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SAP Advanced Planning and Optimization (SAP APO)

http://help.sap.com/saphelp_scm41/helpdata/EN/7e/63fc37004d0a1ee10000009b38 f8cf/frameset.htm Purpose SAP Advanced Planning and Optimization (SAP APO) offers a fully integrated pallet of functions that you use to plan and execute your supply chain processes. SAP APO supports the following: Business collaboration on a strategic, tactical, and operational planning level Co-operation between partners at all stages of the supply chain process; from order receipt, stock monitoring, through final shipping of the product Cultivation of customer and business partner relationships Constant optimization and evaluation of the supply chain networks efficiency 1. Supply Chain Processes with SAP APO
Supply and Demand Planning is one of the key areas of the mySAP Supply Chain Management solution. One of its main features is forecasting future demand, taking into account the following aspects: Past demand Possible environmental factors Targeted marketing activities The market situation and sales targets

Manufacturers can use it to create scheduling agreements that specify delivery requirements, production requirements, distribution requirements, and transportation requirements. The following scenarios are implemented: Collaborative Supply & Demand Planning Sales Order Oriented Planning Vendor Managed Inventory with SAP APO and SAP R/3 Procurement Scheduling Agreements in Heuristic-Based SNP

Planning)

(Supply Network

1. In Demand Planning you create a planning area and book that contain characteristics for o o o Product Location Customer

You may also want to create key figures for the quantity for which sales orders have been issued.

2. You create the Demand Plan. For more details refer to the SAP Library for the

Demand Planning Process. 3. You release the Demand Plan to SNP/PP-DS. For more details see Release of the Demand Plan to SNP. The system creates planned independent requirements.

4. You create planned orders or purchase requisitions. Generally you do this in a planning run
(see Production Planning Run) but you can also use Interactive Planning. At this stage dependent requirements are also generated (providing you have made the requisite settings). 5. You ask the customer to confirm the forecast by issuing purchase orders. 6. You enter these purchase orders in the system as sales orders. These sales orders automatically consume the forecast. You can use the Ascertain heuristic in PP/DS to determine the open planned independent requirements for the selected end product, that is those planned independent requirements that have not been assigned to and consumed by a sales order. You can then remind the customer to place their order. 7. At this stage the system may start another planning run, to generate receipts for new sales orders. This depends on the PP/DS settings you have made for the product and how the system should react to shortages. 8. After the end of this period, you delete or reduce the superfluous planned independent requirements using one of two heuristics, Reorganize orReorganize via products. The dependent requirements that were generated are also deleted. For more details on the heuristics, see the online documentation for these heuristics in Customizing for PP/DS ( Heuristics Maintain Heuristics).

9. The system now converts the planned orders / purchase requisitions to production orders /
purchase orders in the OLTP system (SAP R/3). The conversion rule prevents any planned orders for which a sales order does not exist from being converted. (These planned orders should not exist, since they were deleted by the heuristic in the previous step.) For more details, see Conversion Checks.