SAP APO Summary

What is supply chain management?

Manage the flow of information, products, and funds through a network of facilities.
Supply chain management integrates organizational units along a supply chain and coordinates
materials, information, and financial flows in order to fulfill ultimate demands with the aim of
improving competitiveness of a supply chain as a whole
Supply -> manufacturer -> distriution center -> retail store -> customer
What is S!M?
S!"#-Model$ %lan & Source & Make & 'eliver (four asic processes)
Supply chain management$
*s a process-oriented integrated approach to procuring, producing and delivering
products and services to the customer
+as a road scope that includes su-suppliers, suppliers, internal operations, trade
customers, retail customers, and customers
S!M includes all parties from suppliers to customer (collaoration)
myS,% S!M
-etworking$ private e.change, portal, and so on
Supply chain collaoration
Supply chain portals
Moile usiness
%lanning$ supply chain design, demand and supply planning
'emand planning
Supply planning
%roduction planning
/ransportation planning
!oordination$ supply chain performance, and event management
Supply chain event management
0.ecution$ source, make, and deliver 1 #23 !ore
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SAP APO Summary
Supply !hain %lanning "verview
#23 ,%"
=le.ile
planning
Sales and "peration %lanning
=orecasting using >*S, ?W, 0.cel,
1
S"% transfers 'M
'emand
planning
*nter-enterprise
>ifecycle planning
=orecasting using ?W, 0.cel, 1
>ike modeling
!onsider promotion
-o constraint
'emand
management
S,%$ %lanned *nd. #e@.
'emand %rogram$ %*# A Sales
orders
Master production schedule
Supply
network
planning
!ross-plant
"ptimization (cost effective)
=inite, /ime ucketB day
"utside of the production horizon
M#%
'ependent re@uirement planning
%%2'S %lant
Schedule optimization
"rder "CectB
Within the production horizon
!#% !apacity planning D,/% !ross-location and rule-ased
availaility check (product
sustitution)
%%M e.plosion$ check with
%%2'S
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SAP APO Summary
*ntegration etween the systems takes place using the !ore *nterface (!*=).
'emand %rogram$ %lanned *ndependent #e@uirements A Sales "rders
S-% Es. %%2'S
%%2'S S-%
%roduction ?"M and #outing
=inite, detailed planning per plant
Se@uences and setup times $
!ontinuous and order-related
%egging
*n-house, procurement
!apacity constraint
Schedule optimization
Simultaneous @ty and capacity planning
S-% ?"M and routing
!ross-plant finite planning
'istriution and procurement
Fuantity and ucket-oriented$ day
-o pegging
Stock transfer, in-house, procurement
!apacity constraint
Supply optimization
Simultaneous @ty and capacity planning
Master and /ransaction 'ata
Master data should e transferred from S,% #23 to S,% ,%"B planning results should e
retransferred from S,% ,%" to S,% #23.
S,% #23 G ,%" /erminology
,%" #esource, ,%" #esource?
%roduction 1 from S,% #23
+andling
/ransportation
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SAP APO Summary
Storage
'ata transfer et. S,% #23 and S,% ,%"
*nitial /ransfer$
*ncremental data transfer$
'emand %lanning overview
'% results can e transferred to 'M in #23
'% results release to S-% or %%2'S
'ifferent figures, such as those made availale in the S,% #23 >*S or S,% ?W can e used for
=orecasting.
%ast sales order @uantities are used as the asis for forecasting future demands. *n addition,
market intelligence or one time events (such as trade fairs) can e included in the forecast.
'ifferences et. '% in S,% #23 and S,% ,%"
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SAP APO Summary
!omparison to ,%/ and D,/%
,%" %lanning Hni@ue !" device $ >ive !ache on Memory
Supply -etwork %lanning "verview
S-% within S,% ,%" S-% is used for cross-plant planning of the supply and procurement
network
S-% is ased on demands that are predetermined in the form of sales orders or %*#.
/hese demands are fulfilled y in-house production, stock transfers from other plants or y
e.ternal procurement from e.ternal suppliers
*t also takes into account capacity constraints of the network
S-% is a medium-term planning tool that plans procurements roughly.
/he time ucket profiles that can e seen in S-% are at least one day long.
'etailed %%2'S using e.act times then takes places in S,% ,%" %%2'S (or also in S,% #3
M#%)
,dvantage of S-% in S,% ,%"
!ross-plant mid-term rough-cut planning
Simultaneous material planning and finite capacity planning of production, storage, and
transportation resources
%lanning of critical components on ottleneck resources
!ross-plant optimization (cost-ased) of the resource load
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'emand management S-%
M#%
!*=
SAP APO Summary
'etailed distriution planning (deployment)$ '! # %lant $%& /ransportation '(% )*
+
%roduction +orizon
"ptions in S-%
*nfinite scheduling
+euristic$ resources and material availaility are not checked
=inite scheduling
!apale-to-Match(!/%) and "ptimizer$ simultaneous @uantity and capacity re@uirement
planning
Short-term replenishment planning (deployment)
/>? (/ransport >oad ?uilder)$ groups together stock transfer 1 ,- ./01 23
%roduct priority is maintained in the product location master recordB S-% 4 ta page
S-% %lanning using !apale-to-Match (!/M)$ order-ased, rule-controlled, cross-plant planning
!/M operation procedure
'emand prioritization$ due date -> production priority -> customer -> order type
Stock categorization$ y plant, location stock level (target, normal, surplus)
!/M running
/he S-% "ptimizer is a @uantity-ased, cost-ased, cross-plant planning.
