SCM230

Supply Network Planning (SNP)
mySAP Supply Chain Management

Date Training Center Instructors Education Website

Participant Handbook
Course Version: 2005/Q2 Course Duration: 5 Days Material Number: 50075235

An SAP course - use it to learn, reference it for work

Copyright
Copyright © 2005 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. Additionally this publication and its contents are provided solely for your use, this publication and its contents may not be rented, transferred or sold without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Trademarks
• • • • • • Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered trademarks of Microsoft Corporation. IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation. ORACLE® is a registered trademark of ORACLE Corporation. INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered trademarks of Informix Software Incorporated. UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group. Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®, VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. JAVA® is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

• • • •

Disclaimer
THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE, INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS CONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED SOFTWARE COMPONENTS.

About This Handbook
This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions
American English is the standard used in this handbook. The following typographic conventions are also used. Type Style Example text Description Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet). Example text EXAMPLE TEXT Emphasized words or phrases in body text, titles of graphics, and tables Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a programming language, when surrounded by body text, for example SELECT and INCLUDE. Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program. Exact user entry. These are words and characters that you enter in the system exactly as they appear in the documentation. Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

Example text

Example text

<Example text>

2005/Q2

© 2005 SAP AG. All rights reserved.

iii

About This Handbook

SCM230

Icons in Body Text
The following icons are used in this handbook. Icon Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures

Indicates that the item is displayed in the instructor’s presentation.

iv

© 2005 SAP AG. All rights reserved.

2005/Q2

Contents
Course Overview ......................................................... vii
Course Goals ...........................................................vii Course Objectives .....................................................vii

Unit 1: Overview of Supply Network Planning ...................... 1
Supply Chain Modeling.................................................2 Supply Chain Planning ............................................... 18

Unit 2: Master Data and Transaction Data in SNP................ 57
Working with Master Data ........................................... 59 SCM Product Master ................................................. 75 SCM Resource Master ............................................... 90 Introducing the Production Process Model .......................101 Introducing Quota Arrangements ..................................121 Transactional Data used in Supply Network Planning ..........128

Unit 3: SNP Configuration ............................................ 147
Planning Areas .......................................................148 Planning Books.......................................................164 Macros and Alerts....................................................176 Navigation in the Planning Table...................................194

Unit 4: The Supply Network Planning Heuristic ................. 213
SNP Heuristic Run ...................................................214 Capacity Check and Leveling ......................................233 Planning Supplier Constraints using the SNP Heuristic ........255 SNP Heuristic Scheduling ..........................................263 Aggregated Planning ................................................266

Unit 5: SNP Run Using Capable to Match ......................... 281
Capable-to-Match Process .........................................283 Descriptive Characteristics in CTM ................................308 Alternative PPM's in CTM...........................................312 Finite Supplier Planning in CTM ...................................321 Relaxing Constraints to find a solution ............................327 CTM integration with GATP.........................................332

Unit 6: Optimization in Supply Network Planning............... 339
Optimization Process ................................................341

2005/Q2

© 2005 SAP AG. All rights reserved.

v

Contents

SCM230

Optimizer Costs ......................................................348 Profiles Used by the Optimizer .....................................360 Parameters of the Optimization Run ..............................372 Comparing SNP Planning Methods ...............................388

Unit 7: Interchangeability ............................................. 397
Product Interchangeability ..........................................398

Unit 8: Safety Stock Planning ........................................ 425
Safety Stock Planning in SNP......................................426

Unit 9: Deployment and the Transport Load Builder ........... 455
Basics of Deployment ...............................................456 Transport Load Builder ..............................................481

Unit 10: Time Series Propagation (Optional) ..................... 501
Time Series Propagation............................................502

Unit 11: Summarizing SNP............................................ 517
SNP: Unit Summary .................................................518

Appendix: Appendix ..................................................... 541 Index ....................................................................... 547

vi

© 2005 SAP AG. All rights reserved.

2005/Q2

Course Overview
The purpose of this course is to provide you with an overview of Supply Network Planning’s (SNP) functionality and processes. You will be able to understand the fundamental concepts of Supply Network Planning and learn how to set-up a supply chain network. You will also learn how to perform SNP runs.

Target Audience
This course is intended for the following audiences: • Project team members responsible for creating and optimizing central supply, distribution resource, and production plans in the medium to long-term horizon.

Course Prerequisites
Required Knowledge
• SCM200 Overview of Supply Chain Planning

Recommended Knowledge
• • SCM210 Master Data Integration SCM220 Demand Planning

Course Goals
This course will prepare you to: • • • Understand the concepts of supply chain network Identify and resolve problems in the supply chain Set-up and configure a supply chain network model

Course Objectives
After completing this course, you will be able to: • • • • • Create a model that represents your supply chain network and all relevant locations, resources, and relationships Develop queries and collect information about the supply chain Detect and resolve problems in the supply chain using the Alert Monitor Set-up SNP master data and configure SNP Perform SNP runs using SNP Heuristics , the SNP Optimizer, and Capable to Match

2005/Q2

© 2005 SAP AG. All rights reserved.

vii

Course Overview

SCM230

• •

Execute a Deployment run to determine the distribution of available supply Use the Transport Load Builder to create multi-product loads

SAP Software Component Information
The information in this course pertains to the following SAP Software Components and releases:

viii

© 2005 SAP AG. All rights reserved.

2005/Q2

Unit 1
Overview of Supply Network Planning
Unit Overview
This unit gives you an overview of the course Supply Network Planning. You will be able to understand the advantages of using Supply Network Planning (SNP). You will also understand the need for supply chain management. Next, you will discuss the various tools available for Supply Chain Planning (SCP) and identify the planning horizons in SCP and SNP. Then, you will define the SNP process flow and identify the SNP Planning Strategies. Finally, you will discuss the role of deployment and the Transport Load Builder (TLB) and define the process for planning and integrating SCM with SAP ERP Central Component (SAP ECC), previously known as SAP R/3.

Unit Objectives
After completing this unit, you will be able to: • • • • • • • • • • Discuss the advantages of Supply Network Planning Understand the need for managing the supply chain Describe the needed master data objects Discuss the various tools for maintenance and analysis Identify the Planning Horizons in SNP Define the SNP process flow Identify the SNP Planning Strategies Discuss the role of deployment and the TLB Define the process of planning and integrating SCM and SAP ECC Explain the SCM Application Architecture

Unit Contents
Lesson: Supply Chain Modeling .................................................2 Exercise 1: Modeling........................................................ 13 Lesson: Supply Chain Planning................................................ 18 Exercise 2: The SNP Heuristic and ECC Integration (Optional) ...... 39

2005/Q2

© 2005 SAP AG. All rights reserved.

1

Unit 1: Overview of Supply Network Planning

SCM230

Lesson: Supply Chain Modeling
Lesson Overview
This lesson will help you get an overview of Supply Network Planning (SNP). You will learn about the advantages of SNP and the need for managing the supply chain master data objects. You will also learn about the working of master data objects.

Lesson Objectives
After completing this lesson, you will be able to: • • • Discuss the advantages of Supply Network Planning Understand the need for managing the supply chain Describe the needed master data objects

Business Example
Precision Pump Company manufactures a large variety of high-tech standard pumps. The company wants to plan the material flow such that it does not create backorders or excess inventory. As the Planning Manager, you need to ensure that the costs for sourcing finished products is less, the production and distribution is optimum, and the customer is satisfied.

Benefits of Supply Network Planning with SAP SCM
The benefits of Supply Network Planning with SAP SCM are as follows: • • • • • • • • • Cross-plant medium-term rough-cut planning Simultaneous planning of procurement, production, and distribution Planning of critical components and bottleneck resources Simultaneous material planning and finite capacity scheduling of production, storage, and transportation resources Cross-plant optimization of resource utilization Prioritization of demands and receipts Collaborative supply planning over the Internet Detailed distribution planning (deployment): Generation of feasible stock transfers Grouping of deployment stock transfers for means of transport in the Transport Load Builder (TLB)

2

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Supply Chain Modeling

Information Flow

Figure 1: The Supply Chain: From Supplier to Consumer

Supply chain planning manages the flow of material and information through a network of suppliers, manufacturers, distributors, and customers. For effective Supply Chain Management (SCM), this flow must be well-coordinated and integrated within a company and across company boundaries, on a local and global scale. You can use SAP SCM to link several execution systems to one SCM planning server for cross-system planning of procurement, distribution, and production. This integrated planning enables you to: • • • • Reduce the costs for sourcing products and raw materials Improve customer service Dramatically reduce on-hand stocks Make better use of company resources

2005/Q2

© 2005 SAP AG. All rights reserved.

3

production. and improved customer service. transportation. SNP provides an overview of the inventory levels and previously planned receipts for finished products and components of all the connected OLTP systems. All rights reserved. and distribution decisions. storage. distribution. and handling capacities. The result is optimal purchasing.Unit 1: Overview of Supply Network Planning SCM230 Figure 2: Beyond Traditional Planning Supply Network Planning (SNP) integrates purchasing. Various planning methods can be used to create feasible cross-location plans for the flow of material along the supply chain. 4 © 2005 SAP AG. The possible constraints are material availability and unrestricted availability of work center. taking into account constraints and penalty costs. manufacturing. and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of one global and consistent model. 2005/Q2 . reduced inventory levels.

suppliers. and customers. 5 . bills of material (BOMs). they are displayed as external procurement relationships for the transportation lane. among other things. 2005/Q2 © 2005 SAP AG. you define transportation lanes between the individual supply chain locations. scheduling agreement. In ECC. All rights reserved. and then transferred to SCM. and routings in addition to the materials for planning. SAP ECC). For plants that produce and plan. When you transfer these external procurement relationships to SCM. modified. The supply relationship between a vendor and a plant is stored in SAP ECC in the form of a purchasing info record. The source list for source determination is not transferred to SCM. In SAP SCM. are the dominant systems for the master data. you need to create work centers. or contract. such as plants and suppliers. external procurement relationships can be defined for specific materials using special procurement types and transferred to the transportation lane in SCM. which. therefore. The execution systems. The master data objects for the supply chain created in ECC are plants. Supply chain planning involves materials that are defined as material masters. and so the selection of suppliers using the source list still takes place in ECC. distribution centers (DCs). Only master data that exists purely in SCM and which does not exist in ECC is created in the SCM system.SCM230 Lesson: Supply Chain Modeling Master Data Objects Figure 3: Master Data Objects in the Supply Chain Even when using an SCM system for supply chain planning. define the means of transport and the shipment duration in the supply chain. master data is created in the connected execution systems (for example. Quota arrangements cannot be transferred to SCM.

Unit 1: Overview of Supply Network Planning SCM230 Figure 4: Master Data Objects of the APO Core Interface Data transfer between the ECC and SCM systems is defined and controlled using the APO Core Interface (CIF). 6 © 2005 SAP AG. All rights reserved. The ECC system is always the dominant system for master data. The APO Core Interface is used for both initial data transfer (initial transfer) and change transfer (transfer of data changes) to SCM. It is available to the ECC systems through a plug-in. The SCM master data objects are not identical to those of ECC. CIF is the central interface that connects SAP SCM to the existing SAP ECC system environment. the relevant ECC master data is mapped to corresponding SCM planning master data. During master data transfer. 2005/Q2 . Only the planning-relevant parameters from the complex dataset of SAP ECC are transferred to SAP SCM. Only master data which is specific to SCM and which does not exist in ECC is maintained directly in SCM. In the APO Core Interface you select the objects that you want to transfer to SCM via so-called integration models.

work centers. and routings. If you also want to plan production in SNP. All rights reserved. The active model thus represents the supply chain in SCM. If. you must have product master records for the suppliers. in addition. since this information cannot be transferred from ECC. in SCM you need to maintain the means of transport in the transportation lanes as well as quota arrangements. 7 . In addition. 2005/Q2 © 2005 SAP AG. you want to select suppliers in SNP.SCM230 Lesson: Supply Chain Modeling Figure 5: Master Data Integration The master data transferred from ECC is assigned automatically to the active model 000 in SCM. you need to generate SNP objects that group the information about the components and resources to be planned from the ECC bills of material.

All rights reserved. You can view and maintain the model using the Supply Chain Engineer.Unit 1: Overview of Supply Network Planning SCM230 Figure 6: Models and Planning Versions The model represents the master data of the supply chain and consists of individual nodes (locations) and links. is automatically assigned to model 000. Models and versions can be copied. resources. The model is the basis for all SCM planning functions and covers the entire supply chain network. Versions contain the version-specific master data of the model and transaction data. For simulation purposes. the integration with the ECC systems(CIF) must be canceled first. In SCM. you can define that a resource is available for 8 hours in version 000 but for 16 hours in version 001. products. such as locations. Master data. and plans transferred from OLTP systems. for example.0. You must explicitly assign any master data that you create in SCM to the model. Inactive models are only used for strategic planning to. etc. 8 © 2005 SAP AG. transaction data can be copied from an inactive version to the active version. Versions are uniquely assigned to one model within the entire system. you can create and manage different versions of a model for simulation purposes. products. For example. examine the effects of new locations or modified transportation lanes. 2005/Q2 . Transaction data in versions of different models cannot be copied. for the active model (000) there exists only one active version (000) which exchanges transaction data with the connected execution systems. The supply chain model contains all master data such as locations. From SCM 4. However. resources. transportation lanes. you can change the master data of the model in different versions. The transaction data for the master data of the model is stored in versions of the model.

2005/Q2 © 2005 SAP AG. These evaluations. individual regions or product lines). are normally performed directly in the planning table. The SNP planner is thus informed about problems with the plan and can intervene accordingly. All rights reserved. so SCC is used even less frequently. Together with the planning table. so in fact SCE is seldom used. 9 . maintaining object selections (work areas) is time-consuming. The Supply Chain Cockpit (SCC) allows planners to make an integrated analysis of transaction data in the supply chain. or using the tools of the SAP Business Information Warehouse (BW). It gathers together the exception messages (alerts) and processes and prioritizes them according to user. The SCE allows you to analyze and modify a model. The SCC allows the evaluation of planner-specific exception messages (alerts) and partial scenarios (for example. in the Alert Monitor.SCM230 Lesson: Supply Chain Modeling Additional Tools for Master Data and Transaction Data Figure 7: SCM Maintenance Tools and Reporting Tools You use the Supply Chain Engineer (SCE) to create your supply chain model. However. however. the Alert Monitor is an essential tool for the SNP planner.

bills of materials.Unit 1: Overview of Supply Network Planning SCM230 Figure 8: Supply Chain Engineer (SCE) The SCE affords you an integrated display of the master data for which an SNP planner is responsible. you can request a list of all the products assigned to a specific location in your model. This filter is referred to as work areas. At the same time. 2005/Q2 . and routings. you can add products to this location or make changes in the location master. After the work area is defined. Figure 9: Work Areas Since your supply chain normally includes thousands of products. you need a filter for the SCE so that you can restrict the model display to just those objects for which an SNP planner is responsible. The work area is used exclusively as a filter to display objects in the SCC and SCE. All rights reserved. For example. it forms 10 © 2005 SAP AG. The master data of the supply chain can be queried here.

storage. customer) Products Resources (for example. The transportation lanes in your work area are derived from the selected locations. handling. and transportation) Production Process Models (PPMs) 2005/Q2 © 2005 SAP AG. DC. production. You can select the following in the work area of the supply chain: • • • • Locations (for example.SCM230 Lesson: Supply Chain Modeling the basis for the queries that you submit to the SCM system to gain information about all aspects of your supply chain. All rights reserved. 11 . plant. supplier.

Unit 1: Overview of Supply Network Planning SCM230 12 © 2005 SAP AG. 2005/Q2 . All rights reserved.

4. 2005/Q2 © 2005 SAP AG. value (To value) 2500 Location → Location number Resource → Resource number Production process model → SNP planner SNP Planner → Location Product Task 2: Navigate in the Supply Chain Engineer and use the basic features and functionality. value (From value) 1000 W1906* P00 P00 Internal char. 3. Dimensions Internal char. you want to create a work area with those entries for which you are responsible so that you can analyze the objects of your supply chain. In which locations is the product maintained and where can it be transferred to? Display the master data for location product P-102 at distribution center 2400 in the Supply Chain Engineer. Task 1: 1. All rights reserved. In the Supply Chain Engineer. display the inbound quota arrangement for all products at distribution center 2500. In the Supply Chain Engineer. you will be able to: • Analyze the given model in the Supply Chain Engineer • Navigate in the Supply Chain Engineer • Create work areas and submit queries Business Example You are the Planning Manager at Precision Pump Company. 1.SCM230 Lesson: Supply Chain Modeling Exercise 1: Modeling Exercise Objectives After completing this exercise. 13 . Display your supply chain model in the PUMP logical view. Use the data in the table below and save your selection variant for future use with the name SCM230-## and description Group 01 objects. Query the transportation lanes permitted for product P-102. 2. Create a work area QA-## for your model SNP-## which contains the frequently used objects you need for planning.

value (From value) 1000 W1906* P00 P00 Internal char. Notice the red arrow on Location Number. under the Resource heading. Dimensions Internal char.Unit 1: Overview of Supply Network Planning SCM230 Solution 1: Modeling Task 1: 1. value (To value) 2500 Location → Location number Resource → Resource number Production process model → SNP planner SNP Planner → Location Product a) b) Select Advanced Planning and Optimization → Master Data → Supply Chain Engineer → Maintain Model. In the right part of the dialog box enter W1906*. Be sure to scroll to the top of the list on the left part of the dialog box. double-click on the Resource Number tag. All rights reserved. Enter the data in the table below. 2005/Q2 . Work area icon and choose Add Objects Click the from the dropdown menu. Field Name Model Work Area Value SNP-## QA-## Display on the toolbar. c) d) e) f) Click A dialog box warning you that this is a new work area will appear. g) Continued on next page 14 © 2005 SAP AG. Confirm this dialog box. Create a work area QA-## for your model SNP-## which contains the frequently used objects you need for planning. Use the data in the table below and save your selection variant for future use with the name SCM230-## and description Group 01 objects. Enter the Location numbers in the from and to cells on the right part of the dialog box. A red arrow appears in front of it. Next.

Enter P00 in the left column. under the Production Process Model heading. DC2500 is supplied from both plants. The permitted transportation lanes are shown in red in the graphic display. double-click SNP Planner and enter P00 again. You can use the same Settings menu to change back to the geographical view. All rights reserved. Execute query. In which locations is the product maintained and where can it be transferred to? a) Select product P-102 on the Location Products tab page. under the Location Product heading. Save selection to save your selection. 1. Copy your selection to the Supply Chain Engineer by clicking the Adopt icon. Select Settings → Logical View. Right-click the product and select Queries. DC 2400 only receives supply from plant 1000. then click Save. then choose either the transportation network (map) or the location and transportation lane list. Continued on next page 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Supply Chain Modeling h) i) j) Then. you can hold down the left mouse button to specify the zoom area. Name Click your selection SCM230-## and assign it the description Group 01 objects. double-click SNP Planner so the red arrow appears there. k) l) Task 2: Navigate in the Supply Chain Engineer and use the basic features and functionality. Display your supply chain model in the PUMP logical view. 15 . a) b) c) 2. If you want to view a specific geographical area on the map. Select the PUMP logical view from the drop down list and click OK. Product P-102 is produced in plants 1000 and 2300 and is sold and distributed by distribution centers 2400 and 2500. Finally. Query the transportation lanes permitted for product P-102.

4. choose: Quota arrangements → Display incoming quota arrangements. In the Supply Chain Engineer. a) Choose the Location Products tab page. Right-click location product P-102 at distribution center 2400 to select it. Double-click on the “All products” row to display the “Quota arrangement items” for all products. Display the master data for location product P-102 at distribution center 2400 in the Supply Chain Engineer.Unit 1: Overview of Supply Network Planning SCM230 3. you can obtain this information by right-clicking DC 2500 on the map. display the inbound quota arrangement for all products at distribution center 2500. a) b) c) d) Choose the Locations tab page. Right-click distribution center 2500 and. 16 © 2005 SAP AG. and right-click the location product to display the data: Display → Location Product. In the next window. 2005/Q2 . choose Execute query. Alternatively. from the context menu. All rights reserved.

All rights reserved. 17 .SCM230 Lesson: Supply Chain Modeling Lesson Summary You should now be able to: • Discuss the advantages of Supply Network Planning • Understand the need for managing the supply chain • Describe the needed master data objects 2005/Q2 © 2005 SAP AG.

You need to ensure that you have designed the supply model in such a way that you can easily find out the products assigned for a specific location at a given point of time. First. you need to finalize a model for the supply chain network that will identify the direction that the final products will take. Finally. 2005/Q2 . 18 © 2005 SAP AG. Next. you will learn about the SNP process and identify SNP planning strategies. All rights reserved. you will be able to: • • • • • • • Discuss the various tools for maintenance and analysis Identify the Planning Horizons in SNP Define the SNP process flow Identify the SNP Planning Strategies Discuss the role of deployment and the TLB Define the process of planning and integrating SCM and SAP ECC Explain the SCM Application Architecture Business Example As planning manager at Precision Pump Company. you will learn about the Planning Horizons in SCP and Supply Network Planning.Unit 1: Overview of Supply Network Planning SCM230 Lesson: Supply Chain Planning Lesson Overview This lesson will help get an overview of the various tools available for Supply Chain Planning. Lesson Objectives After completing this lesson. You will also understand the role of deployment and the Transport Load Builder (TLB) in SNP. you will learn about the process of planning and integrating SCM with SAP ECC and about the SCM application architecture.

whereas in the Production Planning and Detailed Scheduling (PP/DS) component of SCM. Integration with the Production Planning and Detailed Scheduling (PP/DS) module is also possible. The APO Core Interface (CIF) integrates SAP ECC and SAP SCM. capacity requirements planning must be executed in a second separate step. In SAP ECC. A global Available-to-Promise check (global ATP) for a sales order can be made in SCM. can be executed both within flexible planning in SAP ECC (using standard Sales and Operations Planning (SOP)) or within Demand Planning (DP) in SAP SCM. 2005/Q2 © 2005 SAP AG. where past sales figures can be used to derive a future program of production.SCM230 Lesson: Supply Chain Planning Network Planning Figure 10: Supply Chain Planning at a Glance The process of supply chain planning can be divided into many steps. In SCM. All rights reserved. 19 . planned independent requirements can be created from SAP ECC Demand Management or SCM DP Demand Planning. Supply Network Planning in SAP SCM is used for cross-plant planning. You need to integrate these two systems and use both together when planning. some of which can be executed by components in SAP ECC and others that can be executed in SAP SCM. Sales orders are created in the SAP ECC system. You can also use DP mass processing to set the sales quantities from SCM DP as planned independent requirements in SAP ECC Demand Management. Demand planning. You can execute Material Requirements Planning (MRP) in either SAP ECC or SCM. quantities and capacities can be planned simultaneously.

In this horizon. If the production horizon of SNP is smaller than the PP/DS horizon. Figure 11: Planning Horizons in mySAP SCM With Demand Planning (DP). which is the processing of manufacturing orders (production or process orders). the planning horizons of SNP and PP/DS overlap with each other. 20 © 2005 SAP AG. The SNP production horizon can be shifted periodically. Forecast data is the released in the form of planned independent requirements.Unit 1: Overview of Supply Network Planning SCM230 Production execution. All rights reserved. The planning run does not create new orders within the planning time fence because this might disrupt production. you can predict customer demands by creating forecasts based on historical consumption data. Demand planning data is bucketed with no constraints. SNP determines the receipts with the most cost-effective sources of supply and lot sizes and PP/DS plans the receipts generated by SNP in more detail. Deployment and the Transport Load Builder (TLB) are tools within SNP for short-term replenishment planning. 2005/Q2 . Production Planning and Detailed Scheduling is used for short-term. order-based planning according to sequences and setup times within the PP/DS horizon. Within the extended SNP production horizon it is only possible to create planned orders manually. medium-term. You use them to adjust stock transfers to short-term changes in demand or supply. Supply Network Planning is a bucketed. You define planning horizons on the SNP2 tab page of the product location master record. takes place in SAP ECC. cross-plant planning process for planning production outside the SNP production horizon and procurement outside the stock transfer horizon.

All rights reserved. In deployment. that is. which means that production resources. which represents the actual planning. or transportation resources in your network can be taken into account even at this stage of planning. SNP stock transfers are created to optimize distribution and meet the demands in the network. The smallest unit in SNP is one day. This type of planning can be executed finitely. 2005/Q2 © 2005 SAP AG.to long-term horizon. these demands should now be met by the distribution centers. storage resources. and suppliers in your network. on the basis of freely defined time bucket profiles. production plants. which means that it can also plan complex networks. Bucket-oriented planning is not as performance-intensive as Detailed Scheduling in SCM PP/DS. Planning is executed within deployment.SCM230 Lesson: Supply Chain Planning Figure 12: Supply Network Planning SAP SCM SNP takes place over the medium. 21 . the demands of a distribution center might best be met by transferring stock from two separate production plants. outside the production horizon. it is based on demands for distribution centers that you determined in Demand Planning. SNP stock transfers are converted to SAP ECC stock transport orders. For example. that is. Planning in SNP takes place based on time buckets. The second step occurs after production in the production plants is complete. Supply Network Planning involves two steps: During the first step. For example. depending on the quantities actually produced and current requirements.

and production capabilities are checked and a feasible solution is obtained. 40 Planning with final assembly. As a result of SNP. All rights reserved. purchase requisitions.Make-to-stock production. you can transfer planned orders. stock transfer. sales orders are usually fulfilled by stock on hand. The indication number for strategies is normally different in ECC and SCM. because an SCM strategy can contain more than one ECC strategy. Depending on which strategy you choose. consume planned independent requirements. SNP supports the following SAP ECC strategies: 10 .Unit 1: Overview of Supply Network Planning SCM230 Figure 13: Goals of Supply Network Planning The overall goal of SNP is to provide a feasible supply plan to complement the unconstrained demand plan that was planned by the Sales and Marketing teams in SCM DP. 2005/Q2 . and stock transport requisitions to the connected OLTP systems so that the medium. In make-to-stock production.Subassembly planning. You use make-to-stock production strategies to plan production or procurement using planned independent requirements that arise from expected future sales forecasts. 22 © 2005 SAP AG. Global and central procurement. sales orders can affect demand. and 70 . or have no effect on demand.to long-term plans are available to other areas.

23 . This plan covers both the quantities that must be transported between locations. The result of this planning is transaction data. taking available capacity into account. or external procurement. in-house production. and the quantities to be produced and procured. An SCM stock transfer can create a purchase requisition in one OLTP system and a sales order in another OLTP system. Purchase requisitions and purchase orders or scheduling agreement releases are used to model external procurement.SCM230 Lesson: Supply Chain Planning Transaction Data Figure 14: Transaction Data Objects in the Supply Chain Supply chain planning is based on master data. and stock transfers that you can transfer directly to the connected OLTP systems. These requirements are met either by stock transfer. for example. 2005/Q2 © 2005 SAP AG. These requirements specify demands in a distribution center or sales center. SNP planning results in the creation of planned orders. purchase requisitions. for example work centers. Independent requirements can also be created directly for a production plant. You use the network to plan how to fulfill these independent requirements. The planning process starts with the independent requirements that are stored as planned independent requirements or sales orders. distribution center to customer or production plant to distribution center.to medium-term plan to meet the estimated sales volumes. All rights reserved. SNP determines a feasible short. Starting from a demand plan. which is used to plan for procurement. planned orders and production orders are receipt elements for in-house production. Stock transfers control the movement of goods between locations.

the APO Core Interface is used to make the initial data transfer of transaction data. 2005/Q2 . First. The retransfer of planned independent requirements (that you require if you only perform Demand Planning in SCM) must be triggered from SAP SCM Demand Planning by a specific transaction. you can define whether you want transaction data from the SAP SCM Supply Network Planning component to be transferred back to (published in) SAP ECC in real time or periodically. New transaction data or changes to existing transaction data are transferred automatically.Unit 1: Overview of Supply Network Planning SCM230 Figure 15: Transaction Data Integration Integration models that you define in SAP ECC are used to specify which transaction data is selected for transfer to SCM. All rights reserved. you can specify that planned orders and purchase requisitions are only to be transferred from SCM to SAP ECC if the conversion indicator is set. which are distinguished by their ATP category. In Customizing. In SCM (PP/DS Customizing). the change transfer between SAP ECC and SAP SCM follows automatically for transaction data objects belonging to an active integration model. All transaction data is mapped to orders in SAP SCM. Planned independent requirements can only be transferred from SAP ECC to SCM directly using the core interface. As a rule. SCM transaction data objects are not identical to those in SAP ECC. 24 © 2005 SAP AG.

SNP stock transfers. Performing the SNP run using the SNP heuristic. or Capable-to-Match results in a medium-term production and distribution plan.SCM230 Lesson: Supply Chain Planning The Supply Network Planning Process Flow Figure 16: The Supply Network Planning Process Flow When the demand plan is released. the deployment run confirms the SNP stock transfers based on current receipts and demands. you check the exception messages or alerts and solve any problems that may occur. The final SNP plan consists of feasible purchase requisitions. detailed constraints and bottlenecks. After the SNP run. You can manually create stock transport orders for deployment stock transfers that could not be taken into account during the TLB run. The TLB run groups the deployment stock transfers into TLB shipments. you can use a macro to trigger alerts so that the demand planner can plan the forecasts again. After production planning is complete. such as sequences and setup times. In addition. If the two plans do not match. One reason that transfers might not be taken into account during the TLB run is because threshold values were specified. All rights reserved. 25 . 2005/Q2 © 2005 SAP AG. SNP optimization. and a feasible production plan is created. You can convert SNP planned orders into PP/DS planned orders in the production horizon using the PP/DS planning run. The planned independent requirements and SNP stock transfers are covered by PP/DS planned orders. The final SNP or PP/DS plan can be released to DP again to compare the unconstrained demand plan with the feasible procurement plan. planned independent requirements are created for SNP or PP/DS. and SNP planned orders. are taken into account.

CTM and the optimizer create feasible medium-term supply. This delay is indicated by an alert. even if there is no free capacity. During finite planning. production. and purchase requisitions are created for the requested date. availability of capacities and components required for production is checked when receipts are created. depending on when there is available capacity. The stock transfers are adjusted to the current situation. planned orders are created. Deployment distributes the stock and available receipts at the plants to the distribution centers and Vendor-Managed Inventory (VMI) customers. Planned orders. If there is no available capacity for the requested time. The Transport Load Builder (TLB) groups together the deployment stock transfers confirmed by deployment.Unit 1: Overview of Supply Network Planning SCM230 Figure 17: Supply Network Planning Options Supply Network Planning in SAP SCM can be executed as finite or infinite planning. All rights reserved. Neither capacities nor material availabilities are checked in infinite production planning. Even if components cannot be procured on time. stock transfers. Capacity requirements planning is then done interactively in a second step. taking transportation capacities into account. 2005/Q2 . the planned order is created earlier or later. you set whether or not you want the deployment stock transfers or TLB shipments to be converted to stock transport orders when transferred to SAP ECC. In Customizing. The planned order can only be created when sufficient capacity is available. 26 © 2005 SAP AG. and distribution plans.

The product is procured externally. As a result.SCM230 Lesson: Supply Chain Planning SNP Planning Strategies Figure 18: Heuristic Scenario The heuristic performs the following functions: • • • Plan supply to meet demand without taking into account constraints such as available capacities and materials (infinite planning). All rights reserved. The planned order in the plant with the higher quota arrangement is not feasible due to limited capacity. The heuristic can be used for rapid cross-plant distribution and supply planning. The supplier with the highest priority cannot deliver enough. Synchronize activities and plan the flow of material throughout the supply chain. There is demand at the distribution center. The system determines the possible transportation lanes. There is no stock at the plants. Demand is distributed according to quota arrangement and transferred to the plants through stock transfers. The net requirements calculation finds no stock. an alert is generated and the supply chain planner has to intervene. 27 . if constraints are not usually relevant. planned orders are created for the finished product. and dependent requirements are created for the components. 2. 3. and distribution within the supply network on a cross-plant bucket-oriented basis. Components are then procured through the possible transportation lanes according to quota arrangements or priorities. An alert is generated and the supply chain planner has to intervene. The above graphic provides an example for the heuristic: 1. 2005/Q2 © 2005 SAP AG. Plan receipts for purchasing. the SNP plans (PPMs) are exploded. production. As a result.

and dependent requirements are created for the components. The suppliers can supply enough. The system determines the possible transportation lanes. After the optimization or heuristic run. Components are procured through the possible transportation lanes according to quota arrangements or priorities. All rights reserved. 2. The feasibility of receipts is checked successively against priorities or quota arrangements and the first feasible solution is scheduled. The supply chain planner does not need to intervene. The product is procured externally. the SNP plans (PPMs) are exploded. cross-plant planning method that takes into account constraints such as available capacity and materials during the planning run (finite planning). The entire quantity cannot be procured. planned production orders or purchase requisitions can no longer be uniquely assigned back to the original sales order. The supply chain planner does not need to intervene. 28 © 2005 SAP AG. There is no stock at the plants. The net requirements calculation finds no stock. CTM checks whether or not the finished product and components can be procured from the plant with the higher quota arrangement. procurement is distributed according to feasibility and transferred to the plants using stock transfers. As a result. 3. 2005/Q2 . The above illustration provides an example of CTM: 1. There is demand at the distribution center. planned orders are created for the finished product. The plants have sufficient capacity to deliver the planned orders. As a result. But CTM is a part of this course because it is a form of cross-plant planning. CTM is an order-based planning method that uses pegging to track orders back to the individual demand. As a result. CTM is not a true form of Supply Network Planning because SNP provides quantity-based and not order-based planning.Unit 1: Overview of Supply Network Planning SCM230 Figure 19: Capable-to-Match (CTM) Scenario Capable-to-Match (CTM) is a rules-based.

The net requirements calculation finds no stock. 29 . The optimization run. is a quantity-based planning method without pegging.SCM230 Lesson: Supply Chain Planning Figure 20: Optimizer Scenario The SNP optimizer is a cost-based. The entire quantity cannot be procured from the most cost-effective plant. As a result. As a result. similar to the heuristic run. The system analyzes the possible transportation lanes. There is demand at the distribution center. and distributed to the plants using stock transfers. and dependent requirements are created for the components. Priorities are set using control costs that you maintain in SCM. cross-plant planning method that takes into account constraints such as available capacity and materials during the planning run (finite planning). You cannot uniquely assign planned production orders or purchase requisitions to the original sales order. The plants have sufficient capacity to deliver the planned orders. The feasibility of receipts is checked globally and the solution that is the most feasible and cost-effective is scheduled. excluding procurement costs. The product is procured externally. The above illustration provides an example of the optimizer: 1. procurement is distributed according to feasibility and costs. 2. the SNP plans (PPMs) are exploded. The optimizer makes global checks to find the most cost-effective way of procuring the finished product and its components. There is no stock at the plants. All rights reserved. planned orders are created for the finished product. Quota arrangements are ignored by the optimizer although the quota arrangements can be optimized and created during the planning run. The supply chain planner does not need to intervene. 2005/Q2 © 2005 SAP AG.

to long-term planning across the entire supply chain. You can define specific bucket resources to be used for SNP.to Short-Term Planning If you decide to use both SNP and PP/DS for planning. which are usually copied from PP/DS PPMs. for example. this gives rise to an overlapping area in which both SNP and PP/DS receipts can be created. for example. you can describe production at these bucket resources. a day. This is because the demands are only planned roughly – exact breaks are not taken into account. for example. Demands are aggregated for a defined bucket. So. then SNP plans the receipt outside of the SNP production horizon (this corresponds to the logic of the PP/DS planning time fence in short-term planning). which can represent the available capacity of an entire warehouse. If requirements within the SNP production horizon cannot be covered by PP/DS. Components are then procured through the possible transportation lanes according to cost. it is irrelevant whether a demand is in an early shift or late shift.Unit 1: Overview of Supply Network Planning SCM230 3. Order sequences with their exact times do not play a role in Supply Network Planning. Supply Network Planning is used for medium. In this instance. Figure 21: Transition from Medium. 2005/Q2 . The supply chain planner does not need to intervene. and PP/DS can only create planned orders inside of the PP/DS horizon. especially if there are several plants and distribution centers. In addition to performing aggregated planning in SNP. the PP/DS and SNP horizons are used to separate the areas of responsibility for these two planning functions. the SNP planning run can only create planned orders outside of the SNP production horizon. All rights reserved. Because you create specific PPMs for SNP. The suppliers can supply enough. 30 © 2005 SAP AG. you can also perform structural aggregated planning. If the PP/DS horizon in the product master is set to a greater length than the SNP production horizon.

this information is stored in liveCache. PP/DS meets requirements by generating planned orders to plan in-house production. The planning run determines which demand is covered by which receipt element. all dependent orders can be adjusted automatically due to this pegging. All rights reserved. This function is only available in Detailed Scheduling and CTM. both for in-house production and external procurement. they are converted into PP/DS orders. When an order is moved to an earlier or later time. As soon as SNP orders are within the PP/DS horizon. SNP and PP/DS are responsible for different locations: You use SNP to plan receipts (stock transfers) at the distribution centers and PP/DS to plan production plants. Pegging is the link between receipts and issues along the supply chain. SNP is based purely on quantities and buckets. which means that the PP/DS horizon and SNP production horizon have the same length. 31 . that is sequence planning and optimization. You use PP/DS for detailed production planning on the basis of SNP 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Supply Chain Planning PP/DS is used for short-term planning when orders need to be scheduled to the minute and when order sequences. in addition to purchase requisitions or schedule lines to plan external procurement. The following factors can be used to integrate and distribute tasks between SNP and PP/DS: SNP and PP/DS are responsible for different planning stages: You use SNP for medium-term planning and PP/DS for short-term planning. need to be considered. to-the-minute planning in the production plant. Figure 22: Production Planning and Detailed Scheduling in SCM Production Planning and Detailed Scheduling is mainly used for short-term. Planning does not overlap.

for example. push deployment. transportation capacities) and business rules (e. the fair share rules define the DC prioritization. It determines when. This means that SNP can plan receipts and determine the most cost-effective sources and lot sizes. This includes the complete bills of material and the optimized setup for order sequences. and in what quantity. and pull-push deployment. Deployment generates optimized replenishment plans that take into account short-term changes on the supply or demand side as well as constraints. such as fair share. optimization of setup times. SNP and PP/DS share a planning horizon if the SNP production horizon is shorter than the PP/DS horizon. or even optimized. inventory and planned receipts can be deployed to distribution centers and vendor-managed inventory (VMI) accounts. such as transportation and storage capacities. You only use PP/DS to plan the receipts generated by SNP to complete the bills of material and for sequencing. This level of detail is not required when planning distribution centers. distribution plans with constraints (e. Deployment in SCM Figure 23: Deployment The deployment function in SNP plans the short-term distribution of the produced or procured products to the distribution centers. All rights reserved. 2005/Q2 . If the ATD (available-to-deploy) quantity is insufficient to cover all demands. 32 © 2005 SAP AG. These generate feasible.g. minimum cost approach or replenishment strategies).g. which can be transferred to ECC in the form of executable stock transport orders. SNP has control over the planning of specific finished products and their critical components. There are several deployment strategies that can be used.Unit 1: Overview of Supply Network Planning SCM230 stock transfer requirements.

All rights reserved. 2005/Q2 © 2005 SAP AG. No means of transport is dispatched that is not filled to at least minimum capacity. The system checks the planned stock transfers against the minimum and maximum values defined in the system. It is a lot sizing procedure for stock transfers which can also be used as a preliminary step for SCM Transportation Planning and Vehicle Scheduling (TP/VS). If the planned stock transfers do not meet either the minimum or maximum requirements.SCM230 Lesson: Supply Chain Planning Figure 24: Transport Load Builder The Transport Load Builder (TLB) is used to convert the results of the deployment run into SAP ECC stock transport orders or VMI sales orders that include several items for several products. The TLB ensures that: The transport vehicles are filled to the maximum capacity. 33 . the system activates an alert and the planner can readjust the TLB plan accordingly. The TLB can also split stock transfers. The TLB uses transportation capacities efficiently by grouping together SCM stock transfers.

and sales forecasts. you need to know your customer's inventory and sales forecasts. 34 © 2005 SAP AG. 2005/Q2 . The important messages are EDI 852 (Product Activity Data) and EDI 830 (Forecast).Unit 1: Overview of Supply Network Planning SCM230 Figure 25: Vendor-Managed Inventory (VMI) VMI customers (both ship-to and sell-to customers) are created as locations in the supply network and connected to the supply chain through transportation lanes. such as stock levels. which minimizes the administrative work involved. Depending on the agreement between the business partners in a VMI relationship. Deployment and the Transport Load Builder build the transport loads and guarantee that the products are available. SCM can be set up to automatically create sales orders in SAP ECC using VMI. These problems can also be resolved by EDI converters. SCM receives these messages in the form of a standardized PROACT IDOC to avoid data conversion and interpretation problems. stock on hand. The purpose of VMI is to include key customers in the supply chain plan. VMI planning generates planned stock transfers between the DC and the customer location. The data required for VMI planning. so that the VMI sales orders from SCM can be generated in ECC. All rights reserved. is transferred by EDI messages and stored as persistent data in SCM. You create location product master records for the VMI location and define the planning parameters there. For VMI to function correctly.

ECC systems) are known as online transaction processing (OLTP) systems. You can also transfer the PP/DS planning results to the OLTP system as planned orders. You can transfer the results of Demand Planning as planned independent requirements to the OLTP systems. Planned orders can only be transferred to the OLTP system as production orders from PP/DS. Deployment and the TLB confirm stock transport requisitions and can convert these requisitions into SAP ECC stock transport orders or VMI sales orders. You can transfer the SNP planning results to the OLTP system as planned orders. purchase requisitions. 35 . 2005/Q2 © 2005 SAP AG. the planned orders are adjusted in the OLTP system. and stock transport requisitions. and stock transport requisitions.SCM230 Lesson: Supply Chain Planning Figure 26: Integration between SCM and SAP ECC The above graphic shows how transaction data is exchanged between SCM and the connected execution systems. These systems (for example. which is similar to the transfer from Flexible Planning or Sales and Operations Planning (SAP ECC) to Demand Management. purchase requisitions. To configure the type of transfer you want. select APO → Supply Chain Planning → Supply Network Planning (SNP) → Basic Settings → Configure Transfer to OLTP Systems. All rights reserved. If you convert SNP planned orders into PP/DS planned orders.

Unit 1: Overview of Supply Network Planning

SCM230

Figure 27: Collaborative Planning in SCM

Collaborative planning includes the process by which different companies along the supply chain have access to shared information over the Internet (i.e. across company boundaries) and work with the common goal of identifying and removing bottlenecks or date shifts as early as possible. Through collaborative planning, companies can exchange demand, procurement, and stock data with other companies. You can define your own exception messages or alerts and integrate these alerts into the general alert management. If exceptions occur during planning, e-mail messages or fax messages can be generated automatically. SCM Collaborative Planning supports the Collaborative Planning Forecasting and Replenishment (CPFR) standard. A Web browser is sufficient for exchanging collaborative planning data.

36

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Supply Chain Planning

SNP: Configuration

Figure 28: Configuration of Supply Network Planning (SNP)

A planning area is the central data structure of DP and SNP. It defines the key figures for planning and associated activities. It also determines whether the planning results are saved as orders or time series in liveCache. Since the characteristics and key figures differ for Demand Planning and Supply Network Planning, different planning areas are created for DP and SNP. The planning area defines the planning characteristics and key figures and must be initialized for each planning version. A key figure is a numerical value that describes either a quantity or a value; for example, future demand value in dollars or future demand quantity in pallets. Characteristics are the objects for which business data is aggregated, desegregated, and evaluated. Key figure data can be read from order objects or time series objects. The most important tool for the SNP planner is the planning book. You use planning books to prepare a planning area's data for planning. The planner does not maintain the planning area.

2005/Q2

© 2005 SAP AG. All rights reserved.

37

Unit 1: Overview of Supply Network Planning

SCM230

Figure 29: The Application Architecture of SAP SCM

Aggregated actual data can be transferred from OLTP, Business Information Warehouse (BW), Excel, and Legacy systems to SCM and saved in InfoCubes. This data is used as the basis for forecasting. The demand plan is created as a result of the forecast. You release the demand plan to production planning, which generates planned independent requirements for Supply Network Planning (SNP) and PP/DS. You can also transfer the demand plan to the execution systems (OLTP) as planned independent requirements. The seamless integration with SNP and PP/DS supports efficient Sales and Operations Planning (SOP).

38

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Supply Chain Planning

Exercise 2: The SNP Heuristic and ECC Integration (Optional)
Exercise Objectives
After completing this exercise, you will be able to: • Identify planning horizons in SCP and SNP • Define the SNP process flow • Identify SNP planning strategies

Business Example
Since we need only establish the master data and the models during this course, this exercise should once again give you an idea of interactive planning with the heuristic. You can also view the CIF integration for SNP transaction data here. Later on we will work with versions of inactive models, and will therefore no longer be able to use integration.

Task 1:
1. In SAP ECC, create a planned independent requirement for product (material) T-F2## at plant 2400. In version 000, schedule a planned requirement quantity of 400 pieces for two months from today’s date, and save the planned independent requirement.

Task 2:
1. Open interactive Supply Network Planning in SCM. Open the selection window and, next to “Show”, select “APO – Location product”. Version 000 is displayed automatically. Enter APO PRODUCT in the next row, and enter your product T-F2## to the right of this. Load the data for the product at location 2400 into the planning table.

Task 3:
1. Look at the future periods and check whether the planned independent requirement that you created for distribution center 2400 is displayed. Check in which key figure the planned independent requirements are shown. Ascertain that no distribution demands and production orders yet exist for production plants 1000 and 2300.

Continued on next page

2005/Q2

© 2005 SAP AG. All rights reserved.

39

Unit 1: Overview of Supply Network Planning

SCM230

Task 4:
1. Run the network Heuristic in change mode and save the planning results. Check the situation of your product T-F2## for distribution center 2400. Verify that there are now values in the Total receipts row. Which plants are supplying the receipts? Also check that planned orders were created in plants 1000 and 2300.

Task 5:
1. Go to the PP/DS product view for product T-F2##, location 1000, and version 000. Double-click on the SNP planned order. Note down the start date and finish date. Start Date: Finish Date: Convert the SNP planned order into a PP/DS order. Compare the new start date, finish date, and requirements with those you noted down previously. Set the conversion indicator and save the order.

Task 6:
1. Check whether the receipts were transferred to the connected SAP ECC system. Log on to the SAP ECC system and access the stock/requirements list for your product T-F2## in plants 1000, 2300, and 2400. Why has a production order already been created in plant 1000?

40

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Supply Chain Planning

Solution 2: The SNP Heuristic and ECC Integration (Optional)
Task 1:
1. In SAP ECC, create a planned independent requirement for product (material) T-F2## at plant 2400. In version 000, schedule a planned requirement quantity of 400 pieces for two months from today’s date, and save the planned independent requirement. a) SAP R/3 menu →Logistics →Production →Production Planning →Demand Management →Planned Independent Requirements →Create Enter the material and plant. Choose “Enter” to access the planning table. In the “Sched. lines” tab page, enter the requirement date that is exactly two months from today in day format (you must change the date parameters in the first column from “M” to “D”) as the requirements date, and a planned quantity of 400.

Task 2:
1. Open interactive Supply Network Planning in SCM. Open the selection window and, next to “Show”, select “APO – Location product”. Version 000 is displayed automatically. Enter APO PRODUCT in the next row, and enter your product T-F2## to the right of this. Load the data for the product at location 2400 into the planning table. a) Advanced Planning and Optimization → Supply Network Planning →Planning → Interactive Supply Network Planning Selection window icon. Open the selection window using the Next to “Show”, select “APO – Location product”. Version 000 is displayed automatically. Enter APO PRODUCT in the next row, and enter your product T-F2## to the right of this. Click Adopt. Your selection will now be adopted and shown in the selection window. Double-click on your product T-F2## for distribution center 2400. The data for this selection is now displayed in the planning table.

Continued on next page

2005/Q2

© 2005 SAP AG. All rights reserved.

41

Unit 1: Overview of Supply Network Planning

SCM230

Task 3:
1. Look at the future periods and check whether the planned independent requirement that you created for distribution center 2400 is displayed. Check in which key figure the planned independent requirements are shown. Ascertain that no distribution demands and production orders yet exist for production plants 1000 and 2300. a) You find your planned independent requirement approximately eight weeks in the future, in the “Total demand” key figure. Double-click on the “Total demand” row. The planned independent requirement is displayed in the “Forecast” key figure. All key figures (forecast, sales order, dependent demand, distribution demand) contribute to the total demand. Double-click on your product T-F2## for plant 1000. There are still no production quantities or distribution demand displayed because the planning run has not been started yet.

Task 4:
1. Run the network Heuristic in change mode and save the planning results. Check the situation of your product T-F2## for distribution center 2400. Verify that there are now values in the Total receipts row. Which plants are supplying the receipts?

Continued on next page

42

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Supply Chain Planning

Also check that planned orders were created in plants 1000 and 2300. a) Switch to change mode by selecting the Change icon, then choose

Network to start the heuristic run. The selected location is not significant here. After the planning run, a value will be displayed in the “Total receipts” row. Note: If the “Total receipts” row shows a plus sign in the magnifying glass , then the details are not displayed. Double-click on the row to display the details. The stock transfers created by the heuristic are displayed in the “DistrReceipt (Planned)” key figure. Right-click the cell with the receipt to select Display details. This displays the receipts from the plants in the lower section of the screen. Production plants 1000 and 2300 supply distribution center 2400 according to the quota arrangement for product T-F2##. Save your data .

Task 5:
1. Go to the PP/DS product view for product T-F2##, location 1000, and version 000. Double-click on the SNP planned order. Note down the start date and finish date. Start Date: Finish Date:

Continued on next page

2005/Q2

© 2005 SAP AG. All rights reserved.

43

Unit 1: Overview of Supply Network Planning

SCM230

Convert the SNP planned order into a PP/DS order. Compare the new start date, finish date, and requirements with those you noted down previously. Set the conversion indicator and save the order. a) Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View Enter your version 000, product T-F2##, and location 1000, then select continue (Enter) back icon ; next, confirm any messages that appear. Double ckick on the SNP planned order to view the dates. Select the to return to the product view. .

Switch to “change” mode by clicking

To convert: select the appropriate “SNP planned order” and click the . The PP/DS planned order is “Convert SNP order” button now created with the PP/DS bill of material (BOM) and routing. Double click on the new planned order to view the detailed dates. Select the back icon to return to the product view. To convert the PP/DS planned order to a production Order; place a check in the “Conversion Ind.”box for the appropriate planned order. Save your changes .

Task 6:
1. Check whether the receipts were transferred to the connected SAP ECC system. Log on to the SAP ECC system and access the stock/requirements list for your product T-F2## in plants 1000, 2300, and 2400. Why has a production order already been created in plant 1000? a) SAP ECC standard menu → Logistics → Production → MRP → Evaluations → Stock/Requirements List Enter. A Enter your material number and plant, then select production order was already created in plant 1000, because you used the conversion indicator to convert the PP/DS planned order in SCM into a production order.

44

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Supply Chain Planning

Lesson Summary
You should now be able to: • Discuss the various tools for maintenance and analysis • Identify the Planning Horizons in SNP • Define the SNP process flow • Identify the SNP Planning Strategies • Discuss the role of deployment and the TLB • Define the process of planning and integrating SCM and SAP ECC • Explain the SCM Application Architecture

2005/Q2

© 2005 SAP AG. All rights reserved.

45

Unit Summary

SCM230

Unit Summary
You should now be able to: • Discuss the advantages of Supply Network Planning • Understand the need for managing the supply chain • Describe the needed master data objects • Discuss the various tools for maintenance and analysis • Identify the Planning Horizons in SNP • Define the SNP process flow • Identify the SNP Planning Strategies • Discuss the role of deployment and the TLB • Define the process of planning and integrating SCM and SAP ECC • Explain the SCM Application Architecture

46

© 2005 SAP AG. All rights reserved.

2005/Q2

Fill in the blanks to complete the sentence. 5. The allows planners to make an integrated analysis of supply chain transactional data. You can transfer the results of planned independent requirements to the OLTP systems. as 2005/Q2 © 2005 SAP AG. 8. The supply planning. Which among the following is an SAP ECC master data object in SNP? Choose the correct answer(s). 6. Fill in the blanks to complete the sentence. 9. and . transaction data is stored in Fill in the blanks to complete the sentence. can be used for rapid cross-plant distribution and Fill in the blanks to complete the sentence. 47 . chain. Fill in the blanks to complete the sentence. In SCM. You can use SAP SCM to link several OLTP systems to one SCM planning server for cross-system planning of procurement. 3. of Fill in the blanks to complete the sentence. Supply Network Planning with SAP SCM helps in cross-plant optimization . □ □ □ □ 4. All rights reserved. 2.SCM230 Test Your Knowledge Test Your Knowledge 1. distribution. 7. A B C D Transportation lane Stock order Distribution Center Process model . CTM is an order-based planning method that uses to match demand to supply. Fill in the blanks to complete the sentence. is used for medium to long-term planning across the entire supply Fill in the blanks to complete the sentence.

Fill in the blanks to complete the sentence. 2005/Q2 . □ □ □ □ A B C D Determines how inventory should be deployed to distribution centers Groups together product stock transfers for a transportation planner Determines how inventory should be deployed to customers Generates optimized replenishment plans 48 © 2005 SAP AG. The Integration of with SNP and PP/DS supports efficient Sales and Operations Planning (SOP). and Fill in the blanks to complete the sentence. cross-plant planning process for planning production outside of the SNP production horizon. SNP stock transfers. All rights reserved. □ □ 15. 14. During infinite planning. The final SNP plan consists of purchase requisitions. short-term. It becomes the basis for executing queries in the Supply Chain Engineer and the Supply Chain Cockpit. you need to check the availability of capacities in a second step. □ □ □ □ A B C D Heuristic CTM Optimizer Time Series Propagation 16. True False Which SNP planning method involves finite planning based on costs? Choose the correct answer(s). □ □ True False 13. Fill in the blanks to complete the sentence.Test Your Knowledge SCM230 10. Supply Network Planning is a bucketed. 12. Which of the following functions are performed by the TLB? Choose the correct answer(s). Determine whether this statement is true or false. . Determine whether this statement is true or false. 11. A acts as a filter to give users access to frequently used objects.

□ □ True False 24. Fill in the blanks to complete the sentence. 22.SCM230 Test Your Knowledge 17. Production Planning and Detailed Scheduling is used for short-term. Fill in the blanks to complete the sentence. The Supply Chain Engineer is used to: Choose the correct answer(s). A B C D Planned orders Purchase requisitions Stock transfer requisitions Production orders is designed to replenish a customer location with a minimum amount of human intervention. □ □ □ □ A B C D Create supply chain models Collect alerts in the system Analyze supply chain data Create views of supply chain data 2005/Q2 © 2005 SAP AG. 49 . the availability of capacities and components required for production is checked when receipts are created. 19. Which of the following are not created by an SNP planning run? Choose the correct answer(s). Fill in the blanks to complete the sentence. Fill in the blanks to complete the sentence. You can transfer the results of to an online transaction processing system in the form of production orders. When you perform the SNP run using the SNP heuristic. 23. All rights reserved. Fill in the blanks to complete the sentence. 20. order-based planning within the PP/DS horizon. SNP optimization. □ □ □ □ 18. During . you get a medium-term production or and distribution plan. The Integration of with SNP and PP/DS supports efficient Sales and Operations Planning (SOP). 21. Determine whether this statement is true or false.

What is the role of the heuristic? 28. The deployment function in SNP: Choose the correct answer(s). When you perform the SNP run using the SNP heuristic.Test Your Knowledge SCM230 25. All rights reserved. you get a/an Choose the correct answer(s). 2005/Q2 . □ □ □ □ A B C D Medium-term production and distribution plan Demand Plan Independent requirements plan Stock transfer order 26. Which SNP planning results can be transferred to the OLTP system? 50 © 2005 SAP AG. □ □ □ □ A B C D Groups together product stock transfers Determines how and when supply should be deployed to distribution centers Splits stock orders Generates sales orders 27.

transaction data is stored in versions. and production. CTM is an order-based planning method that uses priorities to match demand to supply. Answer: SNP 6. Answer: heuristic 8. You can use SAP SCM to link several OLTP systems to one SCM planning server for cross-system planning of procurement. 4. SNP is used for medium to long-term planning across the entire supply chain. The heuristic can be used for rapid cross-plant distribution and supply planning.SCM230 Test Your Knowledge Answers 1. Answer: production 3. 51 . Which among the following is an SAP ECC master data object in SNP? Answer: C A distribution center is a master data object which is used by SNP and which is transferred as a plant from SAP ECC. distribution. Supply Network Planning with SAP SCM helps in cross-plant optimization of resource utilization. Answer: priorities 2005/Q2 © 2005 SAP AG. All rights reserved. Answer: versions 5. Answer: Supply Chain Cockpit 7. Answer: resource utilization 2. In SCM. The Supply Chain Cockpit allows planners to make an integrated analysis of supply chain transactional data.

you need to check the availability of capacities in a second step. The final SNP plan consists of purchase requisitions.to long-term planning. Answer: work area 14. It becomes the basis for executing queries in the Supply Chain Engineer and the Supply Chain Cockpit. 13. and SNP planned orders. Supply Network Planning is a bucketed. A work area acts as a filter to give users access to frequently used objects. short-term. Answer: False You need to check the availability of capacities and components required for production during finite planning.Test Your Knowledge SCM230 9. Answer: SNP planned orders 11. 2005/Q2 . Answer: Demand Planning 10. Answer: False Supply Network Planning is used for medium. The Integration of Demand Planning with SNP and PP/DS supports efficient Sales and Operations Planning (SOP). The other statements about SNP are true. Answer: Demand Planning 12. SNP stock transfers. 52 © 2005 SAP AG. You can transfer the results of Demand Planning as planned independent requirements to the OLTP systems. Infinite planning does not take the resource load into account. cross-plant planning process for planning production outside of the SNP production horizon. All rights reserved. During infinite planning.

