"ent
lead ti"e (R6').
De+(oment
%air+share rule.
Actual de*loy"ent orders are created in R=8.
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Trans+ortation Load
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UNIT 1= UPPL! C%AIN ENGINEER
APO S$' i! a convenient "raphical toolthat allows custo"ers to gra*hically view and edit
their AP- "aster data o!Cects.
'he S# allows a custo"er to create a filter containing those "aster data o!Cects that are under
his res*onsi!ility. 'he resulting iltered ma!ter data ob;ect! i! called a!"ork AreaF-
Master data is stored in Model 000.
3or$ Area *rovide a convenient way to filter the "aster data.
Access to fre:uently used o!Cects.
+ ;sed for re:uests
+ Serve as filters
+ onfigured for users
@ui
1. 'he su**ly chain engineer is used *ri"arily to view and "anage Master data
,.
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a. Pro;ect preparation
b. u!ine!! blueprint
c. #ealization
d. +inal preparation
e. >o live & !upport
Pro;ect Preparation
Beneral conditions for i"*le"enting the *roCect successfully.
t will include4
a. &efining the goals and ob2ectives of the pro2ect.b. stablishing the pro2ect organization
c. -reating the pro2ect plan
d. &etermining the pro2ect standard procedurese. Training the pro2ect team
f. Setting up the S%P $ +system landscape
g. -reating a communication plan for the pro2ecth. Ta0e certain benchmar0 measurements
u!ine!! blueprint
t is a critical *hase of "ethodology. %ailure to ta$e ade:uate ti"e to lac$ of fwd. thin$ing in this
*hase will increase ris$ of overall *roCect.
#ealization t will !egin the i"*le"entation of the functional re:uire"ents defined in the
!lue*rint *hase.
a. $oni"urin" the SAP !y!tem
b. Settin" up the te!t environment
c. Settin" up the !ecurity0admin
d. Settin" up any wor/low proce!!e!
e. 6ritin" te!t !cript!
>o live and !upport
'his *hase will launch the new a**lication and *rovide the necessary su**ort for a *eriod of ti"e
re:uired to achieve institutionaliation
Activities include4
a. 'nd u!er re-trainin"
!. Software trou!le call su**ort
c. Software de+!ug su**ortd. onfiguration re+setting