/he optimizer uses linear programming to consider all relevant factors simultaneously.
!omparison of S-% strategies
+euristic$ a rapid planning that generates alerts when there is a material shortfall or resource
overload
!/M$ a rule-ased method with e.tensive prioritization capailities and finite, gloal planning
of production resources.
"ptimizer$ considers material and resource availaility simultaneously.
!omparison summary
+euristic "ptimizer !/%
Speed A - "
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%%2'S S-%
SAP APO Summary
Fuality - A "
%roduction resources 4 step, local Dloal A Dloal A
!osts - A -
%riorities - %roduct2location >ocation2product A
%roduction %lanning and 'etailed Scheduling overview
*ndependent re@uirements are the starting point for production planning in S,% ,%" %%2'S
Whereas in S,% #23, capacity re@uirements planning is e.ecuted separately in a second step,
in S,% ,%" %%2'S, @uantities and capacities can e planned simultaneously.
*nteraction et. S-% and %%2'S
%%2'S S-%
!apacities and materials are planned ased on
e.act times (to the second)
!onsideration of order se@uence
"ptimization of the se@uence of e.isting orders
and receipts (setup time 45)
!apacities and materials are planned in time
ucket
-o consideration of order se@uence
"ptimization of lot sizes, determination of
sources of supply
,s soon as a re@uirement is within the production horizon, it is no longer planned in the S-%
planning run.
Hsing the production horizon, you enter the numer of the days for which %%2'S will e used
for planning.
Setting in the product master take priority over those in !ustomizing.
Materials that are planned in S,% ,%" should e e.cluded from planning using a corresponding
M#% type in S,% #23.
MM$ M#% type I J<
%ossiilities of %roduction %lanning in %%2'S
=inite scheduling
*nfinite scheduling
, strategy profile is maintained in S,% ,%" !ustomizing. *n the gloal setting of %%2'S, you define
which profile should e used for the scheduling of planned orders.
/he default strategy profile in the delivery system is S,%<<4 (search for a slot ackward)
!/% (!apale-to-%romise)$ feasiility check of sales orders
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SAP APO Summary
/he !/% scenario is a special procedure used to plan sales orders during an ,/% check (D,/%)
when these orders are created.
When you save a sales order, the planned orders for procurement are created automatically.
S,% ,%" *ntegration
,s a rule, S,% ,%" is used in connection with other components of the S,% system or with non
S,% systems. /here are two different integration concepts$
>inkage with non S,% #23 systems$ ?,%*s
>inkage with S,% #23 systems$ S%, ,%" !ore *nterface (!*=)
/he central tasks of the S,% ,%" !ore *nterface include$
'etermining the source and target system in comple. system environments
%roviding S,% ,%" with the relevant master and transaction data
/ransferring data changes
#eturning planning results to the e.ecution system (#23 or e.ternal system)
#=! (#emote =unction !all)$ >ink et S,% #23 and S,% ,%"
/he data selected via the !ore *nterface (!*=) is transferred via this connection.
Structure of an #=! >ink$ "verview
?et. ,n S,% #23 and an S,% ,%" system
;. -ame logical systems$ #23, ,%" 67 >ogical name 89
4. ,ssign logical systems to client
3. 'efine #=! destinations$ physical connection, /arget host for logical #23, ,%" system is
known
5. 0stalish target system$ the ,%" target system is known in #23 view.
8. Specify S,% ,%" release status$ ,%" version :0
?usiness System Droup (?SD)$ area with same naming conversion
>ogical system ; and logical system 4 use ?SD ;
>ogical system 3 uses ?SD 4
*t is ecause the three logical systems have the same Material numer, ut the logical system 3
is different name from the logical system ; and 4
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S,% ,%" S,% #23 -on-S,% #23
!*=
?,%*s
#=!
SAP APO Summary
Master data interface$ !ore *nterface (!*=)
/he selection of master data which is transferred to S,% ,%" is determined in an integration
model that you define in S,% #23.
*ntegration model ... e.ample transfer of master data
Denerate integration model
'etermine name and ,%" target system
Select master data
,ctivate integration model
*ntegration model is active
KstartL Master data is transferred
/he integration model distinguishes et. Master data and transaction data. We recommend
selecting these two types of data in separate integration model and then also transferring them
separately.
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S,% ,%" S,% #23
!*=
K*ntegration ModelL