Which of the following are not created by an SNP planning run? Answer: D Production orders are not created by an SNP planing run. the availability of capacities and components required for production is checked when receipts are created. VMI is designed to replenish a customer location with a minimum amount of human intervention. Answer: Capable-to-Match 20. Answer: finite planning 2005/Q2 © 2005 SAP AG.SCM230 Test Your Knowledge 15. SNP optimization. During finite planning. Answer: VMI 19. The Integration of Demand Planning with SNP and PP/DS supports efficient Sales and Operations Planning (SOP). 16. 18. thus ensuring the most efficient use of transportation capacities. When you perform the SNP run using the SNP heuristic. cross-plant planning method that takes into account constraints such as available capacity and materials during the planning run (finite planning). Which of the following functions are performed by the TLB? Answer: B The TLB groups stock transfer orders. or Capable-to-Match you get a medium-term production and distribution plan. 17. Which SNP planning method involves finite planning based on costs? Answer: C The SNP optimizer is a cost-based. 53 . All rights reserved. Answer: Demand Planning 21.

production. 2005/Q2 . What is the role of the heuristic? Answer: The heuristic's role is to: • • • Plan supply to meet demand without taking into account constraints such as available capacities and materials (infinite planning). 54 © 2005 SAP AG. Synchronize activities and plan the flow of material throughout the supply chain. you get a/an Answer: A When you perform the SNP run using the SNP heuristic. 26. 27. order-based planning within the PP/DS horizon. Plan receipts for purchasing. Answer: PP/DS 23. The deployment function in SNP: Answer: B The deployment function determines how and when supplies should be deployed to distribution centers and VMI customers. You can transfer the results of PP/DS to an online transaction processing system in the form of production orders. 25. All rights reserved. Production Planning and Detailed Scheduling is used for short-term. you get a medium-term production and distribution plan. When you perform the SNP run using the SNP heuristic. and distribution within the supply network on a cross-plant bucket-oriented basis.Test Your Knowledge SCM230 22. The Supply Chain Engineer is used to: Answer: A The Supply Chain Engineer is used to create supply chain models. Answer: True 24.

SCM230 Test Your Knowledge 28. purchase requisitions. 2005/Q2 © 2005 SAP AG. All rights reserved. Which SNP planning results can be transferred to the OLTP system? Answer: The SNP planning results that can be transferred to the OLTP system are planned orders. 55 . and stock transport requisitions.

All rights reserved.Unit 1: Overview of Supply Network Planning SCM230 56 © 2005 SAP AG. 2005/Q2 .

.............. 71 2005/Q2 © 2005 SAP AG... you will identify the need for product master.. You will also identify the components of the production process model (PPM) and describe the various planning methods... 59 Exercise 3: Transportation Lanes .... Identify the resource master data in SNP Define the various types and categories of resources Navigate in the Production Process Model Compare PP/DS and SNP planning Explain the differences between the production process model and production data structure Navigate in the Quota Arrangement Describe the various planning methods Identify the transactional data used in SNP Describe the process for transaction data integration Unit Contents Lesson: Working with Master Data . You will understand the process of creating Transportation lanes....... Finally........... you will be able to: • • • • • • • • • • • • Identify the Master Data objects for a supply chain Create transportation lanes Identify the product and material master data needed for SNP planning. All rights reserved. Next.. 57 ... Unit Objectives After completing this unit............... you will identify the independent requirements for Transaction Data Objects and describe the process for Transaction Data Integration..... You will then compare PP/DS and SNP..... and resource master data and define the various types and categories of resources..................Unit 2 Master Data and Transaction Data in SNP Unit Overview In this unit you will learn how to identify the master data objects for a supply chain.... material master.

................ All rights reserved....101 Exercise 6: Planning (PPM) Master Data ......... 85 Lesson: SCM Resource Master....................... 75 Exercise 4: Product Master Data .................................. 97 Lesson: Introducing the Production Process Model............................................................. 2005/Q2 ..................................................125 Lesson: Transactional Data used in Supply Network Planning ........ 90 Exercise 5: Resource Master Data............121 Exercise 7: Quota Arrangements ..........................................128 58 © 2005 SAP AG..115 Lesson: Introducing Quota Arrangements.......................................................Unit 2: Master Data and Transaction Data in SNP SCM230 Lesson: SCM Product Master ........

S. and customers of Precision Pump Company are spread across different cities in U. you need to define all the data objects that would complete the supply chain. 2005/Q2 © 2005 SAP AG. In addition to creating the materials for planning. distribution centers (DCs). you need to create resources. You will also learn how to create transportation lanes in Supply Network Planning (SNP). 59 . All rights reserved. vendors. Supply chain planning uses materials that are defined as material masters. Bills of Material (BOMs). To do this. Master data objects include plants. Master Data Objects Figure 30: Master Data Objects in the Supply Chain The master data objects for the supply chain are usually created in SAP ECC. and Europe. and routings for plants that produce and plan. As the Planning Manager at Precision Pump Company. you need to control the overall planning of the supply chain.SCM230 Lesson: Working with Master Data Lesson: Working with Master Data Lesson Overview This lesson will give you an overview of the master data objects for a supply chain. vendors. You also need to ensure that the products reach the customer from the manufacturing plant on time and in a cost-effective manner. and customers. you will be able to: • • Identify the Master Data objects for a supply chain Create transportation lanes Business Example The manufacturing plants. Lesson Objectives After completing this lesson. distribution centers.

They cannot be maintained per model or per version. you define transportation lanes between the individual supply chain locations. in the form of special procurement keys that are transferred to the transportation lane as a product-specific entry. Products are normally transferred from SAP ECC and assigned automatically to model 000. Figure 31: Master Data Maintenance in SCM As the management of master data in SCM is different for every master data object with regard to models and versions. the slide provides an overview of the ways of maintaining the different master data: Locations are normally transferred from SAP ECC and assigned automatically to model 000. 2005/Q2 . they are displayed as external procurement relationships that are created as a product-specific entry in the appropriate transportation lane. These transportation lanes determine the flow of material through the supply chain. 60 © 2005 SAP AG. In SAP SCM. The supply relationship between a vendor and a plant is created in SAP ECC in the form of a purchasing info record or outline agreement. All rights reserved. In SAP ECC. such as plants and suppliers.Unit 2: Master Data and Transaction Data in SNP SCM230 In SAP SCM. When you transfer these external procurement relationships to SAP SCM. Location product master records can be created and changed in relation to a specific version (option Choose Planning Version). you create master data in the running ECC systems and then transfer this data to SAP SCM. corresponding lanes can be maintained. for example. Only master data that exists in SAP SCM and not in SAP ECC is created in the ECC system. Even when you use an SAP SCM system for supply chain planning. transportation lanes connect locations so that stock transfers can be planned between these locations.

SNP plans (PPMs) are created in the SCM system and must be assigned to the model. Quota arrangements can be maintained for the model or the version. For this purpose. you need to define storage location MRP areas in ECC and transfer such as an individual location with location type 1007. External procurement relationships and special procurement keys are normally transferred from SAP ECC and automatically assigned to the transport lane of the active model.PPMs) are normally transferred from SAP ECC and assigned automatically to model 000. Quota arrangements are created in the SCM system for a model or a version. the resource is only changed globally and not for each version. You only transfer vendors for whom you want to 2005/Q2 © 2005 SAP AG. in ECC define whether the resource is to be transferred as a single. They cannot be maintained per model or per version. 61 . A quota arrangement specifies which proportion of the required quantity of a product is to be procured from a source of supply (incoming quota arrangement) or supplied to a location (outgoing quota arrangement). assigned automatically to model 000. Caution: If you do not change a resource for the version. Plans (production process models . you would transfer the plants and distribution centers that you want to plan in SCM.SCM230 Lesson: Working with Master Data Resources are normally transferred from SAP ECC. Transportation lanes are created in the SCM system for a specific model. and created for all versions of model 000. Figure 32: Locations in the Supply Network You would normally decide first which location types are to be transferred from ECC.1. you can also transfer SNP production data structures (PDS) directly from ECC for release SCM 4. mixed. In any case. Alternatively. All rights reserved. If you want to plan according to storage location. or bucket resource.

you cannot transfer customer 0000001000 and supplier 0000001000: in this case you must add prefixes. Customer locations are only transferred when VMI customers are involved. which are not available to the other location types. i. 2005/Q2 . There are some input fields activated for location type. The VMI Cust. If you leave these fields blank. regardless of the location type.e. for example C for customer and S for supplier. you can specify where you want the location to be positioned on the map. and warehouse calendars can be defined for each location. shipping. you store the sales data for creating the sales orders in ECC.' Here. you can use transportation zones in SNP for grouping in the TLB. The geographic data is used to position the location on the geographic map of the Supply Chain Engineer and to calculate the transport duration of the means of transport in the transport lane. 1007 MRP area. Because of this. customers for whom SCM is to automatically create sales orders in ECC.Unit 2: Master Data and Transaction Data in SNP SCM230 run a source determination in SCM. You can assign handling or storage resources to locations to display aggregated handling or storage capacities. All rights reserved. The concept is also more general than in ECC. Subcontractor locations are only transferred when subcontracting is to be planned in SCM. The TDL tab page is only activated when you select location type 1020 (carrier) and is only required for transportation planning (TP/VS) in SCM. they are filled automatically when you place the location on the map. If needs be. Hint: In SNP you can plan every location. If you enter this data during location data maintenance. Production. tab page only applies to location type '1010 Customer. None of the other location types have a part to play in SNP. Caution: Please note that the location type is not part of the location key. 62 © 2005 SAP AG. where you can only plan plants and MRP areas.

A storage location specifies where a material is stored and enables material stocks to be differentiated within a plant.SCM230 Lesson: Working with Master Data Figure 33: Plants and Distribution Centers A plant is an organizational unit that subdivides an enterprise according to production. Similarly. or material planning. If you want to transfer ECC plants as DCs. A plant can produce materials or provide goods and services. and factory calendar (if defined in SCM) from SAP ECC are transferred to SCM for the plant. 2005/Q2 © 2005 SAP AG.Maintain Plant. language. Different icons are only used in the supply chain to distinguish between plants and DCs. you need to define storage location MRP areas in ECC and transfer such as an individual location with location type 1007. 63 . The address. stockholding. In SAP ECC. This means that plants have the entire sales and distribution function of DCs. procurement. country assignment. There is no functional different between plants and DCs. one or more storage locations can be defined within a plant. DCs have production capabilities. If you want to plan according to storage location. All rights reserved. make an appropriate entry under SAP ECC Customizing IMG → Production Distribution Resource Planning (DRP) → Basic Settings → Assign Node Type . A distribution center (DC) is also a plant in ECC that mainly sells products and distributes goods.

Customer locations are only transferred when VMI customers are involved. Sales and distribution processing as such plays no role in SAP SCM. and invoice verification take place in SAP ECC. 2005/Q2 . Supplier master records can be transferred to the SAP SCM system for planning in SAP SCM. transfer the customer master record to SCM as a corresponding location. In this case. Purchase order handling.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 34: Customers and Suppliers Customers and suppliers are defined as business partners in SAP ECC.e. goods receipt. 64 © 2005 SAP AG. i. customers for whom SCM is to automatically create sales orders in ECC. All rights reserved. If you want to be able to plan the transportation of a product to a customer in TP/VS. You cannot create sales orders in SCM. they allow sales and purchasing processes to be controlled. The source of external procurement can be determined using SAP ECC or SAP SCM. the purchaser works in SCM and can also convert purchase requisitions to purchase orders in SCM.

shipping. The shipping calendar is used to schedule the goods receipt (GR) and goods issue (GI) processing time and when releasing from Demand Planning for the creation of planned independent requirements. You can maintain production. and warehouse calendars for locations. All rights reserved. run times are determined from this. and resources. If a calendar has been defined for a resource. 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Working with Master Data Using Calendars for Scheduling Figure 35: Using Multiple Calendars for Planning The above graphic shows the calendars that are used to determine the duration of stock transfers. The transportation time and the calendar in the transportation lane are used to schedule the duration time of the shipment. taking workdays into account. Calendars can be assigned to locations. 65 . transportation lanes.

All rights reserved. • • You can use the Supply Chain Engineer menu or the map itself to find information relevant to the transportation lane. unit costs. external procurement relationship.g. distances. you can display a list of all products that are assigned to a specific lane. You normally transfer these entries using external procurement relationships and special procurement keys from SAP ECC. ship. In the product-specific entries for means of transport. Here. and shipment durations in the parameters for means of transport (e. and consignment. Transportation lanes are divided into three parts: • • • Product-specific entries Parameters for means of transport Product-specific entries for means of transport You can make the following settings in the charts: • In the product-specific entries you define parameters such as lot size area. airplane). For example. Material flow is defined by the direction of the transportation lane between the start and end location.Unit 2: Master Data and Transaction Data in SNP SCM230 Transportation Lanes Figure 36: Transportation Lanes A transportation lane in SCM represents a business relationship between the locations that you can use to transport goods. The lanes and locations represent the supply chain network. 2005/Q2 . truck. 66 © 2005 SAP AG. subcontracting. These settings are implemented in SCM. you can also assign carriers to the means of transport for Transportation Planning/Vehicle Scheduling (TP/VS). and means of transport. you can store more detailed lot sizes and costs for a combination of product. You set transportation costs. priorities.

can be transferred to the SAP SCM system as external procurement relationships. for example. A transportation lane contains one or more means of transport that can be used to transport the product. 2005/Q2 © 2005 SAP AG. But these transportation lanes can be used for all products. from a production plant to a distribution center. using which you create price and supply agreements with certain suppliers in SAP ECC. transportation lanes are maintained on a product-specific basis. a transportation lane must exist between the two locations.SCM230 Lesson: Working with Master Data Figure 37: External Procurement Relationship To transfer products between two locations in the supply chain. In principle. Transportation lanes are created in SAP SCM for this reason. 67 . You can then set priorities to enable the system to make stock transfer decisions. Purchasing info records or outline agreements. All rights reserved. such as a truck or barge. as also from ECC special procurement keys. You can also define costs and duration times in the transportation lane. is then stored in the product-specific entries of the transportation lane. This information.

All rights reserved. SCM must be able to recognize the source location corresponding to the vendor in the purchasing info record.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 38: External Procurement Relationship You can transfer SAP ECC purchasing info records to SAP SCM as external procurement relationships. if necessary. the vendor must be transferred beforehand. Note that for data transfer to be successful. As a result. Figure 39: Means of Transport Means of transport refers to the type of vehicle that delivers products between locations. 2005/Q2 . 68 © 2005 SAP AG.

All rights reserved. The distance factor indicates by how much the actual route exceeds the geographical distance between the locations. the means of transport only applies to the products that were explicitly assigned to it. transportation costs. The system can calculate the shipment duration of a means of transport based on the geographical coordinates of the locations. and penalty costs for delays to decide which means of transport to select. such as shipment duration and transportation costs. 69 . The shipment duration can be calculated from this. A means of transport could be a truck. select All Products. choose aggregated planning. If this indicator is not set. You maintain the means of transport in SCM Customizing under Supply Chain Engineer (SCE) → Maintain Means of Transport. In this way you can also. To enable the means of transport to be used by Supply Network Planning and PP/DS. The SNP optimizer can use shipment duration. ship. you need to define an average speed and an average distance factor for the means of transport. 2005/Q2 © 2005 SAP AG. define transportation lanes for the return journeys of empty trucks. See the formula above. For this purpose. choose detailed planning. for example. Figure 40: Creating a Transportation Lane To use this means of transport when procuring all products. or airplane. For TP/VS transportation planning.SCM230 Lesson: Working with Master Data Transportation between two locations is defined by transportation lanes that are assigned to a means of transport and by transportation-relevant attributes that have to be defined.

2005/Q2 . 8 or 12 per layer on a pallet or 96 for a full pallet quantity. This function is useful if you need to maintain lanes between several start and destination locations. for example. For example. for example. 70 © 2005 SAP AG. The rounding value specifies whether or not lot sizes are rounded to a whole number or to a multiple of a number. The following activities are performed in mass maintenance: • • • Generating multiple lanes simultaneously Assigning several products to a lane Calculating shipment durations Figure 41: Transport Lot Size Profile You can only maintain transport lot size profiles in product-dependent means of transport. All rights reserved. you can use transport lot size profiles to define that only full palettes are to be transported. between selected plants and customers.Unit 2: Master Data and Transaction Data in SNP SCM230 Mass maintenance of multiple transportation lanes simplifies the maintenance of large quantities of supply chain transportation data.

1. Check the transportation lane you just created. 2. You must also check the procurement type of the products. All rights reserved. Which means of transport travels between the locations? What is the duration time of the shipment and which products can be transported? 3. In SCM you maintain SCM-specific fields. It is usually transferred from the OLTP system. As planning manager at Precision Pump Company. Display these transportation lanes for your model SNP-##.SCM230 Lesson: Working with Master Data Exercise 3: Transportation Lanes Exercise Objectives After completing this exercise. Plant 1000 in Hamburg delivers products to distribution center 2400 in Milan. Which means of transport travels between the locations? What is the duration time of the shipment and which products can be transported? Use Mass Creation of Transportation Lanes to create a new transportation lane from plant 2300 to DC 2400 by copying the transportation lane from 1000 → 2400 in your model SNP-##. you will be able to: • Identify the Master Data objects for a supply chain • Describe the process for creating transportation lanes Business Example Master data is used to control planning for the Precision Pump Company. transportation lanes for stock transfers. 71 . and quota arrangements. you need to identify the production horizon and the stock transfer horizon. Task: The transportation lanes control procurement and stock transfer in SCM. 2005/Q2 © 2005 SAP AG.

Enter the data from the table below and click Field Model Name Start Location Dest. All products can be transported. 1. 2005/Q2 . Continued on next page 72 © 2005 SAP AG. Display these transportation lanes for your model SNP-##. Location c) d) e) Value SNP-## 1000 2400 Display. The duration is 19 hours and 41 minutes.Unit 2: Master Data and Transaction Data in SNP SCM230 Solution 3: Transportation Lanes Task: The transportation lanes control procurement and stock transfer in SCM. All rights reserved. Which means of transport travels between the locations? What is the duration time of the shipment and which products can be transported? a) b) Select Advanced Planning and Optimization → Master Data → Transportation Lane → Transportation Lane. The maintained means of transport is Truck. Plant 1000 in Hamburg delivers products to distribution center 2400 in Milan.

Use Mass Creation of Transportation Lanes to create a new transportation lane from plant 2300 to DC 2400 by copying the transportation lane from 1000 → 2400 in your model SNP-##. Enter the data in the table below and click Field Copy From Model Name Start Location Destination Location Creation of Transportation Lanes Between Locations Model Name Start Location Destination Location c) SNP-## 2300 2400 SNP-## 1000 2400 Value Execute. 73 . Respond by clicking YES. All rights reserved. The duration is 15 hours and 42 minutes. The maintained means of transport is Truck. A dialog box should appear telling you 1 transportation lane will be created. Which means of transport travels between the locations? What is the duration time of the shipment and which products can be transported? a) b) Select Advanced Planning and Optimization → Master Data → Transportation Lane → Transportation Lane. Check the transportation lane you just created. 3.SCM230 Lesson: Working with Master Data 2. Enter the data from the table below and click Field Model Name Start Location Dest. a) b) Select Advanced Planning and Optimization → Master Data → Transportation Lane → Mass Creation of Transportation Lanes. 2005/Q2 © 2005 SAP AG. Location c) d) e) Value SNP-## 2300 2400 Display. All products can be transported.

All rights reserved. 2005/Q2 .Unit 2: Master Data and Transaction Data in SNP SCM230 Lesson Summary You should now be able to: • Identify the Master Data objects for a supply chain • Create transportation lanes 74 © 2005 SAP AG.

You must therefore know which data is contained in the SCM product master and what source it stems from. 75 . you will be able to: • Identify the product and material master data needed for SNP planning. You also need to identify location-specific settings for each location. All rights reserved. you need to ensure that in SCM the relevant master data exists for all the materials to be planned. Product Master Figure 42: Product Master Data You plan material flow along the supply chain at the material level.SCM230 Lesson: SCM Product Master Lesson: SCM Product Master Lesson Overview This lesson will provide you with an explanation of the settings for product and material master data in Supply Network Planning (SNP). ECC material masters can be transferred to SCM as product masters. Materials are defined in corresponding material masters. Business Example As SNP planner at Precision Pump Company. 2005/Q2 © 2005 SAP AG. Lesson Objectives After completing this lesson.

2005/Q2 . In particular. like the procurement type. The basic data includes material information such as weight and volume. 76 © 2005 SAP AG. The MRP type specifies how a material is to be planned (MRP. Moreover. which is identical for all locations. The lot-sizing procedure determines the lot size of each of the procurement proposals. You can set a safety stock. A production procedure can be defined by a production version. consumption-based planning. All rights reserved. or no planning). The plant-specific data contains the detailed settings for which individual plants are saved.Unit 2: Master Data and Transaction Data in SNP SCM230 A material master contains basic data that is valid for all plants. Figure 43: SAP ECC – Material Master Data The fundamental settings for supply chain planning can be found in material planning views 1 to 4 of the ECC material master. The in-house production time or planned delivery time specifies how long procurement will last. The behavior of planned independent requirements is controlled by the strategy group. in-house production or external procurement. control of the ATP check takes place on the basis of the availability check group. you can select routing and BOM in a production version. The procurement type controls how a material is to be procured.

All rights reserved. such as weight and volume are important for calculating the capacity load of transportation. The SNP Supply and Demand profile that controls the total demand and receipt is located in the SNP2 view. and information about goods receipt and goods issue. This feature allows you to specify different information for each product for specific locations. the planning strategy. You store the procurement types. Details. in-house production and external procurement in the Procurement tab page. The most important horizon in the system that is located here is the production horizon. storage. The requirements strategy for consumption of planned independent requirements and sales orders is located on the Demand tab page. and handling resources. You define consumption of handling and storage capacities on the Goods receipt tab page. Here. 2005/Q2 © 2005 SAP AG.SCM230 Lesson: SCM Product Master Figure 44: Product Master: Location Data Views The location-specific product master contains detailed information about a specific location. 77 . the data is defined for every location where the product is available. You can define unit of measure conversions from one unit to another. Location-specific information can include the lot-sizing methods for a product. You define the lot-sizing procedure on the Lot size tab page.

The fixed lot size covers requirements by always generating receipts with the lot size that is set. the required yield plus the scrap quantity.Scrap in %). or a maximum stock level. 2005/Q2 . The target days' supply in workdays ensures that receipts are planned suitably earlier in order to create the target stock level with the relevant days' supply. Reorder point: Consumption-based procedure. The target stock level method allows you to choose whether the target days' supply should be determined using the product master.e. i. The percentage assembly scrap relates to the total quantity that completes an order. The system calculates the total quantity as follows from the required yield and the assembly scrap: Total quantity = Yield x 100% / (100% .Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 45: Lot Size Profile Lot-sizing procedures: • • • • The exact lot size (lot-for-lot) generates receipts for precisely the amount that is required. Rounding profile indicates the profile used when the rounding value varies. Additional components must be created accordingly. time-dependent SNP key figures. All rights reserved. Periodic: Receipts are grouped together periodically. depending on the transportation or production quantities. 78 © 2005 SAP AG.

If the assignment mode is “no assignment maintained” in the requirements strategy. with or without subassembly planning. If assignment mode 1 is used. The indication number for strategies is normally different in ECC and SCM. the planned independent requirement is offset against the category group orders.Make-to-stock production and 20 . because an SCM strategy can contain more than one ECC strategy. The consumption periods can be specified in workdays. All rights reserved. consume planned independent requirements. sales orders can affect demand. SNP does not take pegging settings and constraints into account. Make-to-stock production strategies are used in situations where demand and sales fluctuate but where production may proceed at a steady rate. 79 . SNP ignores demands and receipts from single segments of make-to-order production. SNP only supports the standard strategies 10 . Depending on which strategy you choose. In make-to-stock production. To define the requirements strategy. choose Supply Network Planning → Environment → Current Settings → Profiles → Supply Network Planning: Define Requirements Strategy. Fluctuations in demand and sales are smoothed by warehouse stock. sales orders are ignored when calculating the total demand. or have no effect on demand.SCM230 Lesson: SCM Product Master Requirement Strategies Figure 46: Requirement Strategies for Make-to-Stock Production You use make-to-stock production strategies to plan production or procurement using planned independent requirements that arise from expected future sales forecasts.Planning with final assembly. 2005/Q2 © 2005 SAP AG. sales orders are usually delivered by the warehouse stock.

The planned distribution demand represents releases for planned stock transfers. You configure the forecast horizon in the SNP demand profile of the product master. a sales order of 5 in the first bucket is offset against the planned independent requirement of 10. You assign the key figures to ATP categories in the SNP planning area. Outside this horizon. 80 © 2005 SAP AG. with the result that only a planned independent requirement of 5 is shown. Sales orders from the OLTP systems are grouped together in the Sales order key figure. the Forecast key figure displays planned independent requirements from the OLTP systems or Demand Planning. The confirmed distribution demand shows the result of the deployment run.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 47: Total Demand Calculation As shown in the previous graphic. Dependent demand is shown if this product is also an input product of a Bill of Material. SNP uses the planned independent requirements and sales orders to calculate the total demand according to the requirements strategy. You can thereby determine which transaction data is managed in which key figure: • • • • • For example. With strategy 20 (Planning with Final Assembly). All rights reserved. Within the forecast horizon. SNP takes into account sales orders and ignores planned independent requirements. forecasts of 10 planned independent requirements were originally planned in every bucket. 2005/Q2 .

or calendar months. In particular. calendar weeks (calculated from Monday or from Sunday). but planned orders can be created manually in interactive SNP planning. such as purchase requisitions and stock transfers. Deployment and TLB confirm the stock transfers within the stock transfer horizon. The PP/DS and SNP production horizons are defined in calendar days. this gives rise to an overlapping area in which both SNP and PP/DS receipts can be created. starting from today's date. the SNP planning run can only create planned orders outside of the SNP production horizon. SAP recommends that for the SNP production horizon you select a period category that corresponds to the frequency in which you execute SNP planning. If the PP/DS horizon in the product master is set to a greater length than the SNP production horizon. 2005/Q2 © 2005 SAP AG. The period category for the SNP horizon determines whether the specified horizon is defined in calendar days. within the stock transfer horizon. 81 . this allows you (where the integration of SNP planned orders is set) to avoid data inconsistencies arising from the planned orders transferred from SAP ECC. The PP/DS horizon can be defined globally in the planning version definition. No planned orders are generated automatically in the extended SNP production horizon. So. SNP creates no orders for external procurement. The settings in the product master override the global settings. and PP/DS can only create planned orders inside of the PP/DS horizon. for example. All rights reserved. If requirements within the SNP production horizon cannot be covered by PP/DS. the PP/DS and SNP horizons are used to separate the areas of responsibility for these two planning functions. You can define both horizons for each product in the location-specific product master on the SNP 2 and PP/DS tab page.SCM230 Lesson: SCM Product Master Figure 48: The Production and Stock Transfer Horizons If you decide to use both SNP and PP/DS for planning. then SNP plans the receipt outside of the SNP production horizon (this corresponds to the logic of the PP/DS planning time fence in short-term planning).

The total receipt is the sum of all the following receipt key figures: • • • • Production (planned): SNP planned orders Production (confirmed): PP/DS planned orders. can be converted from SNP planned orders Distribution receipt: Planned stock transfers In transit: Intransit quantity that will reach the specified destination first Figure 49: SNP-PP/DS – Overlapping Planning Horizons Lot sizes of PP/DS orders:When converting orders for in-house production.Unit 2: Master Data and Transaction Data in SNP SCM230 The horizons are configured in the SNP supply profile of the product master. If these indicators are not set. All rights reserved. You also find the "Firm production" and "Fix transports" settings here. In previous releases you had the following options: • • The system converts an SNP/CTM order to a PP/DS order with the same quantity The system creates PP/DS orders according to the lot size settings in the location product master 82 © 2005 SAP AG. or external procurement is deleted within the stock transfer horizon. 2005/Q2 . SNP planned orders are deleted within the production horizon. the system must determine the lot sizes of the PP/DS orders.

iPPE plan. and creates a PP/DS order with this lot size. The system rounds the receipt quantity up to the minimum lot size and creates a PP/DS order with this quantity. 2005/Q2 © 2005 SAP AG. 3.SCM230 Lesson: SCM Product Master SAP APO 3. Which lot sizes the system uses to create PP/DS orders depends on the receipt quantity of the SNP/CTM order. For the remaining quantity the system determines a lot size according to rules 1 and 2. The receipt quantity of the SNP/CTM order lies between the minimum and maximum lot sizes.1 offers a further option by which the system determines the lot sizes from the lot size range of the PP/DS plan (PPM. The system splits the receipt quantity of the SNP/CTM order into subquantities of the maximum lot size and creates PP/DS orders for these subquantities. The receipt quantity of the SNP/CTM order is smaller than the minimum lot size. SNP can define the mode selection as well as the PPM for PP/DS. The system creates a PP/DS order with exactly the same quantity as the SNP/CTM order. or production data structure) or transportation lane: You define the lot size range by specifying a minimum and maximum lot size. as follows: 1. Mode Selection: As of APO 3. All rights reserved. 2.1. You define which lot sizing option the system uses in the new field Lot Size which replaces the old indicator Lot Sizing. The receipt quantity of the SNP/CTM order exceeds the maximum lot size. The prerequisite is that you have generated SNP PPMs from a PP/DS PPM that allows different mode combinations. 83 .

Unit 2: Master Data and Transaction Data in SNP SCM230 84 © 2005 SAP AG. All rights reserved. 2005/Q2 .

the PP/DS horizon and the stock transfer horizon? SNP Production Horizon PP/DS Horizon Stock Transfer Horizon The SNP planning run only creates planned orders outside of the SNP production horizon. Continued on next page 2005/Q2 © 2005 SAP AG. How long are the SNP production horizon. stock transfer horizon. Value 14 Days 0 Days 50 Days E (In-house production) 2. Controls when stock transfers can be created. and which procurement type is configured for product P-102 at location 2300? Field SNP Production Horizon Stock Transfer Horizon PP/DS Horizon Procurement Type 3. PP/DS can only create planned orders from the current day up to the PP/DS horizon. and PP/DS Horizon. you will be able to: • Navigate in the Product Master • Identify the horizons for SNP planning and describe their functions. SNP will not create any stock transfers inside the stock transfer horizon. Task: 1. What is the role of the SNP production horizon. 85 . Business Example As the Planning Manager at Precision Pump Company you need to ensure that the Product Master data is set correctly.SCM230 Lesson: SCM Product Master Exercise 4: Product Master Data Exercise Objectives After completing this exercise. especially the horizons and procurement types. Check the settings in the product master for P-102 at location 2300 to be able to answer the following questions. All rights reserved.

All rights reserved. Which procurement type is configured for product P-102 at location 2400 and why? 86 © 2005 SAP AG. 2005/Q2 .Unit 2: Master Data and Transaction Data in SNP SCM230 4.

stock transfer horizon. Repeat these steps for location 2400. 87 . and which procurement type is configured for product P-102 at location 2300? Field SNP Production Horizon Stock Transfer Horizon PP/DS Horizon Procurement Type Value 14 Days 0 Days 50 Days E (In-house production) 3.SCM230 Lesson: SCM Product Master Solution 4: Product Master Data Task: 1. How long are the SNP production horizon. a) b) Select Advanced Planning and Optimization → Master Data → Product → Product. Click on the PP/DS tab to locate the PP/DS Horizon. All rights reserved. and PP/DS Horizon. Check the settings in the product master for P-102 at location 2300 to be able to answer the following questions. Click the Value P-102 2300 Display icon. What is the role of the SNP production horizon. Click on the Procurement tab to locate the Procurement Type. the PP/DS horizon and the stock transfer horizon? Continued on next page 2005/Q2 © 2005 SAP AG. Enter the following data: Field Product Location c) d) e) f) g) 2. Click on the SNP2 tab to locate the SNP Production Horizon and Stock Transfer Horizon.

The procurement type at location 2300 for P-102 is E (internal procurement) which means it is produced at location 2300. All rights reserved. Controls when stock transfers can be created. The SNP stock transfer horizon has been set to 0 days. This means that SNP can create purchase requisitions and stock transfers in the entire planning horizon. PP/DS can only create planned orders from the current day up to the PP/DS horizon. 88 © 2005 SAP AG. this means that SNP creates no planned orders in the first 14 calendar days. This means that product P-102 can only be procured from location 2400 and not produced there. If the SNP Production horizon is 14 days. This means that there is a 36 day overlap between SNP and PP/DS planning. 4. The SNP production horizon and the PP/DS horizon have been set to 14 and 50 days respectively.Unit 2: Master Data and Transaction Data in SNP SCM230 SNP Production Horizon PP/DS Horizon Stock Transfer Horizon The SNP planning run only creates planned orders outside of the SNP production horizon. SNP will not create any stock transfers inside the stock transfer horizon. Which procurement type is configured for product P-102 at location 2400 and why? Answer: Procurement type F (external procurement) is on the Procurement tab page. 2005/Q2 .

2005/Q2 © 2005 SAP AG. 89 .SCM230 Lesson: SCM Product Master Lesson Summary You should now be able to: • Identify the product and material master data needed for SNP planning. All rights reserved.

The work center therefore specifies where production actually takes place. you need to ensure the master data for all the resources that may be required for a production plan exists in SCM. In addition. You will also learn about various types and categories of resources considered for SNP. All rights reserved. you may need to define resources. for example a certain machine or a department of a plant. Lesson Objectives After completing this lesson. 2005/Q2 . You must therefore know which data is contained in the APO resource master and what source it stems from.Unit 2: Master Data and Transaction Data in SNP SCM230 Lesson: SCM Resource Master Lesson Overview This lesson will help you understand the need for resource master data in SNP. Work centers are used 90 © 2005 SAP AG. Defining the SCM Resource Master Figure 50: ECC Work Centers A work center is the place where an operation or activity is carried out in a plant. you will be able to: • • Identify the resource master data in SNP Define the various types and categories of resources Business Example As head of the planning department at Precision Pump Company.

or bucket resources. multiactivity resources. Bucket resources are used for medium to long-term planning in SNP. and maintenance task lists. CTM can use single and multiactivity resources. 2005/Q2 © 2005 SAP AG. Mixed resources combine the properties of single. All rights reserved. Vehicle resources are used to define individual transportation types. and can therefore be used by both PP/DS and SNP and transferred from the SAP ECC system. 91 . Data to be adopted by the routing's operation or to be used as a reference is stored as default values in the work center. Figure 51: SCM Resource Types Resources can be defined as single activity resources.g. Work center data is arranged into several views according to a topic.SCM230 Lesson: SCM Resource Master in routings or networks. The available bucket capacity is defined in days. volume) of a single transportation resource. The capacities of ECC work centers can be transferred to SCM as resources. The transportation resource is a bucket resource where you can define the size (e. such as a truck with a load of 40 tons. On this basis. SNP uses bucket resources and mixed resources. In particular. In addition to the above. and bucket resources. multi-. inspection plans (Quality Management). Single activity or multiactivity resources can be used in PP/DS to plan for continuous and detailed times. the available capacity of the work center and the data required to calculate the cost of work completed is stored in the work center. The entire bucket capacity is then calculated from this (bucket capacity divided by dimensions). you should transfer at least the SNP-relevant resources as mixed resources.

respectively. this affects only the original resource or the copy. 2005/Q2 . You can also refer to the external capacity from SAP ECC to determine the continuous capacity in SCM.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 52: SCM Resource Master Data Capacities that you transfer from OLTP systems are assigned automatically to model 000. resource category. All rights reserved. In the CFC9 customizing transaction you can set the transfer of master data. You can edit both the original resource and the copy of the resource to the model. 92 © 2005 SAP AG. If you have created several versions for the model. As of Release SCM 4. with the appropriate plug-in you can set the resource type. and standard capacity for the transfer in the work center capacity maintenance in SAP ECC. the system creates a planning version-specific copy for each resource that you assign to the model.0. planning parameters. You must explicitly assign any resource that you create in SCM to a model. for example. You can derive the bucket capacity from the continuous capacity. If you change the original resource or the copy of the resource. change planning data and available capacity.

storage. the capacity unit of measure must be time or rate. the quantity that is consumed or produced at the resource on a workday. All rights reserved.SCM230 Lesson: SCM Resource Master Figure 53: Resource Categories SCM resources can define capacities for production. For transportation or storage resources. handling. in other words. the capacity unit can be volume or weight.Defines the consumption or production capacity of a resource. conveyor belts. You can use handling bucket resources to model the capacity of forklifts. You can use transport bucket resources to model the capacity of transport fleets in order to avoid overloading them. 93 . 2005/Q2 © 2005 SAP AG. the storage capacity of a warehouse. and transportation capacities.Defines. or pipelines and to avoid overloading them. Rate (quantity with time) . You can use storage bucket resources to model the capacity of storage locations in order to avoid overloading them. You can define the capacity of a bucket resource as: • • Quantity (without time base) . for example. For production resources.

For example.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 54: Capacity Variants • • Different capacities can be defined for each resource. Checks can also be made using other variants. Variants control the validity period and the available capacity. you can define the costs for loading this resource per hour. 2005/Q2 . The standard capacity is the simplest available capacity of a resource. For a storage resource. you must specify Day as the period type and 1 as the number of periods. In the quantities/rates profile. To define the capacity per day. the volume. You also define planning parameters here to control activities for the resource. The system uses the active variant as the default variant for capacity leveling in the planning table. the user defines the available time. For the SNP optimizer. You define which variant is transferred to liveCache as the active variant. you should use period type 1. or the weight and any costs for the optimizer. 94 © 2005 SAP AG. The variants do not have to be active. All rights reserved. in the current settings define which variant should be used as the minimum capacity. These costs are always defined as costs per unit. and maximum capacity. normal capacity. if a resource has an available capacity of 12 hours.

one of which you can specify as the active variant. for example. This means that more than one capacity or working time can be defined for a resource at any given point of time. You can use the reference resource to define the regular available capacity of the resources in a plant or plant area. active capacity variant. The diagram above shows the conditions under which the individual working times or capacities are valid for the resource. or capacity of the reference resource. Reference resource: Allows you to create and change the available capacities of resources easily. 95 . You can then use this resource as a reference for individual resources and transfer the available capacity to them.SCM230 Lesson: SCM Resource Master Figure 55: Relevant Resource Capacity Variants You can use the following to define the working times and capacities in a resource: • • Standard capacity: Allows you to use up to 99 capacity variants. The system automatically performs the relevant checks. 2005/Q2 © 2005 SAP AG. All rights reserved. standard capacity.

If (B) no interval with a capacity that is valid at the current time is found. the system determines the capacity as described here. the system uses the capacity defined in the capacity profile. 2005/Q2 . 8. The system will only use the standard available capacity if none of the preceding checks enabled it to determine a valid resource capacity for the current time. the system checks whether a reference resource is assigned to the resource and uses the capacity of the capacity variant of the reference resource. If (C) no active variant is specified and no capacity profile is defined. However. 6. If the check turns out to be negative. If (B) different data exists for the external capacity in a capacity profile for the current time. the system uses the data defined in this capacity profile. Any existing profile of the reference resource is not taken into account. If an active capacity variant is specified in the resource but no corresponding capacity profile exists. no standard available capacity is defined for the resource. in addition. 5.Unit 2: Master Data and Transaction Data in SNP SCM230 The system checks the resource at the current time in the following sequence. If downtime is defined for the resource at the current time. 4. If you created a capacity profile in addition to the standard available capacity. no capacity is available. If there is also no valid interval for the reference resource in the same capacity variant. If. 2. 3. and (A) an active variant for which a capacity profile with different data exists is to be specified for the resource. the system uses this capacity. the system skips to the next step: • • 1. • • • • • • 96 © 2005 SAP AG. If an active capacity variant is specified in the resource and different data is defined for this in a capacity profile for the current date. All rights reserved. the system uses this difference. the resource has no capacity. the system uses the external capacity. If a reference resource is specified for the resource. if another reference resource is specified for the reference resource. the system uses the capacity determined in the capacity profile. and (A) an interval with a capacity that is valid at the current time is defined in this variant. the system uses the standard available capacity of the reference resource. 7. the system uses the standard capacity of the reference resource. If it is indicated in the resource that the capacity will be determined in an external system.

you will be able to: • Navigate in the resource master and explain the main settings for production • Create a resource directly in the SAP SCM system and assign it to your model Business Example As the planning manager at Precision Pump Company. Model an alternative resource.SCM230 Lesson: SCM Resource Master Exercise 5: Resource Master Data Exercise Objectives After completing this exercise. How large is the available bucket capacity of resource W1906_2300_001? What is the advantage of transferring the resource as a mixed resource from SAP ECC? Task 2: 1. an alternative resource is provided for pump production and this must be modeled directly in the SAP SCM system for planning in this course. In location 2300. All rights reserved. you need to ensure that the master data for resources is correctly defined. Field Resource Resource category Location BucketDimension Factory calendar Bucket capacity Unit Number of periods Period type Value WORK## P 2300 Time 01 7 H 1 Day 2005/Q2 © 2005 SAP AG. for location 2300 by creating a bucket resource using the data in the table below. Task 1: 1. Assign this resource to your SNP-## model. 97 . WORK##.

All rights reserved. Assign this resource to your SNP-## model. 2005/Q2 . Field Resource Location c) d) Value W1906_2300_001 2300 Display In the lower half of the screen.Unit 2: Master Data and Transaction Data in SNP SCM230 Solution 5: Resource Master Data Task 1: 1. on the Standard capacity tab page. Field Resource Resource category Location BucketDimension Factory calendar Bucket capacity Value WORK## P 2300 Time 01 7 Continued on next page 98 © 2005 SAP AG. Enter the data in the table below and click resources. you should see a bucket capacity of 7 hours per day. Model an alternative resource. for location 2300 by creating a bucket resource using the data in the table below. Resources transferred as mixed resources from ECC can be used by both PP/DS and SNP. How large is the available bucket capacity of resource W1906_2300_001? What is the advantage of transferring the resource as a mixed resource from SAP ECC? a) b) Select Advanced Planning and Optimization → Master Data → Resource → Resource. Task 2: 1. WORK##.

SCM230 Lesson: SCM Resource Master Unit Number of periods Period type a) b) c) d) e) H 1 Day Select Advanced Planning and Optimization → Master Data → Resource → Resource. will now appear before your f) g) Click at the bottom of the dialog box to continue. . 99 . and hit Enter to allow the system to accept the data. Assign Resources to the Select your model SNP-## and click the Model icon. A green check mark model. All rights reserved. Click 0 Bucket. Save your resource 2005/Q2 © 2005 SAP AG. enter the data from the table in the first row. Select your resource and click . Click .

Unit 2: Master Data and Transaction Data in SNP SCM230 Lesson Summary You should now be able to: • Identify the resource master data in SNP • Define the various types and categories of resources 100 © 2005 SAP AG. 2005/Q2 . All rights reserved.

All rights reserved. 2005/Q2 © 2005 SAP AG. which you can transfer directly from SAP ECC. they must be generated from PP/DS plans. Therefore. You will compare scheduling in Production Planning and Detailed Scheduling (PP/DS) with Supply Network Planning (SNP). SNP plans cannot be transferred directly from SAP ECC.SCM230 Lesson: Introducing the Production Process Model Lesson: Introducing the Production Process Model Lesson Overview This lesson will help you understand the structure of SNP plans with production process models (PPMs). you will be able to: • • • Navigate in the Production Process Model Compare PP/DS and SNP planning Explain the differences between the production process model and production data structure Business Example As planning manager at Precision Pump Company. 101 . instead. you only plan the resources and components that represent potential bottlenecks for the manufacture of the finished product. Lesson Objectives After completing this lesson. As an alternative to the production process model you will learn about the production data structure (PDS). you only need to set the SNP-relevant resources and components for planning. when converting PP/DS plans to SNP plans.

in turn. BOMs are used in material requirements planning. In addition to the stock items required for the finished product. This leads to multilevel production where you have the single-level BOMs of the finished product and assemblies and. the assemblies’ assemblies. and product costing. procurement. 102 © 2005 SAP AG. manufacturing. SAP ECC bills of material can be transferred to SAP SCM in the form of PPMs. An item within a BOM can. A BOM consists of a BOM header and BOM items. 2005/Q2 . a BOM can contain documents or text items. if applicable. BOMs are single-level. The base quantity in the header specifies the quantity of the finished product on which the item quantities are based. All rights reserved.Unit 2: Master Data and Transaction Data in SNP SCM230 Components of PPM Figure 56: Bills of Material in SAP ECC The Bill of Material (BOM) contains all the assemblies or components required to manufacturing a product. contain subcomponents.

All rights reserved. material requirements planning is identical in both PP and PP-PI.SCM230 Lesson: Introducing the Production Process Model Figure 57: Routings in SAP ECC Routings contain the sequence of operations that is necessary for production and the work centers in which these operations are to be executed. The routing refers to the material whose production the routing describes. the bill of material and routing are grouped together for the PP/DS plan with PPM. In this instance. All the previously portrayed relationships also remain valid in PP-PI. 103 . You require other master data if production is to be modeled using process manufacturing (PP-PI). the master recipe is transferred to SAP SCM as a PP/DS plan with PPM. The SCM planned order can then be converted to a production order in SAP SCM or SAP ECC. A routing can contain parallel or alternative sequences in addition to the standard sequence. You use the routing group and group counter to identify an SAP ECC routing. a master recipe is used instead of the routing. the routing contains the time elements that are relevant for scheduling operations. and resources are used instead of work centers. In SAP SCM. 2005/Q2 © 2005 SAP AG. work centers. For example. A production order in SAP ECC uses routings. Note that each operation in the routing can have its own base quantity to which these time elements refer. SAP ECC routings can be transferred to SAP SCM in the form of PPMs. and BOMs. For the process order. The discrete manufacturing master data is used when production orders are used to model production control. In addition to the standard values.

Working with Plans Figure 59: Plan and PPM 104 © 2005 SAP AG. the orders can be automatically converted into PP/DS planned orders. the activities of the SNP plan are not as detailed as in PP/DS.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 58: SCM Planning for In-House Production From the PP/DS plan with PPM you can generate a less detailed. it schedules in days. As a result. aggregated SNP plan which contains only those resources and components that are relevant to SNP. All rights reserved. The SNP planned orders are created using the SNP plan. After SNP planned orders fall within the production horizon. The PP/DS planned orders are created using the PP/DS plan. SNP does not schedule in seconds. 2005/Q2 . In addition.

The PPM defines the source product. One or more activities can be assigned to each operation and the materials. 105 . 2005/Q2 © 2005 SAP AG. and time period for which the plan is valid. All rights reserved. The SNP optimizer takes into account the single-level variable costs. maintained for these activities. Each plan contains one or more operations. If there are inconsistencies. A consistency check can be performed manually but this check always occurs automatically when the plan is saved. CTM takes into account the multilevel variable and fixed costs. and the SNP Heuristic takes into account the multilevel fixed costs. • • Input components can include raw materials or semi-finished products. location. and resources are. The plan groups the routing and BOM in one master data object. Input and output components model the flow of material during the production process.SCM230 Lesson: Introducing the Production Process Model The plan contains the detailed information that is required to manufacture a product. Output components can include one or more finished or semi-finished products. The PPM for the plan controls the validity of the plan. The costs defined in the plan govern which plans are selected. in turn. lot size area. the plan cannot be activated. relationships.

The system always considers operations as production operations. Consumption mode: S. 2005/Q2 .Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 60: Structure of Plan and PPM • • • Activity type: P. Resources: – – – The unit of measure must be the same unit as that in the resource itself. Fixed duration for scheduling: One day means that the activity has a duration of one day. The system always considers consumption at start of activity. All rights reserved. 106 © 2005 SAP AG. Variable resource consumption: This included the time taken to produce a base quantity of the product.

Scheduling is not based on the capacity load but on the fixed duration of the activity. As a result. If the plan contains three activities with a fixed duration of one day. All rights reserved. A bucket is at least one day long. 107 . you cannot transfer all the activities from a PP/DS plan into an SNP plan. If you have many activities in your plan. The plan should only contain bottleneck activities and resources (similar to a rough-cut planning profile). SNP calculates the total order quantity per time bucket. 2005/Q2 © 2005 SAP AG. SNP schedules an SNP planned order with a duration of three days. SNP aggregates all demands per bucket and generates receipts for the total number of demands in this bucket. SNP schedules a fixed duration of at least one day for each activity. especially not where setup times are concerned. SNP uses one bucket for each activity.SCM230 Lesson: Introducing the Production Process Model Figure 61: SNP Material Flow Logic You use SNP to plan the flow of material along your supply chain at an aggregated level.

In SNP. 2. The capacity load is determined down to the second. The greater the quantity to be produced. 2005/Q2 . an activity can have a duration of one day and a resource load of one hour. This scheduling is controlled using the period factor or bucket offset in the PPM of the SNP plan. If. 1. Alerts then show you the buckets that have insufficient capacity utilization or an overload. It only generates the amount of orders it takes to reach the maximum capacity utilization for each bucket. All rights reserved. Instead.. at first it is unclear whether the planned order will be scheduled at the start or end of the week.. The optimizer does not allow an overload where finite planning is in use. for example. the longer the duration of the activity. 108 © 2005 SAP AG.. the schedule in SNP is determined using the fixed duration in days (0. for example.) of the activity in the plan. the schedule is not determined by quantities.Unit 2: Master Data and Transaction Data in SNP SCM230 PP/DS and SNP . the duration of an activity is determined using the resource load that generates the order quantity. You can find more precise information about this in the sections relating to the heuristic and the optimizer. Scheduling also depends on the planning procedure: The heuristic schedules according to the fixed duration and then calculates the resource load of all orders in the bucket.Comparison Figure 62: Comparison Between Scheduling in PP/DS and SNP In PP/DS. you are using weekly bucket profiles and generate SNP planned orders with a duration of one day.

The reason for this is that activities and operations with a short duration are grouped into one activity. Note: Take note of the following information before carrying out generation and using the transaction: • • • You must have an active PP/DS plan. 109 . Only resources and components that are relevant for SNP are included in the generation. Operations and activities in the SNP plan do not correspond exactly to those in the PP/DS plan from which they were generated. • 2005/Q2 © 2005 SAP AG. Use transaction /SAPAPO/PPM_CONV_PPDS_TO_SNP for this generation or start conversion directly from the plan. an SNP plan is created from an existing PP/DS plan. The SNP plan is generated exclusively for the specified lot size. This means you cannot take into account variable duration or consumption.SCM230 Lesson: Introducing the Production Process Model Figure 63: Converting PP/DS Plans into SNP Plans During this generation. You set the SDP relevance indicator in the global product master. All rights reserved. This process uses the existing PP/DS PPM to determine all SNP-relevant product and resource consumptions for a lot size and groups them into SNP operations and activities. You find the not SNP relevant indicator in the planning parameters of the SAP ECC work center.

2005/Q2 . If there are several PP/DS activities with different primary resources within an SNP bucket. without taking into account any existing resource schedules. an order is dispatched infinitely into liveCache using the plan or PPM entered and the lot size. the activity with the longest duration in the bucket provides the primary resource for the SNP mode. a new activity is generated in the SNP plan. in order to determine the consumption of SNP-relevant resources and components per SNP bucket. Consecutive consumptions of the same type are grouped together into one activity. All rights reserved. 110 © 2005 SAP AG. If the primary resource is switched. If a component or resource changes in one bucket in the PP/DS order. This order is limited to the daily buckets profile. where the bucket durations are added up.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 64: The Plan Conversion Process The plans are converted as follows: In line with PP/DS scheduling logic. a new operation is generated.

If you perform Supply Network Planning in weeks. The created temporary PP/DS order. The first step is to select the plans to be converted on the basis of PP/DS plans. public holidays. The lot size for the validity of the SNP plan is thereby taken from the PP/DS PPM. location products. and so on). The second step is to generate the SNP plans with a predefinable lot size. as alternative work centers are modeled in SNP as alternative plans. As far as possible. All rights reserved.SCM230 Lesson: Introducing the Production Process Model Figure 65: Mass Processing for Plan Conversion As of APO 3. The system creates one SNP PPM per mode combination of a PP/DS PPM. Because the number of mode combinations and therefore of SNP PPMs can get very big. These plans are flagged for conversion at a predefined date. from which the SNP plan is generated. you can limit the number of generated SNP PPMs by preselecting certain mode combinations of the PP/DS PPM for the SNP PPMs or by setting certain parameters. The system automatically defines the start date for the order generation as the beginning of the next bucket. choose a start date such that the horizon for PPM generation corresponds to a horizon that is typical of your working patterns (with regards to vacation times. You control the level of detail of the SNP plan using the bucket size. or SNP plans. depending on the number of activities and alternative modes in the PP/DS PPM. is scheduled forward with the typical order lot size. 111 . 2005/Q2 © 2005 SAP AG. choose the week bucket size.1 it is possible to perform a mass conversion of SNP plans. You can have the system propose names for the SNP plans.

in the CIF integration model you need to select type SNP DPS or SNP subcontracting. For this. Some business processes are better modeled using the production process model. A big advantage of the SNP production data structure is that it can be transferred directly from SAP ECC. You can generate the SNP PDS directly from the data from the routing. and an SNP PDS will be generated automatically from this in the SAP SCM system. The corresponding SAP ECC data will then be transferred to the SAP SCM system. Any changes must be made in SAP ECC and transferred. In SNP. regardless of whether an SNP PPM or SNP PDS is concerned. 2005/Q2 .Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 66: Attributes of PPMs and Runtime Objects The SNP production data structure (SNP-PDS) has been offered as an alternative to the production process model from release SAP SCM 4. others using the production data structure. 112 © 2005 SAP AG. Source determination in SNP and CTM always takes all available sources into account. the SNP PDS is used like the SNP PPM. the transportation lane between the plant and subcontractor will be generated automatically (this is not possible if you are using an SNP PPM). If you choose SNP subcontracting.1 onwards. Production data structures cannot be altered in SAP SCM. Change management for bills of material and routings (ECM) and the ability to configure products can generally not be employed using either the SNP plan (PPM) or the SNP PDS. as a basis for planning. the product master data will be created automatically in the subcontractor location (for the components too). All rights reserved. In addition. and production version in SAP ECC. BOM.

Activities are not summarized using lot sizes. but the mode (resource) is not taken into account when the SNP PDS is converted to the PP/DS PDS. This method. which performs a standard calculation of bucket consumption. change the calculation. The information about the production version is contained in the SNP PDS. You can. • • • • 2005/Q2 © 2005 SAP AG. however. All rights reserved. The SNP PDS is automatically assigned to the active model during transfer. 113 . however. It is also possible to influence the BOM data using the CUSLNTRTO_ADDIN (ERP) or /SAPAPO/CURTO_SNP business add-ins. you can calculate the bucket consumption of a resource. Assignment to alternative models is not permitted. If you want to perform optimization-based SNP planning. influence the generation using the /SAPAPO/CURTO_SNP business add-ins (BAdIs): Using the CALC_BUCKET_CONSUMPTION method of this BAdI. is automatically active. You would need to show the SNP relevance using an individual ECC routing for SNP in the production version. Fixed consumption is rounded off to the nearest day and determines the fixed duration of an activity. you can use the /SAPAPO/CULLRTOSNP business add-in and the FILL_COST_FIELDS method to fill in the cost fields of the SNP PDS.SCM230 Lesson: Introducing the Production Process Model The following restrictions apply for the SNP PDS: • The SNP relevance for products and resources is not taken into account. You can.

All rights reserved.Unit 2: Master Data and Transaction Data in SNP SCM230 114 © 2005 SAP AG. 2005/Q2 .

You need to create an SNP PPM that uses the alternate resource. Maintain single-level and multilevel variable costs of 200 and fixed costs of 1. (Optional) In the Supply Chain Engineer. Select the PPM. you need to be able to navigate in the production process model and understand the fields and setting there. include the resource and the PPM in your QA-## work area. Remove resource W1906_2300_001 from the plan.3 hours. Assign the P-102_SNP_2300_ALT_## PPM to your SNP-## model and activate the plan. check whether your SNP-## model contains your resource and the PPM. Change the new SNP plan and enter P-102_SNP_2300_ALT_## as the description. enter P-102_SNP_2300_ALT_## as the name. 2. Choose the PP/DS plan N50000204010001P-102 2300 for product P-102 at location 2300 and convert it into SNP plan P-102_SNP_2300_ALT_## using program SNP-PPM Generation Without Lot Sizes. 3. and maintain a fixed duration of one day and a capacity consumption of 0. In the selection parameters. To do this. All rights reserved. 115 . 1. enter your WORK## resource. You need to ensure that the master data is accurate and a true reflection of what actually happens on the shop floor.SCM230 Lesson: Introducing the Production Process Model Exercise 6: Planning (PPM) Master Data Exercise Objectives After completing this exercise. enter a lot size of one piece and tomorrow’s date as the selection date. How long does production in SNP last for pump P-102 on resource W1906_2300_001 in location 2300 with plan N50000204010001_SNP? Roughly how many pumps can be produced per day at location 2300? Task 2: Convert a PP/DS plan into an SNP plan. 2005/Q2 © 2005 SAP AG. you have an alternate resource at location 2300 for producing pumps. In addition. you will be able to: • Navigate in the Production Process Model • Convert a PP/DS plan to an SNP Plan Business Example As the Planning Manager at Precision Pump Company. and a lot-size range from 1 to 100000. P-102_SNP_2300_ALT_## as the description. Task 1: 1.

35 minutes) is displayed to the right. From an earlier exercise we saw that resource W1906_2300_001 is available for 7 hours per day. Go to the graphical display of the plan: you may have to adjust the size to be able to view all objects of the plan. which means that approximately 12 pumps can be produced per day. Double-click resource W1906_2300_001. All rights reserved. choose plan N50000204010001_SNP. In the dialog box that appears. The variable bucket consumption of 0. Enter the data from the table below and click Field Choose plan through PPM Product Location Use of a Plan c) d) Value Select P-102 2300 S Display. 2005/Q2 .583 hours per pump (approx.Unit 2: Master Data and Transaction Data in SNP SCM230 Solution 6: Planning (PPM) Master Data Task 1: 1. e) Continued on next page 116 © 2005 SAP AG. How long does production in SNP last for pump P-102 on resource W1906_2300_001 in location 2300 with plan N50000204010001_SNP? Roughly how many pumps can be produced per day at location 2300? a) b) Select Advanced Planning and Optimization → Master Data → Production Process Model → Production Process Model.

Copy the plan number N50000204010001P-102 2300 from temporary storage into the field using Ctrl V. In the dialog box that appears select plan N50000204010001P-102 2300. Click to return to the main menu. Maintain single-level and multilevel variable costs of 200 and fixed costs of 1. Enter the data from the table below and click Field Choose plan through PPM Product Location Use of a Plan c) d) e) f) g) Value Select P-102 2300 P . a) b) Select Advanced Planning and Optimization → Master Data → Production Process Model → Production Process Model. Remove resource W1906_2300_001 from the plan. Continued on next page 2005/Q2 © 2005 SAP AG. 117 . Copy the plan number to temporary storage using Ctrl C. Choose the PP/DS plan N50000204010001P-102 2300 for product P-102 at location 2300 and convert it into SNP plan P-102_SNP_2300_ALT_## using program SNP-PPM Generation Without Lot Sizes. 1. Make the following entries and click Field PP/DS PPM SNP PPM Lot size PP/DS PPM selection time Value N50000204010001P-102 2300 P-102_SNP_2300_ALT_## 1 Tomorrow’s date : h) 2. From within the PPM select Goto → SNP PPM Generation Without Lot Sizes. Change the new SNP plan and enter P-102_SNP_2300_ALT_## as the description. All rights reserved.SCM230 Lesson: Introducing the Production Process Model Task 2: Convert a PP/DS plan into an SNP plan. In the selection parameters. enter a lot size of one piece and tomorrow’s date as the selection date.

Now double-click your WORK## resource and enter a variable bucket consumption of 0. single-level and multilevel variable costs of 200. and the SNP heuristic takes into account the multilevel fixed costs. and maintain a fixed duration of one day and a capacity consumption of 0. In the object type/object name window.Unit 2: Master Data and Transaction Data in SNP SCM230 enter your WORK## resource. Assign the P-102_SNP_2300_ALT_## PPM to your SNP-## model and activate the plan. Hint: The SNP optimizer takes into account the single-level variable costs in the plan. choose activity 1 (by double-clicking it). e) Double-click operation 0010. CTM takes into account the multilevel variable and fixed costs. and fixed costs of 1. All rights reserved.3 with unit H. choose your new SNP plan P-102_SNP_2300_ALT_##. In the dialog box that appears. expand the PPM and double-click the generated PPM. Enter P-102_SNP_2300_ALT_## as the description. Enter P-102_SNP_2300_ALT_## as the PPM name by overwriting the internally generated PPM name. f) g) h) Continued on next page 118 © 2005 SAP AG.3 hours. 2005/Q2 . Overwrite the existing primary resource and then click with your resource WORK##. P-102_SNP_2300_ALT_## as the description. a) b) Use the menu path Advanced Planning and Optimization → Master Data → Production Process Model → Production Process Model. enter P-102_SNP_2300_ALT_## as the description. . and a lot-size range from 1 to 100000. and a lot-size range from 1 to 100000. Enter the data from the table below and click Field Choose plan through PPM Product Location Use of a Plan c) d) Value Select P-102 2300 S . enter P-102_SNP_2300_ALT_## as the name. Select the PPM.

undo the assignment to model 000. Enter model SNP-## and work area QA-## and click b) c) d) e) Click Production. If your resource is not there repeat the above procedure for the resource beginning with the right mouse click. Next. (Optional) In the Supply Chain Engineer. click Resourcesand check whether the model contains your resource. . . Save the work area and return to the main menu using . j) 3. and assign the PPM to your SNP-## model. f) 2005/Q2 © 2005 SAP AG. If an error Activate the plan message appears with the model assignment of the WORK## resource. check whether your SNP-## model contains your resource and the PPM. include the resource and the PPM in your QA-## work area. 119 . and select the option from the context menu that Right-click allows you to add objects to the work area. choose the following menu path: APO → Master Data → Supply Chain Engineer → Maintain Model. click the Model assignment button.SCM230 Lesson: Introducing the Production Process Model i) In the Production Process Model screen area. a) Within the PPM. This also activates the save action. To do this. confirm this and reactivate. Enter P-102_SNP_2300_ALT_## in the dialog box and click Copy. Now. All rights reserved.

2005/Q2 . All rights reserved.Unit 2: Master Data and Transaction Data in SNP SCM230 Lesson Summary You should now be able to: • Navigate in the Production Process Model • Compare PP/DS and SNP planning • Explain the differences between the production process model and production data structure 120 © 2005 SAP AG.

Outbound quota arrangements are only used in deployment and control short-term distribution of the procured or produced quantities to the distribution centers. 2005/Q2 © 2005 SAP AG. In addition. you will be able to: • • Navigate in the Quota Arrangement Describe the various planning methods Business Example As the Planning Manager at Precision Pump Company. In medium. All rights reserved. These sources may be internal.SCM230 Lesson: Introducing Quota Arrangements Lesson: Introducing Quota Arrangements Lesson Overview This lesson will help you to get an overview of Quota Arrangements. you will learn about various planning methods used in SNP and source selections. manufactured or combination of the above. external. you need to plan material that is procured from multiple sources. 121 .to long-term SNP planning. Lesson Objectives After completing this lesson. Sources of Planning Figure 67: Quota Arrangement Quota arrangement determines what percentage of a certain product will be shipped to or from a specific location. only those inbound quota arrangements that determine what percentage should be procured from a location are taken into account.

In the heuristic. the optimizer only selects sources of supply according to cost. Costs.Unit 2: Master Data and Transaction Data in SNP SCM230 In Inbound quota arrangements. Priority (highest priority = 0). every demand is split. an internal conversion to 100% is performed. For each product. 3. 122 © 2005 SAP AG. and quota arrangement quantities cannot be determined using maximum or minimum quantities. In Outbound quota arrangements. the system chooses the one with the highest priority. and in this course it is handled separately for each SNP planning procedure. All rights reserved. you define the destination location of a shipment. source determination is different for every SNP planning procedure. If a total of 100% is not maintained. Inbound quota arrangements are used in medium-term SNP planning. 2. If more than one source of supply has the same priority. A quota arrangement specifies which proportion of the quantity should be procured from which sources. a quota arrangement specifies which proportion of the quantity should be transported to which destination locations. The quota arrangements represent proportions without dimensions that are used as a basis for splitting a quantity. However. the source location of a shipment is defined. A quota arrangement defines a percentage split from external procurement or in-house production. Quota arrangement. As an example. the system selects sources of supply based on the following criteria: 1. If more than one source of supply can deliver on time. 2005/Q2 . In the heuristic. the system chooses the most cost-effective alternative. Outbound quota arrangements are only used in deployment. Figure 68: Automatic Source Determination (1) The above figure illustrates general source determination in SAP SCM.

the system determines the PPM or PDS with the highest priority. whereas multilevel costs are relevant for CTM and PP/DS. you maintain the priorities and costs in the transportation lane. If the system does not find a transportation lane or external procurement relationship. For anonymous procurement. 2005/Q2 © 2005 SAP AG. the most cost-effective option is used. If there are no quota arrangements. If there are no quota arrangements. For external procurement and stock transfer. To find this cost-effective option. if you have maintained several PPMs. If both in-house production and external procurement are permitted. 123 . If several procurement options have the same priority. Figure 69: Automatic Source Determination (2) For in-house production. Single-level costs are only relevant for SNP optimization. If there are no quota arrangements. the system first checks whether quota arrangements exist.SCM230 Lesson: Introducing Quota Arrangements You maintain the plan priority in the PPM. the system determines the source of supply using the data in the transportation lanes and external procurement relationships. the system first checks whether quota arrangements exist. With external procurement. the system determines the source of supply with the highest priority. the system first checks whether quota arrangements exist. you maintain the costs in the product master. All rights reserved. If several PPMs have the same priority. it generates a purchase requisition without specifying a supplier and uses the costs and planned delivery time from the product master. the system chooses the plan with the most favorable costs. You maintain the costs in in-house production in the plan. the system directly compares the costs in the transportation lane or external procurement relationship with those in the plan.

2005/Q2 .Unit 2: Master Data and Transaction Data in SNP SCM230 124 © 2005 SAP AG. All rights reserved.

Create an inbound quota arrangement for your SNP-## model so that. you need to plan materials that may be procured from multiple locations.SCM230 Lesson: Introducing Quota Arrangements Exercise 7: Quota Arrangements Exercise Objectives After completing this exercise. 2005/Q2 © 2005 SAP AG. for all products. Task: 1. Quota arrangements will be used to assist in the selection of these locations. distribution center 2400 in Milan receives 20 % of its supply from plant 1000 and 80 % from 2300 over the next year. you will be able to: • Create an Inbound Quota Arrangement Business Example As the Planning Manager at Precision Pump Company. All rights reserved. 125 .

Then click . Create an inbound quota arrangement for your SNP-## model so that. enter the following data. Field All Products End Date Value Selected One year from today e) f) Click to copy the data and close the window.Unit 2: Master Data and Transaction Data in SNP SCM230 Solution 7: Quota Arrangements Task: 1. Save the quota arrangement. select Quota Arrangement for Location and Copy all Existing Locations. Enter the data from the table below and click Field Model Location Version-Independent Inbound Quota Arrangements c) d) Click the Create new entry icon Value SNP-## 2400 Selected Selected . . 126 © 2005 SAP AG. a) b) Select Advanced Planning and Optimization → Master Data → Quota Arrangement → Quota Arrangement. in the Quota Arrangement Items section in the lower portion of the screen. g) h) i) Enter 20 in the Quota cell for location 1000 and 80 for location 2300. In the Quota Arrangement Header section at the right. click the Create new entry icon . Two rows should appear in the Quota Arrangement Items section one for each location 2300 and 1000. In the Quota Arrangement Item section to the right. 2005/Q2 . Now select your quota arrangement in the top half of the screen and. distribution center 2400 in Milan receives 20 % of its supply from plant 1000 and 80 % from 2300 over the next year. for all products. All rights reserved.

All rights reserved.SCM230 Lesson: Introducing Quota Arrangements Lesson Summary You should now be able to: • Navigate in the Quota Arrangement • Describe the various planning methods 2005/Q2 © 2005 SAP AG. 127 .

Unit 2: Master Data and Transaction Data in SNP SCM230 Lesson: Transactional Data used in Supply Network Planning Lesson Overview This lesson will help you get an overview of the transactional data used in Supply Network planning. Transactional Data Figure 70: Transaction Data Objects in the Supply Chain 128 © 2005 SAP AG. Milan. in-house production. You will also learn about the process for transition data integration. If the stock is not available. as planning manager. Lesson Objectives After completing this lesson. All rights reserved. Barcelona. and Denver. or external procurement. ensure that the components required to produce the product are available in the SAP SCM system. and New York. 2005/Q2 . After the production plant receives the demand you must. you need to create plans to ensure that the stock is available either through stock transfer from another plant. you will be able to: • • Identify the transactional data used in SNP Describe the process for transaction data integration Business Example The customers of Precision Pump Company place their orders for products at the distribution centers in Rotterdam. The demand is transferred from the DCs to the production plants in Hamburg.

The planning process starts with the study of independent requirements that are stored as planned independent requirements or sales orders. which is used to plan for procurement. This plan includes both the quantities that must be transported between locations. or external. in-house production. Supply Network Planning (SNP) planning creates planned orders. You use the network to plan how to meet these independent requirements. An SAP SCM stock transfer can create a purchase requisition in one OLTP system and a sales order in another OLTP system. All rights reserved. Figure 71: The Demand Program 2005/Q2 © 2005 SAP AG. distribution center to customer or production plant to distribution center and the quantities to be produced and procured. 129 . Starting from a demand plan. taking available capacity into consideration. for example work centers. These planned independent requirements predefine the demands in a distribution center or a sales center.to long-term plan to deliver the estimated sales volumes.SCM230 Lesson: Transactional Data used in Supply Network Planning Supply chain planning is based on master data. and production orders are used to model in-house production. The result of this planning is transaction data. for example. and stock transfers that you can transfer directly to the connected OLTP systems. purchase requisitions. and purchase requisitions and purchase orders or scheduling agreement releases are used to model external procurement. planned orders. Independent requirements can also be created directly for an individual production plant. Stock transfers are used to model goods movements. These requirements are met either by stock transfer. SNP determines a medium.

Figure 72: Sales Orders and Planned Independent Requirements Sales orders are created in Sales and Distribution (SAP ECC SD). Sales orders or customer independent requirements are created by Sales and Distribution. Sales orders represent a requirement in the supply plant. for which procurement is then specifically triggered (make-to-order production) or sales orders can be grouped with planned independent requirements to create the total requirements. Customer requirements can be received directly in Material Requirements Planning.Unit 2: Master Data and Transaction Data in SNP SCM230 SAP ECC Demand Management can be used to manage independent requirements. This type of production allows you to improve delivery times and load your own production resources. procurement of the required materials is initiated without the need to wait for concrete sales orders. where a certain quantity of a product is required on a specified date. 2005/Q2 . Sales orders can also consume planned independent requirements. 130 © 2005 SAP AG. independently of their defined requirement type. In make-to-stock production. This is useful if planning is to be based on customer requirements. Sales orders represent orders placed by a customer. Planned independent requirements are stock requirements that can be derived from a forecast of the future requirement situation. as evenly as possible. Sales orders can be used either as exclusive requirement sources. All rights reserved. This can be done by foresighted planning. You can determine the method by which independent requirements function during material requirements planning by studying the requirement type or planning strategy.

receives a demand as a purchase requisition release. these requirements can then. 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Transactional Data used in Supply Network Planning Planned independent requirements are used for make-to-stock planning in a DC or production plant. the location that needs the stock creates a purchase requisition for procurement from the supplying plant. in turn. which means that stock consumption is forecast and products are procured as a result of this forecasting. 131 . Figure 73: Stock Transfers You can transfer stock from other locations in the location network to meet demands. It is important to know that the demand in the plant and the receipt in the DC belong to the same order. In this case. be met by the warehouse. in the best-case scenario. as sales orders or dependent requirements. for example. When concrete requirements exist at a later date. All rights reserved. Only the receipt in the DC can be modified. Shifting the availability date/time automatically shifts the demand. The supplying plant. The requirements date/time in the plant is set to precede the availability date/time using the shipment duration as well as the goods receipt and goods issue times.

132 © 2005 SAP AG. Orders within the production horizon that can be planned by Production Planning and Detailed Scheduling are still displayed in Supply Network Planning as aggregated receipts in the defined bucket. Planned orders already contain the basic dates within which production should take place. which are the component requirements needed for production. 2005/Q2 . In Supply Network Planning. In Production Planning and Detailed Scheduling. orders cannot be created or changed within the production horizon. this is only possible in SAP ECC. regardless of the production horizon.Unit 2: Master Data and Transaction Data in SNP SCM230 Planned Order Figure 74: Planned Orders and Manufacturing Orders SNP planned orders are used to plan the in-house production of a material. PP/DS planned orders can be created or changed manually across the entire time axis. it is no longer planned in the SNP planning run but in the production planning run in PP/DS. All rights reserved. Capacity requirements can be planned at this early stage on the basis of these planned orders. orders are only created within the production horizon. An SNP planned order cannot be converted to a production order in SAP SCM. They also contain dependent requirements. During automatic planning in PP/DS (the production planning run). and it makes sense to do so. As soon as a demand falls within the production horizon. The planned order is converted into a manufacturing order for final production (a production order (PP) or process order (PP-PI)). A PP/DS planned order can be converted to a production order in SAP SCM.

133 . Multilevel planning explodes the entire BOR structure. the production planning run generates a planned order. At the lowest BOM level. • • • • • 2005/Q2 © 2005 SAP AG. If sufficient stock or receipt quantity is not available. At the next BOM level. only the receipts and dependent requirements for the chosen product are generated. the dependent requirement represents the demand for each assembly. The PPM/PDS of the planned order for the finished product is exploded. the production planning run generates a planned order. All rights reserved. the production planning run generates a purchase requisition to procure the raw materials from external sources. the production planning run performs the following activities: • The production planning run first determines the independent requirement for the finished product. If planning takes place on a single level. the production planning run determines the requirements again. If sufficient stock or receipt quantity is not available. Dependent requirements are requirements that are derived from the BOM structure.SCM230 Lesson: Transactional Data used in Supply Network Planning Figure 75: Production Planning Run Overview: PPM Explosion From the point of view of a Bill of Material (BOM). The BOM of the planned order for each assembly is exploded and dependent requirements are generated for the raw materials. If sufficient stock or receipt quantity is not available to meet this requirement. which can include sales orders and planned independent requirements. and dependent requirements are generated for the assemblies.

PP/DS deletes SNP planned orders within the production horizon and external procurement within the stock transfer horizon. The settings in the product master override the global settings. To prevent this. Automatic PP/DS planning only includes requirements that are within the PP/DS horizon. During this conversion. If these indicators are not set. sales orders. Both horizons can overlap to define an area where SNP may plan alongside PP/DS. The Production Planning run deletes all non-fixed SNP planned orders that have a finish date within the PP/DS horizon and creates PP/DS planned orders for the requirements that are within the PP/DS horizon. All rights reserved. 2005/Q2 . You can define both horizons for each product in the location-specific product master on the PP/DS tab page. starting from today’s date. you have to convert the SNP planned orders into fixed PP/DS orders before the PP/DS planning run. If SNP planned orders include requirements outside the PP/DS horizon for example.Unit 2: Master Data and Transaction Data in SNP SCM230 Figure 76: How SNP and PP/DS Orders Are Integrated The PP/DS horizon and SNP production horizon are defined in calendar days. The product master also includes the Firm production and Fix transports settings. you can set whether or not you want unfixed or fixed orders to be created with or without a conversion 134 © 2005 SAP AG. SNP planned orders can only be created and changed in SNP. You can trigger this conversion interactively from the product view or schedule a periodic background conversion in PP/DS. The PP/DS horizon can be defined globally in the planning version definition. or releases for stock transfers. such as planned independent requirements. The Supply Network Planning run only creates SNP planned orders with finish dates that are outside of the SNP horizon. PP/DS planned orders only in PP/DS. these requirements are deleted during the PP/DS planning run and no PP/DS planned orders are created.

SNP planned orders contain only the basic production dates rather than specific operation schedules. that are needed to execute production. Figure 77: Converting Planned Orders in SAP SCM Planned orders are used to plan the in-house production of a material. Similar to every SAP ECC manufacturing order. PP/DS planned orders already contain all production dates and times. 2005/Q2 © 2005 SAP AG. such as printing of order documents and displaying confirmation messages. 135 . If production planning takes place in SAP SCM PP/DS. a corresponding ECC manufacturing order is created in ECC. If the conversion indicator has been set in SAP SCM. You can also choose the lot sizing procedure that you want to use to create the orders and whether or not you want the SNP sources of supply to be adopted. To select the conversion function. All rights reserved. These planned orders also contain the dependent requirements for both SCM and non-SCM components. the planned orders have to be converted into manufacturing orders from SAP SCM.SCM230 Lesson: Transactional Data used in Supply Network Planning indicator. The only difference between an SAP SCM manufacturing order and an SAP SCM planned order is the conversion indicator. The corresponding ECC planned orders contain only the basic production dates rather than specific operation schedules. Alternatively. This order adopts the production dates that were determined in SAP SCM. Procurement of these components can then be planned in SAP ECC based on these dependent requirements. it also contains all the functions. go to Production Planning → Environment → Conversion of Supply Network Planning → Production Planning in Background. Both SNP and PP/DS planned orders can be transferred to the SAP ECC system. The finish date of the SNP planned order is used to schedule the dates.

a purchase requisition is created without a source of supply. must be assigned to the purchase orders in this step. you can use purchase requisitions or scheduling agreement releases. Where the purchaser performs the conversion is dependent on the system in which the source determination takes place. a purchase requisition is created with a source of supply. If there are valid transportation lanes. External Procurement Figure 78: Purchase Requisitions and Purchase Orders To plan procurement for externally procured materials. The conversion can be performed in either SAP ECC or SAP SCM. 2005/Q2 . such as the supplier. 136 © 2005 SAP AG. A source of supply. All rights reserved. The purchase requisitions are converted into purchase orders in purchasing.Unit 2: Master Data and Transaction Data in SNP SCM230 SNP planned orders cannot be converted to SAP ECC manufacturing orders from SAP SCM. If there are no valid transportation lanes.

• • SAP SCM Production Planning generates planned receipts. All rights reserved. you can consume the SAP ECC sales orders in both systems. or in Sales & Operations Planning. You can plan the sales quantities in SAP SCM Demand Planning and release them to SAP SCM Production Planning. You can plan the demand quantities in CO/PA. Depending on the strategy configured. in Flexible Planning. You can transfer SNP planned orders to SAP ECC and convert them into production orders.SCM230 Lesson: Transactional Data used in Supply Network Planning Integrating Transaction Data Between ECC and SAP SCM Figure 79: Integration of Transaction Data Between ECC and SAP SCM There are several options for creating planned independent requirements in SAP SCM: • • You can create planned independent requirements in SAP ECC demand management and transfer these requirements to the SAP SCM system. transfer them to demand management. or not at all. and then transfer them from there to the SAP SCM system. such as planned orders. and stock transport requisitions. 2005/Q2 © 2005 SAP AG. purchase requisitions. You can send PP/DS planned orders directly to SAP ECC as production orders. You can convert purchase requisitions into purchase orders by purchasing in ECC or by SAP SCM. You can transfer these planned receipts to execution systems directly. 137 . periodically.

Unit 2: Master Data and Transaction Data in SNP SCM230 You can use SAP SCM deployment or the Transport Load Builder (TLB) to convert stock transfers into SAP ECC stock transport orders. Deliveries and transport orders are created and transferred from TP/VS (Transportation Planning and Vehicle Scheduling). All rights reserved. 2005/Q2 . 138 © 2005 SAP AG.

SCM230 Lesson: Transactional Data used in Supply Network Planning Lesson Summary You should now be able to: • Identify the transactional data used in SNP • Describe the process for transaction data integration 2005/Q2 © 2005 SAP AG. 139 . All rights reserved.

All rights reserved. 2005/Q2 .Unit Summary SCM230 Unit Summary You should now be able to: • Identify the Master Data objects for a supply chain • Create transportation lanes • Identify the product and material master data needed for SNP planning. • Identify the resource master data in SNP • Define the various types and categories of resources • Navigate in the Production Process Model • Compare PP/DS and SNP planning • Explain the differences between the production process model and production data structure • Navigate in the Quota Arrangement • Describe the various planning methods • Identify the transactional data used in SNP • Describe the process for transaction data integration 140 © 2005 SAP AG.

What are they? 2. A B C D E Quota arrangement Prioritization Costs Delivery Date All of the above Time streams are the same as a factory calendar. Define the locations where material is to be stored. Determine whether this statement is true or false. A B C D SAP ECC SAP SCM OLTP systems APO Core Interface Transportation lanes enable you to: Choose the correct answer(s). 141 . Which of the following is used to determine a source of supply. □ □ □ □ 3. Create an SCM time stream. □ □ True False 2005/Q2 © 2005 SAP AG. Choose the correct answer(s). Master data objects for the supply chain are usually created in: Choose the correct answer(s). Transfer customer master records to SAP SCM.SCM230 Test Your Knowledge Test Your Knowledge 1. □ □ □ □ 4. □ □ □ □ □ 5. The master data record of a transportation lane consists of two main views. All rights reserved. A B C D Define product procurement parameters.

142 © 2005 SAP AG. Fill in the blanks to complete the sentence. Fill in the blanks to complete the sentence. □ □ □ □ 8. Transfer a transportation lane that already exists in SAP ECC to SCM. the and are grouped together for the PP/DS plan in a production process model (PPM). Fill in the blanks to complete the sentence. Transfer a purchasing info record from ECC to SCM. whereby a transportation lane is created automatically. multi-activity and . A B C D E Create them directly in SCM. Determine whether this statement is true or false. □ □ True False 11. Which of the following methods cannot be used to create transportation lanes in the SAP SCM system? Choose the correct answer(s). Copy an existing transportation lane in SCM. Location-specific product master data in SNP includes information on: Choose the correct answer(s). A B C D Lot-sizing methods for a product Storage capacity of the plant Physical attributes of the product Quota arrangements for several products in the location Resources can be defined as single-activity. In SAP SCM.Test Your Knowledge SCM230 6. Bucket resources must be created directly in SAP SCM. 2005/Q2 . □ □ □ □ □ 7. 9. Create them in mass using one existing lane in SCM as a template. the optimizer considers as normal capacity. 12. All rights reserved. In SAP SCM. Which resource types can be used in SNP? 10.

Determine whether this statement is true or false. 14. When automatically determining the source of supply. Copy an existing SNP PPM. □ □ True False 2005/Q2 © 2005 SAP AG. How does the SNP PPM generation determine which products to include in the SNP PPM? Choose the correct answer(s). the system treats the as a hard constraint. Which of the following are ways to create an SNP PPM? Choose the correct answer(s). Fill in the blanks to complete the sentence. The demand program consists of and/or . □ □ □ □ A B C D Create it manually. Fill in the blanks to complete the sentence. 17. Transfer it from the BOM and routing in ECC. 19. SAP SCM planned orders can be converted to SAP ECC manufacturing orders. 143 . Fill in the blanks to complete the sentence. □ □ □ □ A B C D All components in the PP/DS PPM Those components that are SCM-relevant You mark them in the SDP Relevance field in the product master. Convert a PP/DS PPM. Operations and activities in the SNP plan correspond exactly to those in the PP/DS plan. □ □ True False 15.SCM230 Test Your Knowledge 13. All rights reserved. A can be used in the production process model of an SNP plan to control scheduling. 18. Determine whether this statement is true or false. None of the components from the PP/DS PPM 16.

and lane priorities. The master data record of a transportation lane consists of two main views. costs. 6. 3. cost functions. and delivery dates to determine a source of supply. Procurement view Transport view for stock transfer Master data objects for the supply chain are usually created in: Answer: A Master data objects are normally created in SAP ECC. All rights reserved. 4. Answer: E You can use quota arrangements. Time streams are the same as a factory calendar. prioritization. 144 © 2005 SAP AG. What are they? Answer: • • 2. Transportation lanes enable you to: Answer: A Transportation lanes enable you to define the product procurement parameters such as lot sizes. unit costs. Which of the following is used to determine a source of supply.Test Your Knowledge SCM230 Answers 1. Answer: False A time stream is a combination of a factory calendar together with specific working times for each day. 2005/Q2 . so it is not possible to transfer them to SAP SCM. 5. Which of the following methods cannot be used to create transportation lanes in the SAP SCM system? Answer: B Transportation lanes do not exist in ECC.

11. 12. 8. Therefore. Answer: capacity variant 01 Normal capacity is also known as standard available capacity. Bucket resources must be created directly in SAP SCM. Answer: bill of material. Answer: True Bucket resources do not exist in ECC and only single. the bill of material and routing are grouped together for the PP/DS plan in a production process model (PPM). routing 13. 145 . Which resource types can be used in SNP? Answer: The resource types that can be used by SNP are: • • • Single/multi-mixed resources Transportation resources Bucket resources 10. Location-specific product master data in SNP includes information on: Answer: A Location-specific product master data includes information on lot-sizing methods used for a product.SCM230 Test Your Knowledge 7. In SAP SCM. you must create bucket resources directly in SCM. single mixed. A bucket offset can be used in the production process model of an SNP plan to control scheduling. and multi-mixed resources are transferred through the CIF. multi-. multi-activity and bucket resources. Resources can be defined as single-activity. Answer: bucket offset 2005/Q2 © 2005 SAP AG. the optimizer considers capacity variant 01 as normal capacity. Answer: bucket resources 9. All rights reserved. In SAP SCM.

Answer: due dates If the source of supply that was chosen according to quota arrangement. and costs cannot deliver on time. How does the SNP PPM generation determine which products to include in the SNP PPM? Answer: C You mark them in the SDP Relevance field in the product master. When automatically determining the source of supply. Answer: False Operations and activities in the SNP plan do not necessarily correspond exactly to those in the PP/DS plan. 18. and checks whether the due dates will be met at this source of supply. copy an existing SNP PPM.Test Your Knowledge SCM230 14. and costs. Which of the following are ways to create an SNP PPM? Answer: A. the system selects the next best procurement alternative in terms of quota arrangement. Answer: False SNP planned orders cannot be converted to SAP ECC manufacturing orders from SAP SCM. Operations and activities in the SNP plan correspond exactly to those in the PP/DS plan. the system treats the due dates as a hard constraint. C You can create an SNP PPM manually. B. priority. 17. 16. SAP SCM planned orders can be converted to SAP ECC manufacturing orders. Answer: planned independent requirements. or convert a PP/DS PPM. 2005/Q2 . 146 © 2005 SAP AG. Only PP/DS PPMs can be transferred from SAP ECC. 15. The plans used for SNP are usually less detailed. priority. You can convert a PP/DS planned order to an SAP ECC manufacturing order from SAP SCM by setting the conversion indicator. sales orders 19. All rights reserved. The demand program consists of planned independent requirements and/or sales orders.

............... Unit Objectives After completing this unit....... 147 .................... you will be able to: • • • • • Define the configuration settings for SNP Planning Define the configuration settings for SNP planning books and data views Create planning books and user-specific planning views Create and copy macros Navigate in the planning table Unit Contents Lesson: Planning Areas........ Next you will create and copy macros and finally learn to navigate in the planning table.......................................................................169 Lesson: Macros and Alerts ...........148 Exercise 8: Creating Planning Versions ..................................201 2005/Q2 © 2005 SAP AG.................... All rights reserved.......... You will create planning books and user-specific data views............................. planning areas..164 Exercise 9: Creating Planning Books ......176 Exercise 10: Create Macros ....................161 Lesson: Planning Books ..........................................183 Lesson: Navigation in the Planning Table .............. and versions...Unit 3 SNP Configuration Unit Overview In this unit you will learn to define the configuration for SNP planning including creating planning object structures......194 Exercise 11: Selections and Interactive Planning ..........................

These settings are made by the project team and are not accessible to the users of the system. You will learn the parameters that are assigned to the planning area and how to recognize the difference between orders and time series in liveCache. you will be able to: • Define the configuration settings for SNP Planning Business Example As a member of the project team at Precision Pump Company. You will need to understand the configuration and be able to explain the data relationships. you must configure your company’s SNP planning. All rights reserved. Definition and Parameters Figure 80: Data Structures for SNP Configuration 148 © 2005 SAP AG. 2005/Q2 .Unit 3: SNP Configuration SCM230 Lesson: Planning Areas Lesson Overview This lesson will give you an overview of the planning area configuration for Supply Network Planning. Lesson Objectives After completing this lesson.

All rights reserved. Time series are saved in the planning area version. The planner does not maintain the planning area. This is based on the information or a subset of information of a planning area. You can also define time series key figures so that you can save information relevant for planning. and macros for the planners. You configure which order data is represented in which key figure and which order categories are planned by SNP. dynamic safety stock. it determines whether the planning results are saved in time series objects or order objects. planning horizons. key figures. time bucket profiles. Here. • • • Figure 81: Definition of a Planning Area A planning area is the central data structure of Demand Planning and Supply Network Planning. 149 . and days' supply or constraints. The planning area contains the planning characteristics and key figures and must be initialized for each planning version. such as planned stock. The most important tool for the SNP planner is the planning book. A planning area groups together the parameters that define the scope of the planning activities. Order data is saved in the version. The versions contain version-specific master data and transaction data.SCM230 Lesson: Planning Areas The above graphic shows the data model for SNP configuration: • The SCM master data is assigned to models. You use the planning books and data views to configure interactive planning for various user groups. In addition. you define characteristics. 2005/Q2 © 2005 SAP AG. Master data created in SAP SCM must be assigned explicitly to a model. Master data from the OLTP systems is automatically transferred to model 000. Versions can be created for each model. The use of key figures in planning is configured in the planning area.

The permitted values or specific features of the characteristics are known as the characteristic values. could have three values: London. and PPM. the characteristic. As Demand Planning is performed at other levels. For example. Location. and New York. Delhi. Typical characteristics are: Product. Demand Planning or Supply Network Planning master data includes the permitted values of the characteristics. location. 150 © 2005 SAP AG. you need to have separate planning areas for SNP and DP. The characteristics for SNP are predefined and cannot be modified.Characteristics Characteristics are used for selecting and navigating in planning. Resource. 2005/Q2 .Unit 3: SNP Configuration SCM230 Figure 82: Definition of a Planning Area . A planning area that is used for SNP can only contain the standard SNP characteristics. All rights reserved. such as brand or region.

151 . In Demand Planning. An APO aggregate contains a subset of the characteristics contained in the master planning object structure. All rights reserved. 2005/Q2 © 2005 SAP AG. You need specific characteristics for Supply Network Planning. you can see standard characteristics and characteristics that you create in the Administrator Workbench. characteristics-based forecasting. and the BOM explosion in Demand Planning. Characteristics determine the levels on which you can plan and save data. The default master planning object structure 9ASNPBAS for planning contains different aggregates.SCM230 Lesson: Planning Areas Figure 83: Assigning Characteristics to the Planning Area A master planning object structure contains characteristics that can be planned for one or more planning areas.

As well as standard key figures. a supplier's feasible delivery quantities. The base unit of measure is only used for the aggregated display of several products' planning data. You define the base unit of measure for the planning area in the general parameters. you can now define your own key figures too and include them in the planning area. or years. This information is then stored as time series. for example. and not as orders. and planned orders are planned in key figures. because orders from liveCache can be displayed and planned here. All rights reserved. a figure in the Production (planned) key figure corresponds to one or more planned orders for the Product and Location characteristics. planned stocks. You are thus defining that. This is called an order key figure. Here. safety days' supply. The storage buckets profile defines the time-based sorted list of the planning area's time series. the storage buckets profile does not come into play. and this is used to identify the standard characteristics in the planning area. you determine whether you need the time series in weeks. The storage buckets profile also contains a time stream with a calendar for subdividing months into weeks. You can also define time series key figures in the planning area if you want to store additional information for planning in liveCache. months. or maximum and minimum values for planning.Unit 3: SNP Configuration SCM230 Assigning Key Figures Figure 84: Basic Parameters of the Planning Area We now come to the definition of planning areas. If the planning area you are using is purely an order planning area. Planning or transaction data such as independent requirements. For this purpose. such as time-dependent safety stocks. a 1:1 conversion is made. The standard planning areas are provided with the base unit of measure "Piece". 2005/Q2 . define in the planning area the assignment of the transaction data category to the key figure. The master planning object structure is assigned to the planning area. If no conversion exists between the planning area base unit of measure and the product base unit of measure. 152 © 2005 SAP AG. stock on hand.

Key figure data is then saved as orders if semantic 000 is entered in the detail view of the key figures in the planning area. copy the standard planning area. All rights reserved. 153 . 9ASNP02. and add your time series key figures to it. you do not (for example) provide a planning area during the release from Demand Planning. As a result.SCM230 Lesson: Planning Areas Figure 85: Assigning Key Figures to the Planning Area Supply Network Planning gives you two options for storing data: You specify the storage method for each key figure separately in the planning area: • In liveCache time series objects. the data is stored as orders. the data is stored in time buckets without reference to orders. In liveCache order objects. A key figure is then saved in time series if semantic 001 is entered in the detail view of the key figures in the planning area. • Standard planning areas: • • • • • 9ASNP01 Propagation (not used live) 9ASNP02 Standard planning area without time series 9ASNP03 Planning with scheduling agreements 9ASNP04 Optimization with variable constraints in time series 9ASNP05 Planning area with time series for extended safety stock planning If you want to store your own time series key figures in SNP. Time series are saved for the planning area and the version. Orders with no reference to the planning area are only stored in the version. 2005/Q2 © 2005 SAP AG.

PP/DS. All rights reserved. Figure 87: Assigning Orders to SNP Key Figures 154 © 2005 SAP AG. for example. In this way.Unit 3: SNP Configuration SCM230 Figure 86: liveCache Orders All transaction data from the OLTP systems. and standard SNP is saved in liveCache as orders with different ATP categories. sales orders have category BM. SNP planned orders have category EE. The ATP categories correspond to the MRP elements in SAP ECC. 2005/Q2 . and purchase requisitions have category AG.

order key figures (000). or time series key figures (001).SCM230 Lesson: Planning Areas You can group ATP categories together into ATP category groups. You enter the ATP category groups in the key figure of the planning area. 2005/Q2 © 2005 SAP AG. the key figure is read from the InfoCube after selection and cannot be planned. The remaining semantics are not used (propagation). 155 . If you enter an InfoCube in the InfoCube column. In SCM 4. Use the semantics to define whether key figures are to be created as InfoCube key figures (002). you can also distinguish between firmed and unfirmed orders. define that sales orders. You can also use ATP category groups to configure which orders in the requirement strategies consume independent demands. for example. Every order in liveCache has three semantically different quantity fields: • • • Confirmed quantity Requirement quantity Original quantity In APO 3.0 you can define the semantics separately for each category in a category group. In this way you can. You cannot write into an InfoCube directly from interactive planning. quotations. Standard Order Planning Structure Figure 88: Defining Key Figures in the Planning Area The above graphic shows the detailed view of the key figure tab page in the planning area.1 and earlier releases you defined the semantics of a planning area per category group. The system then reads all orders of the ATP category groups for each bucket and writes the sum total of the orders to the key figure time bucket profile. All rights reserved. and requests for quotation will be shown summed up in the sales order key figure.

such as calculations or delete existing key figures that are not required. products are displayed in their base unit of measure in interactive planning. The system comes with a set of standard categories that represent the SAP ECC elements. Figure 89: The Standard Order Planning Structure Planning area 9ASNP02 is the standard planning area for purely order-based SNP planning. copy the area and insert time series key figures. Category: Categories describe the different types of stock. should the value at the detailed level be deleted or retained? The Persistency Indicator determines the level on which time series are stored. receipts. To modify this planning area. Additional categories can be created for non-SAP systems. Under Aggregation you define the use of the key figure in hierarchical planning: Should the key figure be aggregated and. capacity consumption. for instance. e. if so. and forecasts in the SCM system. 156 © 2005 SAP AG. which is not the unit of measure of the planning area. PP/DS planned orders and production orders are. 2005/Q2 . All rights reserved. This indicator is set by default. If you set the UOM indicator. demands.g. You use category groups to present totals of transaction data from various categories in summarized form. displayed in the Production (confirmed) key figure.Unit 3: SNP Configuration SCM230 The key figure function controls the function of the key figure for planning.

2005/Q2 © 2005 SAP AG. You only need to initialize the planning ares once for each version and all master data changes are transferred automatically. In this instance. If you initialize planning areas with time series key figures. the system writes SNP-specific master data tables and defines memory space for time series in liveCache. SNP-specific master data tables are written. If you initialize planning areas consisting of only one order key figure.SCM230 Lesson: Planning Areas Figure 90: Defining a Planning Area The planning area must be initialized for each version. All rights reserved. 157 . you need to define the initialization horizon. for both order and time series key figures.

and end date. /SAPAPO/TS_PAREA_INITIALIZE. 158 © 2005 SAP AG. This deletes “obsolete” time buckets and adds new buckets for the future. You initialize the planning area by right-clicking on the planning area and choosing Create time series objects or by executing the report.Unit 3: SNP Configuration SCM230 Version Management Figure 91: Initializing the Planning Area for the Version For planning areas with time series key figures. All rights reserved. you enter the planning version. 2005/Q2 . As of SAP SCM 4. start date. you can also define the horizon according to specific key figures. You can reinitialize the planning area periodically on a rolling basis.0.

Next. 2005/Q2 © 2005 SAP AG. 159 . The SNP planners then revise these copies within their individual versions. the version that is copied back last overwrites the data from all the previously copied versions. the revised planning versions are copied back into the active version.SCM230 Lesson: Planning Areas Figure 92: Version Merge First. Each SNP planner has his or her own range of planning data (product and location). There are four SNP key figures that you can copy from an active planning version back into the active version. All rights reserved. You can limit your selection to location products and SNP planners. SNP planners separate the master data and transaction data of the active version and copy it separately into inactive versions. when individual planning versions are copied back into the active version. PP/DS order data cannot be copied. Caution: Make sure the data of the different SNP planners does not overlap because. Use the function for merging planning versions to copy selected SNP key figures from a planning version back into the active version. The SNP key figures are as follows: • • • • Planned Production SNP Distribution Receipt Deployment Distribution Receipt Safety Stock You choose the SNP key figures that you want to copy back into the active version in transaction /SAPAPO/VERMER.

2005/Q2 . The integration with the OLTP systems must be canceled before copying back the key figures. All rights reserved. If you run this process online. The system generates a log file to store messages about the copy process. 160 © 2005 SAP AG. Restriction: The copy process ignores scheduling agreement schedule lines. the log file is displayed automatically once copying is complete.Unit 3: SNP Configuration SCM230 This process is not a copy in the strict sense of the word: The SNP key figures concerned are first deleted from the active version and then recreated in it from the inactive planning versions.

Create a planning version called SNP-## with the description GR01 SNP Planning for your SNP-## model with SNP net change planning active and the local time zone. Versions will allow your planners to work in simulation mode without affecting the active plan. Initialize your version for planning area 9ASNP02. Task: 1. 2. 2005/Q2 © 2005 SAP AG. you will be able to: • Create a liveCache version • Create a Time Series version Business Example As the Planning Manager at the Precision Pump Company. 161 .SCM230 Lesson: Planning Areas Exercise 8: Creating Planning Versions Exercise Objectives After completing this exercise. You will need to know how to create a liveCache version and also how to create the Time Series version associated with it. you need to create versions for your planners to use. All rights reserved.

All rights reserved. a) b) c) d) e) f) 2. Select your SNP-## model. and choose Planning version from the menu. a) Select Advanced Planning and Optimization → Master Data → Planning Version Management → Model and Version Management. choose Initialize planning version from the context menu. Create a planning version called SNP-## with the description GR01 SNP Planning for your SNP-## model with SNP net change planning active and the local time zone. Click Click to create and save your liveCache version. to return to the main menu. Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Administration of Demand Planning and Supply Network Planning. Enter SNP-## as the planning version and click . Initialize your version for planning area 9ASNP02.Unit 3: SNP Configuration SCM230 Solution 8: Creating Planning Versions Task: 1. Right-click on planning area 9ASNP02. click theCreate Model/Plan. Enter SNP-## as the name of the version and GR## SNP Planning as the description. 2005/Q2 . In the SNP section select: Change Planning Active indicator and the Local Time Zone indicator. b) c) 162 © 2005 SAP AG. Version icon .

SCM230 Lesson: Planning Areas Lesson Summary You should now be able to: • Define the configuration settings for SNP Planning 2005/Q2 © 2005 SAP AG. 163 . All rights reserved.

You will learn the parameters that are assigned to the planning books and how to create the data views. you will be able to: • Define the configuration settings for SNP planning books and data views Business Example As a member of the project team at Precision Pump Company. you must configure planning books and data views for groups of SNP planners. You need planning books and data views for planning in SNP. The planning book combines characteristics and key figures of the planning area that 164 © 2005 SAP AG. Planning Books and Views Figure 93: Planning Books and Data Views The above example shows the standard scenario for SNP planning from order key figures. To do this. you need to know the characteristics and key figures that the SNP planners require to be able to perform their daily planning tasks. Lesson Objectives After completing this lesson.Unit 3: SNP Configuration SCM230 Lesson: Planning Books Lesson Overview This lesson will give you an overview of the planning book and data view configuration for Supply Network Planning. The data view is the most important tool for the SNP planner. 2005/Q2 . All rights reserved.

To find these planning books. and. Supply Network Planning provides standard planning books. You create planning books for interactive planning. modifying. Private means that only the author can use the view. select Define planning book from the current settings in Demand Planning or from Customizing for Demand Planning. Select Complete to do this. Figure 94: Creating a User-Specific Planning View You create a view for the planning book. You enter a text for the view. A planning book contains one or more data views. The data view text appears in the planning book shuffler. or Changeable (3). where required. enter Private (1). therefore. but it can be personalized and copied. is a preselection of characteristics and key figures. A wizard will guide you through the necessary steps. Protected (2). Data views predefined by SAP for the standard planning areas are provided as a template. and creating planning data. As the status. You need at least one view for planning. You can save the planning book once you have completed all of the tab pages. The planning book. Changeable data views can be modified by all users who have Customizing authorization. Data views control the layout of the planning table and are the SNP planner's most important tool for analyzing. for Collaborative Planning.SCM230 Lesson: Planning Books can be used in the data views. Protected means that the view cannot be changed by other users. right-click on Planning Area and select Details. After you have made your entries on one tab page. All rights reserved. choose Continue to go to the next. 2005/Q2 © 2005 SAP AG. To create a planning book. for mass processing in the background. to the left beside the interactive planning screen. The system saves the planning book and adds the standard key figures to execute the selected functions. 165 .

Unit 3: SNP Configuration SCM230 To use two tables in one data view. The display for the first week is in days. 166 © 2005 SAP AG. the time buckets profiles can only contain buckets from the storage buckets profile on which the planning area is based. You define the planning horizon and periodicity by entering time buckets profiles. for example. You specify the start of the future planning horizon by entering either a date or an offset. Of these three months. weeks. If you are working with time series. see SNP94(2) data view in planning book 9ASNP94. 2005/Q2 . All rights reserved. where you can define the key figures for the second table. You use the time buckets in the future planning buckets profile to define that you are working with days. The time buckets profile defines the buckets for planning. select the indicator next to the second table title. enter a text for this table as well. For an example of this double table concept. or months. Figure 95: Time Buckets Profile for DP and SNP The time buckets profile defines: • • • The time buckets are used for planning The number of buckets of each bucket (period) type are used The sequence in which the buckets appear in the planning table The example shown above represents a time horizon in months. An additional tab page is displayed in the planning book maintenance wizard. the first two are displayed in weeks. The offset refers to the number of days between today's date and the start of the future planning horizon.

choose Period list. 167 . All rights reserved. You make entries in the Number and Display periodicity columns. For time series key figures. The following rows define the different sections of the horizon. 2005/Q2 © 2005 SAP AG. The content of the other columns is displayed automatically when you press Enter.SCM230 Lesson: Planning Books The first row defines the entire length of the time horizon. To see exactly which time buckets will be displayed. you can only use periodicities that are also defined in the storage buckets profile on which the planning area is based.

2005/Q2 .Unit 3: SNP Configuration SCM230 168 © 2005 SAP AG. All rights reserved.

Which data views are defined for this planning book. and macros available to planners. You will use the planning books and data views to define the planning horizon. Look at the structure of planning book 9ASNP94. as the Planning Manager. you. you should create a planning book for them to access over the Internet. Which time buckets profile is assigned to the data views? Where do you configure the time buckets profile for planning? 2. 1.SCM230 Lesson: Planning Books Exercise 9: Creating Planning Books Exercise Objectives After completing this exercise. Task 1: 1. Then create a SUPPLIER data view and enter PLANNING OF DELIVERY QUANTITIES as the description. key figures. need to define the scope of the planning activities. Task 3: In order to collaboratively plan with your suppliers. Which standard planning books are assigned to planning area 9ASNP02? Task 2: 1. In Planning area 9ASNP02 create your own planning book called SUP## for planning suppliers. Enter SUPPLIER as the text for the planning book and include the Supply Network Planning standard functions. Ensure that the DistrDemand (Planned) and DistrReceipts (Planned) key figures and the APO Product and APO . you will be able to: • Create Planning Book • Create user specific planning views Business Example At the Precision Pump Company.Location characteristics from the planning area are included in the planning book. Assign the 9ASNP time buckets profile to the future TB profile ID and maintain an initial column as the left outer Continued on next page 2005/Q2 © 2005 SAP AG. 169 . All rights reserved.

Unit 3: SNP Configuration SCM230 column. Now change the planning book by creating an auxiliary key figure called INVENTORY. All rights reserved. which you also assign to the data view. Note: Auxiliary key figures are only used for displaying in the planning table. The data in this key figure is not saved. Task 4: 1. Include the chosen DistrDemand (Planned) and DistrReceipts (Planned) key figures from the planning book in the data view. 2005/Q2 . 170 © 2005 SAP AG. Complete the planning book.

Right-click on planning area 9ASNP02 and select Detail from the context menu. are located in the Linked planning books folder: • • • • • 9ASNP94.SCM230 Lesson: Planning Books Solution 9: Creating Planning Books Task 1: 1. Time buckets profile 9ASNP is assigned to both of the planning book data views. On the Data view tab page. distribution resource planning 9AVMI. SNP interactive planning for CTM b) Task 2: 1. interactive planning 9ASNPHIER. Continued on next page 2005/Q2 © 2005 SAP AG. 171 . Enter planning book 9ASNP94 and click Edit . Which time buckets profile is assigned to the data views? a) b) c) d) Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Define Planning Book. Which data views are defined for this planning book. Which standard planning books are assigned to planning area 9ASNP02? a) Use the menu path Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Administration of Demand Planning and Supply Network Planning. All rights reserved. Look at the structure of planning book 9ASNP94. you find data view SNP94(1) SNP PLAN and (using F4 in the data view field) SNP94(2) CAPACITY CHECK. product group planning 9ADRP. among others. Vendor Managed Inventory 9ACTM02. The following planning books.

Enter SUPPLIER as the text for the planning book and include the Supply Network Planning standard functions. this one is set to 15 weeks. All rights reserved. b) In contrast to the standard time buckets profile.Unit 3: SNP Configuration SCM230 2. you should create a planning book for them to access over the Internet. Assign the 9ASNP time buckets profile to the future TB profile ID and maintain an initial column as the left outer Continued on next page 172 © 2005 SAP AG. 1. Task 3: In order to collaboratively plan with your suppliers. In Planning area 9ASNP02 create your own planning book called SUP## for planning suppliers. Where do you configure the time buckets profile for planning? a) You will find a definition of the time buckets profile under: Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Maintain Time Buckets Profile for Demand Plng and Supply Network Plng.Location characteristics from the planning area are included in the planning book. Then create a SUPPLIER data view and enter PLANNING OF DELIVERY QUANTITIES as the description. 2005/Q2 . Ensure that the DistrDemand (Planned) and DistrReceipts (Planned) key figures and the APO Product and APO .

to Add all key figures from the planning area to the data view. Choose Click to go to the next tab page. All rights reserved. Enter SUPPLIER as the planning book text and 9ASNP02 as your Planning area. It is therefore skipped in the creation phase. 173 . d) e) Drag and drop the Distribution Demand (Planned) and Distribution Receipt (Planned) key figures from the planning area to the planning book. Changes can only be made on the Key fig. Specify 9ASNP as the future Time buckets profile ID and L as the initial column. and confirm Click the dialog box. Choose to go to the next tab page. k) l) m) n) to save the planning book and data view. Include the chosen DistrDemand (Planned) and DistrReceipts (Planned) key figures from the planning book in the data view. a) b) c) Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Define Planning Book. Confirm all the information messages you receive. attributes tab page once the planning book is complete.SCM230 Lesson: Planning Books column. On the Data View tab page. Enter SUP## as your planning book and click . Choose to go to the next tab page. f) g) h) i) j) Drag and drop the APO Product and APO . Choose to go to the next tab page. enter SUPPLIER as the view and PLANNING OF DELIVERY QUANTITIES as the description and in the title of the first table. Press the ENTER key and select Supply Network Planning as the standard function to be included. Continued on next page 2005/Q2 © 2005 SAP AG. Complete the planning book.Location characteristics from the planning area to the planning book.

enter INVENTORY by overwriting the existing key figure. Now change the planning book by creating an auxiliary key figure called INVENTORY. Note: Auxiliary key figures are only used for displaying in the planning table. Click on the “Key figures” tab page on the far right of the screen. to save the planning book and data view. Drag the INVENTORY key figure from the right-hand to the left-hand side of the book. In the key figure field. Hit ENTER and click . All rights reserved.Unit 3: SNP Configuration SCM230 Task 4: 1. a) b) c) d) e) f) g) h) Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Define Planning Book. which you also assign to the data view. The data in this key figure is not saved. . 2005/Q2 . Click the dialog box. and confirm 174 © 2005 SAP AG. Enter your planning book SUP## and click Edit Click on the “Key fig. attributes” tab page.

SCM230 Lesson: Planning Books Lesson Summary You should now be able to: • Define the configuration settings for SNP planning books and data views 2005/Q2 © 2005 SAP AG. 175 . All rights reserved.

All rights reserved. The horizon for which a macro is executed can be restricted to one or more time 176 © 2005 SAP AG. Lesson Objectives After completing this lesson. You will learn how to create and copy macros. you must use macros to locate the exceptional situations and then an alert profile to bring it to his or her attention. Working with Macros Figure 96: Macro Functions Macros (formulas) can be used to perform many functions. 2005/Q2 . You can customize macros to run your own cross-bucket calculations and thereby influence planning. You will create a macro to generate alerts and create an alert profile to filter the alerts that you want to view. for example calculating the stock balance. total receipts. and total demand. To do this.Unit 3: SNP Configuration SCM230 Lesson: Macros and Alerts Lesson Overview This lesson will help you understand the functions of macros in SNP. you will be able to: • • Create planning books and user-specific planning views Create and copy macros Business Example As a member of the project team you must ensure that exceptional situations are brought to the planner’s attention.

You can define a macro either for an entire planning book or for a specific data view. The MacroBuilder works with an element window. column. Enter transaction =ADVA to access the generated ABAP code. All rights reserved. 177 . enter transaction SE38 to open the initial screen of the ABAP Editor. If you cannot compile the macro. cell. A Macro can temporarily store the results of a step in a row. You can use Drag&Drop to transfer elements from here into your work area. macro steps. You can also copy macros from existing books to a new book. or schedule macros for execution by mass processing. A macro can also be used to trigger an alert in the Alert Monitor to inform the planner about specific company situations. We recommend that you create a macro for the data view. or macros. You can execute macros interactively.SCM230 Lesson: Macros and Alerts buckets. You can use macros to perform the following functions: Figure 97: Creating a Macro Macros are created in the MacroBuilder in the Customizing or design mode of interactive planning. or variable and use these results exclusively in subsequent iterations. 2005/Q2 © 2005 SAP AG. You can store completed macros in the depot. configure macros for automatic execution.

and days' supply. These are a mixture of Alert macros.Unit 3: SNP Configuration SCM230 Figure 98: Macro Levels Macros are maintained on four levels: • • Level 1: Contains different macros. All rights reserved. You can also use these functions and operators to create your own macros in other planning books and views. Stock below safety stock. safety stock level/reorder point/target stock level. The Start macro determines the number of workdays. and Start macros. Level 2: Enables you to subdivide the calculation operations within a macro into several steps. 178 © 2005 SAP AG. • • SNP Standard Macros for Order Structures A number of standard macros are available in the SNP interactive planning table. The following standard macros are available in the standard planning book 9ASNP94. Stock above target stock. Stock below target stock. SAP has built these macros using the new functions and operators in the MacroBuilder. This corresponds to compounding in mathematical formulae Level 3: Contains the interim results and final results. view SNP94(1). The Alert macros include: Supply shortage. The included Default macros are used to calculate the stock balance. Level 4: Enables you to define the operands and calculation operations. 2005/Q2 . Default macros.

number of workdays in the period) Calculating the reorder point based on product master • REORDER_CALC (product. In SCM 4. offset.1. location. offset. target days' supply. total receipts. location. version. total demand in the period. reorder days' supply. location.SCM230 Lesson: Macros and Alerts Stock balance calculation • STOCK_CALC (total demand. safety stock. total demand in the period. total demand in the period. All rights reserved. Calculating initial stock for the selected location product • INITIAL_STOCK (version) Determining the version for which a key figure's data is to be displayed KEYFS_VERSION (key figure) • KEYFS_VERSION (key figure) Calculating the safety stock. version. number of workdays in the period) 2005/Q2 © 2005 SAP AG. number of workdays in the period) Calculating day's supply • COVER_CALC (stock. 179 . total demand in the period. safety days' supply. the optimizer has a new stock balance macro function STOCK_BALANCE_OPT which stops calculating shortages once the maximum delay has been reached. stock level of previous period). based on product master parameters (the lot size tab page) • SAFTY_CALC (product. reorder point. number of workdays in the period) Calculating the target stock based on product master parameters (the lot size tab page) • TARGET_CALC (product. target stock. version.

Dynamic alerts reflect the current planning situation. to analyze extensive amounts of planning data according to exceptions. they are deleted when the planning transaction is complete.Unit 3: SNP Configuration SCM230 Alert Monitors Figure 99: Using Macros to Generate Alerts The Alert Monitor informs you about exception situations that occur in your plan. You can also create your own dynamic or database alert types. You are then informed about the exceptions or alerts in the Alert Monitor. All rights reserved. instead. run the macros to generate database alerts in the background using mass processing. The alert profile is assigned to each planner in the Alert Monitor. To generate alerts in the background. you need to create a planning view with corresponding macros for mass processing from Demand Planning. All alerts for SNP planning are generated using macros. 180 © 2005 SAP AG. Database alerts show the planning situation as it was when the macro was executed. The alert profile has user-specific selections that limit the alerts to be displayed so that planners only see the ones that are relevant for them. Dynamic alerts are not saved to the database. As a result. 2005/Q2 . This alert type is best suited to interactive planning but is not suitable while generating large numbers of alerts because this hinders performance.

The selection variants can be created based on the object type such as location and product.SCM230 Lesson: Macros and Alerts The Alert Monitor Profile • • • • Assignment of the alert profile to the SCC user profile Selection of the alert types Object selection variants – By object type Priority variants – – Error. information. All rights reserved. such as 10% above the capacity limit. warning. ignore Prioritization according to key figures Maintain your alert profile to monitor alerts from Supply and Demand Planning in APO. A selection variant can be entered for each priority to define the threshold values that cause an alert to be displayed if exceeded. 181 . You enter selection variants to indicate the objects for which you want to display alerts. You can use this profile to hold a user-specific selection of alerts relevant to your work. Figure 100: Alert Monitor Integration 2005/Q2 © 2005 SAP AG.

that is. You can move directly to the problem solving screen by right-clicking the alert. You can access the Alert Monitor from the Supply Chain Cockpit. All rights reserved. There are also customer-specific alerts. You can define your own alerts and send them by e-mail.Unit 3: SNP Configuration SCM230 The Alert Monitor in Supply Network Planning enables you to display and remove alerts for resources and location products. or a surplus or shortage of the target day's supply can also trigger alerts. you can control your supply chain network. 182 © 2005 SAP AG. 2005/Q2 . that is. from the menu. You will always be informed on time to take the necessary precautions. As a result. As a planner or manager. An alert is triggered in the following situations: • • • When a resource is overloaded. when the utilized capacity is less than 50% When there is insufficient supply to meet demands A shortage of safety stock. you need to be prepared to solve any problems that occur. or directly from interactive planning. when utilized capacity exceeds 100% When a resource is not sufficiently loaded.

2. All rights reserved. based on the following formula: Inventory (current period) = Inventory (initial) + Planned distribution receipts (current period) Planned distribution demand (current period). delete the first two steps. Import the Supply Shortage (DB alerts) macro from the SNP94(1) standard data view. Continued on next page 2005/Q2 © 2005 SAP AG. Configure the stock balance macro so that it runs automatically every time a change is made in the planning table. the INVENTORY key figure is an auxiliary key figure. You will need to create a macro to control the calculations. you will be able to: • Describe the functionality of macros • Explain the various levels and standards used for macros • Create a macro for calculation • Create a macro to generate alerts Business Example The Precision Pump Company wants to make a number of calculations in the background. 183 .SCM230 Lesson: Macros and Alerts Exercise 10: Create Macros Exercise Objectives After completing this exercise. Which macros are defined in data view SNP94(1) and what are their roles? Are they executed automatically? Filter for SAP Macro Books. 1. Task 1: 1. Task 2: In your planning book SUP##. This macro should calculate the stock balance for the supplier in all periods. Filter for edited macro books. Create a STOCK BALANCE macro for your SUP## planning book in the SUPPLIER data view. Which means the data cannot be saved so this key figure must be populated with a macro. and adjust the macro for your data view. Create a second macro to generate database alerts when there is a supply shortage (insufficient supply to meet demand) at the supplier.

In the Alert Monitor. Task 4: To ensure that your supplier can readily access the planning data you need to create a selection ID in your new SUP## planning book. and choose alert type Requirement undercoverage (DB alert) (supply shortage). create a purchase requisition of 10 pieces for one month from today for your SNP-## version and product 102-110 at location 1000. Create a selection ID for product 102-110 at your supplier planning location 0000001003 called SUP##. 1. Then check the alerts in the Alert Monitor. store your SNP-## version and a relative time interval of two months. 1. and generate alerts. Test your macros by entering an order. In the Alert Monitor. and set it as your default profile in the Alert Monitor. In the PP/DS product view. you will first need to create an alert profile for SDP alerts. Delete the purchase requisition for product 102-110 at location 1000 and version SNP-## in the product view. 184 © 2005 SAP AG. create an overall profile with an SDP alert profile called SUP##. 2005/Q2 . your SUP## planning book. Check whether the INVENTORY quantity is calculated automatically and accurately (it should be negative in this case). Task 5: In order to view alerts in the Alert Monitor. In the overall profile. you will want to delete the order that you created for testing.Unit 3: SNP Configuration SCM230 Task 3: To ensure that your macro works correctly you should now generate an order. check to see if alerts have been generated. Then execute the alert macro so that in the next exercise you will be able to find the alerts for the negative stocks in the Alert Monitor. and the SUP## characteristic selection. Refresh the alerts and the supply shortage is displayed. 2. Save the SDP alert profile. 1. 1. the SUPPLIER data view. All rights reserved. check the stock balance. assign it to an overall profile. Task 6: Since this was only to test the macros to make sure they were working properly.

Choose Save. Create a STOCK BALANCE macro for your SUP## planning book in the SUPPLIER data view. Reset the filter by opting to filter macro books and then choosing Processed Macro Books. Configure the stock balance macro so that it runs automatically every time a change is made in the planning table. The SNP94(1) data view contains the following standard macros among others: Default macros for automatic execution after each change in the planning table: • Calculation of Stock balance. based on the following formula: Inventory (current period) = Inventory (initial) + Planned distribution receipts (current period) Planned distribution demand (current period). Filter for edited macro books. Continued on next page 2005/Q2 © 2005 SAP AG. and Safety stock level/reorder point/target stock level Start macros for automatic execution after reading the data: • • Determine workdays and layout attributes Directly executable macros (for calculating alerts) Task 2: In your planning book SUP##. This macro should calculate the stock balance for the supplier in all periods. a) Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Macro Workbench. set a filter (Filter Macro Books. Which means the data cannot be saved so this key figure must be populated with a macro. The macros contained in the book will now be displayed on the lower part of the screen. Choose Save. Right-click SNP94(1) and opt to display macros. First. Which macros are defined in data view SNP94(1) and what are their roles? Are they executed automatically? Filter for SAP Macro Books.SCM230 Lesson: Macros and Alerts Solution 10: Create Macros Task 1: 1. a) b) c) d) Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Macro Workbench. 1. SAP Macro Books). All rights reserved. the INVENTORY key figure is an auxiliary key figure. 185 . Days’ supply.

Unit 3: SNP Configuration SCM230 b) c) Right-mouse click the macro book SUP##. Drag from the Elements screen section in the upper left and drop it directly on your STOCK BALANCE macro in the work area. then choose Create in next level. then choose Append. Choose Continue Drag and drop an Operator/Function row from the Elements screen section in the upper left and drop it directly on the last “DISTRIBUTION RECEIPTS (PLANNED)” row. then choose Continue . Drag an Operator/Function row from the Elements screen section in the upper left and drop it directly on the last INVENTORY row. All rights reserved. As the row select INVENTORY again from the list and choose Continue . Select the operator/function “+”. m) n) Continued on next page 186 © 2005 SAP AG. i) j) k) l) Drag another planning table row from the Elements screen section in the upper left and drop it directly on your OPERATOR/FUNCTION row in the work area. Choose Continue Drag a planning table row from the Elements screen section in the upper left and drop it directly on your step in the work area. then choose Append. Select the INVENTORY row from the list and set the Column calculation start to be the current period. d) e) f) g) h) Drag another planning table row from the Elements screen section in the upper left and drop it directly on your INVENTORY row in the work area. In the MacroBuilder. then choose Continue . then choose Append. Select the DISTRIBUTION RECEIPTS (PLANNED) row from the list and set the Column calculation start to be the current period. Select the operator/function “-”. data view SUPPLIER and choose Start MacroBuilder from the context menu. 2005/Q2 . then choose Continue . drag from the Elements screen section in the upper left into the work area and drop it directly on the identical icon. Enter the descriptive text STOCK BALANCE and choose Continue .

SCM230 Lesson: Macros and Alerts o) Drag another planning table row from the Elements screen section in the upper left and drop it directly on your OPERATOR/FUNCTION row in the work area. and change it to INVENTORY by selecting it from the dropdown box. c) Distribution Demand Expand the last step. then choose Append. Value SNP94(1) Supply Shortage (DB alert) b) Expand the Supply Shortage (DB alert) macro one level and delete the first two steps by first clicking on the step and then . 187 . s) 2. Select your macro and click should now turn green. You can also drag and drop your STOCK BALANCE macro to the “Depot” to make room to work on the next macro. Save and exit. Change the Column Calculation Start to the current date and click continue. The traffic light icon Drag the Stock Balance macro and drop it directly on the Default element in the Events window in the upper right of the screen. Continued on next page to generate it. delete the first two steps. Create a second macro to generate database alerts when there is a supply shortage (insufficient supply to meet demand) at the supplier. Import the Supply Shortage (DB alerts) macro from the SNP94(1) standard data view. to generate it. All rights reserved. double-click Planned (Frm). Remain in the MacroBuilder. choose the following elements from the dropdown . and click Field Book Macro . Select the DISTRIBUTION DEMAND (PLANNED) row from the list and set the Column calculation start to be the current period. Save . The condition should now read: INVENTORY < 0. Choose Continue p) q) r) Select your macro and click should now turn green. The traffic light icon d) e) 2005/Q2 © 2005 SAP AG. a) Click boxes. and adjust the macro for your data view.

product 102-110. delete the start date. Then check the alerts in the Alert Monitor. In the PP/DS product view. Click Click to enter the Product View. create a purchase requisition of 10 pieces for one month from today for your SNP-## version and product 102-110 at location 1000. 1. a) b) c) d) e) f) Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View Enter your version SNP-##. and location 1000./Reqmts Qty of 10. Click to create the order and to save your changes. check the stock balance.Unit 3: SNP Configuration SCM230 Task 3: To ensure that your macro works correctly you should now generate an order. and enter an Avail/Reqmt Date one month from today. and generate alerts. Create a new order and enter a Rec. Test your macros by entering an order. All rights reserved. to switch to change mode. Continued on next page 188 © 2005 SAP AG. 2005/Q2 .

To enable rapid access to these selections. Save followed Value APO Location Product SNP-## 102-110 0000001003 b) c) Enter SUP## as the selection description. Continued on next page 2005/Q2 © 2005 SAP AG. In the lower part of the window you can now define the conditions for the location products. assign the selections to the selection profile by clicking the Profile bar. 1. to open the selection To create a supplier selection ID click window and.SCM230 Lesson: Macros and Alerts Task 4: To ensure that your supplier can readily access the planning data you need to create a selection ID in your new SUP## planning book.Location d) e) f) Click to save your selection. under Show. Enter the data in the table below. Click by Copy. 189 . Save and copy. Create a selection ID for product 102-110 at your supplier planning location 0000001003 called SUP##. Locate your SUP## planning book in the list and double click on your SUPPLIER data view. select APO Location product. a) Use the menu path Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning (all Books). All rights reserved. Field Show APO Planning Version APO Product APO . Selection g) h) A dialog box appears in which you can drag your SUP## selection on the right side into your folder.

a) b) Double-click on your SUP## selection to see the location product in the selection window. you will first need to create an alert profile for SDP alerts. Check whether the INVENTORY quantity is calculated automatically and accurately (it should be negative in this case). 1. Your macro calculates a negative stock quantity of –10 pieces. Macros and double-click on it to directly execute it. All rights reserved. assign it to an overall profile. Locate the Supply shortage (DB alert) macro in the macro window (lower left of the screen) under Directly Execut. Save the changes and exit interactive planning. and choose alert type Requirement undercoverage (DB alert) (supply shortage). and the Continued on next page 190 © 2005 SAP AG. In the Alert Monitor. create an overall profile with an SDP alert profile called SUP##. Double-click again on the location product to load the data. In the Alert Monitor. Switch to change mode. the SUPPLIER data view.Unit 3: SNP Configuration SCM230 2. You see a distribution demand of 10 pieces in one month. Then execute the alert macro so that in the next exercise you will be able to find the alerts for the negative stocks in the Alert Monitor. your SUP## planning book. c) d) e) Task 5: In order to view alerts in the Alert Monitor. 2005/Q2 . and set it as your default profile in the Alert Monitor. check to see if alerts have been generated.

and enter 2. select Months. All rights reserved. enter SUP-## as the name of the Overall Prof. Refresh the alerts and the supply shortage is displayed.SCM230 Lesson: Macros and Alerts SUP## characteristic selection. Save the SDP alert profile. Use the Alert Monitor. SDP . Continued on next page 2005/Q2 © 2005 SAP AG. click to append a row in the table below and select your SUPPLIER planning view in that row. Click to save your SDP Alert Profile. Enter the data from the table below. In the overall profile. overall alert profile to define the settings for the In the lower section of the screen. select the SDP tab (by clicking on it) . Now in the upper section of the screen. 191 . to see the Choose the selection option next to Supply and Demand Planning. your overall profile and click Save alerts in the Alert Monitor. Your alerts will now be displayed in the table below. a) b) c) Select Advanced Planning and Optimization → Supply Chain Monitoring → Alert Monitor. select Relative Time Interval. Field Planning Version SDP Alert Prof. store your SNP-## version and a relative time interval of two months.Database Macro Alerts → Supply Shortage Planning Book Value SNP-## SUP## Select SUP## d) e) f) g) h) In the Database Alerts section.

product 102-110. Select the PurRqs and click Make sure to save before you go back to the main menu. a) b) c) d) e) Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View Enter your version SNP-##. All rights reserved. 1.Unit 3: SNP Configuration SCM230 Task 6: Since this was only to test the macros to make sure they were working properly. 2005/Q2 . and location 1000. Delete the purchase requisition for product 102-110 at location 1000 and version SNP-## in the product view. you will want to delete the order that you created for testing. 192 © 2005 SAP AG. above the planning table to delete. Click to switch to change mode.

SCM230 Lesson: Macros and Alerts Lesson Summary You should now be able to: • Create planning books and user-specific planning views • Create and copy macros 2005/Q2 © 2005 SAP AG. 193 . All rights reserved.

Unit 3: SNP Configuration SCM230 Lesson: Navigation in the Planning Table Lesson Overview This lesson will help you understand the selection area and work area in the SNP interactive planning table. 2005/Q2 . You will need to identify the functionality that is important to the planners and know how to use it. You will be able to navigate in the planning table and use the functionality for planning. 194 © 2005 SAP AG. Lesson Objectives After completing this lesson. The Standard SNP Planning Table Figure 101: The Standard SNP Planning Table The example above is based on an initial stock of 10 units on hand and a target duration of 3 days. All rights reserved. you need to be sure the navigation and functionality of the SNP interactive planning table will meet the needs of planners. you will be able to: • Navigate in the planning table Business Example As a member of the implementation team at Precision Pump Company.

The target stock level is the stock level that is to be generated by the planning run... The category groups assigned to the planning area are also taken into account here.. that meet the following conditions..).SCM230 Lesson: Navigation in the Planning Table The total demand row is calculated from several key figures. confirmed production. 2005/Q2 © 2005 SAP AG. the requirements strategy. such as planned production. and it is added to the target stock level. the stock is displayed in the backlog row. The planning area category groups. Figure 102: The Planning Table Selection Area The selection window (shuffler) is the window in which you choose the InfoObjects to be planned and create or modify selections for them. The safety stock is defined in the product master or submitted to a time-dependent calculation. The illustration is based on a target days' supply of 3 workdays.. sales orders. If the calculated stock is negative. You choose objects that meet certain conditions from the dropdown boxes in the object selection dialog box (Show. The system calculates the target days' supply. 195 . and dependent demand. distribution demand. such as forecast. and the forecast horizon from the SNP demand profile are taken into account when the total demand is calculated. If you define a target days' supply (in workdays) in the product master. All rights reserved.. and in-transit quantities. distribution receipts. The total receipts row consists of various key figures. It indicates the number of workdays that the planned stock on hand would suffice without additional receipts. the target stock level is calculated from the sum total of demands within the target days' supply plus safety stock..

. In transaction /SAPAPO/SDP94 ..Interactive Demand Planning. To add selection IDs to the selection profile. All rights reserved.Assign User to Planning Book. 2005/Q2 . If the planner can see all the planning books that are available.. selections are created in part by SNP planners. The supply chain planner can use this selection profile to quickly access frequently used selections. In transaction /SAPAPO/SNP94 .. the planner has access to planning books used for both Supply Network Planning and Demand Planning. This is the same as transaction /SAPAPO/SDP94 .Unit 3: SNP Configuration SCM230 The selection profile shows the selection IDs being used by the current planner. the planner can only access the planning book which is assigned to him or her in Customizing /SAPAPO/SDPPLBK . You choose objects that meet certain conditions from the dropdown boxes in the object selection dialog box (Show.).Interactive Supply Network Planning. Normally.. click Selection profile . that meet the following conditions.. the planning books can be changed. 196 © 2005 SAP AG.. You use the shuffler to save frequently used selections and load existing selections. You can select your planning books and data views in the Planning book/data view area. Data Selection and Navigation Figure 103: Data Selection The selection window (shuffler) is the window in which you choose the InfoObjects to be planned and create or modify selections for them. The Macro or component area displays macros that are can be run actively and interactively for this planning book and for this data view. and in part centrally.Interactive Supply Network Planning (all Books).

You use the magnifying glass icon to choose which planning view key figures are to be displayed in the work area. All rights reserved. To add selection IDs to the selection profile. If you have selected more than one object. To display the data of selected objects in the work area. Figure 104: The Planning Table Work Area The work area is the main display and planning area. choose Load data. you can send the plans by e-mail to recipients within the organization or outside the organization. The supply chain planner can use this selection profile to quickly access frequently used selections. The system automatically creates a Microsoft Excel attachment that contains the plan. choose the selected object by double-clicking the object. 197 . which consists of a table and a graphic. If the system is connected to a mail server. The selection profile shows the selection IDs being used by the current planner. click Selection profile. only the table is displayed in the work area. you use the shuffler to save frequently used selections and load existing selections. By default. 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Navigation in the Planning Table In the Planning table.

however. For example. you can maintain your own settings for interactive planning from SCM 4. You can assign user settings on different levels. Administrators can make settings centrally using transaction /SAPAPO/SDPUSET. The total displays the sum total of your data in the work area.g. the system tries to find settings on a higher level. user. The most detailed level is the planning book and data view. You can use Switch columns/rows to arrange the periods vertically. there are no settings on this level.Unit 3: SNP Configuration SCM230 Notes Management Figure 105: Navigation in the Work Area To configure the header information. a yellow traffic light is shown on the relevant tab page. In addition. an administrator can make settings for several users or selections. You need to use the arrows in the header information to display the characteristic values. From interactive planning. you can set a filter for the selection screen. for example you can restrict the display to a particular planning 198 © 2005 SAP AG. when you open a planning book you can automatically load a selection or drill down directly to a certain level. users can create or modify their settings for the current planning book and data view. planning book/data view and user. you can see all the members in the work area. and selection. With this function. If. Pivot sorting allows you to configure the sequence of key figures and characteristics in the all details view. e. You can synchronize the table and the graphic to arrange the same periods one below the other. If you select Details (all). All rights reserved. select Settings → Header information in the planning table. 2005/Q2 .1 onwards. instead of a green traffic light. On the next screen. In this case.

If you do not select any existing settings. either for your use or for use by other demand planners. for example. All rights reserved. Figure 106: Notes in Planning Notes are used to explain the reasons for an occurrence.SCM230 Lesson: Navigation in the Planning Table book or user. A list of existing user settings is then displayed. 2005/Q2 © 2005 SAP AG. at product level). Select a row and click Create or Change to edit the settings. the reasons why a demand forecast is particularly high or low in a certain time period at a particular level. at regional level) and want to display the information about a forecast that was created by a planner at a lower level (for example. 199 . you can copy the user settings of one user for another user. you can create a new entry. You use notes navigation to move from a note at a higher level to a note at a lower level. You can use this option when you are working at a higher level as a demand planner (for example. At this point.

select Demand Planning → Plan → Release to Supply Network Planning. You can use this setting if you want to release from multiple planning areas. you can use the daily buckets profile to split the demand quantities into days. the system will always take the split into account. the demand quantities are automatically disaggregated down to the locations. If the storage buckets profile in the DP planning area does not contain days. To release the quantities. for example 9ALOCNO.Unit 3: SNP Configuration SCM230 Figure 107: Releasing the Demand Plan If the forecast in Demand Planning is completed. you can use the product split to control how a product group is split among the members. The "Add Data" indicator means that the released amounts will be added to planned independent requirements that might already exist. 200 © 2005 SAP AG. If the "location" characteristic is contained in the DP planning area. you must transfer the forecasted quantities as planned independent requirements to liveCache. you do not have to specify the location characteristic. All rights reserved. If you want to use the split from the location split table for products. For example. 2005/Q2 . The way in which the demand quantities are split depends on the settings in the SNP demand profile in the SNP 2 view of the product master. If a product split has been defined for a product.

Continued on next page 2005/Q2 © 2005 SAP AG. Access interactive Supply Network Planning (planning book 9ASNP94) and create a selection called PROD## for the location products of SNP Planner P00 in version SNP-##. Assign the selections to your selection profile.SCM230 Lesson: Navigation in the Planning Table Exercise 11: Selections and Interactive Planning Exercise Objectives After completing this exercise. Load the data for product P-102 at location 2400 into the planning table and search for the planned independent requirement of 400 pieces that you created. you need to be sure the navigation and functionality of the SNP interactive planning table will meet the needs of planners. create a planned independent requirement of 400 pieces due in two months for your version SNP-## and the product P-102 at location 2400. In practice. Task 3: 1. All rights reserved. You will need to create selection ID’s so planners can easily access their important information Task 1: 1. In the PP/DS product view. 1. you will be able to: • Navigate in the planning table • Create Selection ID’s and assign them to your logon ID • Load planning data for Location Products • Load capacity data for resources Business Example As a member of the implementation team at Precision Pump Company. 201 . the planned independent requirements come from SAP ECC or SAP DP. by planning a negative quantity. Task 2: For easy access to planning data you need to create selection ID’s in the SNP interactive planning table. Create another selection called RES## that includes resources W1906* and WORK## for version SNP-##.

2005/Q2 .Unit 3: SNP Configuration SCM230 Task 4: 1. What is the available capacity for resource WORK## and why is this so? Are any capacities loaded? 202 © 2005 SAP AG. All rights reserved.

Enter the data in the table below. and click Field Rec. Create Order. by planning a negative quantity. If the Selection of PPT Initial View dialog box appears. a) b) Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View Enter the data in the table below and click Field Plng Version Product Location c) d) Value SNP-## P-102 2400 . the planned independent requirements come from SAP ECC or SAP DP./Reqmts Qty Start Date Avail/Reqmt Date Two months from today . 203 . 1.SCM230 Lesson: Navigation in the Planning Table Solution 11: Selections and Interactive Planning Task 1: 1. Task 2: For easy access to planning data you need to create selection ID’s in the SNP interactive planning table. Continued on next page 2005/Q2 © 2005 SAP AG. create a planned independent requirement of 400 pieces due in two months for your version SNP-## and the product P-102 at location 2400. delete the start date. select SAP001 the Order View. In the PP/DS product view. be sure to enter a negative quantity. In practice. Value -400 e) f) If the Propagation Range dialog box appears. click Click to save your order. All rights reserved. which should be the default. Access interactive Supply Network Planning (planning book 9ASNP94) and create a selection called PROD## for the location products of SNP Planner P00 in version SNP-##.

Save . enter . Field Show APO Planning Version APO SNP Planner c) d) e) Click to save your selection. Enter the data from the table below for this. a) b) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning. 2005/Q2 . In the lower part of the window you can now define the conditions for the location products. In the lower part of the window you can now define the conditions for the location products. Assign the selections to your selection profile. Change the version 000 to SNP-##. next to Show. each entry on a line on the Single Vals tab. next to Show. select APO .Resource.Unit 3: SNP Configuration SCM230 Create another selection called RES## that includes resources W1906* and WORK## for version SNP-##. Save to open the selection To create a selection for resources. Continued on next page 204 © 2005 SAP AG.Resource Click the Multiple Selection Icon Value APO . enter P00. Field Show APO Planning Version APO . in the next row select APO SNP Planner and on the right. to open the selection window and. To enable rapid access to these selections. select Click APO Location product. click window and.Resource. All rights reserved. and click Copy f) g) h) Click to save your selection. Value APO Location Product SNP-## P00 Enter PROD## as the selection description. and Copy . assign the selections to the selection profile by clicking the Selection Profile bar.Resource SNP-## W1906*WORK## next to APO . and Copy Enter RES## as the selection description.

No resource capacities are loaded because no receipts have been planned yet. e) 2005/Q2 © 2005 SAP AG. Task 4: 1. Double-click again on the resource WORK## to display the capacity situation in the planning table. double-click on the data view SNP94(2) CAPACITY CHECK. Load the data for product P-102 at location 2400 into the planning table and search for the planned independent requirement of 400 pieces that you created. double-click on your “PROD##” selection to display a list of location products in the selection window.SCM230 Lesson: Navigation in the Planning Table i) A dialog box appears in which you can drag your PROD## and RES## selections from the right-hand side and drop them directly on your folder. Save and Copy . All rights reserved. Double-click again on product P-102 at location 2400 to load the data for that Location Product combination. Double-click on your selection RES## to see the resources in the selection window. a) b) c) d) In the selection profile screen section. double-click the total demand. 205 . What is the available capacity for resource WORK## and why is this so? Are any capacities loaded? a) b) c) d) In the selection window for the planning books and data views. To find out how the total demand is made up. j) Task 3: 1. The planned independent requirement is displayed in the Forecast key figure. This is calculated from 7 hours per day on 5 workdays. The available resource capacity is 35 hours (unless there is a public holiday during the working week). Scroll to the right in the table to look for the total demand of 400 pieces two months in the future.

All rights reserved.Unit 3: SNP Configuration SCM230 Lesson Summary You should now be able to: • Navigate in the planning table 206 © 2005 SAP AG. 2005/Q2 .

SCM230 Unit Summary Unit Summary You should now be able to: • Define the configuration settings for SNP Planning • Define the configuration settings for SNP planning books and data views • Create planning books and user-specific planning views • Create and copy macros • Navigate in the planning table 2005/Q2 © 2005 SAP AG. All rights reserved. 207 .

Unit Summary SCM230 208 © 2005 SAP AG. 2005/Q2 . All rights reserved.

3. Determine whether this statement is true or false. True False . Fill in the blanks to complete the sentence. .SCM230 Test Your Knowledge Test Your Knowledge 1. 4. All rights reserved. Fill in the blanks to complete the sentence. How many levels are there in a macro? 2005/Q2 © 2005 SAP AG. ATP categories are combined . The system reads all orders with the ATP categories of the ATP category group and displays the sum total of these orders in the to which this category group was assigned in the planning area. 209 . but they can use it for planning. 5. other If you set the status of a planning view to users cannot change the view. Fill in the blanks to complete the sentence. You cannot create your own planning book to be used in SNP and must use the standard SNP planning book. 2. Fill in the blanks to complete the sentence. A is the central data structure of Demand Planning (DP) and Supply Network Planning (SNP). A planning area contains Fill in the blanks to complete the sentence. □ □ 6. 7. Order are stored in LiveCache and distinguished by .

2005/Q2 . How are these macros classified in the MacroBuilder? 9. Some macros execute automatically in the planning book. Determine whether this statement is true or false. How can a user view alerts from the planning table? 210 © 2005 SAP AG.Test Your Knowledge SCM230 8. All rights reserved. The time buckets profile defines the sequence in which the buckets appear in the planning table. □ □ True False 10.

Answer: False If the standard SNP book does not meet your needs. 6. If you set the status of a planning view to Protected (2). key figure 5. A planning area is the central data structure of Demand Planning (DP) and Supply Network Planning (SNP). You cannot create your own planning book to be used in SNP and must use the standard SNP planning book.SCM230 Test Your Knowledge Answers 1. but they can use it for planning. ATP categories are combined in an ATP category group. you can copy it and add to it. Answer: planning area 2. Order are stored in LiveCache and distinguished by ATP category. 211 . Answer: key figures 3. other users cannot change the view. All rights reserved. Answer: in an ATP category group. A planning area contains key figures. The system reads all orders with the ATP categories of the ATP category group and displays the sum total of these orders in the key figure to which this category group was assigned in the planning area. Answer: ATP category 4. Answer: Protected (2) 2005/Q2 © 2005 SAP AG.

8. Answer: True 10. Level 2 contains the step or steps.Test Your Knowledge SCM230 7. Level 3 contains the interim or final result. How many levels are there in a macro? Answer: Four levels: • • • • Level 1 contains the macro name. Some macros execute automatically in the planning book. The time buckets profile defines the sequence in which the buckets appear in the planning table. Level 4 contains the mathematical operations. All rights reserved. 212 © 2005 SAP AG. How can a user view alerts from the planning table? Answer: An alert profile must be assigned to that user through the planning table menu. How are these macros classified in the MacroBuilder? Answer: • • • • Default macros Level change macros Start macros End macros 9. 2005/Q2 .

......................................255 Exercise 14: Planning Supplier Constraints .....266 Exercise 15: Aggregated Planning ............................................................ you will be able to: • • • • • • • • Discuss the process flow for the SNP Heuristics run Identify the tasks involved in planning and scheduling Heuristics Discuss the process of checking and leveling capacity Discuss the process of planning supplier constraints.........................233 Exercise 13: Capacity Leveling.....259 Lesson: SNP Heuristic Scheduling ......... You will identify the master data objects and parameters that are used in the heuristic run and influence the results.........Unit 4 The Supply Network Planning Heuristic Unit Overview In this unit we will identify the steps in the SNP planning process as well as the steps in the heuristic process flow.263 Lesson: Aggregated Planning..... In addition........ And then you will check and level capacity on individual resources to ensure a feasible production plan....... Unit Objectives After completing this unit........................................... Discuss the scheduling process for the SNP Heuristics run Create the master data for aggregated planning Name the reasons for using aggregated planning Describe the steps involved in the aggregated planning process Unit Contents Lesson: SNP Heuristic Run .... 213 .....241 Lesson: Planning Supplier Constraints using the SNP Heuristic .......................... You will execute each heuristic planning method and analyze the results of each.............................. you will identify the scheduling parameters that influence the scheduling of individual objects. All rights reserved.....................271 2005/Q2 © 2005 SAP AG.....214 Exercise 12: The SNP Heuristic Run ...................................225 Lesson: Capacity Check and Leveling ....

and distribution departments. You need to design a model that synchronizes the activities of purchase. Lesson Objectives After completing this lesson. you need to ensure timely delivery of products to the customers. production. in the form of long-term planning. you will be able to: • • Discuss the process flow for the SNP Heuristics run Identify the tasks involved in planning and scheduling Heuristics Business Example A constant flow of material through the entire supply chain requires cross-plant planning. In addition. You will also learn about tasks involved in planning and scheduling Heuristics . you need to create plans so that the supply at the plants meets customer demand. Since the SNP heuristic schedules 214 © 2005 SAP AG. Planning Parameters for Heuristic Run Figure 108: The Supply Network Planning Process Flow The SNP heuristic plans the constant flow of material throughout the supply chain and gives you an overview of the products to be procured or produced for each location. All rights reserved. 2005/Q2 . As planning manager at Precision Pump Company.Unit 4: The Supply Network Planning Heuristic SCM230 Lesson: SNP Heuristic Run Lesson Overview This lesson will help you understand the process flow for the SNP Heuristics run.

and SNP planned orders. The final SNP plan can be released back to Demand Planning to compare the unconstrained demand plan with the feasible SNP plan. If the unconstrained demand plan does not match the feasible SNP plan. After production planning is complete. you obtain a medium-term procurement. SNP stock transfers. PP/DS then uses these PP/DS planned orders to create a feasible production plan. These demands are then passed through the supply chain. If capacity overloads occur in planning. these can be reduced in the context of a “repair-based” planning process with the help of capacity leveling. there is no guarantee that the generated SNP planned orders are feasible. the actual quantities of stock to be transferred are determined in the short-term area. or Capable-to-Match. You can manually create stock transport orders for deployment stock transfers that could not be taken into account during the TLB run due to specified threshold values. and distribution plan. The final SNP plan consists of purchase requisitions. The TLB run groups the deployment stock transfers into Transport Load Builder shipments and generates executable stock transport orders in the OLTP system. All rights reserved. you can use a macro to trigger alerts so that the demand planner can plan his forecasts again. the deployment run plans the SNP quantities of stock that can actually be transferred based on current receipts and demands. The SNP stock transfers use the planned independent requirements to define the total demand for Production Planning and Detailed Scheduling (PP/DS) in the production horizon. When the SNP run is complete. SNP optimization.SCM230 Lesson: SNP Heuristic Run infinitely. You generate exception messages (alerts) to notify the planner about the problems that need to be solved. If you perform the SNP planning run using the SNP heuristic. the heuristic run uses the lot-sizing procedure and quota arrangements for each source to determine the valid sources of supply and the quantities to be procured. production. alert macros are executed in the background. Using deployment and the Transport Load Builder (TLB). The release of the demand plan from Demand Planning creates planned independent requirements for Supply Network Planning (SNP) or PP/DS. Next. 215 . 2005/Q2 © 2005 SAP AG. Heuristic processing groups all existing demands for a given product at a location into a total demand per period.

so the SNP plan (PPM) or the SNP PDS is exploded and a planned order is created for the finished product with dependent demands created for the components. and the product was produced in-house. The system analyzes the possible transportation lanes and arrives at the distribution center. There is a demand at the customer location. and distribution in one consistent plan Model the entire supply network Synchronize activities and plan the flow of material through the entire supply chain The above graphic shows an example for the heuristic: • • The system determines the sequence of the locations to be planned and starts with the location that only has inbound transportation lanes. All rights reserved. 2005/Q2 . There are also no receipt elements available at the plant. the heuristic runs a check using the possible transportation lanes and arrives at the plant. The product is procured externally. • • • 216 © 2005 SAP AG. production. The components are then procured using the possible transportation lanes and quota arrangements or priorities.Unit 4: The Supply Network Planning Heuristic SCM230 Figure 109: Heuristic Scenario The Heuristic performs the following functions: • • • • Execute cross-plant planning of receipts to cover demands Integrate purchasing. As there are no receipt elements at the distribution center either. The net requirements calculation does not find any receipt elements to cover the demand at this location.

costs are examined. costs. Priorities are examined if no quota arrangements are maintained. 2005/Q2 © 2005 SAP AG.SCM230 Lesson: SNP Heuristic Run Figure 110: The SNP Heuristic Scenario In this illustration. The source determination in the SNP heuristic run takes account of inbound quota arrangements. You can only split demands by percentage if quota arrangements exist. 217 . Sales orders can only be transferred from the OLTP systems and consume the planned independent requirements in line with the requirements strategies. The Supply Network Planning (SNP) run creates cross-location purchase requisitions and stock transport requisitions for distribution resource planning and creates SNP planned orders for production planning. All rights reserved. planned independent requirements are transferred from the OLTP systems. the forecast that is released from Demand Planning (DP) generates planned independent requirements for the distribution centers. If no priorities are maintained. priorities. and the validity of the source in this sequence. Alternatively.

per product. They can also be maintained for all products. This procedure is called multi-sourcing. Source determination by procurement priority: You can define priorities for certain sources by specifying a procurement priority in the transportation lane or PPM/PDS. and not back to the source location. The order must lie within the lot size parameters defined in the transportation lane or PPM/PDS (from/to lot size). as of SCM 4. 30% from location B. and 40% from PPM/PDS Y. Inbound quota arrangements are master data of the supply chain model and are defined in the SAP SCM system.1. 3. All rights reserved. per version and. A transportation cycle cannot be defined. For the SNP heuristic to be able to take this priority into consideration. For example. the following prerequisites need to be met: 1. You can make quota arrangements for external procurement and in-house production. i. 218 © 2005 SAP AG. The aggregated planning indicator must be activated for the means of transport. The transportation lane or PPM/PDS must be valid. per means of transport. the transportation lane can only run in one direction. You can define quota arrangements for in-house production (PPMs/PDS) by specifying a PPM/PDS.e. you can define that you want to cover 30% of the demand from location A. 4.Unit 4: The Supply Network Planning Heuristic SCM230 Figure 111: Quota Arrangement An inbound quota arrangement determines what percentage of a certain product (SNP PPM or PDS and location) will be shipped from a specific source. 2005/Q2 . 2.

This multilevel planning process generates receipts for raw materials. 219 . All rights reserved. This process is repeated for each location and BOM level in the network until all demand is met. If several means of transport were defined for one transportation lane. the general source determination guidelines apply. the system chooses the most cost-efficient one. Two business add-ins exist for source determination: /SAPAPO/SNP_PERIO_LS for user-defined periodic lot sizes and /SAPAPO/SNP_SOURCES for user-defined source determination. the system creates an SNP stock transfer or an SNP planned order without reference to a source of supply. in turn.SCM230 Lesson: SNP Heuristic Run If the system detects such a transportation cycle. for example means of transport. and finally costs. If. then priorities. The net requirements are then transferred. Figure 112: Factors Considered During the Heuristic Run The SNP heuristic first determines the target stock level per period at product and location level and then makes a net requirements calculation using stock on hand and the available receipt elements. all sources incur the same costs. 2005/Q2 © 2005 SAP AG. How to proceed if there is no source of supply: If there is no valid transportation lane (procurement type F: external procurement) or no valid PPM/PDS (procurement type E: in-house production). and lot sizes. semi-finished products. the procurement priority does not take it into account and accesses the defined quota arrangements instead. depending on sources of supply for the products. quota arrangements. lead times. calendars. and finished products. The same applies when there is no product available at the source location of the transportation lane. Sourcing analyzes first quota arrangements.

All rights reserved. The target stock level is calculated from the sum total of the demands in the target days' supply plus safety stock. Lot sizing rules are then applied to the net requirement. The procurement type is then checked.Unit 4: The Supply Network Planning Heuristic SCM230 Heuristics Planning and Scheduling Figure 113: Heuristics Processing The requirements strategy and forecast horizon control how the total demand is determined. Within the forecast horizon. The requirements strategy from the product master controls how sales orders and forecasts are consumed. • • • • F: The product is to be procured. P: No planning (planning in an external system). You define procurement type in the product master on the Procurement tab. priority. E: The product is to be produced in-house. The planned stock on hand is calculated using the stock balance macro. Net requirements for products to be manufactured trigger a PPM/PDS search. All valid PPMs and PDSs are selected. the system chooses the PPM with the highest priority or the lowest fixed costs. or cost. If more than one PPM is valid. The planned stock on hand is compared to the target stock level and the difference between the two represents the net requirement. which takes the initial stock plus total receipts and subtracts the total demand. X: The product is to be produced or procured based on the source of supply chosen by quota arrangement. 220 © 2005 SAP AG. forecasts are not taken into account for the total demand. 2005/Q2 .

You cannot interactively plan unselected locations on more than one level. The system then plans the dependent demands for 2005/Q2 © 2005 SAP AG. The heuristic method plans all locations and it makes no difference which location you selected. The heuristic is only run from the selected product in the location on one level. however. this is possible as of SCM 4. The network heuristic • • You select a location-specific product. In addition. Set the Take into account found components in planning run indicator for this. 221 .0: You can specify here for the location heuristic and network heuristic whether the system should take all BOM components of the selected products into consideration during planning.SCM230 Lesson: SNP Heuristic Run Figure 114: Settings for the Heuristic Run You can choose from the following three interactive methods of heuristic planning: The location heuristic • • You select a location-specific product. This corresponds to a multilevel cross-plant MRP run. This means that receipts are only planned for this location product. because the system defines the sequence of locations internally. In Supply Network Planning in the background. All rights reserved. The multilevel heuristic • • You select a location-specific product. The sequence in which the locations are planned is determined automatically for each product. all components of the selected product are planned.

With the location heuristic. and the component of the finished product in the plant is assigned low-level code 2.Unit 4: The Supply Network Planning Heuristic SCM230 the product too. 2005/Q2 . Figure 115: Planning Parts of the Supply Chain If you do not want to plan all BOM levels using the SNP heuristic. The SNP low-level code gives the maximum number of stock transfers and the BOM level of a location product. For example. and the option for the multilevel heuristic does not apply in background planning. the finished product in the distribution center is assigned low-level code 0. selecting the location heuristic for the locations of the supply chain planner as well as the Take into account found components in planning run indicator. Using low-level codes you can limit the scope of the SNP run to certain transportation lanes and manufacturing levels. All rights reserved. You then run Supply Network Planning in the background (with transaction /SAPAPO/SNP01). the system only performs multilevel planning for components of the specified location. use transaction /SAPAPO/SNPLLC first to define the low-level codes for your version. The low-level codes for Supply Network Planning are determined via transportation lanes and manufacturing levels. in the plant following a stock transfer it is assigned low-level code 1. 222 © 2005 SAP AG.

components of a product that is to be manufactured by a subcontractor can be provided by an external supplier instead of in-house by the subcontractor. In the case of the subcontracting process with third-party provision of materials or components. However. The screws and packaging are supplied to this subcontractor. The components of the phone. Example: A company in the USA sells mobile phones. the supplier in Asia would deliver the components to the plant in the USA. 2005/Q2 © 2005 SAP AG. but this company does not actually make the mobile phones itself. This roundabout route can be bypassed by having the supplier ship the components directly to the subcontractor.a subcontractor. it has them manufactured in full by a subcontractor in Asia. for example casing. and the subcontractor finishes these parts and returns them to the manufacturer. are procured from an external supplier that is also located in Asia. Example: A screw manufacturer makes screws in-house. Instead. Normally with subcontracting. the screws are packed by an external service provider .SCM230 Lesson: SNP Heuristic Run Subcontracting Figure 116: Subcontracting in the SNP Process The subcontracting process with source location is a form of external procurement: The manufacturer provides the subcontractor with components (so-called subcontracting components). 223 . All rights reserved. which would then ship the components back to Asia to the subcontractor. who then packs the screws and sends the packaged screws back to the screw manufacturer.

2. You must manually create the transportation lane from the plant to the subcontractor for the components. The Subcontracting indicator in the transportation lane is set via the Core Interface (CIF). and a subcontracting purchase requisition is generated to transfer the product from the subcontractor (source location) to the plant (target location). In the case of planning with source location. the consumption of the subcontracting component is posted to the screw manufacturer. While the screws are being manufactured. All rights reserved. A new planning book 9ASNPSBC with two data views is available for subcontracting. It makes sense to use this scenario if you need to liaise with more than one subcontractor or if you allow both in-house production and procurement via subcontractor for a product. 224 © 2005 SAP AG. an SNP planned order is generated on the supplier's side (source location). Purchase requisitions are generated for the dependent requirements (materials provided to the subcontractor) of the SNP planned order and transferred to SAP ECC.Unit 4: The Supply Network Planning Heuristic SCM230 Process Steps 1. who acts as subcontractor. the packaging subcontracting component is added legally and in terms of cost to the manufacturer's warehouse stock. 2005/Q2 . Features • • • • • Lot sizes and rounding are not taken into account. 3. The SNP heuristic determines the subcontractor as the source of supply for the finished product. The SNP plan (PPM) is exploded at the subcontractor's location and an SNP planned order is created here. Upon receipt of the goods from the purchase order for the packaged screws. It is not possible to manually create or change SNP subcontracting orders.

you will be able to: • Describe the SNP process flow • Identify the tasks involved in planning and scheduling Heuristics • Execute a Location Heuristic from the interactive planning table • Execute a Network Heuristic from the interactive planning table • Execute a Multi-Level Heuristic from the interactive planning table • Analyze the results of the Heuristic planning runs Business Example As the team leader of the team implementing SAP SCM at Precision Pump Company. location 2400 P-102. You will also need to check the stock transfers generated.SCM230 Lesson: SNP Heuristic Run Exercise 12: The SNP Heuristic Run Exercise Objectives After completing this exercise. Location Product P-103. Where do the distribution receipts at location 2400 come from? Why is only one distribution demand of 80 pieces created at location 1000? Where are the remaining 320 pieces generated from? Have receipts been created for this? Continued on next page 2005/Q2 © 2005 SAP AG. All rights reserved. Enter additional planned independent requirements for the following products (you already entered planned independent requirements for product P-102 at location 2400). Check the stock transfers generated. 1. Create the first requirement for the same date as the requirement already entered. Task 1: 1. location 2500 Date In 2 months In 7 weeks Quantity -200 -200 Task 2: In the interactive SNP planning table execute a Location heuristic. you need to access the interactive SNP planning and execute the different heuristic planning runs. 225 .

Task 4: Execute a mulitlevel Heuristic planning run. Where does the additional demand in the two plants come from? Save the planning results.Unit 4: The Supply Network Planning Heuristic SCM230 Task 3: 1. Check the situation for components 102-100 and 102-110 in the location 1000. Run a multilevel heuristic for product P-102 and then for product P-103. All rights reserved. 226 © 2005 SAP AG. Use the header information to display the cross-location planning situation. and display the production orders and stock transfers (distribution demand) that are created. Configure the header information for a drilldown according to APO location. 3. Select the “Production (planned)” and “DistrReceipt (planned)” key figures. 1. 2005/Q2 . Load all the location products with product P-102 into the planning table. Check how component 102-100 in plant 1000 has been planned. 2. Run a Network Heuristic for product P-102 and check the created planned orders and stock transfers (distribution demand) in plants 1000 and 2300. then drill down.

Check the stock transfers generated. Task 2: In the interactive SNP planning table execute a Location heuristic. Enter additional planned independent requirements for the following products (you already entered planned independent requirements for product P-102 at location 2400). 1. product P-103 and location 2400. After you have created the order. Create the first requirement for the same date as the requirement already entered. Repeat the above steps for the second location product with a requirements date in seven months. save it. 227 .SCM230 Lesson: SNP Heuristic Run Solution 12: The SNP Heuristic Run Task 1: 1. Where do the distribution receipts at location 2400 come from? Continued on next page 2005/Q2 © 2005 SAP AG. Choose Create Order and enter a receipt/requirements quantity of –200 for an availability/requirements date in two months’ time. location 2400 P-102. Location Product P-103. location 2500 a) b) c) d) e) Date In 2 months In 7 weeks Quantity -200 -200 Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View Enter your version SNP-##. All rights reserved.

All rights reserved. A total demand of 400 pieces should appear in the planning table two months from now. Then double-click product P-102 at location 2400. No receipts have not yet been planned because the location heuristic only plans one product at one location. all key figures that contribute to the total receipts are displayed. You will now see a receipt in the planning table. you can double-click the total demand. Double-click product P-102 at location 1000.Unit 4: The Supply Network Planning Heuristic SCM230 Why is only one distribution demand of 80 pieces created at location 1000? Where are the remaining 320 pieces generated from? Have receipts been created for this? a) b) Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning Load the data for P-102 at Location 2400 into the planning table by making sure you are using the SNP94(1) data view by double clicking on it. you see that 80% is transferred from plant 2300 and 20% from plant 1000. Go to change mode by clicking . Then double-click your PROD## selection ID to see a list of location products. c) d) e) f) Execute a location heuristic planning run by clicking above the planning table. in accordance with the inbound quota arrangement. When you double-click the total receipts key figure. g) h) i) Continued on next page 228 © 2005 SAP AG. In the detail view. The planned independent requirement is displayed in the “Forecast” key figure. Now. in the “DistrReceipt (Planned)” key figure. right-click the cell in which a quantity appears and select Display details from the menu. 2005/Q2 . To find out how the total demand is made up.

a) You are still in the selection screen for product P-102 at location 1000 (the location is not significant) in change mode. Click execute a network heuristic in the interactive planning table. Continued on next page 2005/Q2 © 2005 SAP AG.SCM230 Lesson: SNP Heuristic Run Task 3: 1. Run a Network Heuristic for product P-102 and check the created planned orders and stock transfers (distribution demand) in plants 1000 and 2300. 229 . Where does the additional demand in the two plants come from? Save the planning results. The additional distribution demand in the two plants comes from the planned independent requirement for P-102 in distribution center 2500. All rights reserved. b) c) to You see a receipt in the “Production (Planned)” key figure for P-102 at location 1000.

choose the APO . Configure the header information for a drilldown according to APO location. All rights reserved. a) Select all location products for product P-102 in the selection window by clicking the Select All icon.Location button and choosing Total from the menu. Select the “Production (planned)” and “DistrReceipt (planned)” key figures. Use the same icon to toggle back to the shuffler. Click to deselect all. Use the header information to display the cross-location planning situation. A dependent demand was created for the component but no receipt has been created because the network Heuristic plans one level at a time (single-level planning method). 2005/Q2 . . then drill down. “DistrReceipt (Planned)” key figures.Location characteristic in the first row. Load the data for these location products into the planning table by clicking c) d) Click Select above the planning table. a) b) Double click on 102-100 at location 1000 to load the data. h) i) You can use to hide the shuffler and reveal more of the planning table. click Total on the APO . Load all the location products with product P-102 into the planning table. switch the display back to total by clicking Details (all) on the APO .Unit 4: The Supply Network Planning Heuristic SCM230 2. select only the “Production (Planned)” and to continue. to switch the header on. you can also make your selection by holding down the SHIFT key or CTRL key and clicking the products. b) and click Adopt e) f) g) above the planning table and select Multiple Key Now click Figures from the menu. When finished. Continued on next page 230 © 2005 SAP AG. 3. Scroll to the right to locate the data. Also click and select All key figures from the menu. and click In the header. Check how component 102-100 in plant 1000 has been planned. As in Microsoft Excel.Location button and choose Details (all) from the menu. .

SCM230 Lesson: SNP Heuristic Run Task 4: Execute a mulitlevel Heuristic planning run. and display the production orders and stock transfers (distribution demand) that are created. 2005/Q2 © 2005 SAP AG. 1. Check the situation for components 102-100 and 102-110 in the location 1000. 231 . Run a multilevel heuristic for product P-102 and then for product P-103. Now double-click product P-103 in any location to load the data and A dependent demand and planned production has been created for 102-100 as well as a distribution receipt for 102-110 in location 1000 because the multilevel Heuristic plans at more than one level simultaneously. All rights reserved. a) b) c) d) Double-click product P-102 at location 1000 (the location is not significant) to load the data. to run the multilevel heuristic on P-103. Click click to execute the multilevel heuristic.

All rights reserved.Unit 4: The Supply Network Planning Heuristic SCM230 Lesson Summary You should now be able to: • Discuss the process flow for the SNP Heuristics run • Identify the tasks involved in planning and scheduling Heuristics 232 © 2005 SAP AG. 2005/Q2 .

Lesson Objectives After completing this lesson. as the planning manager at Precision Pump Company. 2005/Q2 © 2005 SAP AG. All rights reserved. You will also learn how to level production capacity in SNP. you need to change the plan. need to study the impact of the plan on the resources and determine whether or not the plan is feasible. After the SNP heuristic run is complete. If the plan is not feasible. Capacity Check Figure 117: Capacity Check SNP Heuristic planning is based on the assumption that resources have an infinite capacity. the planner can perform a capacity check to see the impact that planned orders will have on resources and to quickly determine whether or not the plan is feasible. you. 233 . you will be able to: • Discuss the process of checking and leveling capacity Business Example After creating plans to ensure timely delivery of goods or products to the customers.SCM230 Lesson: Capacity Check and Leveling Lesson: Capacity Check and Leveling Lesson Overview This lesson will help you understand the process of conducting production capacity checks in Supply Network Planning (SNP).

Capacity Leveling Solution 234 © 2005 SAP AG. the planner can check the impact the changes have had on components. you use the shuffler to select the Resource characteristic and in the lower area you can restrict the selection to the resources to be displayed. To do this. To load multiple resources and display information about individual resources or to display the orders for individual products of the resource. You can also show the other variants by choosing the Available capacity key figure. If there is a capacity overload. you use the Display dependent objects button in the planning table. The available capacity shows the available resource capacity of the active variant. Figure 118: Data Selection You can evaluate capacity loads in the SNP94(2) standard view. 2005/Q2 . All rights reserved. The capacity consumption shows the capacity being consumed by PP/DS and SNP orders. The planner can decide how production quantities should be rescheduled so that planned orders do not exceed the available capacity. to ensure that the changes have not created an overload on another resource. After fixing the changed orders and replanning. In addition. an alert is displayed. The planner can automatically distribute the overload to neighboring periods. the SNP proportion is shown in the lower area. The capacity load shows the relationship between available capacity and consumption.Unit 4: The Supply Network Planning Heuristic SCM230 The capacity check provides the planner with the necessary information about when resources will be overloaded and the tools needed to level the loads and to plan future resource utilization.

SCM230 Lesson: Capacity Check and Leveling SCM 4. Capacity leveling can be performed using the heuristic or the optimizer. Capacity leveling may result in overloads on other resources or undercoverages.0 (SP22) and APO 3. – There is no continuous output. These problems must be resolved manually through the use of alerts. This solution allows the following: Interactive or background leveling for a resource for a specified time horizon. • Capacity leveling supports the following resource categories: – Production resources – Transportation resources Capacity leveling supports the following resource types: – Bucket resources – Single-mixed resources – Multi-mixed resources – Transportation resources Plans (PPMs): – Output must be maintained in the last activity. 235 .1 (SP14) (see OSS note 564702). Local time zones for transportation resources are not supported (this is the same for SNP in general). Parameters: – – Target days' supplies are not supported. • • • Capacity Leveling Figure 119: Capacity Leveling 2005/Q2 © 2005 SAP AG. All rights reserved.0 comes with a new capacity leveling solution. – Fixed resource consumptions are not guaranteed. this can be made available as a downgrade for APO 3.

But this rescheduling does not create any orders in the production horizon. Optimizer or BAdi. and Method. These can then be sorted in ascending or descending order. 236 © 2005 SAP AG. Prioritization. Prioritization for the heuristic run defines how leveling determines the sequence of orders. These methods are described in further detail below. Scheduling Direction controls whether Forward. • • Figure 120: Capacity Leveling Profile The main settings in the capacity leveling profile are Scheduling Direction. All rights reserved. 2005/Q2 . The two possible choices for prioritization are by order size or by product priority. The three Method choices are Heuristic. A combination of backward and forward scheduling of the capacity load. Backward or Combined forward/backward scheduling is used.Unit 4: The Supply Network Planning Heuristic SCM230 The planner can use the following methods to adjust the plan: • Backward scheduling of the capacity load to fulfill demand using high priorities without due date violations. Forward scheduling of the capacity load for a lower priority demand and use of demand priorities to minimize due date violations.

and so on. then the one with the second largest supply. period by period. the system levels the order with the lowest priority first. With forward scheduling. then the one with the second lowest. the system moves the orders so far that the first activity using the resource to be leveled only begins after the overloaded period. All rights reserved. you can choose different priority rules for the selection of planned orders to be rescheduled: • • If you do not select a priority rule. If you choose Time-Based Capacity Leveling by increasing order quantity. R/3). Only orders that were moved are changed (liveCache. If the system finds that the resource is overloaded. and so on. If you choose Time-based capacity leveling by increasing product priority. The product priority is maintained in the product location master record on the SNP2 tab page. the capacity load on the resource with the requested load. either from the beginning or from the end of the planning horizon – depending on which scheduling direction you chose (forward or backward scheduling). then the one with the second highest priority. • • 2005/Q2 © 2005 SAP AG. it first selects all the activities or orders that cause the overload in this period. and so on. Prioritization by product or by product quantity • • For heuristic-based capacity leveling. The system takes the lot sizes and rounding values defined in the master data into account when moving the orders. and shifts. one by one. then the second largest. the system levels the order with the highest priority first. the system levels the largest order of the overloaded period first. and so on. the priority is determined by the system and is completely random. It then sorts these orders according to the priority that you defined. If you choose Time-based capacity leveling by decreasing product priority. and so on. the system levels the order with the largest days' supply first. Only orders that cause overloads are changed. 237 .SCM230 Lesson: Capacity Check and Leveling Heuristics-based Capacity Leveling • Heuristic-based capacity leveling compares. This proves advantageous when a lot of orders exist but only some of them overload the resource. orders or partial quantities of orders into subsequent or previous periods until the required maximum resource utilization is reached. With backward scheduling. the system moves the orders so far that the last activity using the resource to be leveled actually ends before the overloaded period. If you choose Time-Based Capacity Leveling by decreasing order quantity. then the second smallest. the system levels the smallest order first. If you choose Time-Based Capacity Leveling by decreasing storage (days' supply).

It then determines all of the location products that belong to this master data. non-delivery) are defined automatically by the optimizer. All orders are rescheduled. creation of stock on hand) will be favored above receipts that are too late (i. first it deletes all orders and stock transfers for the resource to be leveled. 4. • • • • • 238 © 2005 SAP AG. 2. Delays are minimized. If several alternative PPMs or transportation lanes are available. The optimizer makes sure that the resource to be leveled is not overloaded. Any costs defined by the user are ignored. the optimizer creates the orders and stock transfers at the original receipt due date/time. The optimizer creates new orders and stock transfers. Where possible. receipts that are too early (i. and that the time-based movement of planned orders and stock transfers remains as low as possible when compared with the original receipt due dates/times. First. as well as the relevant master data and transaction data for these products. These costs have no business significance.e. It then creates those orders and stock transfers that it could not plan initially due to the restricted resource capacity. the optimizer selects on the basis of the procurement priority. i. delays. for storage. With backward scheduling. All rights reserved.Unit 4: The Supply Network Planning Heuristic SCM230 Capacity Leveling with the Optimizer • • Optimization-based capacity leveling uses the SNP optimizer to level resource overloads.g. To do this. The system does this as follows: 1.e. the scheduling direction) to generate a special optimization problem for capacity leveling. The optimizer solves the optimization problem that was generated. 2005/Q2 . the optimizer creates a completely new plan. Costs taken into account as part of this problem (e. but in the last possible period of the planning horizon in the case of forward scheduling.e. they are used solely to realize the required capacity leveling behavior. then it replans them. 3. The optimizer uses the data it determined and the settings that the user made (e. the optimizer determines all of the production process models (PPMs) and transportation lanes that use the resources to be leveled. where this is possible.g. cause of shortfalls).

To do this. Alternative resources are represented in SNP by alternative plans (PPMs). You can also modify production or stock transfer quantities to affect the capacity load on a given resource. If your resource is overloaded. CTM and the optimizer automatically choose alternative plans if the least expensive resource is being used. 239 . you can manually move production quantities to an alternative resource. The Heuristic always uses the plan with the least costs.SCM230 Lesson: Capacity Check and Leveling Figure 121: More Capacity Leveling Methods You can adjust the capacity of resources that are overloaded or not sufficiently loaded by modifying the resource master data from the SNP interactive planning table. All rights reserved. 2005/Q2 © 2005 SAP AG. you drill down by PPM in the resources view and then either copy and paste or right-click to move the order to temporary storage before assigning it to the new resource.

2005/Q2 . All rights reserved.Unit 4: The Supply Network Planning Heuristic SCM230 240 © 2005 SAP AG.

Use the Heuristic method without setting any priorities. Check the capacity load of resource W1906_1000_001. need to study the impact of the plan on the resources and determine whether or not the plan is feasible. Week % Load P-102 P-103 3. because the result will be revised later using the CTM and optimizer planning strategies. Task 1: 1.SCM230 Lesson: Capacity Check and Leveling Exercise 13: Capacity Leveling Exercise Objectives After completing this exercise. Complete the table below to record the results for later comparison. Enter the results in the table below and compare with the previous results. What is the capacity load. and which products create this load? Use backward scheduling to level the capacity for resource W1906_1000_001. you. as the team member of the team implementing SAP at the Precision Pump Company. What difference do you notice? Week % Load P-102 P-103 Continued on next page 2005/Q2 © 2005 SAP AG. you need change the plan. 241 . If the plan is not feasible. Enter a maximum capacity load of 100% and do not fix the result. All rights reserved. Now use the Heuristic method and add an order size priority with an ascending sort. you will be able to: • Discuss the process of checking and leveling capacity Business Example After creating plans to ensure timely delivery of goods or products to customers. 2.

Is component 102-100 in plant 1000 also rescheduled? Analyze the capacity load on the resources W1906_2300_001 and WORK##. Create a variant called HEU## for it. Do not select Select Select Is resource W1906_2300_001 now loaded? Did the loading of resource WORK## change? Continued on next page 242 © 2005 SAP AG. 6. Create an in-house quota arrangement for P-102 at location 2300 for your SNP-## model. Finally.Unit 4: The Supply Network Planning Heuristic SCM230 4. Use mass processing to run a network heuristic for product P-102. the configured priorities are ignored. All rights reserved. 1. Week % Load P-102 P-103 5. In this case. Field Planning book Data view Entire Planing Horizon Selection profile Selection profile Network (Heuristic) Value 9ASNP94 SNP94(1) Select Select PROD## Select 2. Enter a share of 40% for PPM P-102_2300 and 60% for PPM P-102_SNP_2300_ALT_##. 2005/Q2 . Which products are scheduled on which resources. A table is provided for you to record your results. You will need to create an in-house quota arrangement to allow this. you want to enable the Heuristic run to schedule both. use the Optimizer method. Take into account found components Select in planning run Net Change Planning Detailed Results Display Log Immediately 3. and why? Task 2: Since both resources WORK## and W1906_2300_001 can be used to produce the pump P-102.

All rights reserved. extend the fixed duration of activity 1 to 10 days. In your plan P-102_SNP_2300_ALT_##. Why is there an overload at resource W1906_2300_001 and no overload at resource WORK##? In the PP/DS product view. check the planned orders for product P-102 in location 2300 and with version SNP-##. Enter the start and end date and times in the table to compare. 7. PPM Start Date End date PPM Start Date End date P-102_SNP_2300_ALT_## P-102_2300_SNP 8.SCM230 Lesson: Capacity Check and Leveling 4. 243 . Use mass processing to run a network Heuristic for product P-102 using your variant called HEU##. 2005/Q2 © 2005 SAP AG. 6. Delete the quota arrangement for location 2300. 5.

2005/Q2 . You may need to scroll to the right to see any existing resource loads. f) 2. Use backward scheduling to level the capacity for resource W1906_1000_001. This is calculated on the basis of 7 hours in a workday on 5 workdays.Unit 4: The Supply Network Planning Heuristic SCM230 Solution 13: Capacity Leveling Task 1: 1. Double-click the SNP94(2) Capacity check data view. Complete the table below to record the results for later comparison. above the planning table and select Products from the Click menu to see the production quantities of individual products. Double-click your selection ID RES## to see the resources in the selection window. Check the capacity load of resource W1906_1000_001. All rights reserved. Use the Heuristic method without setting any priorities. What is the capacity load. Double-click resource W1906_1000_001 to load the data and display the capacity situation in the planning table. The available resource capacity is 35 hours. Enter a maximum capacity load of 100% and do not fix the result. because the result will be revised later using the CTM and optimizer planning strategies. Continued on next page 244 © 2005 SAP AG. and which products create this load? a) b) c) d) e) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning.

Using this method all orders are shifted backwards until the load is leveled. . Click b) to level the capacity load.SCM230 Lesson: Capacity Check and Leveling Week % Load P-102 P-103 a) You are still in the Capacity check table. Now use the Heuristic method and add an order size priority with an ascending sort. What difference do you notice? Continued on next page 2005/Q2 © 2005 SAP AG. All rights reserved. Enter the results in the table below and compare with the previous results. Click mode. Enter the data in the table for later comparison but do not exit the planning table. 245 . to switch to change Enter the data in the table below and click Field Scheduling Direction Maximum usage Capacity Leveling Method Value Backward scheduling 100 Heuristic method to return to the planning table and c) d) After examining the log click view the results. 3.

Week % Load P-102 P-103 a) If time allows feel free to repeat the above procedure using the Optimization Method. With the optimizer method all the orders are deleted and recreated with a slight delay and without overload. Enter the data in the table below and click Field Scheduling Direction Maximum Utilization Order Prioritization Sort Sequence Capacity Leveling Method Value Backward scheduling 100 Order Size Ascending Heuristic Method to return to the planning table and e) f) g) 4. Enter the data in the table and compare to leveling without a priority. above the planning table and select Products from the Click menu to see the production quantities of individual products again. Click to level the capacity load. Finally. Now you should be back to the original overload. After examining the log click view the results. Continued on next page 246 © 2005 SAP AG.Unit 4: The Supply Network Planning Heuristic SCM230 Week % Load P-102 P-103 a) b) c) d) Click and answer “No” to saving the data. All rights reserved. the configured priorities are ignored. use the Optimizer method. A table is provided for you to record your results. . Using this method the smaller order should have been moved first to level capacity. 2005/Q2 . In this case.

c) d) e) 6. Double-click the resource W1906_2300_001 to load the data and display the capacity situation in the planning table. above the planning table and select Products from the Click menu to see the production quantities of individual products. Is component 102-100 in plant 1000 also rescheduled? a) b) Double-click the SNP94(1) SNP Plan data view and answer Yes to saving the data.SCM230 Lesson: Capacity Check and Leveling 5. There is no alternative plan for P-103 so the order is assigned to resource W1906_2300_001. double-click your “PROD##” selection ID to display a list of location products in the selection window. Which products are scheduled on which resources. you will see the rescheduled orders. Component 102-100 is not rescheduled. you could run a location heuristic. and why? a) b) c) d) e) f) g) h) Double-click the SNP94(2) “Capacity check” data view. If you double-click on product 102-100 at location 1000 you will see the unchanged receipt for component 102-100. Continued on next page 2005/Q2 © 2005 SAP AG. 247 . In the selection profile screen area. If you double-click product P-102 at location 1000. Product P-102 is scheduled on your alternative resource WORK## because the fixed costs are lower in your plan (PPM). To reschedule the component. All rights reserved. Analyze the capacity load on the resources W1906_2300_001 and WORK##. above the planning table and select Products from the Click menu to see the production quantities of individual products. Double-click the resource WORK## to load the data and display the capacity situation in the planning table. Double-click your selection ID RES## to see the resources in the selection window.

select Quota Arr. All rights reserved. g) h) Enter 40 in the Quota cell for PPM P-102_2300_SNP and 60 for PPM P-102_SNP_2300_ALT_## Continued on next page 248 © 2005 SAP AG. Enter a share of 40% for PPM P-102_2300 and 60% for PPM P-102_SNP_2300_ALT_##. Field Product End Date Value P-102 One year from today e) f) Click to copy the data and close the window. In the Quota Arrangement Header section at the right. 1. you want to enable the Heuristic run to schedule both. on the right side. Two rows should appear in the Quota Production. 2005/Q2 . Then click Arrangement Items section one for each valid PPM. a. Now select your quota arrangement in the top half of the screen and in the Quota Arrangement Item section in the lower portion of the screen click the Create new entry icon . Enter the data from the table below and click Field Model Location Version-Independent Inbound Quota Arrangements c) d) Click the Create new entry icon Value SNP-## 2300 Selected Selected . You will need to create an in-house quota arrangement to allow this. enter the following data. a) b) Select Advanced Planning and Optimization → Master Data → Quota Arrangement → Quota Arrangement. Create an in-house quota arrangement for P-102 at location 2300 for your SNP-## model. and Copy all Existing In-House . for In-House Prod.Unit 4: The Supply Network Planning Heuristic SCM230 Task 2: Since both resources WORK## and W1906_2300_001 can be used to produce the pump P-102. In the Quota Arrangement Item section.

Field Planning book Data view Entire Planing Horizon Selection profile Selection profile Network (Heuristic) Value 9ASNP94 SNP94(1) Select Select PROD## Select Take into account found components Select in planning run Net Change Planning Detailed Results Display Log Immediately a) Do not select Select Select Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Planning in the Background. Continued on next page 2005/Q2 © 2005 SAP AG. Save the quota arrangement . Use mass processing to run a network heuristic for product P-102. . All rights reserved. b) c) d) Enter HEU## for the variant name. GR## Heuristics Run as the description. and click e) Now click to execute the planning run. Create a variant called HEU## for it.SCM230 Lesson: Capacity Check and Leveling i) 2. Click to save your entries as a variant. Enter the data from the table. 249 .

Now double-click resource WORK## to load the data and display the capacity situation in the planning table.Unit 4: The Supply Network Planning Heuristic SCM230 3. All rights reserved. Continued on next page 250 © 2005 SAP AG. Double-click your selection ID RES## to see the resources in the selection window. Is resource W1906_2300_001 now loaded? Did the loading of resource WORK## change? a) b) c) d) e) f) g) h) i) j) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning. above the planning table and select Products from the Click menu to see the production quantities of individual products. Double-click the SNP94(2) Capacity check data view. Scroll to the right to see any existing resource loads. Scroll to the right to see any existing resource loads. Double-click resource W1906_2300_001 to load the data and display the capacity situation in the planning table. 2005/Q2 . above the planning table and select Products from the Click menu to see the production quantities of individual products. Both WORK## and W1906_2300_001 are used in production of P-102 because of the quota arrangement.

choose your new SNP plan P-102_SNP_2300_ALT_##. Use mass processing to run a network Heuristic for product P-102 using your variant called HEU##. Continued on next page 2005/Q2 © 2005 SAP AG. b) c) d) e) Execute the next dialog box to get your variant. a) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Planning in the Background. of 10. Now click to execute the planning run. a) b) Select Advanced Planning and Optimization → Master Data → Production Process Model → Production Process Model. dur. choose activity 1 (by double-clicking it).SCM230 Lesson: Capacity Check and Leveling 4. Click to get your variant. Double click variant HEU## to load the settings. extend the fixed duration of activity 1 to 10 days. Enter the data from the table below and click Field Choose plan through PPM Product Location Use of a Plan c) d) e) f) Value Select P-102 2300 S . In the row for your WORK## resource and enter a fix. 251 . and select the modes tab index. Activate the plan . Double click operation 0010. In the dialog box that appears. 5. In your plan P-102_SNP_2300_ALT_##. All rights reserved.

All rights reserved. Double-click the SNP94(2) “Capacity check” data view. WORK## does not have a resource overload because the duration of the activity was changed to 10 days. Scroll to the right to see any existing resource loads. In the PP/DS product view. Scroll to the right to see any existing resource loads. check the planned orders for product P-102 in location 2300 and with version SNP-##. 7. PPM Start Date End date P-102_2300_SNP Continued on next page 252 © 2005 SAP AG. above the planning table and select Products from the Click menu to see the production quantities of individual products. Why is there an overload at resource W1906_2300_001 and no overload at resource WORK##? a) b) c) d) e) f) g) h) i) j) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning. Double-click your selection ID RES## to see the resources in the selection window.Unit 4: The Supply Network Planning Heuristic SCM230 6. above the planning table and select Products from the Click menu to see the production quantities of individual products. Double-click resource W1906_1000_001 to load the data and display the capacity situation in the planning table. 2005/Q2 . Now double-click resource WORK## to load the data and display the capacity situation in the planning table. Enter the start and end date and times in the table to compare. W1906_2300_001 has a resource overload since the results of capacity were not fixed.

product P-102. P-102_SNP_2300_ALT_## Select Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View Enter your version SNP-##. 2005/Q2 © 2005 SAP AG. Select Advanced Planning and Optimization → Master Data → Quota Arrangement → Quota Arrangement. Double-click the planned orders for each PPM to see the duration times and sources of supply. and location 2300. 253 . a) b) c) Select the quota arrangement and click arrangement. then click . Delete the quota arrangement for location 2300. All rights reserved. Enter the data from the table below and click Field Model Location Version-Independent Inbound Quota Arrangements Value SNP-## 2300 Selected Selected to delete your quota .SCM230 Lesson: Capacity Check and Leveling PPM Start Date End date a) b) c) 8.

Unit 4: The Supply Network Planning Heuristic SCM230 Lesson Summary You should now be able to: • Discuss the process of checking and leveling capacity 254 © 2005 SAP AG. All rights reserved. 2005/Q2 .

you will be able to: • Discuss the process of planning supplier constraints. All rights reserved. supplier 0000001003 can only provide a limited amount of the component material. This should be taken into account during the planning run. Lesson Objectives After completing this lesson.SCM230 Lesson: Planning Supplier Constraints using the SNP Heuristic Lesson: Planning Supplier Constraints using the SNP Heuristic Lesson Overview This lesson will help you understand the process of using the SNP Heuristics to plan for supplier constraints. No other sources are available. 255 . Scheduling Agreements in SNP Figure 122: Heuristic Scenario Using Scheduling Agreements 2005/Q2 © 2005 SAP AG. Business Example Your supplier for part number 102-110.

You can use APO scheduling agreements. • Figure 123: APO Scheduling Agreements in SNP An APO scheduling agreement is created in the SAP ECC system. The Heuristic was enhanced for this planning area to include finite planning on the basis of supplier capacities. and reschedules by adjusting the quota arrangements or priorities according to the new constraint so that missing quantities are supplied by other suppliers. the system takes into account the supplier's capacities. the supplier enters the maximum quantity that can be supplied. A supplier reviews this plan on the Internet and confirms the quantity allocated for the company or if this entire quantity cannot be supplied. 2005/Q2 . adjusts the schedule lines. When maintaining scheduling agreements in SAP ECC. 256 © 2005 SAP AG. and 9ASA_BATCH for background processing. 9ASAS for collaborative planning with suppliers. SNP creates stock transfers (purchase requisitions) for suppliers that are converted to scheduling agreement scheduling lines in SAP ECC. In SAP APO 3. you can choose one of the following options: • You can use OLTP scheduling agreements. a new planning area called 9ASNP03 is available.1. In this case. The scenario can be described as follows: The heuristic plans APO scheduling agreement schedule lines for the suppliers. This planning area has three planning books: 9ASA for interactive planning. As a result. if required.Unit 4: The Supply Network Planning Heuristic SCM230 When planning SNP scheduling agreement schedule lines. In the subsequent Heuristic run. All rights reserved. you specify on the Additional Data tab page that the execution system is an external (APO) system.

The scheduling agreement transferred from the SAP ECC system is generated as an external procurement relationship in the SAP SCM system. 2005/Q2 © 2005 SAP AG. Collaborative procurement in APO is used to generate scheduling agreement releases: Supply Chain Collaboration → Collaborative Procurement → Scheduling Agreement Releases → Create Releases. schedule lines are created during the SNP heuristic planning run for planning area 9ASNP03. The external procurement relationship is product-specific and is assigned to a transportation lane. This master data is transferred to SAP SCM during initial data transfer. If you are working with confirmation. All rights reserved.SCM230 Lesson: Planning Supplier Constraints using the SNP Heuristic the system creates schedule lines and releases in SAP SCM. If you follow this menu path in Customizing for supply chain planning: APO → Supply Chain Planning → Collaborative Procurement → Procurement Scheduling Agreement → Maintain Release Profile. Scheduling agreement schedule line previews are generated in SCM: These previews do not cause the schedule line data to be updated in SAP ECC. 257 . In SAP SCM. The external procurement relationship contains the contractual details of the relationship between a source location (supplier or plant) and a destination location (plant). you can define a profile for release creation and then assign an external procurement relationship. The supplier can use collaborative planning to confirm the quantities that can be supplied. the delivery schedules first generate scheduling agreement schedule lines in SAP ECC. Changes to scheduling agreements in SAP ECC are transferred to SAP SCM with next change transfer.

Unit 4: The Supply Network Planning Heuristic SCM230 258 © 2005 SAP AG. 2005/Q2 . All rights reserved.

Create a version-specific location product master record for product 102-110 at supplier location 0000001003 and maintain a planned delivery time of 999 days. 2005/Q2 © 2005 SAP AG. 259 . rather it will generally prevent procurement on the supplier’s side. In Interactive Supply Network Planning (all Books). 2. All rights reserved. you will be able to: • Identify the tasks involved in planning for supplier constraints Business Example Your supplier 0000001003 can only provide a limited amount of the component material 102-110. As a result. this restriction must be taken into account during the planning run. In change mode. You receive exception messages (alerts) in the Alert Monitor.SCM230 Lesson: Planning Supplier Constraints using the SNP Heuristic Exercise 14: Planning Supplier Constraints Exercise Objectives After completing this exercise. Run a multilevel Heuristic in mass processing for product P-102. use your planning book to analyze the planning situation for the supplier. In the heuristic. run the macro for generating supply shortage (requirement undercoverage) alerts. alerts will only be generated if procurement exceeds the supplier’s feasible quantities. 4. In the product view. 3. the same as before in the exercise on configuration. This exercise will not employ the finite heuristic with scheduling agreements. Task: 1. Check the Alert Monitor to see whether alerts were generated. 5. delete the receipts for product 102-110 at supplier location 0000001003. Since location 1000 has no other sources for this component. This exercise will form the bases for finite scenarios for CTM and the optimizer. the Heuristic also plans material availability on an infinite basis.

Click to get your variant.Unit 4: The Supply Network Planning Heuristic SCM230 Solution 14: Planning Supplier Constraints Task: 1. Enter your version SNP-##. In the product view. All rights reserved. Select Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View. Continued on next page 260 © 2005 SAP AG. Click to create the version-specific product master record. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Planning in the Background. above the planning table to delete. Now click to execute the planning run. a) b) c) d) e) 2. Double click variant HEU## to load the settings. 3. a) b) c) d) e) Execute the next dialog box to get your variant. Click Choose planning version and enter your version SNP-## to create version-specific data. a) b) c) d) e) f) Select Advanced Planning and Optimization → Master Data → Product → Product. Select all PurRqs and click Make sure to save before you go back to the main menu. delete the receipts for product 102-110 at supplier location 0000001003. Click to switch to change mode. Click on the Procurement tab page and enter a planned delivery time of 999 days. 2005/Q2 . Be sure to save before you return to the main menu. product 102-110. and location 0000001003. Run a multilevel Heuristic in mass processing for product P-102. Create a version-specific location product master record for product 102-110 at supplier location 0000001003 and maintain a planned delivery time of 999 days. Enter product 102-110 and location 0000001003.

In Interactive Supply Network Planning (all Books). Make sure your Overall alert profile SUP## is in the Favorites field and click c) to see the alerts in the Alert Monitor. use your planning book to analyze the planning situation for the supplier. As a result. The specific alerts should now be visible in the table. Select the Supply & Demand Planning alert in the top portion of the screen. run the macro for generating supply shortage (requirement undercoverage) alerts. All rights reserved. Locate the Supply shortage (DB alert) macro in the macro window (lower left of the screen) and double-click on it to directly execute it. Use the menu path Advanced Planning and Optimization → Supply Chain Monitoring → Alert Monitor. Double-click the location product. You receive exception messages (alerts) in the Alert Monitor. 2005/Q2 © 2005 SAP AG. The heuristic has generated distribution demand but could not create distribution receipts due to the planned delivery time of 999 days. Double-click your SUP## selection ID to see the location product in the selection window. Switch to change mode. b) c) d) e) f) 5. a) b) Check the Alert Monitor to see whether alerts were generated. 261 . the same as before in the exercise on configuration. Save the changes and exit interactive planning. In change mode. a) Use the menu pathAdvanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning (all Books). the Heuristic also plans material availability on an infinite basis.SCM230 Lesson: Planning Supplier Constraints using the SNP Heuristic 4. Your macro calculates a negative stock quantity.

262 © 2005 SAP AG. 2005/Q2 .Unit 4: The Supply Network Planning Heuristic SCM230 Lesson Summary You should now be able to: • Discuss the process of planning supplier constraints. All rights reserved.

the receipt is planned for the end of the week. the SNP heuristic generates the receipt elements mid-bucket. If you are working with time buckets profiles of weeks or months. and distribution departments. If the period factor is 1. The period factor allows you to define whether the receipt should be generated at the start or end of the bucket. production. All rights reserved. you need to create plans so that the supply from the plants meets the demand of the customers. if the period 2005/Q2 © 2005 SAP AG.SCM230 Lesson: SNP Heuristic Scheduling Lesson: SNP Heuristic Scheduling Lesson Overview This lesson will help you understand the scheduling process for the SNP Heuristics run. The period factor allows you to define whether the receipt should be generated at the start or end of the bucket. you will be able to: • Discuss the scheduling process for the SNP Heuristics run Business Example As the Planning Manager at Precision Pump Company. You need to design a model that synchronizes the activities of purchase. Heuristics Scheduling Figure 124: Heuristics Scheduling If you are working with time buckets profiles of weeks or months. Lesson Objectives After completing this lesson. the SNP heuristic generates the receipt elements mid-bucket. 263 .

The planned order duration is governed by the fixed duration in the plan (PPM) and the GR and GI processing times. a period factor of 0 is interpreted as 0. SNP optimizer scheduling is controlled via the bucket offset. All rights reserved. by default. the receipts lie mid-bucket. The week's demands in the Distribution Center (DC) are grouped together and planned as the total demand.Unit 4: The Supply Network Planning Heuristic SCM230 factor is 0. A planned stock transfer is created for the total demand. plus Goods Receipt (GR). 264 © 2005 SAP AG. Note: Stock transfers in SAP ECC are scheduled using the planned delivery time. so. the receipt is planned for the beginning of the week. shipment times. By default. The stock transfer ends at 12:00 in the middle of the week if a period factor of 0. 2005/Q2 . and Goods Issue (GI) processing times determine the delivery time at the plant. Backward scheduling. The period factor does not come into play for a time buckets profile in days. The period factor on the Lot Size tab page of the location product master record governs scheduling of purchase requisitions.5.5 is set in the transportation lane and the local time zone is set. The system uses the period factor from the corresponding PPM to determine the end date of the planned orders for finished products and components in the plant.

265 .SCM230 Lesson: SNP Heuristic Scheduling Lesson Summary You should now be able to: • Discuss the scheduling process for the SNP Heuristics run 2005/Q2 © 2005 SAP AG. All rights reserved.

If. Aggregated planning allows the planner to simplify the complexity of the supply chain and to take restrictions on product group level into account. In aggregated planning. 266 © 2005 SAP AG.Unit 4: The Supply Network Planning Heuristic SCM230 Lesson: Aggregated Planning Lesson Overview In this lesson you will use aggregated planning to plan at location product group level and disaggregate the results to the location products. This function allows the SNP planner to compare planning data for product groups and to pass on the changes to the individual products. you can group these internal product numbers into one product group and employ aggregated planning. Lesson Objectives After completing this lesson. 2005/Q2 . you are planning the product delivered for the customer in different internal product numbers. All rights reserved. This corresponds to the form-fit-function (FFF) class concept. you will be able to: • • • Create the master data for aggregated planning Name the reasons for using aggregated planning Describe the steps involved in the aggregated planning process Business Example This function allows the SNP planner to compare planning data for product groups and to pass on the changes to the individual products.0. you can also plan on resource groups and break down the planning result after capacity leveling on the individual resources. Significant further developments have been made for SAP SCM 5. where you combine products with the same technical properties. You can use aggregated planning in the SNP heuristic and the SNP optimizer. for example. Now you can also use aggregated planning in CTM.

In the first instance. you have to do the opposite. 267 . same resources). Aggregated planning runs on location product groups. and a product hierarchy with a header product (the product group) and only one subordinate product. These groups consist of individual products or locations that are grouped into hierarchies. you must first create a product group and a location group using hierarchies. Product and location master records must also be created for the product and location groups. 2005/Q2 © 2005 SAP AG. and SNP_LOC_HIER for locations. You cannot automatically generate PPMs at product group level from the PPMs at product level. you have to create a location hierarchy with a header location (the location group) and several subordinate locations. All rights reserved. If you are using several PPMs at product level. In the latter instance (to create a product group for a product). for example. The location product representing the location product group is at the top of this location product hierarchy. you have to create the PPMs individually for the product groups. Do this using the following SNP hierarchy structures: SNP_PROD_HIER for products. Then let the system generate a location product hierarchy for the SNP_LOCPROD_HIER structure using the product and location hierarchy.SCM230 Lesson: Aggregated Planning Master Data Figure 125: The Master Data of Aggregated Planning In aggregated planning it makes sense to group together similar products (same SNP BOM. You can create the location product group as a location group for a product or a product group for a location. The total of the resource capacities defined at product level should form the resource capacity at product group level. the total resource consumption of the different PPMs at product level should form the PPM’s resource consumption at product group level. Before creating a location product group.

the minimum lot size at group level should be larger than or equal to the minimum lot size defined at product level. The procurement type defined at product group level should also be supported at product level. SNP disaggregation takes into account the rounding values and lot size parameters defined for the individual products and product groups. You must define the same SNP production horizon. There cannot be any cycles in your network. the same product groups must be defined in all locations. you must create production process models (PPMs) for the product group and create a PPM hierarchy. and SNP stock transfer horizon for all the products in the product group.Unit 4: The Supply Network Planning Heuristic SCM230 The Aggregated Planning Process Figure 126: Aggregated Planning If you want to plan multiple locations of your network. The rounding value of the product group must be a multiple of the value at product level. You can use the heuristic or the optimizer to perform aggregated planning. The SNP optimizer uses the resources and costs that are defined in the plan(PPM) on product group level. If you want to ensure that during SNP disaggregation there are no remainders at product group level. Because SNP disaggregation uses the sourcing decisions from product group level. 2005/Q2 . If you want to take capacity bottlenecks or component availability into account in aggregated planning. the same transportation lanes must exist for both the product group and the individual products. All rights reserved. including the header product and product group. In addition. extended SNP production horizon. 268 © 2005 SAP AG. the rounding values defined at product level must be the same within a group.

All rights reserved. by selecting local disaggregation or network disaggregation. this function is available in planning book 9ASNPHRPL. data view SNPHRPL. choose Supply Network Planning → Planning → Supply Network Planning in the Background → SNP Disaggregation. In order to access the background execution function.SCM230 Lesson: Aggregated Planning To ensure that the resource consumption of fixed orders at product level is correctly taken into account during planning. In interactive SNP planning. You can influence how the data is disaggregated using macros. Figure 127: Process Steps in Aggregated Planning The SNP disaggregation run distributes the receipts according to the demands at location product level. Net demand is stored in this key figure on product level. 2005/Q2 © 2005 SAP AG. Net demand is calculated using a macro that takes stock on hand into account. The resource consumption of the PPMs and transportation lanes at product level and product group level should be similar. note the following restrictions for creating resources: • • You should use the same resources at product level and product group level. You can run disaggregation both interactively and as a background job. in the same way that the “fair share” and “push” rules work in deployment. The standard planning book 9ASNPHRPL also contains the auxiliary key figre NETDM that is used by SNP disaggregation as the basis for determining the demand for a product. 269 .

2005/Q2 .Unit 4: The Supply Network Planning Heuristic SCM230 270 © 2005 SAP AG. All rights reserved.

and P-104 displayed? 4. 1. 2500 PG-PUMPS_1000_SNP PG-PUMPS_2300_SNP 2. Create a selection PG## for the location products of product PG_PUMPS. Is your total demand for the three products P-102. Execute a network heuristic. All rights reserved. 6. P-103. Load the product group for location 2400. Open Interactive Supply Network Planning (all Books) and choose planning book 9ASNPHRPL and data view SNPHRPL. 3. Are receipts generated for the product group in locations 2400 and 1000? In data view SNPHRPL(2) carry out capacity leveling with a heuristic and backward scheduling on the resource WORK1000. 271 . Return to the data view SNPHRPL and maintain the following disaggregation settings: Continued on next page 2005/Q2 © 2005 SAP AG. you will be able to: • Carry out aggregated planning in Supply Network Planning • Carry out capacity leveling for the aggregated plan • Disaggregate the aggregated planning result Business Example Task: Check the master data setup needed for aggregated planning in SNP. 2300. Check the two plans (PPMs) PG-PUMPS_1000_SNP and PG-PUMPS_2300_SNP for the product group. 2400. Check the following hierarchies: SNP product hierarchy SNP location hierarchy SNP location product hierarchy SNP PPM hierarchy PG_PUMPS PUMP PG_PUMPS 1000.SCM230 Lesson: Aggregated Planning Exercise 15: Aggregated Planning Exercise Objectives After completing this exercise. 5.

Unit 4: The Supply Network Planning Heuristic SCM230 Field Start date Disaggregation horizon Orders 7. All rights reserved. 2005/Q2 . 272 © 2005 SAP AG. Value One month from now 100 days Delete Now perform network disaggregation and check to see how the three products P-102. P-103 and P-104 in the locations 1000 and 2300 have been planned.

273 . View the data listed in the table above. 2300. You should see that products P-102. Select Hierarchy Objects → Other Hierarchy to switch to the Location hierarchy. Repeat this for each of the following hierarchies. Choose SNP_PROD_HIER.SCM230 Lesson: Aggregated Planning Solution 15: Aggregated Planning Task: Check the master data setup needed for aggregated planning in SNP. All rights reserved. 1. Check the following hierarchies: SNP product hierarchy SNP location hierarchy SNP location product hierarchy SNP PPM hierarchy PG_PUMPS PUMP PG_PUMPS 1000. and P-104 are members of that hierarchy. a) In the PPM hierarchy maintenance screen you can display a plan (PPM) by clicking on it with the right mouse button and choosing Display Object. Click . In the Hierarchy field. Locate the PG_PUMPS hierarchy and expand it by clicking the small triangle in front of it. 2500 PG-PUMPS_1000_SNP PG-PUMPS_2300_SNP a) b) c) d) Advanced Planning and Optmization → Master Data → Hierarchy → Maintain Hierarchy In the Hierarchy field. choose SNP_LOC_HIER and click . Check the two plans (PPMs) PG-PUMPS_1000_SNP and PG-PUMPS_2300_SNP for the product group. Open Interactive Supply Network Planning (all Books) and choose planning book 9ASNPHRPL and data view SNPHRPL. 2400. P-103. 3. • • SNP_LOCPROD_HIER SNP_PPM_HIER e) f) g) 2. Continued on next page 2005/Q2 © 2005 SAP AG.

a) Double-click on the view SNPHRPL(2). In the lower part of the window you define the conditions for the resources: Change the version from 000 to SNP-##. b) c) 6. in the next row choose APO Product. choose APO . in the next row choose APO Resource. Save the result. Now adopt these selection conditions by clicking on the green checkmark. In the lower part of the window you define the conditions for the locations products: Change the version from 000 to SNP-##. and P-104 is displayed to the right. Open the selection window and. The resources appear in the selection window.Unit 4: The Supply Network Planning Heuristic SCM230 Create a selection PG## for the location products of product PG_PUMPS. 5. Execute a network heuristic. The total demand for the three products P-102. next to Show. If you double-click on the resource. P-103. . Load the product group for location 2400. Load the profile by clicking . next to Show. and to the right of this field enter WORK1000.Resource. In data view SNPHRPL(2) carry out capacity leveling with a heuristic and backward scheduling on the resource WORK1000. c) 4. P-103. Return to the data view SNPHRPL and maintain the following disaggregation settings: Continued on next page 274 © 2005 SAP AG. In the field Name Switch to change mode and choose of Parameter Profile Choose PUMP. the capacity situation is shown in the planning table. and to the right of this field enter PG-PUMPS. and P-104 displayed? a) Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning (All Books) Choose planning book 9ASNPHRPL and data view SNPHRPL. b) Open the selection window and. All rights reserved. Are receipts generated for the product group in locations 2400 and 1000? a) After you have run the network heuristic. and carry out capacity leveling for the resource. Select location 2400 by double-clicking PG-PUMPS. you see receipts in the locations 2400 and 1000. Is your total demand for the three products P-102. choose APO Location Product. 2005/Q2 . Save the selection under the name PG## and assign it to your selection profile. change the scheduling direction to backward scheduling.

275 . a) Carry out network disaggregation and check to see how the three products P-102. and PG_PUMPS at Location 1000 to load the data. Now perform network disaggregation and check to see how the three products P-102. P-103 and P-104 in location 2400 have been planned. your selection PG##. 2005/Q2 © 2005 SAP AG. 7. P-103 and P-104 in the locations 1000 and 2300 have been planned. to set the aggregated disaggregation settings (you can find Click this icon in the above the planning table by scrolling the toolbar to the right) and make the settings in the table. All rights reserved. To do this.SCM230 Lesson: Aggregated Planning Field Start date Disaggregation horizon Orders a) b) Value One month from now 100 days Delete Double-click on the data view SNPHRPL. select PG-PUMPS in location 2400 and choose the products Display dependent objects icon and choosing APO by using the Location Product (Member).

All rights reserved.Unit 4: The Supply Network Planning Heuristic SCM230 Lesson Summary You should now be able to: • Create the master data for aggregated planning • Name the reasons for using aggregated planning • Describe the steps involved in the aggregated planning process 276 © 2005 SAP AG. 2005/Q2 .

SCM230 Unit Summary Unit Summary You should now be able to: • Discuss the process flow for the SNP Heuristics run • Identify the tasks involved in planning and scheduling Heuristics • Discuss the process of checking and leveling capacity • Discuss the process of planning supplier constraints. 277 . All rights reserved. • Discuss the scheduling process for the SNP Heuristics run • Create the master data for aggregated planning • Name the reasons for using aggregated planning • Describe the steps involved in the aggregated planning process 2005/Q2 © 2005 SAP AG.

All rights reserved. 2005/Q2 .Unit Summary SCM230 278 © 2005 SAP AG.

multi-site planning Fill in the blanks to complete the sentence. All rights reserved. The selected locations. Fill in the blanks to complete the sentence. and . Fill in the blanks to complete the sentence. The locations. 2. allows you to do Fill in the blanks to complete the sentence. view Fill in the blanks to complete the sentence. heuristic plans only the selected products in all Fill in the blanks to complete the sentence. 4. You can evaluate capacity loads interactively in SNP using the standard . 5. heuristic plans only the selected products in the Fill in the blanks to complete the sentence. 7. The heuristic planning run uses the at the DC location to split requirements. rapid. 3. 2005/Q2 © 2005 SAP AG. SNP stock. is the quantity-based. The indicator Take into account found components during planning run heuristic planning. 279 . 6. The final SNP plan consists of purchase requisitions.SCM230 Test Your Knowledge Test Your Knowledge 1. The method of SNP.

multi-site planning method of SNP. 2005/Q2 . Answer: network 6. SNP stock. rapid. Answer: SNP planned orders 2. The heuristic is the quantity-based. Answer: location 5. All rights reserved. The heuristic planning run uses the incoming quota arrangements at the DC location to split requirements. 7. Answer: heuristic 3. The indicator Take into account found components during planning run allows you to do multilevel heuristic planning. The network heuristic plans only the selected products in all locations. and SNP planned orders. You can evaluate capacity loads interactively in SNP using the standard view SNP94(2). Answer: SNP94(2) 280 © 2005 SAP AG.Test Your Knowledge SCM230 Answers 1. Answer: multilevel In previous releases it was not possible to do multilevel planning for selected locations. Answer: incoming quota arrangements 4. The final SNP plan consists of purchase requisitions. The location heuristic plans only the selected products in the selected locations.

..........312 Exercise 17: Alternative PPM’s in CTM ... Identify the selection method for choosing available resources....................323 2005/Q2 © 2005 SAP AG...................... Describe the CTM planning constraints Identify the settings and master data used to control these constraints Discuss the integration between GATP and the CTM planning methods Discuss the Downbinning process Unit Contents Lesson: Capable-to-Match Process .. Discuss the process of prioritizing multiple production process models....308 Lesson: Alternative PPM's in CTM ....... Unit Objectives After completing this unit.......283 Exercise 16: CTM Process and Profile ..... You will also be able to identify the various alternative methods for CTM planning.................... 281 .........................................321 Exercise 18: Finite Supplier Planning in CTM ......... Identify a method for finitely planning in CTM based on supplier material constraints...315 Lesson: Finite Supplier Planning in CTM ..Unit 5 SNP Run Using Capable to Match Unit Overview In this unit you will be able to identify the various settings for CTM planning and the various CTM planning methods............. you will be able to: • • • • • • • • • • • • • Describe the CTM planning process Identify the settings and master data used by the CTM planning run Create a CTM profile Execute a CTM planning run and analyze the results Describe the use of Descriptive Characteristics Identify the appropriate settings and master data.............................................. All rights reserved...............297 Lesson: Descriptive Characteristics in CTM ...........................

........332 282 © 2005 SAP AG....327 Lesson: CTM integration with GATP ........... All rights reserved. 2005/Q2 ..................Unit 5: SNP Run Using Capable to Match SCM230 Lesson: Relaxing Constraints to find a solution...............................

you will be able to: • • • • Describe the CTM planning process Identify the settings and master data used by the CTM planning run Create a CTM profile Execute a CTM planning run and analyze the results Business Example As planning manager at Precision Pump Company. CTM should take note of this restriction. Lesson Objectives After completing this lesson. you use the CTM planning run to define customer-specific demand priorities for particularly critical products and to obtain feasible production plans. And. All rights reserved.SCM230 Lesson: Capable-to-Match Process Lesson: Capable-to-Match Process Lesson Overview This lesson will help you get an overview of the Capable-to-Match (CTM) planning run. and execute the planning run. 2005/Q2 © 2005 SAP AG. identify the master data and settings needed. because supplier capacities for raw materials are restricted. 283 . You can imagine Capable-to-Match as an availability check or feasibility check for individual requirements. You will describe the process. It is a cross-plant finite scheduling of individual requirements and has nothing to do with Supply Network Planning.

Unit 5: SNP Run Using Capable to Match

SCM230

Overview of CTM Process

Figure 128: Overview of the CTM Process

The Capable-to-Match (CTM) planning run matches prioritized demands with available stocks and feasible receipts. First, the CTM application model is generated on the basis of the user-defined master data selection (location products, PPMs and transportation lanes). The demands are then fulfilled across all plants with reference to production capacities, component availability and transportation resources. As in the SNP environment, the CTM planning run produces a medium-term production, distribution, and procurement plan. CTM complements the cross-plant supply chain planning strategies of SNP. You use CTM to perform a quick check of production capacities and subcontracting component availability based on a set of categorized supplies and prioritized demands.

284

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Capable-to-Match Process

Figure 129: The CTM Scenario

The above graphic illustrates the determination of feasible receipts, in order to fulfill requirements in line with your priority. CTM checks for feasible receipts successively. You can use rules to define the sequence of the checks. CTM accepts the first feasible solution. • • • • • • • Individual prioritized demands Pegging of demands to receipts Availability of production capacities Handling, storage, or transportation capacities are not taken into account Planning of alternative resources Planning of supplier capacities Component availability

CTM is an order-based planning method for individual demands that uses pegging to track orders back to the individual demand. By contrast, Supply Network Planning is quantity-based and does not support order-based planning: After the optimization or heuristic run, the system does not connect (or “peg”) demand and supply elements.

2005/Q2

© 2005 SAP AG. All rights reserved.

285

Unit 5: SNP Run Using Capable to Match

SCM230

Figure 130: Determining the First Feasible Solution

CTM searches for the first feasible solution. In the above example, CTM searches for receipts of a sales order. • • • Taking capacity into account, final assembly at the plant can be completed on time. Manufacturing components is not possible within the time specified. As a result, you cannot manufacture the components. The components are available at another location and a stock transfer can be made during the specified time. Orders are created according to this solution.

This search process considers valid sources for raw materials, components, and available capacities. If the system encounters an infeasible situation during the search process, the system backtracks to the previous node and searches for alternative options. This process is repeated until a feasible solution is found or the system determines that no solution exists.

286

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Capable-to-Match Process

Settings for CTM Planning

Figure 131: Definition of the CTM Profile for the CTM Run

All planning-relevant parameters are grouped together in the CTM profile. In this profile you define, for example, which planning horizons are to be used for which versions. You also configure the scheduling direction, deletion mode, demand prioritization, and supply categorization here. In the profile settings, you specify whether or not you want to use CTM in the SNP environment or PP/DS environment. After the CTM profile is configured, you can start the planning run. The planning results are saved in liveCache and can be analyzed in either the PP/DS product view, interactive SNP planning, or the supply chain viewer.

Figure 132: CTM Master Data

2005/Q2

© 2005 SAP AG. All rights reserved.

287

Unit 5: SNP Run Using Capable to Match

SCM230

CTM planning can be performed with SNP or PP/DS PPMs/PDSs and resources. In practice, however, the PP/DS master data is often too detailed for cross-plant planning. The supply chain network model controls the valid transportation lanes, the duration, and the calendar. Lot size information and priorities can be partly maintained in the master records. For example, the product priority is set on the SNP2 tab index of the product master. Priorities can also be defined using around 20 criteria in free tables (e.g. customer priority) or copied from SAP ECC sales orders (e.g. delivery priority). Since CTM does not know the settings from planning areas or data views, it defines time streams, planning horizons, and categories for the creation of orders in the CTM profile. For SCM 4.1, however, you can copy the settings for the ATP categories and time-dependent safety stock from the SNP planning areas.

Figure 133: Master Data Selection and Horizons

CTM uses its own master data selections. SNP selections cannot be used. CTM master data selections can be either static (new objects were not automatically included in planning) or dynamic. Different CTM profiles can use the same master data selections, because it often happens that several profiles for different planning tasks, such as deleting data, distributing stock, planning production, and aggregating orders, are executed one after the other. On the SNP2 tab of the location product master record, you can limit the CTM selection horizon for demands for individual location products. Thus, if you plan products with different lead times, you can define the selection horizon for the demands of one product differently than the selection horizon of another product. The start date of all the orders created by CTM must lie within the specified horizon (requirement date minus the number of calendar days).

288

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Capable-to-Match Process

Before SCM 4.0, the number of days on which demands we allowed to be covered too early was defined globally. As of SCM 4.0, you can use the order creation horizon to set the number of days either for specific products or globally. Already existing receipts or stocks do not need to fall within this horizon. On the Demand / Pegging tab page of the location product master record, you can define the maximum earliness of a receipt; that is, how long before the requirement date/time a receipt may be used to meet a demand.

Figure 134: CTM Planning Method

The CTM planning mode is controlled using the pegging type. In the CTM profile, you indicate whether the relationship between the demand and all associated receipts is to be created using fixed or dynamic pegging. This logic allows you to, for example, plan new sales orders without pegging only. In addition, in the first planning run you can search for stock and implement fixed pegging, and in the next planning run, generate planned orders and implement dynamic pegging. Plan all orders without pegging: CTM only plans demands that do not have pegging relationships. The system only selects unfulfilled demands for planning, and does not use any receipts that already have pegging relationships. If only a partial quantity of a receipt or demand is linked by a pegging relationship, the system plans just the remaining quantity as a new receipt or demand. Plan all orders without fixed pegging: The system only replans receipts and demands that do not have fixed pegging relationships. If only a partial quantity of a receipt or demand is linked by a fixed pegging relationship, the system plans just the remaining quantity as a new receipt or demand.

2005/Q2

© 2005 SAP AG. All rights reserved.

289

Unit 5: SNP Run Using Capable to Match

SCM230

Replan all orders: The system plans all receipts and orders again. It does not alter manually fixed pegging relationships between two fixed orders. Hint: In CTM, planning with a shelf life is only possible on a limited basis. For more information, see OSS note 574321.

Figure 135: Prioritizing Demands

You can prioritize your demands for the CTM run. The sequence of the priority criteria is important, since the CTM run first covers the demand with the highest priority, followed by the demand with the next highest priority, and so on. The lower the priority of the demand, the more improbable it is that it can be covered with limited components and resources. If no priorities are set, prioritization is made on a first-come, first-served basis. You can simulate demand prioritization and check the results. The following criteria can be used for prioritization: Maximum number of partial deliveries allowed per item; Category of stock/receipts/requirements/forecast; Confirmed quantity; Confirmation share for ATP Backorder Processing (BOP); CTM quantity; Order number; MRP element number; Order item; MRP element item; Date when the record was added; Delivery group (items are delivered together); Location; Delivery date for ATP BOP; Delivery priority; Customer; Location product priority; Product priority; Material staging date; Item type sales document; User exit priority for ATP BOP; Sales document type; Requested quantity. You can also use the user exit to define your priority criteria. You can sort in descending or ascending order within a prioritization criterion or define the sorting yourself.

290

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Capable-to-Match Process

You set demand priorities in the Demands tab page of the CTM profile or by selecting Multi-Level Supply and Demand Matching → Environment → Current Settings → Demand Prioritization → Sort Profile.

Figure 136: Supply Categorization

CTM can prioritize existing receipts such as stock, production orders, or purchase orders according to threshold values or ATP categories. For this you define the sequence in which the supply categories will be searched in the planning run. You can also define whether you want to create safety stock during planning and whether you want to use the target days' supply and supply limits. You can simulate supply categorization and check the results. At the start of the planning run, the stock is grouped into supply categories such as normal stock or surplus stock, and the search strategy specifies the sequence to be used to search through the stock categories.

2005/Q2

© 2005 SAP AG. All rights reserved.

291

Unit 5: SNP Run Using Capable to Match

SCM230

Figure 137: Definition of Supply Categories

You can define supply categories for CTM planning so that, for example, free stock is used first to meet demand. If there is not enough stock, CTM can then search for unpegged production orders. If you choose stock-based categorization, you define which stocks may be used in the CTM planning run using limits. These limits can be set per product, location, or location product. You can simulate stock categorization and check the results. At the beginning of the planning run stocks are divided up into categories such as normal stock and surplus stock. The search strategy defines the sequence in which the stock categories are searched.

292

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Capable-to-Match Process

Figure 138: Search Strategy to meet Demand

CTM can search every location in line with the search strategy. Thus, for example, it searches for stock first and then for available resources and component availability. In this case, you do not have to define a search strategy. If you are working with multiple supply categories, the strategy determines the sequence in which the system searches the supply categories. For example, an order comes in for 1,000 pieces of item, XYZ. You plan to use the surplus stock before producing more pieces of the same item. Your strategy follows the sequence: 1 for the surplus stock supply category, 2 for category production, and 3 for normal stock. If the system only locates 500 pieces of surplus stock, the remaining 500 pieces must be produced to meet the demand. If production is not possible, the system tries to obtain the remaining 500 pieces from the normal stock. You configure the search strategy in the current settings for CTM and assign the search strategy to the CTM profile.

2005/Q2

© 2005 SAP AG. All rights reserved.

293

Unit 5: SNP Run Using Capable to Match

SCM230

Figure 139: Determining the Supplier Location

Quota arrangements and priorities control the source determination in the CTM planning run. CTM may check the location that has a higher quota arrangement or higher priority first, for example. If both priorities and quota arrangements have been configured, the system considers the quota arrangements only. If you need to use only the priorities, enter "ignore quota arrangements" in the settings for the master data in the CTM profile. Priorities and quota arrangements are soft constraints for CTM, which means that they are only adhered to if this is possible. You use the procurement priority of the transportation lane to define location priorities. Inbound quota arrangements, maintained for the destination location, determine what percentage of a product, on average, will be shipped from a location. Hint: In CTM, quota arrangements are used differently than in the SNP heuristic. CTM tries to fulfill the quota arrangement within the planning run without splitting individual requirements. If, for example, you specified a quota arrangement of 20% for plant 1000 and 80% for plant 2300, and there are five requirements for 10 pieces in DC 2400, CTM proceeds as follows: the first requirement goes to plant 2300, due to the higher percentage rate. The second requirement also goes to plant 2300, because the distribution of 0 pieces to 20 pieces is closer to 20%/80% than 10 pieces to 10 pieces. The third requirement goes to plant 1000, because the distribution of 10 pieces to 20 pieces is closer to 20%/80% than 0 pieces to 30 pieces. The fourth and fifth requirement again goes to plant 2300, thereby fulfilling the quota arrangement of 20%/80%.

294

© 2005 SAP AG. All rights reserved.

2005/Q2

CTM planning loads both the continuous capacity and the available bucket capacity of the resource. The bucketed part of the mixed resource is only used to update consumption. planning takes place down to the second with PP/DS in-house production source types. All rights reserved. CTM planning regards all PP/DS orders as fixed and does not delete them. for example in Supply Network Planning (SNP). 2005/Q2 © 2005 SAP AG. You decide whether SNP or PP/DS sources should be used in the CTM planning run. and mixed resources. CTM planning loads bucket resources or the available bucket capacity in the case of mixed resources. If you choose order type SNP. In the case of mixed resources. you can select bucket-oriented or continuous planning. multiactivity resources. continuous planning with SNP PPM or PDS does not make sense. 295 . CTM planning uses single-activity resources. select the order order category based on the planning type. You choose either SNP or PP/DS orders to decide which categories are assigned to the orders created after the CTM run. You can specify whether or not you want to use confirmed quantities or requested quantities as the sales order quantities in CTM planning. or with integration with R/3. To be able to reuse the orders generated by CTM planning in other applications. You use rules to decide whether or not you want to use global demand-dependent constraints or customer-specific ATP constraints and product substitutions in CTM planning. Select bucket-oriented planning if you want planning to be performed on the basis of buckets with SNP in-house production source types. Production Planning and Detailed Scheduling (PP/DS). If you select the Time-continuous button.SCM230 Lesson: Capable-to-Match Process Figure 140: Technical Settings In the technical settings of the CTM profile. However. thereby deciding whether you want to use CTM in the SNP or PP/DS environment.

you can use a make-to-order production strategy for cross-plant planning. This strategy can be used to convert planned orders to production orders if sales orders exist. In SCM 4. 2005/Q2 . From SCM 4. Scheduling of stock transfers takes into account goods issue times (shipping calendar of the delivery location). i.0 Up to APO 3.Unit 5: SNP Run Using Capable to Match SCM230 What's New in CTM in SCM 4.0 Figure 141: New CTM Features in SCM 4. Non-convertible SNP planned orders cannot be transferred to ECC. output products must be attached to the last activity.e. you can either plan infinitely or finitely or use the Finite scheduling setting from the resource master record to define the bottleneck resources dynamically. CTM settings set to continuous and PP/DS PPMs. From SCM 4.0. Dependent requirements are created either in the collective segment (make-to-stock) or in the individual customer segment (make-to-order). components are scheduled according to their activity assignment.1 and below. Non-workdays mean the stock transfer takes longer. In APO 3. depending on how the product master has been set up. you can use consumption strategy 30 (ECC 50) Planning without Final Assembly with CTM in the PP/DS environment. Convertible planned orders can be displayed in SNP after implementation of a BAdI. Goods receipt times for production are not taken into account.1. and transportation duration (calendar of the transportation lane).0. all input components must be assigned to the first activity of the plan (PPM). Setup activities are not scheduled. As before. no external procurement for a product with strategy 30. All rights reserved. all resources of the selected plans (PPMs) were planned finitely. 296 © 2005 SAP AG.0. Prerequisite: Production only. and setup activities are taken into account. goods receipt times (shipping calendar of the target location).

297 . location 2400 Overall priority Task 2: Set up the master data selection. Master data selection Description Model MD## Master data group ## SNP-## Continued on next page 2005/Q2 © 2005 SAP AG. location 2400 P-102.SCM230 Lesson: Capable-to-Match Process Exercise 16: CTM Process and Profile Exercise Objectives After completing this exercise. location 2500 P-103. Create a master data selection MD## with the description “Master data group ##” for model SNP ##. Analyze which products can be delivered to the distribution centers and where they are to be produced. 1. Check the priorities of products P-102 and P-103 in locations 2400 and 2500. For this purpose. Enter the priorities in the following table. Task 1: Check the priorities and create a CTM profile. 1. generate a statistical master data selection. you will be able to: • Identify various processes and settings for CTM planning Business Example As planning manager at Precision Pump Company. you set the planning parameters in the CTM profile and analyze the planning result both in the supply chain viewer and in interactive SNP planning. To do this. All rights reserved. Location product P-102. Limit CTM planning to the location products for SNP planner P00. you use the CTM planning run to define detailed demand priorities for particularly critical products and to obtain feasible production plans.

location 2400 P-103. Set up resources planning as infinite and run CTM. Why does the demand for product P-102 at location 2500 have the highest demand priority? Location Product P-102. Copy the CTM profile PUMP to your profile CTM-##. location 2400 Product Priority Demand Priority Task 4: Run CTM with infinite capacity planning.Unit 5: SNP Run Using Capable to Match SCM230 Task 3: Create a CTM profile. 3. Why are all three demands fulfilled by plant 2300? Continued on next page 298 © 2005 SAP AG. In the supply chain viewer. CTM-## Profile for group ## SNP-## MD## CTM_PUMP Replan all orders Delete all unfirmed orders Backward scheduling Bucket-oriented SNP order SNP Configure demand prioritization so that you sort in ascending order by materials staging date and then by product priority. Simulate a demand sorting and enter the results in the following table. 1. 2005/Q2 . location 2500 P-102. Assign this profile to your version and check the following settings: Profile Name Version Master data selection Time stream Planning mode Delete mode Scheduling direction Planning type Order type In-house production supply sources 2. 1. Save your CTM profile. analyze the results for the three demands of your location products in the sequence of the demand priorities. Compare the results with the product priority that you determined in Task 1. All rights reserved.

Has the resource load of 100% been exceeded? Task 5: Run CTM with finite capacity planning. 299 .SCM230 Lesson: Capable-to-Match Process 2. 4. Has the resource load of 100% been exceeded? 2. In the supply chain viewer. All rights reserved. Set up resources planning as finite and run CTM again. analyze the planning results for the three demands of your location products in the sequence of the demand priorities. 3. Why is the demand for product P-102 in location 2500 fulfilled by resource WORK## in plant 2300? Why is the demand for product P-103 in location 2400 fulfilled by resource W1906_2300_001? Why are some of the receipts to cover demand for product P-102 in location 2400 scheduled before the receipts for other demands. Why are the demands for product P-102 fulfilled by resource WORK## in plant 2300? Why is the demand for product P-103 in location 2400 fulfilled using resource W1906_2300_001? Check the capacity load on resources WORK## and W1906_2300_001. 2005/Q2 © 2005 SAP AG. 5. 4. 3. and the rest afterwards? Check the capacity load on resources WORK## and W1906_2300_001. 1.

Overall priority Task 2: Set up the master data selection. and choose Display . Continued on next page 300 © 2005 SAP AG. Create a master data selection MD## with the description “Master data group ##” for model SNP ##. Limit CTM planning to the location products for SNP planner P00. For this purpose. Location product P-102. Check the priorities of products P-102 and P-103 in locations 2400 and 2500. location 2400 P-102. generate a statistical master data selection. All rights reserved. location 2400 a) b) c) SAP SCM → Advanced planning and optimization → Master Data → Product → Product Enter the product and location. select the location view. 2005/Q2 .Unit 5: SNP Run Using Capable to Match SCM230 Solution 16: CTM Process and Profile Task 1: Check the priorities and create a CTM profile. The priority is displayed on the ”SNP2” tab page. 1. 1. location 2500 P-103. Enter the priorities in the following table.

Assign this profile to your version and check the following settings: Profile Name Version Master data selection Time stream Planning mode Delete mode Scheduling direction CTM-## Profile for group ## SNP-## MD## CTM_PUMP Replan all orders Delete all unfirmed orders Backward scheduling Continued on next page 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Capable-to-Match Process Master data selection Description Model a) b) c) d) e) MD## Master data group ## SNP-## SAP SCM → Advanced Planning and Optimization → Multilevel Supply & Demand Matching → Environment → Master Data Selection Enter MD## in the Master Data Selection field and click New Master Data Selection. and click accept the values. Create Enter the appropriate description from the table above. Selection Window icon and. All rights reserved. next to Show. Enter SNP-## as the model name and press Enter. Task 3: Create a CTM profile. choose Click the Location Products. 1. enter P00 to the right of this field. define the selection conditions for the location products: Choose SNP Planner. and then save your master data selection. Copy the CTM profile PUMP to your profile CTM-##. 301 . External Procurement and In-house Production. Check the entries on the tab pages Location Products. (Enter) to f) g) Click Generate. In the lower part of the selection window.

2005/Q2 . Save your CTM profile. Enter CTM-## as the new planning profile and click profile. Go to the “Settings” tab page and ensure that only SNP Type is selected for Sources of Supply for In-House Production. Enter your (SNP ##) version and the master data selection MD##. All rights reserved. Go to the “Strategies” tab page and check that the “Replan all Orders” and “Backward Scheduling” options are selected. Simulate a demand sorting and enter the results in the following table. Why does the demand for product P-102 at location 2500 have the highest demand priority? Continued on next page 302 © 2005 SAP AG. Go to the “Planning Scope” tab page. Ascending Ascending 3. Create new b) c) d) e) f) 2. Compare the results with the product priority that you determined in Task 1.. Enter the description “Profile for group ##” .Unit 5: SNP Run Using Capable to Match SCM230 Planning type Order type In-house production supply sources a) Bucket-oriented SNP order SNP SAP SCM → Advanced Planning and Optimization → Multi-Level Supply and Demand Matching → Planning → Capable-to-Match (CTM) Planning Enter PUMP as the profile name and click Copy profile. Configure demand prioritization so that you sort in ascending order by materials staging date and then by product priority. a) Go to the “Demands” tab page and set demand prioritization as follows: MBDAT MATPRIO b) Save the profile.

SCM230 Lesson: Capable-to-Match Process Location Product P-102. The earliest demand has highest priority because you entered the material staging date (MBDAT) in first position for sorting. location 2400 a) b) c) Product Priority Demand Priority On the Demands tab page. Location Product P-102. location 2400 P-102. location 2400 Product Priority 6 1 5 Demand Priority 1 2 3 Continued on next page 2005/Q2 © 2005 SAP AG. The difference between the last two demands is the product priority. 303 . location 2500 P-103. A new icon ( Demand) appears. Click this button to display the list of selected demands. location 2500 P-102. All rights reserved. location 2400 P-103. click Simulation.

the finished products cannot be produced here either. 3. Why are all three demands fulfilled by plant 2300? a) In the CTM planning profile go to the tab page Strategies and Special Strategies and in the Capacity Planning field choose Plan All Resources Infinitely. choose to run CTM. Click to save the profile. 2005/Q2 . All rights reserved. (Later on you will plan finite receipts from the supplier. Why are the demands for product P-102 fulfilled by resource WORK## in plant 2300? a) The demands are fulfilled by the plan with the lowest costs that can carry out production as quickly as possible. This contains resource W1906_2300_001. As the component cannot be procured in plant 1000. Set up resources planning as infinite and run CTM. and analyze the material flow and resource load. Why is the demand for product P-103 in location 2400 fulfilled using resource W1906_2300_001? a) Product P-103 has just one plan. All the demands are fulfilled by plant 2300 because you configured a planned delivery time of 999 days for supplier 0000001003 in plant 1000. Start Planning b) c) d) On the Planning Run tab page. Continued on next page 304 © 2005 SAP AG. analyze the results for the three demands of your location products in the sequence of the demand priorities.Unit 5: SNP Run Using Capable to Match SCM230 Task 4: Run CTM with infinite capacity planning. 1. The resource has infinite capacity. In the supply chain viewer.) 2. Click Supply chain viewer to check the planning results.

Why is the demand for product P-102 in location 2500 fulfilled by resource WORK## in plant 2300? a) The demand with the highest priority is fulfilled via the plan with the lowest costs that can carry out production as quickly as possible. and analyze the material flow and resource load. This contains resource W1906_2300_001. Double-click on selection RES## to load it into the selection window. 1. a) In the CTM planning profile go to the tab page Strategies and Special Strategies and in the Capacity Planning field choose Plan All Resources Finitely. Start Planning b) c) d) 2. double-click again on resource WORK##. All rights reserved. Here. The resource load of 100% has been exceeded because infinite capacity planning was used. 305 . Task 5: Run CTM with finite capacity planning. go to the SNP Planning Board using the appropriate icon SNP Planning Board. Click to save the profile. To see the capacity situation in the planning table. choose to run CTM. 3. Set up resources planning as finite and run CTM again. Has the resource load of 100% been exceeded? a) b) c) d) From the CTM planning profile. double-click data view SNP94(2). Why is the demand for product P-103 in location 2400 fulfilled by resource W1906_2300_001? a) Product P-103 has just one plan. analyze the planning results for the three demands of your location products in the sequence of the demand priorities. In the supply chain viewer. Continued on next page 2005/Q2 © 2005 SAP AG. Click Supply chain viewer to check the planning results.SCM230 Lesson: Capable-to-Match Process 4. On the Planning Run tab page. Check the capacity load on resources WORK## and W1906_2300_001.

and the rest afterwards? a) Both resources are partially reserved. 5. Has the resource load of 100% been exceeded? a) b) c) d) From the CTM planning profile. Here. All rights reserved. Why are some of the receipts to cover demand for product P-102 in location 2400 scheduled before the receipts for other demands. To see the capacity situation in the planning table. Double-click on selection RES## to load it into the selection window. Check the capacity load on resources WORK## and W1906_2300_001. double-click data view SNP94(2). go to the SNP Planning Board using the appropriate icon SNP Planning Board.Unit 5: SNP Run Using Capable to Match SCM230 4. and the available capacity after the production horizon is insufficient. 306 © 2005 SAP AG. double-click again on resource WORK##. That is the reason why part of the third demand is fulfilled too early and the rest later. 2005/Q2 . The resource load of 100% has not been exceeded because finite capacity planning was used.

All rights reserved. 307 .SCM230 Lesson: Capable-to-Match Process Lesson Summary You should now be able to: • Describe the CTM planning process • Identify the settings and master data used by the CTM planning run • Create a CTM profile • Execute a CTM planning run and analyze the results 2005/Q2 © 2005 SAP AG.

2005/Q2 . if you create your demand plan at product level. For example. For prioritization in CTM or PP/DS. CTM with Descriptive Characteristics Figure 142: Releasing with Descriptive Characteristics Planned independent requirements are normally released for product and location combinations from Demand Planning in SCM DP. All rights reserved. it often helps to generate more detailed independent requirements. This is not relevant for SNP. you need to create feasible production plans. the quantities are disaggregated to location level and created for all valid locations by releasing planned independent requirements. Lesson Objectives After completing this lesson. you will be able to: • • Describe the use of Descriptive Characteristics Identify the appropriate settings and master data. These plans need to be based on forecasts that are prioritized by customer information. as SNP only plans on a production location level. You will describe the process.Unit 5: SNP Run Using Capable to Match SCM230 Lesson: Descriptive Characteristics in CTM Lesson Overview This lesson will help you get an overview of using descriptive characteristics in the Capable-To-Match (CTM) planning run. Business Example As planning manager at Precision Pump Company. identify the master data and settings needed. 308 © 2005 SAP AG.

the system creates 20 independent requirements for each period in Demand Planning. 309 . you can use planned independent requirements to avoid modeling sold-to parties as locations. All rights reserved. if you are planning demand at customer level and have requirements for 20 customers. You set descriptive characteristics using consumption groups in SAP SCM DP Customizing. materials would be produced first for higher priority customers and then for lower priority customers. You save these consumption groups to the product master and use them when releasing the demand plan. where you assign fields from the ATP field catalog of the sales orders to Demand Planning characteristics.SCM230 Lesson: Descriptive Characteristics in CTM You can. If you release a demand plan with descriptive characteristics. the system creates independent requirements for selected values or all values of the descriptive characteristic. Figure 143: Planning with Descriptive Characteristics in CTM Descriptive characteristics provide additional ways of prioritizing planned independent requirements in a flexible manner. For example. For example. Sales orders are compared with the independent requirements on a characteristic-specific basis. The system does not create just one independent requirement. create planned independent requirements according to sold-to parties. more is produced for this customer but the planned independent requirements for the other customers do not change. however. An example of a descriptive characteristic would be customer priority. using descriptive characteristics. for example. as would be the case if descriptive characteristics were not involved. If the incoming order quantity exceeds the planned independent requirement for one customer. 2005/Q2 © 2005 SAP AG. If you define customer priority as a descriptive characteristic and find insufficient resources to meet customer requirements.

2005/Q2 . this data is still available for the sales orders with consumption. • • The feasible plans that observe constraints can be transferred back to Demand Planning on a characteristic-specific basis. All rights reserved. You can use descriptive characteristics to consume planned independent requirements on a customer-specific basis even for make-to-stock strategies. Descriptive characteristics are not assigned to planned orders. however. 310 © 2005 SAP AG.Unit 5: SNP Run Using Capable to Match SCM230 Planned orders are linked (pegged) to the original requirement. because they are assigned to planned independent requirements.

SCM230 Lesson: Descriptive Characteristics in CTM Lesson Summary You should now be able to: • Describe the use of Descriptive Characteristics • Identify the appropriate settings and master data. 311 . All rights reserved. 2005/Q2 © 2005 SAP AG.

it can happen that you come across situations where a product can be planned and produced on more than one resource in SNP. Identify the selection method for choosing available resources. This involves multiple production process models (PPMs). you will be able to: • • Discuss the process of prioritizing multiple production process models. Business Example As the Planning Manager at Precision Pump Company. Alternative CTM Plans (PPMs) or PDSs Figure 144: Alternative Plans in CTM 312 © 2005 SAP AG. You set planning up so that CTM uses the standard work center first and switches to the alternative resource in the event of an overload. All rights reserved.Unit 5: SNP Run Using Capable to Match SCM230 Lesson: Alternative PPM's in CTM Lesson Overview This lesson will show you how to plan alternative work centers using alternative production process models (PPMs) or production data structures (PDSs) in Capable-to-Match (CTM) planning. Lesson Objectives After completing this lesson. 2005/Q2 .

The lot size of the PPM is used for selection and the lot size in the product master is used for planning. 313 . 2005/Q2 © 2005 SAP AG. the system selects the PPM at random. If the demand cannot be met on time. the system chooses the PPM with the smallest minimum lot size. CTM tries to find ways of producing stock at a later time and then repeats steps two and 4. 4. If there is more than one alternative PPM. PPMs according to quota arrangements and priorities (multilevel variable and fixed costs in the plan). If there is still more than one alternative PPM. Figure 145: Example of Alternative Plan Selection Demands are sorted according to priority criteria and then planned in sequence. Only active PPMs/PDSs with a valid lot-size range and a valid area of validity are selected. All rights reserved. 3. PPMs based on lot size areas. If there are alternative PPMs. such as the PPM with the largest maximum lot size. CTM runs through a maximum of five levels and selects PPMs according to the following criteria: 1.SCM230 Lesson: Alternative PPM's in CTM In SNP and CTM. PPMs whose validity period is closest to the demand date. you model alternative resources using alternative plans (PPMs) or production data structures (PDSs). 2. PPMs that can meet the demand on time.

314 © 2005 SAP AG. CTM meets the third demand on time using resource R2 of the alternative plan.Unit 5: SNP Run Using Capable to Match SCM230 The above graphic explains the following example: • • • • CTM first takes demand 1 that has the highest priority and meets the demand on time by creating a planned order on resource R1. CTM meets only one portion of the fourth demand on time. CTM creates the remaining receipts at a later point of time on the highest priority resource. CTM meets the second demand on time by creating planned orders on both resources. All rights reserved. 2005/Q2 .

Go to the PP/DS product view for the following product. Restart the CTM planning run. In this case there may be multiple PPM’s. Demand for product P-102 at location 2400 cannot be fulfilled on time because there is no alternative resource for this product and because resource W1906_2300_001 has been reserved for the demand of a higher priority. Perform a CTM Run. All rights reserved. Continued on next page 2005/Q2 © 2005 SAP AG. Display the pegging network for your planned independent requirement. you will be able to: • Identify the selection of alternative PPM’s in CTM planning.SCM230 Lesson: Alternative PPM's in CTM Exercise 17: Alternative PPM’s in CTM Exercise Objectives After completing this exercise. The remainder has been scheduled on resource WORK##. Analyze the overall planning results in the Supply Chain Viewer. 1. You must therefore prioritize the various PPM’s for CTM to select. Change the multilevel variable costs to 400 in your SNP plan P-102_SNP_2300_ALT_##. Task 2: Look at the pegging network. Business Example As the Planning Manager at Precision Pump Company. Task 1: Increase the multilevel variable costs in your alternative plan from 200 to 400 so that standard resource W1906_2300_001 is loaded first. 1. Why do the planned orders to cover demand for product P-102 in location 2300 exist for both of the resources W1906_2300_001 and WORK##? Why can the demand for product P-102 at location 2400 not be fulfilled on time? Result The plan with resource W1906_2300_001 has the highest priority. 315 . Therefore this resource is fully utilized. you may come across situations where a product can be produced on more than one resource.

Product P-102 P-102 P-102 P-102 P-103 P-103 P-103 P-103 Location 1000 2300 2400 2500 1000 2300 2400 2500 316 © 2005 SAP AG. 1.Location and APO .Unit 5: SNP Run Using Capable to Match SCM230 Plng Version Product Location SNP-## P-102 2400 Task 3: Drill down to CTM results in the planning table. Select the appropriate data and load the data into the planning table. then drill down. Analyze which products can be delivered to the distribution centers and where they are to be produced. All rights reserved. Configure the header information for a drilldown according to APO . Select the “Production (planned)” and “DistrReceipt (planned)” key figures. 2005/Q2 . Analyze the planning results for the product locations below in interactive Supply Network Planning.Product.

Continued on next page 2005/Q2 © 2005 SAP AG. Perform a CTM Run. choose option S for the Use of Plan. Result The plan with resource W1906_2300_001 has the highest priority. Analyze the overall planning results in the Supply Chain Viewer. Restart the CTM planning run. Advanced Planning and optimization → Multilevel Supply & Demand Planning → Planning → Capable-to-Match (CTM) Planning Restart the CTM run from the Planning Run tab page using the Start planning icon. The remainder has been scheduled on resource WORK##. and analyze the material flow and the resource load. Therefore this resource is fully utilized. Overwrite the multilevel variable costs with 400.SCM230 Lesson: Alternative PPM's in CTM Solution 17: Alternative PPM’s in CTM Task 1: Increase the multilevel variable costs in your alternative plan from 200 to 400 so that standard resource W1906_2300_001 is loaded first. 1. Save and Activate the plan. g) Check the results by clicking Supply Chain Viewer . Change the multilevel variable costs to 400 in your SNP plan P-102_SNP_2300_ALT_##. Demand for product P-102 at location 2400 cannot be fulfilled on time because there is no alternative resource for this product and because resource W1906_2300_001 has been reserved for the demand of a higher priority. 317 . Why do the planned orders to cover demand for product P-102 in location 2300 exist for both of the resources W1906_2300_001 and WORK##? Why can the demand for product P-102 at location 2400 not be fulfilled on time? a) b) c) d) e) f) Advanced Planner and Optimizer → Master Data → Production Process Model → Production Process Model Enter P-102_SNP_2300_## as the Plan. and then click . All rights reserved.

and location 2400. Task 3: Drill down to CTM results in the planning table. Analyze which products can be delivered to the distribution centers and where they are to be produced. Analyze the planning results for the product locations below in interactive Supply Network Planning. double-click your planned independent requirement and click the Context button to see the pegging network. Product P-102 P-102 P-102 P-102 P-103 Location 1000 2300 2400 2500 1000 Continued on next page 318 © 2005 SAP AG. Go to the PP/DS product view for the following product. 1. Display the pegging network for your planned independent requirement. 1. In the product view.Product. Plng Version Product Location a) b) c) SNP-## P-102 2400 Advanced Planning and optimization → Production Planning → Interactive Production Planning → Product View Enter your version SNP-##. product P-102. Select the appropriate data and load the data into the planning table. All rights reserved.Location and APO . Configure the header information for a drilldown according to APO . then drill down. Select the “Production (planned)” and “DistrReceipt (planned)” key figures. 2005/Q2 .Unit 5: SNP Run Using Capable to Match SCM230 Task 2: Look at the pegging network.

Load the data into the planning table by clicking the icon.SCM230 Lesson: Alternative PPM's in CTM P-103 P-103 P-103 a) 2300 2400 2500 Choose Advanced Planner and Optimizer → Multi-Level Supply and Demand Matching → Planning → Capable-to-Match (CTM) Planning. in the header information. Click h) Key figure selection icon above the planning table Click the and select the “Production (Planned)” and “DistrReceipt (Planned)” key figures in turn. choose your selection PROD##. Load data b) c) d) e) f) g) Click the Header on/off icon to display the extra icon called Header information settings above the planning table. Or select the data manually using the selection window. 319 . All rights reserved. Location” and “APO . and from Total to Details i) 2005/Q2 © 2005 SAP AG. In data view SNP94(1). switch the display for (all). and click the SNP Planning Board button. Double click on the selection ID PROD##. Click the Header information settings icon and select the “APO to accept. Now. Select the multiple product locations by pressing the “ctrl” key as you click on the selected entry.Product” characteristics.

2005/Q2 . • Identify the selection method for choosing available resources. 320 © 2005 SAP AG.Unit 5: SNP Run Using Capable to Match SCM230 Lesson Summary You should now be able to: • Discuss the process of prioritizing multiple production process models. All rights reserved.

you may come across situations where a supplier cannot provide enough component material to meet your requirements. You can use resources and plans (PPMs) to model the delivery capacity for suppliers. you need to find a solution based on the suppliers constraints. Business Example As the Planning Manager at Precision Pump Company. In this case. All rights reserved. you can also take into account the delivery capacity of suppliers during the planning run. But this is time-consuming and not very flexible. 321 .SCM230 Lesson: Finite Supplier Planning in CTM Lesson: Finite Supplier Planning in CTM Lesson Overview This lesson will show you a way of finitely planning for supplier constraints in Capable-to-Match (CTM). 2005/Q2 © 2005 SAP AG. you will be able to: • Identify a method for finitely planning in CTM based on supplier material constraints. in addition to planning production resources on a finite basis. Supplier Planning in CTM Figure 146: Supplier Planning in CTM on a Finite Basis In CTM. Lesson Objectives After completing this lesson.

2005/Q2 .Unit 5: SNP Run Using Capable to Match SCM230 As an alternative. these quantities can be planned as finite receipts within the planning run. 322 © 2005 SAP AG. he or she can deliver in a planning book for collaborative planning. As a result. the planning run cannot plan receipts for the supplier. All rights reserved. you could maintain a long planned delivery time in the product master of the supplier. If the supplier enters the quantities.

Analyze the planning results for the supplier in Interactive Demand Planning. Analyze the overall planning result in the supply chain viewer or in interactive Supply Network Planning. you may come across situations where a supplier cannot meet all your requirements. and selection ID “SUP##. Choose your planning book SUP##. 1. To enter this information. Click Exit to leave collaborative planning. Task 1: Take on the role of the supplier. Can all the demands be met on time? Which demand is met by plant 1000? 2005/Q2 © 2005 SAP AG.” Go to change mode and enter a planned distribution receipt of 200 pieces for four weeks from now. the SUPPLIER data view. All rights reserved. Play the role of supplier 0000001003 in the following exercise. Press ENTER and save. This constraint can be included in planning for vendor selection. Note: Alternatively. Start the CTM run again.SCM230 Lesson: Finite Supplier Planning in CTM Exercise 18: Finite Supplier Planning in CTM Exercise Objectives After completing this exercise. go to Collaborative Demand Planning and log on to the SCM system with your user name. Analyze which products can be delivered to the distribution centers and where they are produced. you can do this exercise in Interactive Supply Network Planning (all Books) Task 2: Analyze the CTM results for the supplier. you will be able to: • Use a method that finitely plans in CTM based on supplier constraints. 1. and indicate your feasible quantity using collaborative planning. The supplier can deliver a maximum of 200 pieces of component 102-110 in the next four weeks. Business Example As planning manager at Precision Pump Company. 323 .

Can all the demands be met on time? Continued on next page 324 © 2005 SAP AG.Unit 5: SNP Run Using Capable to Match SCM230 Solution 18: Finite Supplier Planning in CTM Task 1: Take on the role of the supplier. Click Exit to leave collaborative planning. Start the CTM run again. Your SUP## planning book is displayed with the data view SUPPLIER and the selection “SUP##”. Click Exit to leave collaborative planning.” Go to change mode and enter a planned distribution receipt of 200 pieces for four weeks from now. Note: Alternatively. and indicate your feasible quantity using collaborative planning. Play the role of supplier 0000001003 in the following exercise. and selection ID “SUP##. c) d) e) f) g) Click Choose . you can do this exercise in Interactive Supply Network Planning (all Books) a) b) Advanced Planning and Optimization → Supply Network Planning → Planning → Collaborative Supply Planning Log on to the SCM system with your SCM user name and password. Press ENTER and save. go to Collaborative Demand Planning and log on to the SCM system with your user name. The supplier can deliver a maximum of 200 pieces of component 102-110 in the next four weeks. the SUPPLIER data view. Enter a planned distribution receipt of 200 pieces four weeks from now. Use the pencil icon Confirm with ENTER. 1. Choose your planning book SUP##. Click Save . Task 2: Analyze the CTM results for the supplier. Analyze the planning results for the supplier in Interactive Demand Planning. To enter this information. Analyze the overall planning result in the supply chain viewer or in interactive Supply Network Planning. Analyze which products can be delivered to the distribution centers and where they are produced. to the right of the screen to go to change mode. All rights reserved. 2005/Q2 . 1.

b) c) 2005/Q2 © 2005 SAP AG. choose Start Planning to run CTM. Click Supply chain viewer to check the planning results. 325 . The CTM run has taken into consideration the finite receipts from the supplier as well as the available capacity. and analyze the material flow and resource load. All rights reserved. All demands can be met on time. Note: Interactive planning could also have been used to analyze the planning run results.SCM230 Lesson: Finite Supplier Planning in CTM Which demand is met by plant 1000? a) Advanced planning and Optimization → Multilevel Supply and Demand Planning → Planning → Capable-to-Match (CTM) Planning On the Planning Run tab page.

2005/Q2 . 326 © 2005 SAP AG. All rights reserved.Unit 5: SNP Run Using Capable to Match SCM230 Lesson Summary You should now be able to: • Identify a method for finitely planning in CTM based on supplier material constraints.

You will learn how to identify the master data and settings needed for the process. Lesson Objectives After completing this lesson. it saves this solution and starts planning the 2005/Q2 © 2005 SAP AG. you will be able to: • • Describe the CTM planning constraints Identify the settings and master data used to control these constraints Business Example As planning manager at Precision Pump Company.SCM230 Lesson: Relaxing Constraints to find a solution Lesson: Relaxing Constraints to find a solution Lesson Overview This lesson will help you get an overview of the constraints effecting the Capable-To-Match (CTM) planning run and how they can be controlled. CTM takes the highest priority demand first and tries to meet the demand. Relaxing Constraints to find a solution Figure 147: Planning Demands According to Priority Demands are sorted according to priority criteria and then planned in sequence. If CTM finds a solution to meet this demand. To achieve this. All rights reserved. you need to create feasible production plans based on demand priority. you must understand the decisions that CTM makes in the planning run. 327 .

All rights reserved. CTM checks if partial fulfillment of the demand is permissible and then saves the solution that partially meets the demand. If the demand cannot be met on time.Unit 5: SNP Run Using Capable to Match SCM230 next demand in line. if this is permitted. If CTM is unable to meet the demand at a later date also. CTM attempts to meet the demand at a later time. Figure 148: Demand Constraints 328 © 2005 SAP AG. 2005/Q2 .

but not to its start date. The system must schedule all planned orders of the first BOM level within the given horizon before the requirements date. as described below: • You use Late Demand Fulfillment to specify the number of days after the demand due date. independently of BOM level. during which the receipt is allowed to be created. Planned orders at lower BOM levels can also be scheduled before this horizon. This means that planned orders of the first BOM level cannot be scheduled before the given horizon. • • • • 2005/Q2 © 2005 SAP AG. The start date of all the orders created by CTM planning must lie within the given horizon (requirements date minus number of calendar days). receipts or stocks that already exist do not need to fall within this horizon. The maximum earliness relates to the availability date of the planned order. You use the order creation horizon to define the horizon preceding the requirements date (in days) in which Capable-to-Match planning (CTM) can create orders to cover a demand. Deciding whether or not to allow a shortage enables you to define if a partial fulfillment of the demand is permissible. The horizon is valid for all orders created for a demand. Proposed value: No partial fulfillment allowed. by selecting Advanced Planning and Optimization → Multilevel Supply & Demand Matching → Environment → Current Settings → Global Settings for Capable-to-Match (CTM) → Demand Dependent Constraints. This also includes receipts that CTM planning generates based on the manufacture of co-products or lot size information and does not need immediately. the default value is 0 days. However. or by defining the constraints in detail using ATP rules. Maximum earliness of planned orders defines the horizon preceding the requirements date (in days) in which the system can schedule planned orders of the first BOM level. All rights reserved. Make sure that the system also counts non-workdays as days. 329 .SCM230 Lesson: Relaxing Constraints to find a solution You can define the constraints centrally in global CTM Customizing. You can define the order creation horizon and the maximum earliness of planned orders both globally and specific to a location product in the SNP2 view of the product master data.

The demand that could not be met on time is then either met at a much later time or not met at all. All rights reserved. The airline strategy sets demands that cannot be met on time to the end of the priority list. As a result. 2005/Q2 . subsequent demands might also be fulfilled late. • 330 © 2005 SAP AG. subsequent demands might be met on time. As a result.Unit 5: SNP Run Using Capable to Match SCM230 Figure 149: Late Demand Fulfillment There are two settings for delayed demand fulfillment: • The domino strategy assigns the next receipt with the shortest delay time to a demand that cannot be met on time.

SCM230 Lesson: Relaxing Constraints to find a solution Lesson Summary You should now be able to: • Describe the CTM planning constraints • Identify the settings and master data used to control these constraints 2005/Q2 © 2005 SAP AG. All rights reserved. 331 .

You can use the rules of the rule-based availability check to set detailed constraints for demands in CTM. If may be feasible to use Global Available to Promise (GATP) to better control the CTM planning solution.Unit 5: SNP Run Using Capable to Match SCM230 Lesson: CTM integration with GATP Lesson Overview This lesson will deal with integration between the following two planning methods: GATP (Global Available-to-Promise) and CTM (Capable-to-Match). All rights reserved. you will be able to: • • Discuss the integration between GATP and the CTM planning methods Discuss the Downbinning process Business Example As the Planning Manager at Precision Pump Company. CTM Integration with GATP Figure 150: Using ATP Rules for Demand Constraints 332 © 2005 SAP AG. you may come across situations where you cannot meet the demands of your customers. 2005/Q2 . Lesson Objectives After completing this lesson.

substitution rules for the individual demand and its entire BOM are evaluated using the independent requirement attributes for the dependent requirements. partial delivery. Figure 151: Down Binning CTM uses product substitution rules to search through the entire stock of the requested product and alternative products to fulfill demand before planning production. Demand-dependent constraints are not evaluated for virtual safety stock demands. You can choose between the following ATP rule options: • • Do not apply rules: No substitution rules or demand-dependent constraints are evaluated during a CTM run. and order type for sales orders. product. such as the semiconductor industry.SCM230 Lesson: CTM integration with GATP Using Available-to-Promise (ATP) rules in CTM planning allows you to use specific attributes of the demand. For example. You can use the standard condition technology to define product substitutions. CTM can support down binning scenarios that are found in high-tech industries. sales organization. In each planning interval. Apply rules: Product and location substitutions and demand-dependent constraints are evaluated during a CTM run. and early fulfillment of demands. delayed fulfillment. such as location and product for forecasts and dependent demand and location. All rights reserved. 333 . to influence supply and demand matching and to control your supply chain effectively. you can define down binning substitution rules that allow you to use a product of a high quality to meet the 2005/Q2 © 2005 SAP AG. partial fulfillment. The standard condition technology that is also used in the rules-based availability check enables you to define various conditions that cause a rule to be applied.

Unit 5: SNP Run Using Capable to Match SCM230 demand for an inferior quality product. You use CTM to perform a quick check of production capacities and shipment capabilities based on a set of categorized supplies and prioritized demands. During the CTM run. the solver considers both high-quality stock and the co-products as possible substitute products. Figure 152: CTM Results The CTM planning run is powered by the CTM engine. When down binning co-products. All rights reserved. taking into account production capacities and shipment capabilities. which matches the prioritized demands to the stock and receipts available. CTM complements the cross-plant supply chain planning strategies of SNP. 334 © 2005 SAP AG. the solver reduces the quantity of planned production orders created according to the quantity relationships of the output components and down binning options specified. The CTM planning run then matches receipts and demands. 2005/Q2 . The CTM planning run in SNP produces a medium-term production and distribution plan.

335 .SCM230 Lesson: CTM integration with GATP Lesson Summary You should now be able to: • Discuss the integration between GATP and the CTM planning methods • Discuss the Downbinning process 2005/Q2 © 2005 SAP AG. All rights reserved.

• Identify a method for finitely planning in CTM based on supplier material constraints. All rights reserved. • Identify the selection method for choosing available resources. 2005/Q2 . • Describe the CTM planning constraints • Identify the settings and master data used to control these constraints • Discuss the integration between GATP and the CTM planning methods • Discuss the Downbinning process 336 © 2005 SAP AG. • Discuss the process of prioritizing multiple production process models.Unit Summary SCM230 Unit Summary You should now be able to: • Describe the CTM planning process • Identify the settings and master data used by the CTM planning run • Create a CTM profile • Execute a CTM planning run and analyze the results • Describe the use of Descriptive Characteristics • Identify the appropriate settings and master data.

Fill in the blanks to complete the sentence. □ □ 5. Determine whether this statement is true or false. 2005/Q2 © 2005 SAP AG. By integrating the CTM planning run with GATP. 337 . The first field the CTM planning run considers when choosing a transportation lane is: Choose the correct answer(s). Fill in the blanks to complete the sentence. Fill in the blanks to complete the sentence. and 2.SCM230 Test Your Knowledge Test Your Knowledge 1. □ □ □ □ 3. 7. CTM is based on a set of . All rights reserved. the system selects active production process models (PPMs) with a minimum lot size that is smaller than the demand to be produced. 4. The airline strategy used in the CTM run sets demands that cannot be met on time to the end of the . In SNP and CTM. 6. True False You can use alternative plans (PPMs) in SNP and CTM to model . . Fill in the blanks to complete the sentence. the CTM results are influenced by Fill in the blanks to complete the sentence. A B C D Quota Arrangement Priority Costs None of the above The CTM planning method uses the relationships in the order network to determine which orders are to be included in the CTM run.

categorized supplies 2. the CTM results are influenced by specific attributes of demands. The airline strategy used in the CTM run sets demands that cannot be met on time to the end of the priority list. the system selects active production process models (PPMs) with a minimum lot size that is smaller than the demand to be produced. 2005/Q2 . Answer: pegging 4. Answer: specific attributes of demands 338 © 2005 SAP AG. Answer: prioritized demands. The CTM planning method uses the pegging relationships in the order network to determine which orders are to be included in the CTM run. By integrating the CTM planning run with GATP. Answer: True 5. Answer: priority list 7. You can use alternative plans (PPMs) in SNP and CTM to model alternative resources. Answer: alternative resources 6. 3.Test Your Knowledge SCM230 Answers 1. the system considers the quota arrangements only unless you have selected Ignore quota arrangements in the control parameters. In SNP and CTM. All rights reserved. CTM is based on a set of prioritized demands and categorized supplies. If both priorities and quota arrangements have been configured. The first field the CTM planning run considers when choosing a transportation lane is: Answer: A CTM first checks the location that has a higher quota arrangement or higher priority.

.360 2005/Q2 © 2005 SAP AG...................................................... 339 ............. Create Cost and Optimizer profiles Explain the settings in the optimizer profile Execute an optimization run Create a cost function and use it in the optimization run Explain how the bound profile and the bucket offset affect the results of the optimization run.............341 Exercise 19: Version Management..... We will identify the settings in the CTM Profile that ensure a successful CTM planning run...........348 Exercise 20: Optimizer Costs .......... All rights reserved.................. you will be able to: • • • • • • • • • • • Explain the process flow of SNP Describe how the SNP Optimizer uses costs in the optimization run Copy a planning version Explain the costs and their effects on planning Identify where to maintain the costs used in the Optimization run............ Unit Objectives After completing this unit..........................Unit 6 Optimization in Supply Network Planning Unit Overview In this unit you will overview the planning process of CTM and be able to describe this planning method.................345 Lesson: Optimizer Costs............. Last we will look at how a GATP check can be executed from within the CTM planning run in this integration point........ We’ll explore how CTM selects alternative PPM’s based on resources availability and adjusts the plan based on supplier deliveries................... Compare the SNP Planning Methods Unit Contents Lesson: Optimization Process ........355 Lesson: Profiles Used by the Optimizer ......

........388 340 © 2005 SAP AG.... 2005/Q2 ..........................................372 Exercise 22: Optimizer Planning Run..Unit 6: Optimization in Supply Network Planning SCM230 Exercise 21: Optimizer Profiles................... All rights reserved..377 Lesson: Comparing SNP Planning Methods ...................................................................369 Lesson: Parameters of the Optimization Run .

341 .SCM230 Lesson: Optimization Process Lesson: Optimization Process Lesson Overview This lesson will help you understand the optimization run options in SNP Planning. You will learn about the parameters used by the optimizer and how costs are used to obtain the results. Certain pumps have a very complex supply chain and are storage.Optimization Factors Figure 153: The Supply Network Planning Process Flow 2005/Q2 © 2005 SAP AG. SNP . Lesson Objectives After completing this lesson. you need to meet customer demands and deliver products on time. you will be able to: • • • Explain the process flow of SNP Describe how the SNP Optimizer uses costs in the optimization run Copy a planning version Business Example As Planning Manager at Precision Pump Company. so they should be planned using the optimizer. All rights reserved.and transport-critical.

you get a medium-term production and distribution plan. After the SNP run. If the two plans do not match. SNP stock transfers. SNP optimization. you can use a macro to trigger alerts so that the demand planner can plan the forecasts again. 2005/Q2 . All rights reserved. You can automatically convert SNP planned orders into PP/DS planned orders in the production horizon. You can manually create stock transport orders for deployment stock transfers that could not be taken into account during the TLB run due to specified threshold values. The final SNP plan can be released back to Demand Planning to compare the unconstrained demand plan with the feasible SNP plan. Figure 154: How the Optimizer Works 342 © 2005 SAP AG. PP/DS then uses these PP/DS planned orders as a basis for removing detailed constraints and bottlenecks to create a feasible production plan. you check the exception messages or alerts and solve any problems that may occur. When you perform the SNP run using the SNP heuristic. After production planning is complete. the deployment run confirms the SNP stock transfers based on current receipts and demands. The final SNP plan consists of purchase requisitions. and SNP planned orders. The Transport Load Builder (TLB) run groups the deployment stock transfers into TLB shipments. planned independent requirements are created for Supply Network Planning (SNP) or Production Planning and Detailed Scheduling (PP/DS).Unit 6: Optimization in Supply Network Planning SCM230 When the demand plan is released from Demand Planning. or Capable-to-Match.

You can choose which constraints you want to consider as finite during the planning run. This means that it searches through all permissible plans to find the plan that is the most-cost effective one as regards the total cost evaluation. A plan is permissible from the point of view of the optimizer when it fulfills all the supply chain model constraints that you activated in the SNP optimizer profile. The total costs are made up as follows: Costs for production. stock transfers.SCM230 Lesson: Optimization Process The SNP optimizer allows you to perform cost-based planning. and handling capacity Costs for where stock falls below the safety stock level Costs for delayed delivery Stockout costs The SNP optimizer optimizes the demands from all selected location products in the data view horizon simultaneously. and purchase requisitions for the selected location products. such as planned orders. transportation. The optimizer uses linear programming to consider all relevant factors simultaneously. It determines the most cost-effective solution based on the constraints and objective function defined in the system. 343 . procurement. All rights reserved. Figure 155: Network Optimization Using Control Costs The optimizer compares alternative solutions using costs that would be incurred. 2005/Q2 © 2005 SAP AG. and storage Costs for the increase in production. transportation. storage. The optimizer generates feasible receipts. Receipts for unselected location products are not changed and these receipts form fixed capacity loads.

for example. The optimizer. if no other cost-effective solution was available. scheduling agreements. However. 2005/Q2 . If a product has no penalty costs. In this way you can. Set the Modify quota arrangements indicator for this if you are running the optimizer in the background. • • 344 © 2005 SAP AG. contracts. it can be used to create quota arrangements for subsequent heuristic-based planning runs. the optimizer will indeed take this transportation lane into account. which means that the optimizer only determines a solution that would violate these constraints. i. which are maintained in SAP SCM and cannot be transferred from SAP ECC. neither does it support an equal distribution of production to different locations (with regard to resource utilization or quantity-based quota arrangement). you set high penalty costs. including distribution demand. Single-sourcing is not supported either (sourcing of a product from a certain preferred source of supply only). the optimizer does not use the target days' supply to create the target stock level but only uses the safety stock. Violation of soft constraints also incurs costs. production. The optimizer does not account of any external procurement relationships. As a result. Due dates and safety stocks are considered to be soft constraints.Unit 6: Optimization in Supply Network Planning SCM230 You use penalty costs to prioritize demands. to use the optimizer to create a demand-dependent target stock level. taking into account constraints for transportation. on a monthly basis). you have to incorporate the target stock level into the safety stock calculation. The optimization run results in an optimal solution for the objective function (minimum costs or maximum profit). All rights reserved. execute short-term heuristic planning runs after long-term optimization-based planning (for example. or purchasing info records. Since the optimizer does not take any quota arrangements into account. as sources of supply. If a product brings high sales revenues. you cannot meet the demand for this product. The reason for this is that the total demand. In contrast to the heuristic. storage. and handling. If you have assigned a means of transport from the transportation lane generated from the external procurement relationship. The selection of procurement alternatives is managed using what are termed control costs. however. Limitations to the optimization algorithm • The SNP optimizer does not take account of any quota arrangements or procurement priorities. does not create any orders for the scheduling agreements during planning (the optimizer only regards existing orders as fixed orders).e. is not determined until the planning run. The result of the optimization run might be that due dates are violated or that safety stocks are not replenished. where the quota arrangements created in the optimization planning run are used as a basis for the heuristic planning runs.

2005/Q2 © 2005 SAP AG. Access interactive planning. 2. you use SAP SCM version management to compare planning results of different planning procedures. 345 . Assign the selections to your selection profile. you will be able to: • Copy a planning version • Copy transaction data Business Example As planning manager at Precision Pump Company. Copy your version SNP-## with master data and transaction data (only the planned independent requirements (category FA)) into version OPT-##. Task: 1.SCM230 Lesson: Optimization Process Exercise 19: Version Management Exercise Objectives After completing this exercise. Create new selections called PRODOPT## and RESOPT## for your version OPT-## by copying your existing selections PROD## and RES##. All rights reserved. Initialize planning area 9ASNP02 for this version.

346 © 2005 SAP AG. a) b) c) d) e) f) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning. choose your selection ID Change the version to OPT-## and click save. Create new selections called PRODOPT## and RESOPT## for your version OPT-## by copying your existing selections PROD## and RES##. Copy Master and Transaction Data Copy time series also (DP/SNP) Copy order data also Category 2. Enter the data from the table below and execute. Open the selection window. Assign the selections to your selection profile. Value SNP-01## OPT-## Enter a description next to Target GR## Optimizer Version Ver. 2005/Q2 . and save.Unit 6: Optimization in Supply Network Planning SCM230 Solution 19: Version Management Task: 1. enter the name PRODOPT##. click PROD##. Field Source Ver. Repeat this procedure to copy your RES## selection ID to create RESOPT##. a) b) Select Advanced Planning and Optimization → Master Data → Planning Version Management → Copy Planning Version. Initialize planning area 9ASNP02 for this version. and load the selection. Target Ver. All rights reserved. Select the radio button Create new selection. Assign the selections to your selection profile. . Select Do not select Select FA Access interactive planning. Copy your version SNP-## with master data and transaction data (only the planned independent requirements (category FA)) into version OPT-##.

347 . All rights reserved.SCM230 Lesson: Optimization Process Lesson Summary You should now be able to: • Explain the process flow of SNP • Describe how the SNP Optimizer uses costs in the optimization run • Copy a planning version 2005/Q2 © 2005 SAP AG.

Business Example As Planning Manager at Precision Pump Company. 348 © 2005 SAP AG. You use costs to set the source of determination of the SNP optimizer and the demand priorities. you will be able to: • • Explain the costs and their effects on planning Identify where to maintain the costs used in the Optimization run. 2005/Q2 . you need to meet customer demands and deliver products on time. Lesson Objectives After completing this lesson. the optimization problem becomes complex and the time required to solve this problem increases. You use control costs to configure your priorities. feasible solution. SNP .Unit 6: Optimization in Supply Network Planning SCM230 Lesson: Optimizer Costs Lesson Overview This lesson will help you identify the costs the optimizer uses and the effect each of them has on planning. All rights reserved.Optimization Factors Figure 156: Supply Chain Costs The optimizer compares the costs for the different procurement options and chooses the most cost-effective. You can only maintain the costs in the SAP SCM system via the mass maintenance of master data. such as minimizing delays or stock on hand. The optimizer considers all the constraints in the supply chain model that were activated in the optimizer profile. If a large number of constraints are activated.

and storage. In this case. The Optimal costs section of the above figure shows the more complex configuration of the optimizer. transportation. The storage costs ensure that procurement and production are carried out as late as possible. you use realistic costs for procurement. you use mass maintenance to define high costs for not delivering (NC) the finished products and for storing the finished products. All rights reserved. production. The high costs for not delivering force the optimizer to exhaust all possible procurement and production capacities to meet the demands. 349 . You use costs to deliver late and not to deliver at all to model lost sales and customer dissatisfaction. In this case. Figure 158: Comparison of Storage Costs and Delay Costs 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Optimizer Costs Figure 157: Optimization Goals The Optimal service level section of the above figure shows the least complex optimizer configuration.

The challenge for optimization is to accurately define the relevant costs. How Costs Influence the Optimizer • All costs depend on each other and must be set in the correct relation. Decrease in production costs in the currently preferred location to increase the priority of a production location Decrease in transportation costs from the currently preferred location to increase the priority of a production location Figure 159: Decisions the Optimizer Makes 350 © 2005 SAP AG. which is after the required date. the late delivery to storage cost ratio determines whether or not the system will trigger early production. Transportation costs are used to prioritize source locations to increase the priority of a production location. 2005/Q2 . How the costs considered during the optimization run impact on the results of the planning run is described above using examples. If you define storage costs. for example. This is done using production capacities that are available at an earlier point or deliver late. the costs for a late delivery as compared to the costs for storage.Unit 6: Optimization in Supply Network Planning SCM230 The purpose of optimization is to find the best feasible solution. – – – – Higher penalty costs for not delivering result in increased production. production will be scheduled as late as possible to avoid having stock on hand. If a demand cannot be met on time. All rights reserved.

for example. Optimization Parameters and Profiles Figure 160: Product and Location Priorities If you do costs-based optimization. is not determined until the planning run. all demand are prioritized according to their penalty costs and optimized jointly. 351 . The reason for this is that the total demand. demand is not covered and penalty costs must be paid for non-delivery per base unit of measure. to use the optimizer to create a demand-dependent target stock level. the optimizer does not use the target days' supply to create the target stock level but only uses the safety stock. there is a new stock balance macro function STOCK_BALANCE_OPT which stops calculating shortages once the maximum delay has been reached. All rights reserved. For example. The penalty costs for customer demands and forecasted demands are defined separately. The maximum delay defines the maximum tolerated number of delay days for product and location. including distribution demand.SCM230 Lesson: Optimizer Costs The purpose of optimization is to find the best feasible solution.1. You use penalty costs for late delivery and non-delivery to set priorities for products according to. If the maximum number of days is exceeded. you have to incorporate the target stock level into the safety stock calculation. The penalty costs for delivering late are due each day. the contribution margin. As a result. Hint: In SCM 4. 2005/Q2 © 2005 SAP AG. the costs for delivering late. You can use the cost profile to define the relative weighting of the various costs. for example. In contrast to the heuristic. would it be more cost-effective to deliver two days late than to produce three weeks early? The challenge for optimization is to accurately define the relevant costs.

If no general procurement costs have been defined. demand forecast or corrected demand forecast. 352 © 2005 SAP AG. the optimizer creates general purchase requisitions without a supplier. If you work with the corrected forecast. All rights reserved. the optimizer runs three times. You can set these priorities globally or for specific locations in the SNP 1 tab page in the product master. You cannot use discrete optimization methods for strict prioritization. Figure 161: Costs to Control the Optimizer Product priorities are entered as penalty costs for late delivery or non-delivery. The system uses all the available cost information within each priority class to determine the final solution. If you configure strict prioritization. the costs for non-delivery are interpreted as revenue. If general procurement costs have been defined. the optimizer only plans purchase requisitions with suppliers. 2005/Q2 . Transportation costs are defined at the transportation lane. The optimizer ignores these general transportation costs if transportation costs have been defined for the individual products. these costs override the global costs. You define production costs for the products and costs for normal usage of the resource in the header data of the plan PPM/PDS (single-level variable costs).Unit 6: Optimization in Supply Network Planning SCM230 You can define global penalty costs for late delivery and non-delivery of the product or you can define costs for each location individually. In the optimizer profile you can set the priority of safety stock to customer demand. You use transportation costs in the transportation lane or general procurement costs in the product master record to model the procurement costs for components or raw materials. If you have set profit maximization. If you have defined location-specific costs. the optimizer runs first of all for sales orders and then for forecasts.

353 . Select Advanced Planning and Optimization → Master Data → Resource→ Current Settings → Capacity Variants. The optimizer must pay penalty costs for dropping below the minimum utilization or exceeding the standard utilization (soft constraint). The storage costs apply either to stock on hand at the end of the period or according to the number of days in the bucket (setting in the optimizer profile). You maintain which variants represent minimum and normal availability on the initial screen of the resource master record (that is. the selection options screen). Hint: If you are working with minimum capacity variants. The following variant then defines the maximum capacity. the optimizer can also generate receipt elements without demand in the event that the penalty costs for the minimum capacity exceed the receipt costs. The costs for dropping below the minimum utilization or exceeding the standard utilization of the resource are maintained in the Quantity/Rates profile of the variant.SCM230 Lesson: Optimizer Costs You define storage costs and penalty costs for falling below the safety stock level in the Procurement view of the product master. The maximum utilization is never exceeded when finite planning is in use. The optimizer can plan a maximum of 3 resource variants. All rights reserved. 2005/Q2 © 2005 SAP AG.

2005/Q2 . All rights reserved.Unit 6: Optimization in Supply Network Planning SCM230 354 © 2005 SAP AG.

you will be able to: • Explain the costs the optimizer uses and their effects on the results • Identify where to maintain the costs used in the Optimization run. Which global costs and permitted delays have been set for planned independent requirements? Product P-102 P-103 2.SCM230 Lesson: Optimizer Costs Exercise 20: Optimizer Costs Exercise Objectives After completing this exercise. Business Example The optimizer makes priority decision based on costs. Hint: Costs are version-specific only if the associated master data objects were defined as version-specific! 1. How are transportation costs for trucks set with regard to the following transportation lanes? Production costs Delay penalty Maximum delay (days) Penalty for ND (no delivery) Continued on next page 2005/Q2 © 2005 SAP AG. As Planning Manager at Precision Pump Company. 355 . you need to ensure that the optimizer costs reflect the priority of your business. Task: Analyze the optimizer costs that were defined for your version OPT-##. How are the production costs of the following PPMs set? PPM P-102_1000 P-102_2300_SNP P-103_1000 P-103_2300 3. All rights reserved.

2005/Q2 .Unit 6: Optimization in Supply Network Planning SCM230 Transportation lane Location 1000 →2400 Location 1000 →2500 Location 2300 →2400 Location 2300 →2500 Transportation costs 356 © 2005 SAP AG. All rights reserved.

Enter your version OPT-##. Hint: Costs are version-specific only if the associated master data objects were defined as version-specific! 1. 40 50 How are the production costs of the following PPMs set? Continued on next page 2005/Q2 © 2005 SAP AG. Drill down on Delay/no delivery and double click on the product P-102.SCM230 Lesson: Optimizer Costs Solution 20: Optimizer Costs Task: Analyze the optimizer costs that were defined for your version OPT-##. Click on the Others tab to find delay costs. Which global costs and permitted delays have been set for planned independent requirements? Product P-102 P-103 a) b) c) d) e) Select Advanced Planning and Optimization → Master Data → Supply Network Planning Master Data → Maintain Costs (Directory). 357 . Record the costs in the “For demand forecast” column. All rights reserved. Then double click on P-103 and record the costs from the same column. Product Delay penalty Maximum delay (days) 30 30 Penalty for ND (no delivery) 2000 2500 Delay penalty Maximum delay (days) Penalty for ND (no delivery) P-102 P-103 2.

double click on each product. Drill down on PPM. Drill down on Transportation lanes and again on the specific Location lanes. How are transportation costs for trucks set with regard to the following transportation lanes? Transportation lane Location 1000 →2400 Location 1000 →2500 Location 2300 →2400 Location 2300 →2500 a) b) Click on the Transptn tab to find the transportation costs from the transportation lane. All rights reserved. PPM P-102_1000 P-102_2300 P-103_1000 P-103_2300 P-102_2300_ALT_## Production costs 300 280 290 270 200 3.Unit 6: Optimization in Supply Network Planning SCM230 PPM P-102_1000 P-102_2300_SNP P-103_1000 P-103_2300 a) Production costs Click on the Production tab to find the costs for production. and record the single level costs. Double-click on the truck and record the costs. 2005/Q2 . Transportation lane Location 1000 →2400 Location 1000 →2500 Location 2300 →2400 Location 2300 →2500 Transportation costs 100 100 100 10 Transportation costs 358 © 2005 SAP AG.

2005/Q2 © 2005 SAP AG. 359 .SCM230 Lesson: Optimizer Costs Lesson Summary You should now be able to: • Explain the costs and their effects on planning • Identify where to maintain the costs used in the Optimization run. All rights reserved.

the order situation is poor. Optimizer Profiles Figure 162: Cost Profile 360 © 2005 SAP AG. for example. 2005/Q2 . Lesson Objectives After completing this lesson.Unit 6: Optimization in Supply Network Planning SCM230 Lesson: Profiles Used by the Optimizer Lesson Overview This lesson will help you understand the settings and control of the optimization run using profiles. You use the optimizer profile to customize the optimization run for the current aims and conditions. you will be able to: • • Create Cost and Optimizer profiles Explain the settings in the optimizer profile Business Example As Planning Manager at Precision Pump Company. If. All rights reserved. the order situation is good. you need to meet customer demands and deliver products on time. on the other hand. you base your optimization more on production and procurement costs. you put a greater weighting on the costs for delivering late or not delivering at all. If.

If you defined variants for minimum.SCM230 Lesson: Profiles Used by the Optimizer There are a number of decisions that the optimizer must make for the final solution. or you can reduce the costs for capacity increases. shipment quantities. maximum transport lot sizes that were defined in the transportation lanes can also be used. Optimization Parameters In determining the solution the optimizer can treat all constraints as hard constraints. These Decision Variables include production quantities. The product-dependent. The following constraints can be used to influence the results: • • • • • • • • Production capacities Storage capacities Transportation capacities Handling capacities Capacity increase Material availability Calendar Lot sizes → Production → Transportation • • Due dates (soft) (demands) Safety stock (soft) The optimizer compares alternative solutions using an objective function with which you can set your priorities. The solution chosen by the optimizer is influenced by the settings you make in the cost profile. capacity increase and procurement. standard. All rights reserved. such as minimizing delays and minimizing on-hand stock. And if the order situation is satisfactory. The optimizer can also take account of a maximum product-specific storage quantity in the individual locations. the optimizer calculates penalty costs in the event of a deviation from the standard resource utilization. 361 . if the current order situation is poor. you can base your optimization more on production or procurement costs. 2005/Q2 © 2005 SAP AG. which you define in the location product master data (on the Lot size tab page). You can use the cost profile to globally configure the relative weighting of the decision variables via the costs for your optimization run. The cost profile allows you to rapidly simulate various cost situations and their impact on the planning results. For example. Storage quantities. and maximum resource utilization. you can place a greater weighting on the costs for delivering late or not delivering at all.

2005/Q2 . upper bound for production For transportation lanes. The optimizer takes into account the shelf life of products in a location on a restricted basis. and production quantities for the optimizer. for example.1. stock on hand. Only if an entry is made here does the system take account of the upper bound. in order to model time-dependent delivery quantities of a supplier. Whether or not a constraint is active. You can switch the time series upper bounds on and off in the optimizer profile. upper bounds for procurement and storage For PPMs. handling. For this purpose you can use standard planinng area 9ASNP04 with planning book 9ATSOPT. information about its shelf life is lost (see OSS note 574321). view OPT_TSBD. upper bound for transportation For every upper bound there is a zero indicator time series.Unit 6: Optimization in Supply Network Planning SCM230 The optimizer can consider all types of capacity constraints that are active. Figure 163: The Optimizer Profile 362 © 2005 SAP AG. e. Hint: Mass maintenance of time series was put in place for SCM 4. When stock is transferred. All rights reserved. In this planning area you can define the following constraints time-dependently in time series: • • • For location products. depends on the setting in the optimizer profile. you can also store time-dependent costs for falling below safety stock levels in planning book 9ATSOPT. production. for safety stock level or restrictions for procurement. You can also define constraints time-dependently. such as transportation.g. If you plan with safety stocks. and storage constraints.

7 pumps. but no receipts are created for the products. even when the constraints are planned on an infinite basis. In order to simplify the selections you can also take into account stocks of non-selected PPM input products and source location products. If you set hard constraints and the demands cannot be met. Costs are always considered. production. You cannot use strict prioritization in conjunction with the discrete optimization method. or procurement (fixed cost term or scaled costs) If you set Strict demand prioritization in the optimizer profile. 363 . If you select the indicator Do not delete any orders all existing orders are treated as fixed. you can also set discretization in order to generate integer-based orders using mixed integer linear programming (MILP). 2005/Q2 © 2005 SAP AG. and finally the demand forecast. followed by the corrected demand forecast.SCM230 Lesson: Profiles Used by the Optimizer In the optimizer profile you define the optimization method (linear or discrete) to be used during the optimization run and the restrictions to be taken into consideration. you can maintain different priorities for dependent requirements and distribution demand. You can also set a priority for safety stock. For fixed orders. The linear program does not generate integer-based solutions. Stocks are consumed in this process. multiple optimization runs are performed. the problem cannot be solved. however. All rights reserved. You need to use discretization if you want to take the following into account: • • • • Lot-sizing procedures for transportation or PPMs Discrete (integer value) capacities for transportation or production Minimum lot sizes for transportation or PPMs Cost functions for transportation. The sales orders are optimized first. Pseudo-hard means that very high costs are set internally. such as a planned order for 1. In the optimization profile.

364 © 2005 SAP AG. This is the normal simplex method in which all the variables are continuous. unfulfilled demand is multiplied by the costs for not delivering. You can also define here whether or not you want the system to take into account the production horizon and stock transfer horizon during the optimization run. If you choose profit maximization.Unit 6: Optimization in Supply Network Planning SCM230 Cost Calculation and Horizons • Cost minimization The following formula is used to calculate the total costs: unfulfilled demand * penalty for not delivering + costs Profit calculation The following formula is used to calculate the total costs: fulfilled demand * penalty for not delivering . the individual costs are added together to calculate the total costs. All rights reserved. Profit is then calculated by subtracting the costs incurred from the revenue. the planned quantities are the same SNP horizons – – Do you want to take into account the production horizon? Do you want to take into account the stock transfer horizon? – – • • • In cost minimization.costs Only the costs are calculated differently. the system interprets the penalty for not delivering as revenue rather than a cost. 2005/Q2 . Optimization Methods (1) • • Linear programming (LP) – Basic solve Mixed Integer Linear Programming (MILP) – Discretization – Lot sizes and cost functions Methods of decomposition – – – – Time decomposition Product decomposition Priority decomposition Resource decomposition • Optimization in Supply Network Planning (SNP) provides several methods to determine the optimum solution: • Basic Solve: The optimizer creates an optimal solution based on all available data.

e.SCM230 Lesson: Profiles Used by the Optimizer • • • • • The methods of decomposition allow you to reduce the runtime requests and memory requests made by optimization in Supply Network Planning (SNP).e. You can use the SNP priority profile to define priorities for product and resource decomposition. The complete model is solved one product group at a time according to the specifications in the Window size field. procurement. The priority profile allows you to assign priorities for important products and thereby control the planning sequence. i. For this. and so on. but you can achieve this by using time decomposition in addition to this method. the optimal solution). the larger the window size. in the event of difficult discrete problems. 2005/Q2 © 2005 SAP AG. The optimizer can then assign the resources partial problems that will be solved sequentially. on the other hand. transportation. Time decomposition speeds up the solution process by fragmenting the initial problem into consecutive partial problems. Decomposition is a flexible tool for balancing the tradeoff between optimization quality and required runtime. the SNP optimizer normally provides a better solution for any runtime without decomposition (i. Resource decomposition speeds up the solution process. Product decomposition speeds up the solution process by forming product groups. 365 . the better the quality of the solution found. the planning sequence is normally based on the non-delivery costs and total requirements quantity of the products. In addition. however. Indeed. These partial problems are then resolved sequentially. the solution quality is inferior to that achieved when using the optimizer without time decomposition. you need to define the window size for time decomposition. you need to define the window size for product decomposition. decomposition can represent a way for the SNP optimizer to at least find a valid solution. All rights reserved. The Window size field should be assigned a value between 1% and 30% which defines approximately the size of the decomposed problems in relation to the full original model size. With product decomposition. but where the runtime is fixed it may in fact be able to find a better (or at least valid) solution using decomposition. the optimizer makes the decisions that lead to the resource being loaded. Resource decomposition does not reduce memory requests. as the partial problems are very small (0% = separate planning). If you do not choose a window size. you can alter the sequence in which the optimizer groups and plans products and resources for partial problems. In general. in that it first determines a resource sequence by analyzing the material flow and the optimizer's basic decisions regarding production. In each of these partial problems. the faster a solution will be found. the optimizer prefers to plan products with the same priority together in a partial problem (99% = combined planning in one problem). For this. Rule of thumb: The smaller the window size. If. Resource decomposition is mainly suitable if the production processes keep loading the resources in a similar sequence. you do choose a window size. the optimizer prefers to plan products with the same priority separately.

however. 366 © 2005 SAP AG. If you activate strict prioritization. If you choose discrete optimization. the optimizer uses the primal or dual simplex algorithm depending on the selection made. the decomposition methods speed up the optimization process but they do not produce the optimal solution. The optimizer fulfills customer requirements first (priority 1 by default). If you activate the interior point method in addition to one of the other methods. the optimizer also takes the active method of linear optimization into account. you need to experiment in order to determine the method with the lowest runtime. the optimizer takes account of the demand prioritization on the basis of penalty costs which you can define in the product master (SNP 1 tab page). at the end of the solution process. followed by the adjusted demand forecast (priority 5 by default). Demands with priority 1 are taken into account first. The solution found. and so on. is always the same with regard to the calculated costs. and finally the demand forecast itself (priority 6 by default). There is no optimal method. You cannot use strict prioritization in conjunction with the discrete optimization method. Note: Also.Unit 6: Optimization in Supply Network Planning SCM230 • Priority decomposition: If you activate cost-based prioritization.e. 2005/Q2 . the optimizer sticks strictly to the demand prioritization. the optimizer uses an interior point algorithm. i. Optimization Methods (2) Figure 164: Optimization Methods (2) There are different methods of linear optimization which influence the time that the optimizer requires to find a solution. Then. which then influences the time that the optimizer requires to solve the problem. All rights reserved. The primal/dual simplex algorithm and interior point method are methods of linear optimization. followed by demands with priority 2.

You must also activate this method if you want the optimizer to take account of cross-period lot sizes in lot size planning. The Branch and Cut methods perform a full search. Utilization of the discrete optimization method allows you to greatly increase runtime requests. To determine integer-based solutions or use lot sizes and cost profiles. You can make variables discrete as long as the discretization indicator is set in the master data (PPM).SCM230 Lesson: Profiles Used by the Optimizer Discretization and Aggregation • Discretization – Full search → MILP. the runtime can be very long.e. It reduces the problem and achieves considerable runtime improvements. optimal solution (using complete Branch methods) if no run-time limits are set • Aggregated Planning – – Product location hierarchy PPM/PDS hierarchy To determine integer-based solutions or to use lot sizes and cost profiles. Iteration means that the system moves from one valid solution to the next best valid solution. All rights reserved. Choose discrete optimization if you want the optimizer to take one of the restrictions listed on the discrete restrictions tab page into consideration. Please note that Supply Network Planning is a medium-term planning function that should not focus on solving integer-based problems (i. you select the discretization options in the optimizer profile. utilization of the discrete optimization method). If no entry is made. The system then returns the solution it found up to that point. We therefore recommend that you limit the runtime or number of improvements (see the options on the solution methods tab page). 367 . To avoid excessively long run times. An example of this would be integer-based and minimum lot sizes for transportation or the production process model (PPM). you should limit the number of iterations (improvements) or the run time (in seconds). you need to choose the discretization options in the optimizer profile. The aggregated planning explained in the section regarding the SNP heuristic can also be used in the SNP optimizer. 2005/Q2 © 2005 SAP AG.

All rights reserved. 2005/Q2 .Unit 6: Optimization in Supply Network Planning SCM230 368 © 2005 SAP AG.

you need to understand the effect the settings will have on the results of the optimization run and be able to create new profiles. As Planning Manager at Precision Pump Company. All rights reserved. Task: 1. 2005/Q2 © 2005 SAP AG. 369 .SCM230 Lesson: Profiles Used by the Optimizer Exercise 21: Optimizer Profiles Exercise Objectives After completing this exercise. you will be able to: • Create Cost and Optimizer Profiles • Explain the settings in the optimizer profile Business Example The optimizer uses profiles to set the parameters for the optimization run. Copy the MASTER optimizer profile to your profile GROUP##.

Unit 6: Optimization in Supply Network Planning SCM230 Solution 21: Optimizer Profiles Task: 1. Then enter SCM230 . Overwrite the name MASTER with GROUP## with the description Group 01 to rename the copy. click in the description field. 2005/Q2 . b) c) d) e) f) g) If a Customizing request is required. a) Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Profiles → Define SNP Optimizer Profile. Click Copy as. to copy the MASTER profile. to save the profile.. Click and 370 © 2005 SAP AG. . Copy the MASTER optimizer profile to your profile GROUP##. All rights reserved. Click Click to adopt the new profile. Select the MASTER profile.

SCM230 Lesson: Profiles Used by the Optimizer Lesson Summary You should now be able to: • Create Cost and Optimizer profiles • Explain the settings in the optimizer profile 2005/Q2 © 2005 SAP AG. 371 . All rights reserved.

Unit 6: Optimization in Supply Network Planning SCM230 Lesson: Parameters of the Optimization Run Lesson Overview This lesson will help you understand how cost functions can be used to model non-linear costs. Lesson Objectives After completing this lesson. 2005/Q2 . Optimization Parameters Figure 165: Optimizer Cost Functions The optimizer normally considers costs on a linear basis. you should create an optimal plan that will help you solve the problem. for example. you will be able to: • • • Execute an optimization run Create a cost function and use it in the optimization run Explain how the bound profile and the bucket offset affect the results of the optimization run. 372 © 2005 SAP AG. you need to ensure that the demands from the customers are met and timely delivery of products is made. and inventory. if it costs one unit to produce one pump. Taking account of the constraints for storage. All rights reserved. then it will cost ten units to produce ten pumps. How to use a bound profile to constrain the results of the run and how the bucket offset affects scheduling. Business Example As Planning Manager at Precision Pump Company. transportation.

SCM230

Lesson: Parameters of the Optimization Run

You can use cost functions to define a non-linear relationship between costs and quantities for procurement, production, or transportation from variable and fixed costs. The optimizer can then calculate the optimal lot sizes from the procurement and storage costs (optimum lot-sizing procedure). • • • You define the procurement cost function in the product master. You define the production cost function in the plan (PPM). You define the transportation cost function in cost maintenance in the SNP master data for the transportation lanes.

In the cost function, you maintain (for example) fixed costs of 100 and variable costs of 7 for the procurement of 0 to 100 pieces. To procure 50 pieces, it costs the fixed costs plus 50 times the variable costs, therefore 450 in this interval. Dependencies • • If you use cost functions, the optimizer ignores the general variable costs. Cost functions are only considered during discrete optimization.

Figure 166: The SNP Optimization Bound Profile

As the optimizer does not use net change planning, you can use the optimization bound profile to stabilize planning. You can specify that the results of a subsequent optimization run should only differ by a certain percentage from the planned quantities and the dates of the first run. You can use the results of the first run, that is, the quantities for production, shipment, procurement, storage, and delivery as a basis for the permitted deviations of the subsequent runs.

2005/Q2

© 2005 SAP AG. All rights reserved.

373

Unit 6: Optimization in Supply Network Planning

SCM230

Figure 167: Bucket Offset in the Optimizer

The availability date of receipt elements is determined in the SNP heuristic using the period factor and in the SNP optimizer using the bucket offset. Order dates and availability dates are separate in the optimizer. The bucket offset governs the availability date of an order. The order finish date is calculated by forward scheduling the fixed duration times of the order from the start of the bucket. If the finish date is before the bucket offset, the planned order is scheduled with the calculated dates and times. If the finish date is after the bucket offset, the order is scheduled in the previous bucket and is available at the start of the current bucket. Rule of thumb: • • Large limit values are optimistic because they imply that the products are available earlier than specified. Smaller values are more conservative because the receipt for the products is planned already in the previous bucket.

You define the general bucket offset in the optimizer profile, a specific bucket offset for stock transfers in the transportation lane, and a specific bucket offset for production in the PPM. SAP recommends that you use a bucket offset of 1 for stock transfers. For more information, see OSS note 434197. Purchase requisitions are always created at the start of the bucket. The following parameters need to be defined at the start of an SNP optimization run: Input Parameters for the Optimization Run

374

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Parameters of the Optimization Run

Data view - You define the time buckets profile and key figures for planning Selection - You specify the products and locations that you want to optimize simultaneously Add products from supersession chains Planning start and end dates - You define the planning horizon The optimizer profile Cost profile Limits profile Key figures for modifying the quota arrangements Result: The system modifies the defined quota arrangements. If no quota arrangements have been defined, the optimizer creates quota arrangements. The optimizer only overwrites quota arrangements for the given horizon, period type, and inbound or outbound quota arrangements.

2005/Q2

© 2005 SAP AG. All rights reserved.

375

Unit 6: Optimization in Supply Network Planning

SCM230

376

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Parameters of the Optimization Run

Exercise 22: Optimizer Planning Run
Exercise Objectives
After completing this exercise, you will be able to: • Define the costs used by the optimizer when creating a plan • Explain the working of the cost profile and the optimizer profile • Explain the various optimization methods

Business Example
Control costs can be used to prioritize products, customers, and suppliers. Precision Pump Company uses the optimizer to optimize the product flow of its most important products over the medium-term horizon and to create a feasible plan. As Planning Manager at Precision Pump Company, you need to ensure that you meet the demands of the customers and deliver products on time. Depending on the constraints of costs, such as storage, transportation and inventory, you need to create a plan that will help you solve the problem. This plan provides an optimal solution depending on the constraints.

Task 1:
1. All products in the selection are optimized simultaneously. Load all the location products from your selection PRODOPT## into the planning table and run the optimizer for the entire network by double-clicking your selection PRODOPT## and selecting the GROUP## optimizer profile and the MASTER cost profile. Analyze the costs which the optimizer has calculated for this solution. Did the optimizer calculate penalties for delay or no delivery?

Task 2:
1. Analyze the situation for production resources W1906_1000_001, WORK##, and W1906_2300_001. The resources do not have a load of over 100%.

Task 3:
1. Analyze the planning results for the supplier in interactive Supply Network Planning (all books). Choose the SUP## selection and enter your new version, OPT-##. The optimizer did not generate any planned distribution

Continued on next page

2005/Q2

© 2005 SAP AG. All rights reserved.

377

Unit 6: Optimization in Supply Network Planning

SCM230

demand either, as no receipts were entered in version OPT-##. Now, enter a distribution receipt of 200 pieces for four weeks from now. Optimize again and make sure that only a planned distribution demand was generated.

Task 4:
1. Access the PP/DS product view and analyze which plants are to supply distribution centers 2400 and 2500 with P-102 (to fulfill the demands). It is more cost-effective for plant 1000 to primarily supply DC 2500 and plant 2300 to supply DC 2400. Therefore, reduce the transportation costs for both of these transportation lanes to 5 units/ton. Restart the optimizer in mass processing. Create a variant called GROUP## for it. Planning book Data view Selection profile Optimizer profile Cost profile 9ASNP94 SNP94(1) PRODOPT## GROUP## MASTER

Check whether DC 2400 is now primarily being supplied by plant 2300. Have the total transportation costs also been reduced?

Task 5:
1. Access the PP/DS product view and analyze the purchase requisitions for component 102-100 in plant 2300. The optimizer created a large purchase requisition at the start of planning. Create a location product master record for component 102-100 in plant 2300 for version OPT-##. Maintain storage costs there of one per day. Restart the optimizer in mass processing. You will now see in the PP/DS product view that several purchase requisitions have been created to avoid storage costs.

Task 6:
1. The optimizer has not calculated integer-based (whole number) solutions. To receive solutions that are integer-based, set the discretization indicator in the PPM of your plan P 102_SNP_2300_##. In the GROUP## optimizer profile, Continued on next page

378

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Parameters of the Optimization Run

now choose discretization and restart the optimizer in mass processing. You will now see in the PP/DS product view that integer-based solutions have been generated.

Task 7:
1. You want the optimizer to determine the optimal lot size for your purchase requisitions. To set this up, create a location product master record for version OPT-## as well as a cost function called SUP## for procurement of component 102-100 in pieces in plant 2300, and make the following settings: From 100 200 To 100 200 999.999,999 Fixed costs 10 8010 14010 Variable costs 80 60 40

Restart the optimizer in mass processing. You will now see in the PP/DS product view that the quantities for the purchase requisitions have changed.

2005/Q2

© 2005 SAP AG. All rights reserved.

379

Unit 6: Optimization in Supply Network Planning

SCM230

Solution 22: Optimizer Planning Run
Task 1:
1. All products in the selection are optimized simultaneously. Load all the location products from your selection PRODOPT## into the planning table and run the optimizer for the entire network by double-clicking your selection PRODOPT## and selecting the GROUP## optimizer profile and the MASTER cost profile. Analyze the costs which the optimizer has calculated for this solution. Did the optimizer calculate penalties for delay or no delivery? a) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning and make sure that you are using data view SNP94(1). Load all the location products from your selection PRODOPT## into the planning table by clicking the “Select all” and “Load data” icons. and click the Go to change mode in the interactive planning table. Optimizer button

b)

c) d) e) f) g)

Select the GROUP## optimizer profile and the MASTER cost profile. Start the optimization run .

If there are no penalty costs for delay or non-delivery, it means that the optimizer was able to fulfill all demands on time. Go back to the planning table and save .

Task 2:
1. Analyze the situation for production resources W1906_1000_001, WORK##, and W1906_2300_001. The resources do not have a load of over 100%. a) b) c) Double-click on the data view SNP94(2). Double-click on your selection RESOPT## to see the resources in the selection window. Double-click again on the resources to display the capacity situation in the planning table.

Continued on next page

380

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Parameters of the Optimization Run

Task 3:
1. Analyze the planning results for the supplier in interactive Supply Network Planning (all books). Choose the SUP## selection and enter your new version, OPT-##. The optimizer did not generate any planned distribution demand either, as no receipts were entered in version OPT-##. Now, enter a distribution receipt of 200 pieces for four weeks from now. Optimize again and make sure that only a planned distribution demand was generated. a) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning ( All books). Double-click on your SUP## selection to see the location product in the selection window. Open the selection window and change the version.

b) c) d) e) f)

Next, double-click the location product. The optimizer did not generate any distribution demand. Exit interactive planning. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning and make sure that you are using data view SNP94(1). Double-click your selection PRODOPT## and, in the interactive Optimizer button. Choose the planning table, click the optimization profile GROUP## and the cost profile MASTER, and start the optimization run. . . Go back to the planning table and save

g)

h)

Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning ( All books). Double-click your selection SUP## to see the location product in the and change the selection window. Open the selection window version. Now, double-click on the location product. The optimizer has generated distribution receipts and made sure that the distribution receipt of 200 pieces you entered has not been exceeded.

i)

Continued on next page

2005/Q2

© 2005 SAP AG. All rights reserved.

381

Unit 6: Optimization in Supply Network Planning

SCM230

Task 4:
1. Access the PP/DS product view and analyze which plants are to supply distribution centers 2400 and 2500 with P-102 (to fulfill the demands). It is more cost-effective for plant 1000 to primarily supply DC 2500 and plant 2300 to supply DC 2400. Therefore, reduce the transportation costs for both of these transportation lanes to 5 units/ton. Restart the optimizer in mass processing. Create a variant called GROUP## for it. Planning book Data view Selection profile Optimizer profile Cost profile 9ASNP94 SNP94(1) PRODOPT## GROUP## MASTER

Continued on next page

382

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: Parameters of the Optimization Run

Check whether DC 2400 is now primarily being supplied by plant 2300. Have the total transportation costs also been reduced? a) Select Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View. Enter your version OPT-##, product P-102, and location 2400. You see stock transport requisitions (category: PurRqs). After double clicking on these, you will find the supplying plant in the “Source/target” screen area. Stay in the product view. Open another session and choose Advanced Planning and Optimization → Master Data → Supply Network Planning Master Data → Maintain Costs (Directory). The transportation costs from the transportation lane are on the Transport tab page: Transportation lanes → 1000 -2500 → Truck. Double-click on the truck. Choose “Change”, enter the costs, and save. Repeat this procedure for lane 2300 – 2400. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Optimization. Enter planning book 9ASNP94 and data view SNP94(1). Choose the “Selection profile” radio button and enter your profile PRODOPT##. Then enter GROUP## in the optimizer and cost profiles. Save your entries as variant GROUP##. Execute. DC 2400 is now primarily being supplied by Plant 2300. Have the total transportation costs also been reduced? Select Advanced Planning and Optimization → Supply Network Planning → Reporting → Optimizer Log Data. Select a row and click the Display Logs icon. Double click costs to display.

Task 5:
1. Access the PP/DS product view and analyze the purchase requisitions for component 102-100 in plant 2300. The optimizer created a large purchase requisition at the start of planning. Create a location product master record for component 102-100 in plant 2300 for version OPT-##. Maintain storage costs there of one per day. Continued on next page

2005/Q2

© 2005 SAP AG. All rights reserved.

383

2005/Q2 . set the discretization indicator in the PPM of your plan P 102_SNP_2300_##. Enter product 102-100 and location 2300. You will now see in the PP/DS product view that several purchase requisitions have been created to avoid storage costs. To receive solutions that are integer-based. Enter your planning version OPT-##. a) Select Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View. Get your variant GROUP##. choose the refresh icon). check that several purchase requisitions have been created to avoid storage costs. Save. The optimizer has not calculated integer-based (whole number) solutions. on the Procurement tab page. In the GROUP## optimizer profile. Open another session and choose Advanced Planning and Optimization → Master Data → Product → Product. All rights reserved. Create the master record and. Continued on next page 384 © 2005 SAP AG. and location 2300. Execute. product 102-100. Select the Location View and click the Choose planning version button. Enter your version OPT-##. You see a large purchase requisition (category: PurRqs). Task 6: 1.Unit 6: Optimization in Supply Network Planning SCM230 Restart the optimizer in mass processing. Stay in the product view. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Optimization. In the PP/DS product view (in your other open session. choose to maintain product storage costs of 1 per day.

To set this up. Task 7: 1.999 Fixed costs 10 8010 14010 Variable costs 80 60 40 Continued on next page 2005/Q2 © 2005 SAP AG. Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Profiles → Define SNP Optimizer Profile. Get your variant GROUP##. choose refresh). double-click on PPM P-102_SNP_2300_ALT_## and. location 2300 and use of a plan S. Execute. Save the profile. a) Select Advanced Planning and Optimization → Master Data → Production Process Model → Production Process Model .SCM230 Lesson: Parameters of the Optimization Run now choose discretization and restart the optimizer in mass processing. create a location product master record for version OPT-## as well as a cost function called SUP## for procurement of component 102-100 in pieces in plant 2300. and make the following settings: From 100 200 To 100 200 999. 385 . In the PP/DS product view (in your other open session. expand the production process models. Now go back. Activate the plan. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Optimization. On the “Plan” tab page. All rights reserved. Enter product P-102.999. in change mode. Then select your plan P102_SNP_2300_##. You will now see in the PP/DS product view that integer-based solutions have been generated. Set up the GROUP## optimizer profile with the method Discrete Optimization. and choose Display. check that integer-based solutions have been generated. You want the optimizer to determine the optimal lot size for your purchase requisitions. set the discretization indicator.

and save. check whether the quantities in the purchase requisitions have changed. In the PP/DS product view (in your other open session. Get your variant GROUP##. Create the master record and in the “Procurement” tab page. Enter your planning version OPT-##. 386 © 2005 SAP AG. Execute. → Yes. A dialog box appears asking if you want to create the cost function. a) Open another session and choose: Select Advanced Planning and Optimization → Master Data → Product. choose refresh). Choose the “Choose planning version” button. Create the cost function with a description and the unit of measure “Pieces”. 2005/Q2 .Unit 6: Optimization in Supply Network Planning SCM230 Restart the optimizer in mass processing. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Optimization. You will now see in the PP/DS product view that the quantities for the purchase requisitions have changed. All rights reserved. Specify product 102-100 and location 2300. enter the cost function SUP##.

SCM230 Lesson: Parameters of the Optimization Run Lesson Summary You should now be able to: • Execute an optimization run • Create a cost function and use it in the optimization run • Explain how the bound profile and the bucket offset affect the results of the optimization run. All rights reserved. 2005/Q2 © 2005 SAP AG. 387 .

you need to ensure that the demands from the customers are met and timely delivery of products is made. Comparing SNP Strategies Figure 168: SNP Strategies: Comparison (1) The Heuristic is a rapid infinite planning method that generates alerts when there is insufficient material or a resource overload. All rights reserved. 2005/Q2 . CTM is an order-related planning method that defines the first feasible solution and uses pegging to link the prioritized demands with receipt elements. global planning of production resources. you will be able to: • Compare the SNP Planning Methods Business Example As Planning Manager at Precision Pump Company. 388 © 2005 SAP AG. Capable-to-Match (CTM) is a rules-based method with extensive prioritization capabilities and finite. An appropriate planning tool must be selected to ensure deliveries are made and operations are kept as efficient as possible.Unit 6: Optimization in Supply Network Planning SCM230 Lesson: Comparing SNP Planning Methods Lesson Overview This lesson will help you compare the SNP planning methods Lesson Objectives After completing this lesson.

If you plan a very large number of orders per bucket and location product. The heuristic plans on an infinite basis. planning is not based on individual demands. 2005/Q2 © 2005 SAP AG. and handling to provide a minimum-cost solution that meets all the constraints. The optimizer considers costs for transportation. the performance of CTM and the optimizer might be comparable because planning in CTM is order-based. As a result.SCM230 Lesson: Comparing SNP Planning Methods The optimizer considers material and resource availability simultaneously. Figure 169: SNP Strategies: Comparison (2) In terms of performance. CTM the second fastest. the SNP planning run cannot use pegging to link individual demands with receipt elements. whereas the planning results of the heuristic have to be postprocessed in the case of capacity bottlenecks in capacity leveling because it is run on an infinite basis. The optimizer and CTM may consider production resources to be global and finite. storage. This means that the optimizer does not use sequential processing when determining a solution. 389 . CTM finds the first feasible solution by taking account of the constraints. The optimizer finds the best results because its algorithm weighs up all the possibilities. production. The optimizer uses linear programming to consider all relevant factors simultaneously as one problem. and the optimizer the slowest and the most complex. but on the total demand per bucket. without taking account of material and resource availability. All rights reserved. The performance of CTM planning is determined by the number of demands. In Supply Network Planning. The performance of the heuristic and optimizer depends on the number of location products to be planned. the three planning methods can be compared as follows: The heuristic is the fastest method.

For CTM. however. CTM always chooses the most cost-effective feasible solution for covering requirements. 390 © 2005 SAP AG. The optimizer is governed globally by costs. All rights reserved. The heuristic splits requirements by percentage if quota arrangements exist. CTM is governed by priorities. locations. 2005/Q2 . in so far as this is feasible. time-averaged for each planning run. All methods can work on a multilevel basis and can plan on all Bill of Material (BOM) levels. procurement. as well as prioritizing receipts using costs at production location level. profiles and master data selections must be created. In particular. and the planning procedure is more complex. The optimizer prioritizes requirements using penalty costs for delays and non-delivery. the maintenance of costs for the optimizer is time-consuming. CTM tries to fulfill the quota arrangements. and for procurement and production it always chooses the most cost-effective infinite solution. You can.Unit 6: Optimization in Supply Network Planning SCM230 Only the optimizer considers transportation resources. Implementation of the heuristic is easy by comparison. orders and due dates. because few control parameters exist. since all costs depend on each other. and stock transfers. and handling resources as global and finite. which can be set for products. The heuristic does not prioritize any requirements. You can define the prioritization of demands for the CTM planning run on the most detailed level based on individual demands. The optimizer does not take any quota arrangements into account. use the optimization result to create optimized quota arrangements. storage resources.

391 .SCM230 Lesson: Comparing SNP Planning Methods Lesson Summary You should now be able to: • Compare the SNP Planning Methods 2005/Q2 © 2005 SAP AG. All rights reserved.

• Create Cost and Optimizer profiles • Explain the settings in the optimizer profile • Execute an optimization run • Create a cost function and use it in the optimization run • Explain how the bound profile and the bucket offset affect the results of the optimization run.Unit Summary SCM230 Unit Summary You should now be able to: • Explain the process flow of SNP • Describe how the SNP Optimizer uses costs in the optimization run • Copy a planning version • Explain the costs and their effects on planning • Identify where to maintain the costs used in the Optimization run. 2005/Q2 . • Compare the SNP Planning Methods 392 © 2005 SAP AG. All rights reserved.

and storage resources globally in the supply chain. 393 .SCM230 Test Your Knowledge Test Your Knowledge 1. transportation. 2. Which of the following can be constraints in the optimization run? Choose the correct answer(s). □ □ □ □ □ A B C D E Production capacities Lot sizes Safety stock Transportation capacities All of the above 2005/Q2 © 2005 SAP AG. □ □ □ □ 5. Which of the following can be considered as constraints in the optimization run? Choose the correct answer(s). A B C D Transportation capacity Storage costs Delay penalty costs Production costs What will be the effect if storage costs are low in the production plant? Choose the correct answer(s). Fill in the blanks to complete the sentence. All rights reserved. A B C D E Production capacity Lot Size Safety Stock Customer priority All of the above Which of the following will prioritize dates in the optimization run? Choose the correct answer(s). □ □ □ □ □ 3. and storage resources globally in the supply chain. transportation. The finitely schedules materials and production. 6. A B C D The planned order will be created early The stock transport will be created early The planned order will be created late The production capacity will be ignored The finitely schedules materials and production. □ □ □ □ 4. Fill in the blanks to complete the sentence.

All rights reserved. □ □ □ □ 8.Test Your Knowledge SCM230 7. □ □ □ □ A B C D Optimizer Heuristic CTM All of the above 394 © 2005 SAP AG. Identify the method to be adopted in the optimizer profile to determine integer-based solutions or use lot sizes and cost profiles. A B C D Basic Solve Discretization Time decomposition Product decomposition Which of the following is the fastest SNP planning method? Choose the correct answer(s). 2005/Q2 . Choose the correct answer(s).

and storage resources globally in the supply chain. What will be the effect if storage costs are low in the production plant? Answer: A 5. transportation. Which of the following can be considered as constraints in the optimization run? Answer: E Production capacities. Answer: optimization run 6. 2005/Q2 © 2005 SAP AG. transportation. Which of the following will prioritize dates in the optimization run? Answer: C 4. and storage resources globally in the supply chain. safety stock and transportation capacities can all be considered as constraints in the optimization run. Answer: optimization run 2. All rights reserved. lot sizes. 395 . The optimization run finitely schedules materials and production.SCM230 Test Your Knowledge Answers 1. Which of the following can be constraints in the optimization run? Answer: E 3. The optimization run finitely schedules materials and production.

This method is similar to Basic Solve.Test Your Knowledge SCM230 7. Which of the following is the fastest SNP planning method? Answer: B The heuristic is the fastest SNP planning method. you need to select the discretization options in the optimizer profile. 396 © 2005 SAP AG. Identify the method to be adopted in the optimizer profile to determine integer-based solutions or use lot sizes and cost profiles. 2005/Q2 . Answer: B To determine integer-based solutions or use lot sizes and cost profiles. except that you can use profiles to make some of the integer-based variables discrete. All rights reserved. 8.

......415 Exercise 25: Product Interchangeability in SNP Optimizer Planning 419 2005/Q2 © 2005 SAP AG...... you will be able to: • • • • Describe the two basic types of product interchangeability Create an interchangeability group to model a supersession chain Plan in the SNP heuristic using product interchangeability Plan in the SNP optimizer using product interchangeability Unit Contents Lesson: Product Interchangeability.......... 397 ............ Unit Objectives After completing this unit......Unit 7 Interchangeability Unit Overview The unit will prepare you to use the interchangeability functionality in SNP to replace products at both the finished good and component level.... All rights reserved.........409 Exercise 24: Product Interchangeability in SNP Heuristic Planning ...........................398 Exercise 23: Product Interchangeability ..

Product Interchangeability Figure 170: Product Interchangeability 398 © 2005 SAP AG. This replacement is taking place both for finished goods and components or assemblies. or phase-in/phase-out in SAP ECC. use product interchangeability in the rule-based availability check. 2005/Q2 . you will be able to: • • • • Describe the two basic types of product interchangeability Create an interchangeability group to model a supersession chain Plan in the SNP heuristic using product interchangeability Plan in the SNP optimizer using product interchangeability Business Example Your company is replacing old products with new products. All rights reserved. This process is known as product interchangeability.Unit 7: Interchangeability SCM230 Lesson: Product Interchangeability Lesson Overview This lesson introduces you to the suite of functions that controls the replacement of one product by another. Lesson Objectives After completing this lesson. This replacement must now be planned. To replace the manufactured products in the sales order.

you can also set a time limit on this. For example. Planning is carried out for the leading product only. If a product is fully interchangeable. For example. It is possible to include several products in a supersession chain. you can transfer demand for a product that is to be phased out to a successor product in the SNP run. and in optimizer-based planning. product A can be replaced by product B and. vice versa.SCM230 Lesson: Product Interchangeability There are two major interchangeability scenarios: • • Product Interchangeability Form-fit-function classes Product Interchangeability One product is replaced by another as of a specific date. You can specify that inventory of the old product may be used up. 2005/Q2 © 2005 SAP AG. This means that a demand for product B cannot be met by a receipt for product A. or use existing stock of a product to meet demand for the successor product. There are two possible relationship types (directions) in product interchangeability: • • Forward interchangeability Full interchangeability If product A can be interchanged forward by product B. in CTM. Demand for product A is redirected to product B. Demands are redirected using substitution orders that are not transferred to SAP ECC. the new product may be more advanced technically or produced more efficiently. The interchangeability of products is taken into account in the heuristic. fit and function). FFF classes are supported in Global ATP and SNP only. 399 . replacement is possible in this direction only. There is no interchangeability horizon. All rights reserved. product B can be replaced by product A. Form-Fit-Function Classes An FFF class contains several fully interchangeable products with the same technical properties (form.

You can create more than one supersession chain. For each supersession chain a planning package is generated automatically for the location products and linked to their master records (Planning Package Type 001: Planning Package for Supersession Chains). Interchangeability groups can be generated from the ECC discontinued parts data. 2005/Q2 .0. In order to plan with interchangeability in SNP and PP/DS you need to create an interchangeability group of the group type Supersession Chain and assign it to one or more locations. However. The Use Up strategy of the supersession chain determines whether remaining stock of the predecessor product should be used up before the successor product is procured. A horizon allows you to determine for how long the use-up of stocks is possible.6C) or 617283 (Release 4. All rights reserved. The data is extracted in XML format and then transferred to the SCM system (for more information. 400 © 2005 SAP AG. You enter the successor product with a Valid From date. This planning package contains the PP/DS heuristic SAP_PP_I001 with which the products of the supersession chain are planned in the correct sequence.Unit 7: Interchangeability SCM230 Figure 171: Interchangeability Groups As of SAP SCM 4.6C or lower). product interchangeability is maintained through the use of interchangeability groups in the master data of the SCM system. see OSS note 617281 (higher than Release 4. you must make sure that a product is not included in more than one supersession chain and that no configurable products are used.

product A is the predecessor product and product B the successor product. All rights reserved. A substitution order generates a receipt for the predecessor product and a demand for the successor product. Which substitution orders are created depends on the settings made in the supersession chain for Direction (relationship type) and Use Up. When the Valid From date is reached. demand for product A is transferred to product B via product substitution orders as long as the demand cannot be met by the Use Up Date with inventory of product A. This demand leads to the procurement of the successor product.SCM230 Lesson: Product Interchangeability Figure 172: Planning with Forward Interchangeability When planning with supersession chains the system passes the demand for a predecessor product to a successor product in the form of substitution orders. In the following example. Demand for product A is transferred to product B via product substitution orders only if the demand cannot be met with inventory of product A. 401 . The remaining inventory for product A is not used. demand for product A is transferred to product B via product substitution orders. Restricted Yes 2005/Q2 © 2005 SAP AG. Use-up No Creation of Substitution Orders Product A is replaced by product B. As soon as the Valid From date is reached.

all demand for products in this class is transferred to the leading product. demand for product A is transferred to product B via SNP product substitution orders.Unit 7: Interchangeability SCM230 Figure 173: Planning with Full Interchangeability Use-up No Creation of Substitution Orders Product A is replaced by product B. Yes FFF Classes If an FFF class is used. As soon as the Valid From date is reached. Until the Use Up date demand for product B is met. Restricted When the Valid From date is reached. If the total demand cannot be met. if possible. with inventory of product A. All rights reserved. The remaining inventory for product A is not used. if possible. with inventory of product A. Demand for product A is transferred to product B via SNP product substitution orders. 2005/Q2 . demand for product A is transferred to product B via SNP product substitution orders. SNP searches for stock of the other products in the class. It does not make sense to use this option with full interchangeability. and demand for product B is met. stock is procured for the leading product. 402 © 2005 SAP AG. If the demand cannot be met with inventory of the leading product.

with the result that the product substitution data is not visible in the SAP ECC system during Supply Network Planning. However. The SNP planned orders and stock transfers generated during planning are transferred to a connected SAP ECC system. Therefore. Product interchangeability in SNP is a fully integrated part of the entire SAP SCM product interchangeability process. You can use product interchangeability in the Supply Network Planning run to transfer demands for a product that is to be discontinued onto a successor product or to use existing stock of a current product to fulfill demand for the successor product. 403 . Product substitutions for distribution demands cannot be transferred to the SAP ECC system. you can also create your own planning books based on this standard planning book.forward interchangeable only Supersession chain . 2005/Q2 © 2005 SAP AG. SNP does not support group type Restricted interchangeability for FFF classes nor does it support rules. However. SNP product substitution data can also be integrated with SAP ECC using Production Planning and Detailed Scheduling (PP/DS). This planning book contains the required key figures Substitution Demand and Substitution Receipt. However. SNP supports the following product interchangeability methods: • • • Product discontinuation .SCM230 Lesson: Product Interchangeability Interchangeability in SNP Heuristic Planning In Supply Network Planning (SNP). product interchangeability should not be used for distribution demands. the SNP product substitution orders that are also generated and linked to these orders are not transferred.fully interchangeable You must use the standard SNP planning book called 9ASNP_PS with data view PROD_SUBST to be able to take product interchangeability into account in Supply Network Planning. All rights reserved.fully interchangeable Form-fit-function class (FFF Class) . both heuristic-based and optimization-based planning takes into account the interchangeability of products. and an adapted macro (that takes these key figures into account) for calculating the stock balance.

All rights reserved. You can specify that you first want to use up existing stock of product A by setting the Use-Up indicator for this product in the product interchangeability master data. The interchangeability group always has to be created at the location where there is existing demand If you want to run product interchangeability in the background. it creates a receipt (SNP product substitution order) for A in the Substitution Receipt key figure to fulfill the demand for A. During the planning run. If you have set the Use-Up indicator for A. During the planning run. the system does transfer the demand to a successor product by creating product substitution orders.Unit 7: Interchangeability SCM230 Prerequisites • • • You have activated product interchangeability in SNP Customizing. demands for B cannot be transferred to A since A was assigned the interchangeability direction Forward interchangeable. 2005/Q2 . all demands that exist for this product are transferred to the successor product from this date onwards (defined as the Valid-from Date in the product interchangeability master data). but it does not plan the receipt for the successor product. The system also creates a demand for B in the Substitution Demand key figure to transfer the demand onto B. for instance). If the system detects demand for A during the planning run and determines that A is no longer valid. You have created the master data for running the SNP heuristic or the SNP optimizer and have made the required settings for these planning runs. until the stock is used up or until the specified use-up date is reached Supersession Chain (A->B<->C) A product (A) is superseded by a successor product (B) on a specific date. any remaining stock of A is used to fulfill demand for A. the system transfers demands for A to B from this date onwards. you have created an interchangeability group and have assigned this group to your model. Maintain Global SNP Settings. Note that this type of planning does not provide correct results for the entire supply chain. • Discontinuation of Products (A->B) A product (A) is superseded by a successor product (B) on a specific date. Demand for B is then fulfilled as usual during the planning run (by creating an SNP planned order in the Production (Planned) key figure. even after the discontinuation date. Product B is then to be superseded by product C at a later date. All products of a supersession chain are then included in the selection and planned. If you do not set the indicator. You have defined the product substitution data in the master data for product interchangeability. you have set the Add Products From Supersession Chains indicator in the functions that you use to run the heuristic or the optimizer in the background. Demands for B will be 404 © 2005 SAP AG. You can also specify a date by which the stock of A has to be used up. However. that is.

SCM230 Lesson: Product Interchangeability transferred to C from this date onwards. It is only possible to procure the product that is labeled as the leading product of the FFF subset. it creates a substitution receipt for B to compensate for the demand for B and a substitution demand for C to transfer the demand onto C. stock is used of the other products from the FFF subset. 2005/Q2 © 2005 SAP AG. it creates a substitution receipt for C and a substitution demand for B. Form-Fit-Function Class (FFF Class) Different products with almost identical technical properties are grouped into FFF classes and FFF subsets (on a location-specific basis). If there is insufficient stock of the leading product. If the system detects demand for any product other than the leading product and there is insufficient stock of this product. Until the use-up date. In SNP. To replace A with B. the system uses the surplus stock of B for covering demand B first. The leading product will be procured (that is. Only if stock of B is still available afterwards does the system also cover demand of C. it creates a substitution receipt for this product to compensate for the demand and a substitution demand for the leading product to transfer the demand onto this leading product. All rights reserved. If the system detects demand for C and had determined beforehand that there was still surplus stock of B. requirements for C can also be covered by surplus warehouse stock for B. 405 . As the direction of interchangeability Fully interchangeable was defined for B. If the system detects that there is demand for B and that B is no longer valid. all demands that exist for the other products of the FFF subset are transferred onto the leading product. produced in-house or procured externally) only if none of the products have sufficient stock. the system proceeds as described in the “Discontinuation of Products” section above.

because for instance the cost of storing the stock at location D exceeds the cost of transporting it to location C. • Product Interchangeability in CTM In Capable-to-Match planning (CTM). After the discontinuation date.Unit 7: Interchangeability SCM230 Interchangeability with the SNP Optimizer In addition to the details given above. however. If. location D contains sufficient stock. 2005/Q2 . transportation. If this is the most cost-effective solution. a product is only valid until a certain date – the discontinuation date. the optimizer works out the costs associated with transferring stock of product A from location D to location D. In contrast to the heuristic. Demand for product A is then met by the transferred stock. However. 406 © 2005 SAP AG. CTM can also use the excess supplies and receipts of the product. and procurement costs). but in all locations of the model. The optimizer does not calculate any costs for the replacement of one product by another at the same location. Hint: As CTM plans an individual demand for the entire BOM. If it allows the use-up strategy. To fulfill product demands that lie after the discontinuation date. In the subcontracting scenario. checks whether other locations of the model contain stock of product A. the optimizer plans the transfer of stock from D to C. you can plan the simple discontinuation of a product. the optimizer does not consider the product in one location only. for example. the following information applies specifically to interchangeability with the SNP optimizer. The optimizer. CTM must procure the successor product. Example: Product A at location C is to be replaced by product B at location C. There is no more stock of product A at location C. CTM uses product interchangeability in all planning segments with the exception of the forecast segment. CTM does not use product interchangeability. If demand comes in for product A only. the successor product is valid. to fulfill product demands after the discontinuation date. production. CTM cannot use excess products to fulfill demands for the successor product. the SNP heuristic transfers this demand to product B. All rights reserved. With simple discontinuation. • The optimizer’s decisions are based on the costs defined for the supply chain model (storage. It always finds the most cost-effective solution. This is particularly important when you plan a product with a fixed lot size. CTM cannot guarantee that product supplies are used up completely.

In the CTM planning profile. – – – • • CTM supports linear supersession chains with products that are linked by substitution relationships of type Interchangeable Forwards. The following conditions apply to the supersession chain and the products in the supersession chain. All rights reserved. 407 . CTM processes the products as if they were only interchangeable forwards. You have assigned the supersession chain to the locations at which you want to plan substitutions.SCM230 Lesson: Product Interchangeability Prerequisites • You have created a product interchangeability group with a supersession chain and assigned the product interchangeability group to the supply chain model that you have also specified in the CTM profile. A product can only be contained in a single supersession chain. in the Product Interchangeability field on the Special Strategies tab page under Strategies. – A supersession chain cannot contain configurable products. The base unit of measure must be the same for all products of a supersession chain. 2005/Q2 © 2005 SAP AG. If two products are linked with a substitution relationship of type Completely Interchangeable. you have set the Use Discontinuation option. The supersession chain can not contain assembly groups.

Unit 7: Interchangeability SCM230 408 © 2005 SAP AG. All rights reserved. 2005/Q2 .

T-F2## T-F3## Forward 7 weeks from today Yes 1000 Value FG## T-F2##. Create an interchangeability group called FG## for the replacement of T-F2## by T-F3## using the following data. Release this interchangeability group and assign the interchangeability group to model 000. T-F2## will be replaced by T-F3##. finished product Supersession Chain Check the T-F2## product master for changes resulting from the interchangeability group you just created. Field Name Group Description Group Type Location tab page Location Group Details tab page Predecessor Successor Rel Type Valid from Use-up 2. 409 . 1. Precision Pump wants to use the remaining stock of T-F2## before beginning to ship T-F3##. Task: Create a product interchangeability group for the replacement of T-F2## by T-F3## seven weeks from now with use up of the old product. Continued on next page 2005/Q2 © 2005 SAP AG. All rights reserved. you will be able to: • Create Product Interchangeability Groups • Identify the Product Master changes that occur when an interchangeability group is created Business Example Seven weeks from now.SCM230 Lesson: Product Interchangeability Exercise 23: Product Interchangeability Exercise Objectives After completing this exercise.

Do you have an entry in the planning package field? 4. 2005/Q2 .Unit 7: Interchangeability SCM230 3. Which Package Heuristic and Package Type did the system assign? 5. All rights reserved. 410 © 2005 SAP AG. Products and are included in this package. Fill in the blanks to complete the sentence.

Release this interchangeability group and assign the interchangeability group to model 000. All rights reserved. finished product Supersession Chain Continued on next page 2005/Q2 © 2005 SAP AG. 1. Field Name Group Description Group Type Location tab page Location Group Details tab page Predecessor Successor T-F2## T-F3## 1000 Value FG## T-F2##.SCM230 Lesson: Product Interchangeability Solution 23: Product Interchangeability Task: Create a product interchangeability group for the replacement of T-F2## by T-F3## seven weeks from now with use up of the old product. Create an interchangeability group called FG## for the replacement of T-F2## by T-F3## using the following data. 411 .

. Release the interchangeability group. Click Save . Click the Location tab and click the Append row icon Enter the location from the table. Enter the remaining data from the table.Unit 7: Interchangeability SCM230 Rel Type Valid from Use-up a) b) c) d) e) f) g) h) Forward 7 weeks from today Yes Advanced Planning and Optimization → Master Data → Product Interchangeability Master Data → Maintain Interchangeability Group Click the Create icon on the toolbar. Use the green arrow Check the T-F2## product master for changes resulting from the interchangeability group you just created. a) b) Advanced Planning and Optimization → Master Data → Product → Product Enter Field Name Product Location c) Click Value T-F2## 1000 Display followed by . to go back to the standard menu. Do you have an entry in the planning package field? Answer: Yes. Description. In the Group Details in the lower section of the screen. All rights reserved. 2005/Q2 . Continued on next page 412 © 2005 SAP AG. click the Append row icon . Enter the Group. . 3. Drag model 000 from Click the Model assignment icon the right window to your interchangeability group in the left window. i) 2. and Group Type.

2005/Q2 © 2005 SAP AG. packet. SAP_PP_I001 was entered in the Product Heuristic field. 5. Products T-F2## and T-F3## are included in this package. 413 . All rights reserved. T-F3## Click Products to find the list of products. Which Package Heuristic and Package Type did the system assign? Answer: Click Maint. and 001 was entered in the Packet Type field.SCM230 Lesson: Product Interchangeability 4. Answer: T-F2##.

Unit 7: Interchangeability SCM230 414 © 2005 SAP AG. All rights reserved. 2005/Q2 .

Analyze the results of the planning run. 415 . 3. version 000. Why were receipts generated for both products? 2. Run a location heuristic for T-F2## at location 1000. you will be able to: • Plan product interchangeability using SNP Heuristic planning • Review the results of product interchangeability Business Example You have created the interchangeability group and must now ensure that the heuristic implements supersession. where PAT stands for product interchangeability) which contains the finished goods of your interchangeability group for version 000. 2005/Q2 © 2005 SAP AG. Call up the interactive planning table with planning book 9ASNP_PS and data view PROD_SUBST. create a demand for 80 pieces of product T-F2## at location 1000. execute an SNP heuristic run for T-F2## at location 2400 and version 000.SCM230 Lesson: Product Interchangeability Exercise 24: Product Interchangeability in SNP Heuristic Planning Exercise Objectives After completing this exercise. 1. All rights reserved. and create a selection ID (PAT##. Using planning book 9ASNP_PS with data view PROD_SUBST. two months from now. Task: This exercise assumes that you have completed exercise 2 on the SNP heuristic and SAP ECC integration in the first part of this course. If this is not the case. and analyze the results.

. Using planning book 9ASNP_PS with data view PROD_SUBST. version 000. select APO Product in the next row. Save the selection under the name PAT## and assign it to your selection profile. Accept version 000. to open the selection window and. and analyze the results. select APO Click Location product. create a demand for 80 pieces of product T-F2## at location 1000. a) b) Continued on next page 416 © 2005 SAP AG. Run a location heuristic for T-F2## at location 1000. next to Show. enter products T-F2## and T-F3## using the multiple selection button. where PAT stands for product interchangeability) which contains the finished goods of your interchangeability group for version 000. Call up the interactive planning table with planning book 9ASNP_PS and data view PROD_SUBST. Switch to change mode . 1. In the lower part of the window you can now define the conditions for the location products. 2005/Q2 .Unit 7: Interchangeability SCM230 Solution 24: Product Interchangeability in SNP Heuristic Planning Task: This exercise assumes that you have completed exercise 2 on the SNP heuristic and SAP ECC integration in the first part of this course. on the right. and. All rights reserved. and execute a heuristic run for the location d) 2. execute an SNP heuristic run for T-F2## at location 2400 and version 000. Load the data for T-F2## at location 1000 by double-clicking the row. and create a selection ID (PAT##. two months from now. If this is not the case. a) b) c) Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning ( All books) Double click the data view PROD_SUBST in planning book 9ASNP_PS.

Why were receipts generated for both products? a) Check the receipts for T-F223 at location 1000. if necessary. Expand the total receipts. Load the data for T-F3## at location 1000 and view the substitution demand that was generated. Save the planning result SAP ECC. 417 . the system substituted T-F2## with T-F3## . Right-click the receipt and select Detail. Since the validity date is 7 weeks from today and the demand is 8 weeks from today. and. All rights reserved.SCM230 Lesson: Product Interchangeability 3. Analyze the results of the planning run. The system generated a substitution receipt. check the orders in b) 2005/Q2 © 2005 SAP AG.

All rights reserved.Unit 7: Interchangeability SCM230 418 © 2005 SAP AG. 2005/Q2 .

SCM230 Lesson: Product Interchangeability Exercise 25: Product Interchangeability in SNP Optimizer Planning Exercise Objectives After completing this exercise. version 000. 419 . you will be able to: • Plan product interchangeability using SNP Optimizer planning • Review the results of product interchangeability Business Example You have created the interchangeability group and must now ensure that the SNP optimizer implements supersession. Enter the interactive planning table with planning book 9ASNP_PS and data view PROD_SUBST. All rights reserved. 2005/Q2 © 2005 SAP AG. Why were receipts generated for both products? 2. If this is not the case. two months from now. Analyze the results of the planning run. Task: This exercise assumes that you have completed exercise 2 on the SNP heuristic and SAP ECC integration in the first part of this course. create a demand for 80 pieces of product T-F2## at location 1000. 1. Load the data for all product location combinations and execute an optimization run.

Save the planning result SAP ECC. and. check the orders in b) 420 © 2005 SAP AG. Start the optimizer with your GROUP## optimizer profile and the MASTER cost profile.Unit 7: Interchangeability SCM230 Solution 25: Product Interchangeability in SNP Optimizer Planning Task: This exercise assumes that you have completed exercise 2 on the SNP heuristic and SAP ECC integration in the first part of this course. Load the data for all product location combinations and execute an optimization run. version 000. Right-click the receipt and select Detail. and Change . Load the data for T-F3## at location 1000 and view the substitution demand that was generated. Since the validity date is 7 weeks from today and the demand is 8 weeks from today. Load Data. Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning ( All books) Double click the data view PROD_SUBST in planning book 9ASNP_PS. if necessary. Why were receipts generated for both products? a) Check the receipts for T-F223 at location 1000. the system substituted T-F2## with T-F3## . create a demand for 80 pieces of product T-F2## at location 1000. Analyze the results of the planning run. Click Select All. If this is not the case. Enter the interactive planning table with planning book 9ASNP_PS and data view PROD_SUBST. 2005/Q2 . Expand the total receipts. two months from now. All rights reserved. The system generated a substitution receipt. Double click the selection ID PAT##. a) b) c) d) e) 2. 1.

SCM230 Lesson: Product Interchangeability Lesson Summary You should now be able to: • Describe the two basic types of product interchangeability • Create an interchangeability group to model a supersession chain • Plan in the SNP heuristic using product interchangeability • Plan in the SNP optimizer using product interchangeability 2005/Q2 © 2005 SAP AG. All rights reserved. 421 .

All rights reserved. 2005/Q2 .Unit Summary SCM230 Unit Summary You should now be able to: • Describe the two basic types of product interchangeability • Create an interchangeability group to model a supersession chain • Plan in the SNP heuristic using product interchangeability • Plan in the SNP optimizer using product interchangeability 422 © 2005 SAP AG.

0. 2005/Q2 © 2005 SAP AG.SCM230 Test Your Knowledge Test Your Knowledge 1. Name the product interchangeability methods supported by SCM 4. 423 . All rights reserved.

Answer: • • • Product discontinuation . Name the product interchangeability methods supported by SCM 4. 2005/Q2 . All rights reserved.Test Your Knowledge SCM230 Answers 1.forwardly interchangeable only Supersession chain .fully interchangeable Form-fit-function class (FFF class) .0.fully interchangeable 424 © 2005 SAP AG.

......Unit 8 Safety Stock Planning Unit Overview In this unit you will learn about the various safety stock planning methods and create an algorithm to calculate safety stock.443 2005/Q2 © 2005 SAP AG.. Unit Objectives After completing this unit....... 425 .............437 Exercise 27: Safety Stock Planning: Advanced Methods.... You will also understand how to use demand and receipt data for safety stock planning................. All rights reserved..426 Exercise 26: Safety Stock Planning: Standard Methods.... you will be able to: • • • • Describe the standard methods of safety stock planning Describe the advanced methods of safety stock planning List the differences between the methods Make the required settings for safety stock planning Unit Contents Lesson: Safety Stock Planning in SNP ...............

they are based on the planner entering the information about the safety stock directly in the system. the system determines the safety stock levels based on scientifically proven algorithms. When creating plans to meet the demands of customers. you will be able to: • • • • Describe the standard methods of safety stock planning Describe the advanced methods of safety stock planning List the differences between the methods Make the required settings for safety stock planning Business Example You are the team leader of the team implementing SAP at the Precision Pump Company. When using advanced methods of safety stock planning. 2005/Q2 . you need to create safety stocks so that products can be delivered to customers on time.Unit 8: Safety Stock Planning SCM230 Lesson: Safety Stock Planning in SNP Lesson Overview This lesson will help you understand the safety stock planning methods. you must be able to identify planning uncertainties. Safety Stock Planning in Supply Network Planning allows you to reach a specific service level. As a result. There may be certain deviations of the actual replenishment lead time from the planned lead time. You can differentiate between the standard methods of safety stock planning with regard to their consideration of time. you can plan safety stock (SStk) as follows: – – Maintaining the safety stock manually in the product master Calculate the time-dependent safety stock in an SNP key figure • 426 © 2005 SAP AG. where safety stock is created for all intermediate products and finished products at the appropriate locations along the entire supply chain. Defining Safety Stock Basic Considerations • The following uncertainties occur during planning: – Errors in the forecasts made in Demand Planning – Scrap in production (PPM) – Longer than planned replenishment lead times To safeguard against these uncertainties. Lesson Objectives After completing this lesson. All rights reserved.

The calculated safety stock is displayed in an SNP key figure in interactive planning and can be changed manually or copied into another planning version. In contrast to model-based safety stock planning. You can maintain the safety stock value as a static or time-dependent value. There are six different safety stock methods to choose from. 2005/Q2 © 2005 SAP AG. Figure 174: Safety Stock in Various Locations The planner decides the locations and products for which safety stock needs to be planned by entering a safety stock calculation method in the location-specific product master record of the corresponding location. Supply Network Planning (SNP) allows you to consider the actual supply when planning safety stock. depending on previous experience. The system then uses this calculation method to calculate the level of safety stock required. This means that. The calculated safety stock can also be used in both Production Planning and Detailed Scheduling (PP/DS) and in Capable-to-Match. In this type of planning. 427 . All rights reserved. The advanced methods of safety stock planning are used to calculate the time-dependent safety stock for finished products and components. the system takes into account the demand forecasts and forecast errors within your supply chain. but it can also consider the deviations between the planned Replenishment Lead Time (RLT) and the actual Replenishment Lead Time. not only can the system take forecast demand and actual demand into account. forecast errors are not considered when you use the standard methods. if required.SCM230 Lesson: Safety Stock Planning in SNP The standard methods of safety stock planning are used to build stock on hand according to the safety stock values that you define in the location product master. You can change the safety stock values manually in interactive Supply Network Planning.

the system uses the model-based calculation to take this into account. the SM method is included in the SCM product master. and if both safety stock and safety days' supply are set. The safety days' supply in SAP ECC generates the SZ method. 2005/Q2 . The system always calculates the replenishment lead time starting from the last safety stock leading location. All rights reserved. go to the lot size tab page of the location product master and enter the relevant data in the following fields: • • • Safety stock SB method (safety stock method) Safety days' supply If you have entered a safety stock in SAP ECC. 428 © 2005 SAP AG. Calculating Safety Stock Safety Stock Calculation Methods • Available safety stock methods: – – – – – – – – – – SB Safety stock from location product master SZ Safety days' supply from location product master SM Maximum of SStk and SZ from location product master MZ Safety days' supply (maintained on a time-dependent basis) MB Safety stock (maintained on a time-dependent basis) MM Maximum of MB and MZ (maintained on a time-dependent basis) AT α service level and reorder cycle method AS α service level and reorder point method BT β service level and reorder cycle method BS β service level and reorder point method If you want to use the standard methods (methods 1-3). the safety stock method (SB) will be set automatically in the SCM product master via the CIF interface.Unit 8: Safety Stock Planning SCM230 If you keep safety stock both in the plant and in Distribution Centers (DCs).

• Prerequisites: – Regular demand – Late deliveries allowed Uncertainties: – Demand forecast – Replenishment Service level (SL) definition: – Alpha (α) service level (event-driven) Number of time buckets with complete delivery divided by the total number of buckets – Beta (β) service level (quantity-driven) Demands delivered on time divided by the total demand The mathematical prerequisites have to be met before you can use model-based safety stock planning. go to the Lot size tab page of the location product master. All rights reserved. Only the SB.1 (transaction /SAPAPO/TSKEYFMAIN). safety stock was stored in a database key figure. and SM methods can still be used in planning area 9ASNP02. use a macro to enter the safety stock or safety days' supply . SZ. The β calculation calculates a safety stock level that • • 2005/Q2 © 2005 SAP AG. Hint: In APO 3. you must assign this key figure in PP/DS Customizing.g. For example. SCM 4. 95%) in the product location master record. which contains time series key figures for safety stock and safety days' supply. You specify the service level (e. 429 . this impaired performance.safety stock planning).SCM230 Lesson: Safety Stock Planning in SNP To manually create safety stock on a time-dependent basis (methods 4-6). Time-dependent safety stocks are stored in time series of the key figure 9ASAFETY. planning spare parts does not meet the prerequisite for regular demand.0 (and above) comes with 9ASNP05.on a time-dependent basis in the interactive planning table of SNP. The α calculation calculates a safety stock level that guarantees complete delivery in 95% of the time buckets. and save the SB method on the lot size tab page of the location product master. enter an SB method. and run the calculation (transaction /SAPAPO/MSDP_SB . If you also want to plan these stocks in PP/DS. Mass maintenance of time series was put in place for Release SCM 4.1 and below. However. and Target days' supply. The Advanced Methods If you want to use the advanced methods of safety stock planning (methods 7-10). Service level (%).

β calculation if you are can make partial deliveries and the variable costs for late deliveries. The β calculation can deliver 600 pieces out of the total demand of 750 pieces. Safety stock is calculated on the basis that unfulfilled orders can be fulfilled by backorders. 430 © 2005 SAP AG. The α calculation identifies a shortage in three from six buckets. depending on the shortage quantity. All rights reserved. Figure 175: Interpretation of the Service Level There are different interpretations of the α and β service levels. The β calculation will calculate less safety stock than the α calculation. 2005/Q2 . This corresponds to a service level of 80%. which means that there are no lost sales and that demand is regular and not sporadic. This corresponds to a service level of 50%.Unit 8: Safety Stock Planning SCM230 guarantees complete delivery of 95% of the expected sales orders in each bucket. Which calculation should you choose? • • α calculation if you need to have complete deliveries and the fixed costs for late deliveries are high. are high.

As a result. This function is valid only for method BS (beta service level and reorder point method). the calculation takes into account the rounding values for transportation lanes and Production Process Models (PPMs). You set the flag for this in transaction /SAPAPO/MSDP_SB. • It is possible to round safety stocks by using fixed lot sizes from the product master. To use model-based safety stock planning. The safety stock calculation is based on time buckets. you have to enter a target days' supply in the location product master because the demands and target day's supplies are used to determine the lot sizes for purchase order quantities. If you choose a reorder cycle method. All rights reserved. Local time zones are taken into account. the target days' supply from the location product master is used to calculate the reorder point quantity. The α and β methods only calculate the same safety stock level if the target days' supply is one day. the target days' supply is interpreted as the reorder cycle. • • 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Safety Stock Planning in SNP Figure 176: Model-Based Calculation (2) If you choose a reorder point method. Errors for forecasts and replenishment times can be predefined in the product master (Lot Size tab page) instead of being calculated with key figures. 431 .

and the goods receipt processing times of upstream safety stock locations. the calculated replenishment lead time is output in the time buckets used. the safety stock at a location should cover RLT variability for the worst-case scenario. Only this planning object structure is currently supported. the longest RLT is used for the algorithm. All rights reserved. The safety factor is calculated from the service level. The critical replenishment path is the path with the longest RLT because in this case. Hint: In the system. If there is more than one procurement method. 9AMALO is the aggregated object delivered with the 9ASNP02 master planning object structure for products and locations. The higher the service level entered in the product location master record. goods issue processing time. The RLT for a product at a location is calculated from planned delivery times. The 9AMALO planning object structure that calculates safety stock levels is hard-coded. move time. the higher the safety stock level. and not in days. production time. 2005/Q2 . A service level of 100% cannot be maintained or achieved.Unit 8: Safety Stock Planning SCM230 Model-Based Safety Stock Planning Figure 177: Safety Stock Calculation To calculate the safety stock: • • The system takes into account the standard deviations between the demand and receipt uncertainties. • 432 © 2005 SAP AG. This entry cannot be changed.

checked by updating from sales orders.SCM230 Lesson: Safety Stock Planning in SNP Figure 178: Demand Uncertainty The advanced methods of safety stock planning take the accuracy of Demand Planning forecasts into account. To calculate the safety stock. Safety stock planning uses relative forecast errors and the relationship from forecast errors and forecasts. calculates less safety stock. 2005/Q2 © 2005 SAP AG. you need to enter the demand planning key figures of your planning area that contain both past forecasts and realized demand. etc. select a key figure that contains the actual demand realized. For the planned demand. errors for forecasts and replenishment lead times can be predefined in the location product master record (on the Lot Size tab page). As an alternative. the system does not choose a large standard deviation and. 433 .. which can differ from one time bucket to the next. For the realized demand. The forecast errors are determined from the past data. from the OLTP systems. For example. All rights reserved. if previous forecasts were very accurate in predicting demand. These values can be updated from sales orders or invoiced sales quantities. select a key figure that contains the forecast figures generated in the past. in turn.

If you do not enter a key figure here. which is an optional field. The forecast level in % specifies the proportion of the forecast to be taken into account to calculate safety stock. One key figure is the RLT that was planned in the past and the other is the actual replenishment lead time. The forecast error level in % can be used if you expect the forecast accuracy to improve in the future. All rights reserved. You can enter a forecast percentage here to represent the forecast error level. The algorithm can also assign values for uncertainty in the expected replenishment lead time.Unit 8: Safety Stock Planning SCM230 Figure 179: Receipt Uncertainty (Optional) The expected RLT and historical variability RLT variability can be calculated using two key figures that you define. you can specify that in future. you can define that you only want safety stock to cover 80% of your forecast. 434 © 2005 SAP AG. the forecast error will be 80% of the past forecast error. 2005/Q2 . the algorithm assumes that there is no uncertainty in the replenishment lead time. For example. For example.

finished product 1 in DC2. When creating safety stock for components. and move times. finished product 1 in Plant 1. and move times. Receipt of End1 in DC1. goods issue processing times. 435 . in Plant1. If multiple PPMs exist. demand is calculated based on the explosion of the PPM/PDS components and the independent requirements of the finished products. 2005/Q2 © 2005 SAP AG. End1 in DC1? • • Demand of End1 in DC1. goods receipt processing times. The system looks for the critical supply route with the longest procurement time. delivery times from planned delivery times. Which uncertainties contribute to the safety stock calculation for finished product 1. For supply. Which uncertainties contribute to the safety stock calculation for Raw1 in Plant1? • • Demands for: Finished product 1. goods issue processing times.SCM230 Lesson: Safety Stock Planning in SNP Figure 180: Safety Stock at Different Levels The system defines all the demands that need to be covered by the location where safety stock is held. All rights reserved. goods receipt processing times. replenishment lead times from planned delivery times. all the forecasts and forecast errors of this critical supply route are projected onto the location product with safety stock. component 1. End1 in Plant1. the system analyzes all the location products that are used for the location product with safety stock until it finds another location product with safety stock or an external procurement. Then. Raw1. Then. Comp1. and Comp1 in Plant1. End1 in DC1. the PPM with the least cost is selected. all forecasts and forecast errors are projected onto the location product that has safety stock. in Plant 1 Receipt of raw product 1.

2005/Q2 . All rights reserved.Unit 8: Safety Stock Planning SCM230 436 © 2005 SAP AG.

Use the variant RELEASE and be sure the entries are as follows: Planning area Source planning version Key figure Target planning version Category Horizon Daily buckets profile Product P-104 The next 3 months SALES 000 FINFOR SNP-## Continued on next page 2005/Q2 © 2005 SAP AG. executing a planning run. you must decide at which locations and bill of material (BOM) level the safety stock should be maintained. 1. and enter safety stock method SM. 1. 437 . As planning manager at Precision Pump Company. Create a version-specific product master record for pump P-104 at location 2400 for version SNP-##. Task 2: Generate planned independent requirements for pump P-104. and analyzing the results in interactive planning. a safety stock of 10 pieces. All rights reserved.SCM230 Lesson: Safety Stock Planning in SNP Exercise 26: Safety Stock Planning: Standard Methods Exercise Objectives After completing this exercise. Release the demand plan of P-104 to your version SNP-##. and a safety days' supply of 7 days. Task 1: You need to check the relevant entries for safety stock planning and test them by generating planned independent requirements. you will be able to: • Describe the standard safety stock planning methods • Perform safety stock planning Business Example Precision Pump Company wants to safeguard itself against uncertainties in the supply and demand material flow to increase its customer service level.

1. 2005/Q2 . How is the safety stock calculated? Task 4: Check to make sure that the safety stock was created via the network heuristic. 1. All rights reserved. Load the data for product P-104 in location 2400 into the planinng table. Task 3: Analyze the result in interactive Supply Network Planning.) 438 © 2005 SAP AG. check that planned independent requirements have been created in location 2400. (The result will be necessary for the exercise on advanced safety stock methods. Call this new selection P-104##. Run a network heuristic for P-104 and verify that the planned safety stock has been created. In the PP/DS product view.Unit 8: Safety Stock Planning SCM230 Which locations have planned independent requirements created for them? 2. Create a new selection for the location products of product P-104 in version SNP-##.

executing a planning run. and enter safety stock method SM. a safety stock of 10 pieces. location 2400. Enter the parameters and save. Use the variant RELEASE and be sure the entries are as follows: Planning area Source planning version Key figure Target planning version Category Horizon Daily buckets profile Product P-104 The next 3 months SALES 000 FINFOR SNP-## Continued on next page 2005/Q2 © 2005 SAP AG. and click the Choose planning version button. All rights reserved. and a safety days' supply of 7 days. and analyzing the results in interactive planning. 1. Select the Lot Size tab page and Quantity and Date Determination tab. a) b) c) d) e) Select Advanced Planning and Optimization → Master Data → Product → Product. Create a version-specific product master record for pump P-104 at location 2400 for version SNP-##. Release the demand plan of P-104 to your version SNP-##.SCM230 Lesson: Safety Stock Planning in SNP Solution 26: Safety Stock Planning: Standard Methods Task 1: You need to check the relevant entries for safety stock planning and test them by generating planned independent requirements. 1. Enter product P-104. Task 2: Generate planned independent requirements for pump P-104. Enter your planning version SNP-## and click Create. 439 .

Continued on next page 440 © 2005 SAP AG. All rights reserved. c) d) e) 2. check that planned independent requirements have been created in location 2400. and location 2400. product P-104. Planned independent requirements are created for distribution centers 2400 and 2500 and plant 1000 as specified in the log. remove the user from the Created by field. In the PP/DS product view. 1. Task 3: Analyze the result in interactive Supply Network Planning. Call this new selection P-104##. Select the variant RELEASE. Create a new selection for the location products of product P-104 in version SNP-##. a) b) Select Advanced Planning and Optimization → Production Planning → Interactive Production Planning → Product View. Choose Execute. Click Get Variants. You can see the weekly planned independent requirements (the IndReq category). and Execute. 2005/Q2 . Enter your version SNP-##. Be sure that the entries match the data in the table.Unit 8: Safety Stock Planning SCM230 Which locations have planned independent requirements created for them? a) b) Select Advanced Planning and Optimization → Demand Planning → Planning → Release Demand Planning to Supply Network Planning.

(The result will be necessary for the exercise on advanced safety stock methods. In the lower part of the window you define the selection conditions for the locations products: Change the version from 000 to SNP-##. Switch to change mode . 2005/Q2 © 2005 SAP AG. and. 441 . and to the right of this enter P-104. the safety stock for the previous period will also be higher.) a) The data for product P-104 at location 2400 should already be loaded. If the demand for the next 7 days is more than 10 pieces. and run the heuristic. in the next row choose APO Product. Run a network heuristic for P-104 and verify that the planned safety stock has been created. choose APO Open the selection window Location Product. How is the safety stock calculated? a) b) Use the menu path Supply Network Planning → Planning → Interactive Supply Network Planning. Task 4: Check to make sure that the safety stock was created via the network heuristic. All rights reserved. next to Show. Save the selection under the name P-104##. c) Double-click on product P-104 in location 2400. With the safety stock method SM (maximum of safety stock and safety days' supply).SCM230 Lesson: Safety Stock Planning in SNP Load the data for product P-104 in location 2400 into the planinng table. and assign this selection to your selection profile. 1. the safety stock will be at least 10 pieces.

2005/Q2 .Unit 8: Safety Stock Planning SCM230 442 © 2005 SAP AG. All rights reserved.

443 . Change your version-specific product master record for pump P-104 in location 2400 for version SNP-##: Enter the safety stock method BS. 1. 1. To avoid long replenishment lead times. a service level of 95% and target days' supply of 5 days. you will be able to: • Describe the advanced safety stock planning methods • Perform planning with an advanced method of safety stock planning Business Example Precision Pump Company wants to safeguard itself against uncertainties in the supply and demand material flow to increase its customer service level. Initialize planning area 9ASNP05 for your version SNP-## for the next three months. Task 2: Now configure your product to use the safety stock method that considers the forecast errors with the reorder point method. 1. delete the planned delivery time of 999 days from the version-specific product master record for product 102-110 at location 0000001003 in version SNP-##.SCM230 Lesson: Safety Stock Planning in SNP Exercise 27: Safety Stock Planning: Advanced Methods Exercise Objectives After completing this exercise. Task 1: You need time series in order to be able to save time-dependent safety stocks. The forecast errors in SCM Demand Planning should be taken into consideration for this so that products that can be forecasted with precision automatically receive lower safety stock levels. All rights reserved. Task 3: Apply the safety stock method that considers the forecast errors with the reorder point method. Execute safety stock planning for product P-104 using the following data (you can use variant P-104 as a template): Safety Stock Planning Continued on next page 2005/Q2 © 2005 SAP AG.

Use planning book 9ASNP_SSP and data view SAFETY for planning area 9ASNP05. 444 © 2005 SAP AG. Load the data for product P-104 at location 2400 into the planning table. In planning book 9ASNP_SSP. All rights reserved.Unit 8: Safety Stock Planning SCM230 Planning area Planning version Product Location Planning buckets profile Safety stock Prediction of Demand Uncertainty of Forecast Planning area Planning object structure Planning version Realized demandCORRHIST Planned demand Start date End date 9ASNP05 SNP-## P-104 2400 25 weeks 9ASAFETY 9ADFCST SALES SALESPOS 000 CORRHIST FINFOR One year ago End of last month Task 4: Analyze the results in interactive Supply Network Planning. 1. As the selections for the planning area will also be created. 2005/Q2 . data view SAFETY. create a new selection for the location products of product P-104 in version SNP-## and name it P-104N ##. you will need to define a new selection. Has safety stock been calculated? Run a network heuristic for P-104 and make sure that planned safety stock has been created.

All rights reserved. b) Task 2: Now configure your product to use the safety stock method that considers the forecast errors with the reorder point method. To avoid long replenishment lead times. Choose Change. a) Select Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Administration of Demand Planning and Supply Network Planning.SCM230 Lesson: Safety Stock Planning in SNP Solution 27: Safety Stock Planning: Advanced Methods Task 1: You need time series in order to be able to save time-dependent safety stocks. enter your planning version SNP-##. Initialize planning area 9ASNP05 for your version SNP-## for the next three months. a) b) c) d) e) f) Select Advanced Planning and Optimization → Master Data → Product → Product. delete the planned delivery time of 999 days from the version-specific product master record for product 102-110 at location 0000001003 in version SNP-##. Change your version-specific product master record for pump P-104 in location 2400 for version SNP-##: Enter the safety stock method BS. Select the Lot Size tab page and Quantity and Date Determination. 445 . Enter product P-104 and location 2400. 1. and click Execute. a service level of 95% and target days' supply of 5 days. Repeat this procedure to change product 102-110 in location 0000001003 in version SNP-##. choose Create Time Series Objects. Select Choose planning version. enter version SNP-## and a time period of the next three months. 1. and continue. in order to delete the planned delivery time. Continued on next page 2005/Q2 © 2005 SAP AG. Right-click planning area 9ASNP05. Enter the parameters and save.

Unit 8: Safety Stock Planning SCM230 Task 3: Apply the safety stock method that considers the forecast errors with the reorder point method. 1. 2005/Q2 . Enter the data and choose Execute. Execute safety stock planning for product P-104 using the following data (you can use variant P-104 as a template): Safety Stock Planning Planning area Planning version Product Location Planning buckets profile Safety stock Prediction of Demand Uncertainty of Forecast Planning area Planning object structure Planning version Realized demandCORRHIST Planned demand Start date End date a) SALES SALESPOS 000 CORRHIST FINFOR One year ago End of last month 9ASNP05 SNP-## P-104 2400 25 weeks 9ASAFETY 9ADFCST Select Supply Network Planning → Planning → Safety Stock Planning. Task 4: Analyze the results in interactive Supply Network Planning. As the selections for the planning area will also be created. Use planning book 9ASNP_SSP and data view SAFETY for planning area 9ASNP05. create a new selection for the location products of product P-104 in version SNP-## and name it P-104N ##. you will need to define a new selection. All rights reserved. In planning book 9ASNP_SSP. data view SAFETY. 1. Continued on next page 446 © 2005 SAP AG.

Save the selection under the name P-47. choose APO Open the selection window Location Product. and assign this selection to your selection profile. Switch to change mode choose .17 kg#. a) Select Supply Network Planning → Planning → Interactive Supply Network Planning (All Boooks) and choose planning book 9ASNP_SSP and data view SAFETY by double-clicking. 2005/Q2 © 2005 SAP AG. The results of safety stock planning are shown in the “Safety stock (planned)” key figure. select product P-104 at a location. and. and b) d) Network to run the heuristic.SCM230 Lesson: Safety Stock Planning in SNP Load the data for product P-104 at location 2400 into the planning table. enter P00. c) Double-click product P-104 at location 2400. you can now define the conditions for the location products. All rights reserved. Has safety stock been calculated? Run a network heuristic for P-104 and make sure that planned safety stock has been created. Change the version 000 to SNP-##. in the next row select APO Product and. 447 . on the right. In the lower part of the window. next to Show.

All rights reserved. 2005/Q2 .Unit 8: Safety Stock Planning SCM230 Lesson Summary You should now be able to: • Describe the standard methods of safety stock planning • Describe the advanced methods of safety stock planning • List the differences between the methods • Make the required settings for safety stock planning 448 © 2005 SAP AG.

All rights reserved.SCM230 Unit Summary Unit Summary You should now be able to: • Describe the standard methods of safety stock planning • Describe the advanced methods of safety stock planning • List the differences between the methods • Make the required settings for safety stock planning 2005/Q2 © 2005 SAP AG. 449 .

All rights reserved.Unit Summary SCM230 450 © 2005 SAP AG. 2005/Q2 .

SCM230 Test Your Knowledge Test Your Knowledge 1. 451 . 4. Identify the calculation method to be selected if you need to have complete deliveries and the fixed costs for late deliveries are high. □ □ True False 2005/Q2 © 2005 SAP AG. True False Name the two prerequisites for safety stock planning using model-based calculation. Manual methods of safety stock planning include the following: Choose the correct answer(s). Model-based safety stock planning takes into account forecast accuracy. Determine whether this statement is true or false. 6. Determine whether this statement is true or false. A B C D Safety stock in the location product master Safety days' supply in the location product master The maximum of safety stock and safety days' supply in the location product master All of the above Both uncertainty of demand and uncertainty of supply can be taken into account in the safety stock calculation. All rights reserved. □ □ □ □ 5. □ □ □ □ 2. □ □ 3. A B C D Alpha Beta Gamma Delta You specify a service level of 95% in the location product master record. Choose the correct answer(s). Fill in the blanks to complete the sentence. The alpha calculation calculates a safety stock level that guarantees complete delivery in 95% of .

2005/Q2 . Determine whether this statement is true or false. Replenishment lead time variability can be calculated using two key figures: planned replenishment lead time and actual replenishment lead time.Test Your Knowledge SCM230 7. All rights reserved. □ □ True False 452 © 2005 SAP AG.

Identify the calculation method to be selected if you need to have complete deliveries and the fixed costs for late deliveries are high. You specify a service level of 95% in the location product master record. Answer: True 3. All rights reserved. The alpha calculation calculates a safety stock level that guarantees complete delivery in 95% of the time buckets. 2005/Q2 © 2005 SAP AG. Answer: the time buckets The alpha calculation considers time buckets. Name the two prerequisites for safety stock planning using model-based calculation. the beta calculation considers demand quantities. Answer: • • Regular demand Late deliveries allowed 4. Manual methods of safety stock planning include the following: Answer: D There are several manual methods of safety stock planning: • • • Safety stock in the location product master Safety days' supply in the location product master The maximum of safety stock and safety days' supply in the location product master 2.SCM230 Test Your Knowledge Answers 1. The alpha calculation generally calculates more safety stock than the beta calculation. 453 . Both uncertainty of demand and uncertainty of supply can be taken into account in the safety stock calculation. 5. Answer: A The alpha calculation should be used if you need to make full deliveries and if the fixed costs for late deliveries are high.

2005/Q2 . Answer: True 454 © 2005 SAP AG. Model-based safety stock planning takes into account forecast accuracy.Test Your Knowledge SCM230 6. Answer: True 7. All rights reserved. Replenishment lead time variability can be calculated using two key figures: planned replenishment lead time and actual replenishment lead time.

We will analyze the fair share and push rules used by deployment............................... you will be able to: • • • • • • • • • Explain deployment concepts Calculate the ATD quantity for the plant Describe the main settings for the deployment run Explain the factors that influence deployment Describe fair share rules for deployment Describe push rules for deployment Describe the role of the Transport Load Builder Explain how the TLB functions in the SNP process Execute a TLB run Unit Contents Lesson: Basics of Deployment ..Unit 9 Deployment and the Transport Load Builder Unit Overview This unit will discuss the concepts of deployment.... Unit Objectives After completing this unit.481 Exercise 29: TLB Planning ........456 Exercise 28: Deployment Run ........ you will understand the role of the Transport Load Builder (TLB) in the SNP process....491 2005/Q2 © 2005 SAP AG...................................................... and how the TLB builds loads............. Finally................................. All rights reserved......... 455 ....... You will learn how the ATD quantity is calculated for a product at a plant and the factors that influence deployment.............. how to define a TLB profile......475 Lesson: Transport Load Builder....

If the available quantities are not sufficient to meet the demand. you decide when the distribution centers. deployment determines which distribution requirements of the distribution centers or VMI customers can be covered by the existing supply. or on the basis of constraints (e.to long-term SNP planning and. You will learn about the principal settings for the deployment run and the factors that influence deployment. where applicable. If the available quantities are not sufficient to meet the demand. This lesson will help you understand the fair share rules and push rules for deployment. you will be able to: • • • • • • Explain deployment concepts Calculate the ATD quantity for the plant Describe the main settings for the deployment run Explain the factors that influence deployment Describe fair share rules for deployment Describe push rules for deployment Business Example After mid. deployment determines which distribution requirements of the distribution centers or VMI customers can be covered by the existing supply. As planning manager at Precision Pump Company. After midto long-term SNP planning and. 456 © 2005 SAP AG.Unit 9: Deployment and the Transport Load Builder SCM230 Lesson: Basics of Deployment Lesson Overview This lesson will help you understand the basic concepts of deployment. or if they exceed the demand. and VMI customers will be assigned which quantities. Lesson Objectives After completing this lesson. deployment makes adjustments to the stock transfers created by the SNP run. after detailed PP/DS planning for production. or if they exceed the demand. 2005/Q2 . where applicable.g. deployment makes adjustments to the stock transfers created by the SNP run. customers. You can make these decisions with the heuristic using push and fair share rules. All rights reserved. after detailed PP/DS planning for production. transport and storage capacities) and costs via the optimizer.

Other functions such as route planning. If the available quantities are not sufficient to meet the distribution requirement. the system reduces the stock transfers and decides how much will be deployed to each distribution center. Deployment and TLB confirm OLTP stock transport requisitions and can convert these requisitions into SAP-ECC stock transport orders or VMI sales orders. while the deployment optimizer uses costs and constraints. deployment merely confirms the stock transfers. 457 .to long-term SNP planning and. deployment determines which distribution requirements can be covered by the existing supply. If the quantities that are actually produced and procured and the demands match the Supply Network Planning (SNP) planning quantities. where applicable. The quantities of different products confirmed by deployment can be combined into stock transport orders by Transport Load Builder (TLB).SCM230 Lesson: Basics of Deployment Deployment and its Settings Figure 181: Planning Process After mid. 2005/Q2 © 2005 SAP AG. In Customizing under APO → Supply Chain Planning → Supply Network Planning → Basic Settings → Configure Transfer to OLTP Systems. you can define whether you want the conversion to be made in deployment or using TLB. selection of transportation service providers. is planned in Transportation Planning and Vehicle Scheduling (TP/VS). Deployment and TLB are only used to confirm stock transfers. The deployment heuristic reaches this decision using the defined rules. All rights reserved. after detailed PP/DS planning for production. and generation of deliveries and shipments in the OLTP system.

All rights reserved. In standard category group ATI (available issues). From SAP SCM 4. In standard category group ATR (available receipts). the system checks which product quantities are actually available in the source locations (locations with stock). you group together all the ATP categories that are to be taken into account as issues for deployment. Production Planning and Detailed Scheduling (PP/DS).1. 2005/Q2 . You can also define your own category groups for receipts and issues and enter these in the master data for the supplier location in the SNP tab page. You maintain the definition of category groups for the ATD quantity in Customizing for Supply Network Planning (Define Assignment of Category Groups to Key Figures). The total of these product quantities is referred to as the available-to-deploy quantity (ATD quantity). The ATD (available-to-deploy) quantity is calculated from category groups ATR and ATI. you can define in the product location master record which order categories the ATD quantities should be made up of.1. SNP2 view. Receipts include stock. the category groups can also be maintained according to product in the product location master record. you group together all the ATP categories that are to be taken into account as receipts for deployment. Issues include sales orders and reservations. 458 © 2005 SAP AG. and standard SNP is stored in liveCache as orders with different available-to-promise (ATP) categories. and purchase orders.Unit 9: Deployment and the Transport Load Builder SCM230 Figure 182: The ATD Quantity Calculation When procurement and production are finished. All transaction data from the OLTP systems. On a location level and from SCM 4. The system then determines how the ATD quantity should be deployed to the target locations (locations with demand). production orders.

All ATD issues (e. you can use TLB to group together stock transfers of different products and generate stock transport orders or VMI sales orders with many items for different products in SAP ECC. 2005/Q2 © 2005 SAP AG. over which you want to take into account the receipts for today's deployment (ATD quantity). For the deployment optimizer you configure the SNP checking horizon in the planning run. sales orders directly from the plant) within the checking horizon are deducted from the ATD quantity. In APO 3. The pull horizon specifies the number of days from today's date. Alternatively. later sales orders can be delivered ex-works and that earlier stock transfers are not confirmed if the ATD quantity is too low. All rights reserved. The different deployment horizons are: • The push horizon specifies the number of days from today's date. The deployment horizon specifies the number of days from today's date. for example. over which you want to confirm stock transfers during today's deployment.g.1 and below the ATP Checking Horizon was used. 459 . over which you want to take into account demands for today's deployment.SCM230 Lesson: Basics of Deployment Figure 183: Main Settings for Deployment In Customizing activity “Configure Transfer to OLTP Systems”. This ensures that. you define whether you want deployment to create stock transport orders or VMI sales orders in SAP ECC. • • For deployment with the heuristic there is also an SNP Checking Horizon on the SNP2 tab page of the location product master record.

If the available quantities are not sufficient to meet the distribution requirement. If the available quantities are not sufficient to meet the distribution requirements. The deployment heuristic calculates a replenishment plan for each product at a delivery location. The deployment heuristic reaches this decision using the defined rules. 460 © 2005 SAP AG. the system determines the distribution plan based on fair-share rules. the system reduces the stock transfers and decides how much will be assigned to each distribution center. Deployment is always done from one delivery location to the receiving locations (DCs or customers). by contrast. 2005/Q2 . while the deployment optimizer uses costs and constraints. If the available quantities are not sufficient to fulfill the demand or supply exceeds demand. The deployment optimization run calculates a replenishment plan for a product in all locations within the network. Deployment optimization has an integrated view over the receipt situation of all delivery locations and the demand situation of the receiving locations. If. supply exceeds demand. deployment merely confirms the stock transfers. The Heuristic has a hierarchical view of the supply chain network.Unit 9: Deployment and the Transport Load Builder SCM230 Comparing Heuristic and Optimization Methods Figure 184: Deployment: Heuristic Versus Optimization If the quantities that are actually produced and procured and the demands match the Supply Network Planning (SNP) planning quantities. push rules can be defined so that surpluses are assigned directly to the distribution centers. the system uses minimum cost flow optimization to determine an optimum distribution plan for the entire network at once. All rights reserved. Fair-share rules and push rules are defined in the deployment profile.

and safety stock from the distribution centers.SCM230 Lesson: Basics of Deployment Deployment optimization works like SNP optimization. Figure 185: Factors That Influence Deployment (Heuristic) After PP/DS production planning is complete and the system knows the planned level of stock on hand. the deployment run generates confirmed stock transport orders. You define the deployment horizons in the SNP supply and demand profiles of the product master record. however. 2005/Q2 © 2005 SAP AG. In contrast to SNP optimization. The stock transfers planned in SNP from the distribution centers to the plants enable the plants to recognize their planned distribution demands that reflect the demands. 461 . on-hand stock. production and procurement quantities remain unchanged. only the stock transfers change. All rights reserved.

and pull-push deployment. Fair share deployment is used if demand exceeds supply. All rights reserved. If surplus inventory exists. push deployment. Figure 187: Fair Share Rules 462 © 2005 SAP AG. If demand is less than supply or there is surplus inventory.Unit 9: Deployment and the Transport Load Builder SCM230 Deployment Strategies Figure 186: Deployment (Heuristic) There are several rules available for the deployment heuristic: fair share deployment. 2005/Q2 . it can be distributed according to push logic. a push strategy can be used to transfer stock as early as possible.

which is defined in the SNP demand profile. All rights reserved. 2005/Q2 © 2005 SAP AG. which is defined in the SNP supply profile. The push deployment horizon. the quantities are deployed in proportion to the original demands in the distribution centers when the total distribution requirement exceeds the supply. Figure 188: Fair Share Rule A If you defined fair share rule A in the product master record. determines which demands are taken into account during the deployment calculation.SCM230 Lesson: Basics of Deployment The pull deployment horizon. 463 . determines which supplies are taken into account during the deployment calculation.

The stock transfer for the next day can also be confirmed. These results are displayed after planning in the background: Today. The stock transfer for the current demand from DC1 can be confirmed. 2005/Q2 . 1000 units are available in the plant for distribution. However. All rights reserved. The 400 units are thus deployed to the distribution centers using the configured fair share rule A. Figure 190: Fair Share Rule B 464 © 2005 SAP AG.Unit 9: Deployment and the Transport Load Builder SCM230 Figure 189: Deployment Result: Fair Share Rule A The following are the results of a deployment heuristic run using fair share rule A. two days later demand exceeds the remaining quantity in the plant.

Figure 191: Deployment Results: Fair Share Rule B Figure 192: Fair Share Rules C and D The objective of fair share rule C is to distribute the ATD quantity at the demand locations according to the outgoing quota arrangements. Then. 465 . you have to define outgoing quota arrangements for source location products. In the event of a shortage. To apply this rule. 2005/Q2 © 2005 SAP AG. The percentage per destination location is defined as planned stock on hand divided by the target stock level. All rights reserved.SCM230 Lesson: Basics of Deployment Fair share rule B increases the stock on hand at all demand locations to the same percentage of the target stock level. the system first tries to remedy the shortage in these target locations. the system attempts to increase the stock on hand at all destination locations to the same percentage of the target stock level.

For example. and destination location C receives nothing through the priority 3 transportation lane. 2. each with the corresponding priorities 1. The quantities allocated to the distribution centers ensure that each distribution center receives the same target days' supply. there are three outbound transportation lanes in your network to your destination locations A. C. and 3. 2005/Q2 . the system attempts to fulfill all the demands from the current date until the ATD quantity is exhausted. 466 © 2005 SAP AG. D. destination location A receives a quantity of 100 through the priority 1 transportation lane. Figure 193: Push Rules The push rules are used if supply exceeds demand. Fair share rules B. All rights reserved.Unit 9: Deployment and the Transport Load Builder SCM230 Fair share rule D distributes the stock according to the priorities of the outbound transportation lanes of the source location. B. and the surplus needs to be distributed as soon as possible. and not for the deployment optimizer. and X are only used in conjunction with the deployment heuristic. If a fair share situation occurs. Destination location B receives 50 pieces through the priority 2 transportation lane. If you choose fair share rule D. Your ATD quantity is 150 pieces and the requested quantity at each location is 100 pieces. Fair share rule X (user-defined fair share distribution): Here you can define your own fair share rule using the DEPLOY_USER_DEFINED Business Add-In method. and C. You define the push rules in the product master data.

With pull-push distribution (push rule P). all supply is distributed immediately to meet demand in the system (the pull horizon is ignored). All rights reserved. Push rule U (User-defined distribution): Here you can define your own push rule using the DISTRIBUTE_USER_DEFINED Business Add-In method. To use this push rule. 467 . No supply is distributed to the demand source in advance of the demand date. 2005/Q2 © 2005 SAP AG. instead of demands to distribute supply. all supply is distributed immediately to meet demand within the pull horizon.SCM230 Lesson: Basics of Deployment Figure 194: Push Rules in Detail • • • • • • With pull distribution (without push rule) only the demand within the pull deployment horizon is met through deployment. Stock is distributed according to the due dates specified at the individual demand locations. Push rule Q (Push by quota arrangement) – The system uses this rule to take into account the demand-dependent quota arrangements assigned to the transportation lanes. With push distribution (push rule X). Push rule S (Push taking the safety stock horizon into account) – You use this rule if you want to use safety stock at the source location to fulfill only the demands within the corresponding safety stock horizon and no demands outside of this horizon. you have to maintain outgoing quota arrangements in the Supply Chain Engineer.

This form of deployment takes account of the current demand situation in the target locations. A quantity of 1000 pieces is distributed on the second day when supply is 1000. the demand within the pull horizon is only 600. Push (push rule X) – A quantity of 200 pieces is distributed on the first day when supply is 200. when the supply is 200 pieces. when using fair share rule B it is important that the distribution is based on the most accurate calculation of target stock levels and planned stock on hand. If the demand in the system had been 800 pieces. 2005/Q2 . A demand of 200 pieces at the end of the planning horizon is left unfulfilled due to a lack of supply within the push horizon. If you set this indicator. Real-time deployment is used to update the stock transfers prior to the actual deployment if the SNP run dates back further. an SNP run will be carried out between the source location selected 468 © 2005 SAP AG. Pull-push (the P push rule) – A quantity of 200 pieces is distributed on the first day. • • The deployment heuristic requires the stock transfers planned in SNP in order to show the demand situation of the DCs. Although the supply is 1000 pieces. In particular. Since the demand in the system is for 1400 pieces. A quantity of 600 is distributed on the second day. so only 600 pieces are distributed. All rights reserved. all the supply can be distributed. only 800 pieces would be distributed on the second day. Only planned stock transfers can be confirmed.Unit 9: Deployment and the Transport Load Builder SCM230 Figure 195: Push Rules: A Comparison The above example shows the three different ways in which push logic can be applied according to the time horizons maintained in the demand and supply profiles: • Pull (without push rule) – A quantity of 200 pieces is distributed to the distribution centers for every day within the pull horizon that has demand (four days into the future).

Using this option. In APO 3. are only created between the deployment source location and the target locations.SCM230 Lesson: Basics of Deployment on the selection screen and the associated target locations. When the SNP run is complete. The old orders had to be deleted using /SAPAPO/RLCDELETE. The transportation lanes between the given source location and the target locations are treated as though a quota arrangement of 100% were defined. a deployment run is carried out on the basis of the SNP stock transfers created. All existing SNP stock transfers in the target locations will be deleted first. The deployment run can reschedule either all quantities. 469 . either interactively or in the planning run. • 2005/Q2 © 2005 SAP AG. If you execute the deployment heuristic run in the background.1 and below. or the unconfirmed quantities with real-time deployment. Select Delete to delete the planned stock transfers. you can decide how the system should proceed with the SNP stock transfers using the following options: • • To simulate results select Do not change. Stock transfers. real-time deployment will not take account of transportation lanes and quota arrangements between the target locations and source locations other than the one specified. As of SCM 4. to reflect changes in the demand or supply situation. data view DRP(1). therefore.0. Select Reduce to reduce the planned stock transfer orders by the confirmed quantity. Unlike the usual SNP run. it was not possible to change quantities that had been confirmed by deployment. the unfixed quantities. The SNP stock transfers are reduced by the quantity of deployment stock transfers created. you can change confirmed distribution requirements interactively for the delivery location in planning book 9ADRP. the remaining planned stock transfers are considered during a later deployment run. All rights reserved.

production and procurement quantities remain unchanged. 2005/Q2 .Unit 9: Deployment and the Transport Load Builder SCM230 Deployment Optimizer Figure 196: Deployment Optimizer Deployment optimization has an integrated view over the receipt situation of all supplier locations and the demand situation of the receiving locations. 470 © 2005 SAP AG. as originally planned. since demands from the DCs as well as other plants can be covered. optimized deployment stock transfers. The optimization run deletes all existing stock transfers. If demand exceeds supply. there is the option to distribute according to cost or using push rule P. If. Deployment optimization works like SNP optimization. however. supply exceeds demand. conversely. It then generates new. Only planned stock transfers can be confirmed (-> real-time deployment). only the stock transfers change. In contrast to SNP optimization. the system takes into account the settings in the deployment optimization profile rather than the deployment profile rules. In this situation. The system uses the ATD quantity in the plants to try and maximize the days' supply for the distribution centers according to the demands there. there is the option to distribute according to cost or using fair share rule A. Hint: The deployment heuristic requires the stock transfers planned in SNP in order to show the demand situation of the DCs. All rights reserved.

Figure 197: The Deployment Optimizer Profile The optimization of deployment is controlled via its own deployment optimization profile.SCM230 Lesson: Basics of Deployment The optimizer can take the following factors into account: • • • Costs defined for products Priority classes defined for products Transportation and storage capacities With strict prioritization. 2005/Q2 © 2005 SAP AG. The cost profiles are valid both for SNP optimization and for deployment optimization. 471 . the product priority classes are arranged as follows: • • • • Customer demand has priority 1 The corrected forecast has priority 5 Forecast demand has priority 6 The priority for safety stock can be configured The deployment optimization run does not support product substitution and does not replan production. The system does not take any production parameters into account. All rights reserved.

Fair share distribution by demand: With this rule. • • 472 © 2005 SAP AG. the demand from a certain location is not covered at all because the demand from another location can be covered at a better price. Earliest possible delivery: In conjunction with the fair share distribution by demand option. you specify the following: • • • • • Which resources you want to be planned on a finite basis and any shelf life settings Whether safety stock deviations should be treated absolutely or relatively Whether discrete or linear optimization. and cost-based or strict priorization should be used as well as the solution methods Whether existing orders should be deleted (Global) pull. the rule that you defined for supply shortage in the SNP deployment optimizer profile will be used. for example. If you do not select this option. The following rules are available: • Optimal cost assignment: When calculating the product quantities to be distributed. you can specify that in the case of fair share distribution the deployment optimizer must first cover the earliest requirements as completely as possible before planning fulfillment of later requirements. push. on the basis of high transportation costs for example. but instead to distribute it to the target location indirectly through another location. The calculated distribution plan corresponds to the plan with the lowest total costs. 2005/Q2 . All rights reserved.Unit 9: Deployment and the Transport Load Builder SCM230 In the deployment optimizer profile. the deployment optimizer aims principally to distribute the ATD quantity proportionally to the target locations according to demand (sales orders and forecasts). not to distribute the deployed quantity directly to the target location. With this option it can happen that. In the event that the calculated fair share quantities cannot be distributed to individual locations because of the restrictions that were put in place. the system also takes the costs defined in the supply chain model into account. these quantities will be distributed to the other target locations based on cost factors. When distributing the calculated quantities. the optimizer will try to distribute the ATD quantity proportionally based on the requirements in the different periods. the deployment optimizer only considers the costs defined in the supply chain model and the restrictions defined in the SNP deployment optimizer profile. and SNP check horizons If the deployment optimizer determines that the ATD quantity falls below the demand from the destination locations. Thus the optimizer can decide.

in contrast to the fair share situation. The following rules are available: • Optimal cost assignment: When calculating the product quantities to be distributed. Push distribution by demand: The deployment optimizer aims principally to distribute the ATD quantity proportionally to the target locations according to demand. If you do not select this option. the calculated percentage rate. the rule that you defined for supply surplus in the SNP deployment optimizer profile will be used. Earliest possible delivery: In conjunction with the push distribution by demand option. the optimizer will try to distribute the ATD quantity proportionally based on the requirements in the different periods. the target locations may receive a quantity that exceeds their demand). This will not necessarily be a location with demand. however. All rights reserved. 473 . exceeds 100% (i. you can specify that in the case of push distribution the deployment optimizer must distribute the full available ATD quantity to the target locations at the earliest requirement time-spot.e.SCM230 Lesson: Basics of Deployment If the deployment optimizer determines that the ATD quantity exceeds the demand from the destination locations. • • Figure 198: SNP Cost Profile 2005/Q2 © 2005 SAP AG. The optimizer distributes surplus stock to the locations with the lowest costs. As with fair share distribution. as high non-delivery costs prevent a requirement from being unfulfilled. if this can lead to a reduction in total costs. the deployment optimizer only considers the costs defined in the supply chain model and the restrictions defined in the SNP deployment optimizer profile. when distributing the calculated quantities the system also takes note of the costs determined in the supply chain model and may put up with detours in the supply chain. Since the ATD quantity exceeds the demand quantities. Usually. the system covers all the requirements of the target location.

2005/Q2 . The costs that may be considered are as follows: • • • • • Costs for transporting stock Costs for Storage stock Costs for Handling stock Costs for violating safety stock Costs for not delivering Figure 199: Input Parameters for Deployment Run 474 © 2005 SAP AG. It is used to simulate various cost situations to study their impact on the planning results. All rights reserved.Unit 9: Deployment and the Transport Load Builder SCM230 You can use the cost profile to configure the relative weighting of the various costs.

If there are short-term changes to the receipts or demands. Check that the PP/DS planned orders are displayed in the “Production (confirmed)” key figure. Load product P-104 at location 1000 and version SNP-## using selection P-104 ##. Task 1: 1. Save and repeat for product P-104 at location 2300. The availability check for sales orders in the distribution center can then be based on these confirmed quantities. Access SNP interactive planning. Field Name Planning book Data view Input Data 9ASNP94 SNP94(1) Continued on next page 2005/Q2 © 2005 SAP AG. you will be able to: • Explain deployment concepts • Calculate the ATD quantity for the plant • Describe the main settings for the deployment run • Explain the factors that influence deployment • Execute a deployment run Business Example Precision Pump Company uses deployment based on PP/DS planning to determine feasible stock transfers to distribution centers for the next few days. In the product view. Task 2: 1. execute PP/DS interactive planning for product P-104 at location 1000 for version SNP-##. Open another session and use mass processing to run deployment for product P-104 in location 1000 with a deployment horizon of 30 days. First specify that the stock transfers are not to be changed (simulation mode). The confirmed deployment stock transfers tell the distribution centers what quantities are actually delivered. How are the ATD receipts and issues calculated? Task 3: 1.SCM230 Lesson: Basics of Deployment Exercise 28: Deployment Run Exercise Objectives After completing this exercise. 475 . the system recalculates the distribution of goods. All rights reserved.

Only stock transfers that are within the deployment horizon are confirmed. How is the ATD quantity calculated from ATD receipts and issues? Perform a new deployment run in the background to reduce the SNP stock transfers. 2. deployment is normally used to confirm stock transfers for the next few days in daily buckets profiles. 2005/Q2 . check that the distribution demand in plant 1000 has been confirmed. the system will not change the SNP stock transfers. The horizons in the training system are not realistic. All rights reserved. In this course we cannot wait until the orders reach the short-term horizon. Analyze the results again in the SNP interactive planning table. The deployment results are only simulated. Field Name Planning book Data view Selection profile Optimizer profile Cost profile Input Data 9ASNP94 SNP94(1) P-104 ## Master Master 476 © 2005 SAP AG. In interactive planning. Use the Deploy variant and enter your selection profile P-104 ##. Compare the deployment results with the planning data from interactive planning in your alternative mode.Unit 9: Deployment and the Transport Load Builder SCM230 Deployment horizon in days Planning version Location Product Do Not Change Generate spool list 30 SNP-## 1000 P-104 Select Select Hint: If you select SNP Stock Transfers: Do not change. In practice. Make sure the entries match those in the table below. 3. Task 4: 1. Run deployment optimization.

Task 3: 1. The ATD receipts consist of PP/DS planned orders and SNP planned orders. To find out how the total receipts are made up. In the product view. How are the ATD receipts and issues calculated? a) Select Supply Network Planning → Planning → Interactive Supply Network Planning. Enter your version SNP-##. and location 1000. and then icon. click the Product heuristic button. Go to change mode plan using the . The PP/DS planned orders are displayed in the Production (confirmed) key figure. Access SNP interactive planning.SCM230 Lesson: Basics of Deployment Solution 28: Deployment Run Task 1: 1. Double-click P-104 at location 1000 to load the data. First specify that the stock transfers are not to be changed (simulation mode). Task 2: 1. product P-104. Continued on next page 2005/Q2 © 2005 SAP AG. Load product P-104 at location 1000 and version SNP-## using selection P-104 ##. Save and repeat for product P-104 at location 2300. All rights reserved. Open another session and use mass processing to run deployment for product P-104 in location 1000 with a deployment horizon of 30 days. The ATD issues are determined using forecasts. Save and repeat for location 2300. Double-click your selection P-104 ##. a) b) c) d) Select Production Planning → Interactive Production Planning → Product View and confirm any quantities. Check that the PP/DS planned orders are displayed in the “Production (confirmed)” key figure. execute PP/DS interactive planning for product P-104 at location 1000 for version SNP-##. 477 . This displays a list of location products in the selection window. double-click the Total receipts key figure.

deployment is normally used to confirm stock transfers for the next few days in daily buckets profiles. 2. a) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Deployment. d) Continued on next page 478 © 2005 SAP AG. the system will not change the SNP stock transfers. The deployment results are only simulated. Enter the data from the table and execute planning. This displays a list of location products in the selection window. How is the ATD quantity calculated from ATD receipts and issues? a) b) c) Double-click your selection ID P-104 ##. double-click the total demand. 2005/Q2 . The horizons in the training system are not realistic. The ATD quantity is calculated by subtracting the ATD current issues (forecasts) and issues from previous periods from the ATD receipt.Unit 9: Deployment and the Transport Load Builder SCM230 Field Name Planning book Data view Deployment horizon in days Planning version Location Product Do Not Change Generate spool list Input Data 9ASNP94 SNP94(1) 30 SNP-## 1000 P-104 Select Select Hint: If you select SNP Stock Transfers: Do not change. In practice. To find out how the total demand is made up. Compare the deployment results with the planning data from interactive planning in your alternative mode. In this course we cannot wait until the orders reach the short-term horizon. Demands are displayed in the DistrDemand (Planned) and DistrDemand (Confirmed) key figures. All rights reserved. Double-click product P-104 at location 1000 to load the data. Only stock transfers that are within the deployment horizon are confirmed.

Compare the table to the previous results. In interactive planning. a) b) Now select SNP Stock Transfers: Reduce and Generate Spool List. 2005/Q2 © 2005 SAP AG. Use the Deploy variant and enter your selection profile P-104 ##. Be sure entries match those in the table.SCM230 Lesson: Basics of Deployment 3. Use the Deploy variant and enter your selection profile P-104 ##. Analyze the results again in the SNP interactive planning table. and run deployment again. Analyze the results in the SNP interactive planning table by clicking Refresh. Task 4: 1. Click the Refresh button to refresh the data in the SNP interactive planning table. Run deployment optimization. check that the distribution demand in plant 1000 has been confirmed. Make sure the entries match those in the table below. All rights reserved. b) c) Execute planning. Field Name Planning book Data view Selection profile Optimizer profile Cost profile a) Input Data 9ASNP94 SNP94(1) P-104 ## Master Master Select Advanced Planning and Optimization → Supply Network Planning → Planning → Supply Network Planning in the Background → Deployment Optimization. 479 . Perform a new deployment run in the background to reduce the SNP stock transfers.

2005/Q2 . All rights reserved.Unit 9: Deployment and the Transport Load Builder SCM230 Lesson Summary You should now be able to: • Explain deployment concepts • Calculate the ATD quantity for the plant • Describe the main settings for the deployment run • Explain the factors that influence deployment • Describe fair share rules for deployment • Describe push rules for deployment 480 © 2005 SAP AG.

you will be able to: • • • Describe the role of the Transport Load Builder Explain how the TLB functions in the SNP process Execute a TLB run Business Example Using the TLB. ensure that the transport is utilized to the maximum possible. As a result. you will learn to execute a TLB run. Using the TLB. you need to ensure that the transport is filled to maximum capacity. All rights reserved. When deploying the products to distribution centers and VMI customers you must.SCM230 Lesson: Transport Load Builder Lesson: Transport Load Builder Lesson Overview This lesson will help you understand the role of the Transport Load Builder (TLB) in the Supply Network Planning process. Lesson Objectives After completing this lesson. 481 . you can build stock transfers confirmed by deployment for means of transport. Overview of Transport Load Builder Figure 200: Transport Load Builder 2005/Q2 © 2005 SAP AG. In addition. as planning manager at Precision Pump Company. you can build stock transfers confirmed by deployment for means of transport and ensure that the means of transport are loaded to their full capacity.

Assign this hierarchy to your model.Unit 9: Deployment and the Transport Load Builder SCM230 The primary purpose of the Transport Load Builder (TLB) is to build. The TLB can now build deployment stock transfers for several locations within one transportation zone. You can create transportation zones for the Transport Load Builder or transfer the transportation zones from SAP ECC. No means of transport is dispatched unless it is filled to at least minimum capacity. the TZONE hierarchy (to do this. In Customizing in TP/VS. and number of pallets specified in the TLB profile for creating a load have been reached. the confirmed stock transfers from the deployment run for individual products into one TLB stock transfer that encompasses several products for one transportation zone. weight. select Master Data → Hierarchy). you can choose to maintain a transport-based hierarchy and assign the TLB application to your hierarchy. If transportation recommendations cannot be converted. Figure 201: Transport Load Builder The system groups transportation recommendations for individual products together until the minimum values for volume. you can group your locations according to. 482 © 2005 SAP AG. for example. Using these transportation zones. All rights reserved. the system generates an alert and the planner can convert the transfers manually. You can manually create transport orders and TLB shipments for stock transfers that could not be considered during the TLB run due to specified constraints. It tries to ensure that: • • • The means of transport are filled to maximum capacity. or group. 2005/Q2 .

In APO 3. pallets can be loaded with several different products (Global SNP Settings in Customizing). Starting from SCM 4.0. The transport priority that was assigned to the deployment stock transfer is displayed in the TLB view in interactive SNP planning. e. the Transport Load Builder could only create full pallets with the same product. Otherwise. Deployment stock transfers that are transferred as purchase orders to the OLTP system cannot be processed using this function. You can only implement prioritization for deployment stock transfers that are not transferred at all or that are transferred as purchase requisitions to a connected OLTP system. 483 . All rights reserved.0. using transaction /SAPAPO/DPLSPLIT for the prioritization of deployment stock transfers 2005/Q2 © 2005 SAP AG. the result is a stock transport order in the SAP ECC system. If the TLB transfer is for a Vendor-Managed Inventory (VMI) customer. The priority enables you to assess the relative importance of a stock transfer and use this information when manually building the TLB shipments. In SCM 4. The TLB run ignores the transport priority. you can prioritize deployment stock transfers according to the following categories: • • • Category 1: Stock transfers to cover current demands and shortfall quantities Category 2: Stock transfers to cover demands based on a specified target stock level Category 3: Stock transfers that represent a delivery in excess of the target stock level (overdelivery). Prioritization of Deployment Stock Transfers You can distribute the deployment stock transfers by requirements type and assign priorities.1 and below. the results are processed in the SAP ECC system as sales orders. You can specify additional conditions for VMI customers.SCM230 Lesson: Transport Load Builder TLB groups planned stock transfers into practical freight units.g. on the basis of the push rule You carry out prioritization after deployment and before the TLB run.

Rounding values and the maximum lot size can be determined in the product master of the target location or in the transportation lane. If the deployment stock transfers do not meet either the minimum or maximum requirements. weight. All rights reserved. or a combination of the two. the system activates an alert. On the GR/GI tab page of the product master. The Alert Monitor informs you about exceptions that occur in the process. see SAP note 710198. 2005/Q2 . The TLB is the first tool to consider individual means of transport. For more information. The Transport Load Builder uses the lot size profile to determine how to build transport loads.Unit 9: Deployment and the Transport Load Builder SCM230 Working with the TLB Profile Figure 202: The TLB Profile Supply Network Planning (SNP) only plans the capacity of an entire transport fleet. the minimum and maximum values for volume. indicate whether a product can be palletized. The TLB uses the stacking factor (product master) and the maximum number of pallet positions to work out the maximum amount of pallets. In the TLB profile. 484 © 2005 SAP AG. and pallets are defined per load. The system checks the deployment stock transfers against the minimum and maximum values. You can also use business add-ins to define additional customer-specific parameters.

Use the /SAPAPO/TLBPRF_TRANS report to adapt the SCM 4. In addition. As well as the standard connections. the TLB (in SCM 4. lower limits with "and": The TLB cannot exceed any of the defined upper limits.SCM230 Lesson: Transport Load Builder In the TLB. In addition. in SCM 4. All rights reserved. It does its best to load the means of transport using the same products or products from the same loading group (product-by-product loading) or distributes 2005/Q2 © 2005 SAP AG. Connecting upper limits with "and".1 and above) takes account of the loading methods that you defined in the transportation lane for the means of transport.0 TLB profile to suit the new logic. at least one of the lower limits must be reached or exceeded in line with how you defined the rules. 485 . Using the AND and OR operators as well as brackets. lower limits with „or": TheTLB cannot exceed the defined upper limits when the shipments are built. • • Settings in the Transportation Lane: When building the transport loads.1 and above you can also define flexible rule relationships for linking the upper and lower limits. The following standard connections are allowed: • Connecting upper limits with „and". you can also establish user-defined relationships between the rules. you can define which combination of these rules the TLB should use when building the shipments. all defined lower limits must be reached or exceeded.

the TLB distributes the loading groups and products to the shipments in your sort order. • • • • 486 © 2005 SAP AG. Using this method. and delivery trigger are used in SAP SCM ICH only. In the second step. if it was unable to load a means of transport within the applicable parameter limits using the present day's deployment stock transfers. the TLB increases the shipment quantity. followed by the products within a loading group. Note. that the Transport Load Builder can take existing deployment stock transfers for building TLB shipments into account. the TLB decreases the shipment quantity. the system tries to avoid remaining quantities that do not lie within the applicable parameter limits for a shipment. starting from the current date. however. 2005/Q2 . If the value calculated by the system is above the defined threshold value. Equal loading: The TLB tries to distribute the products among the shipments such that their percentage proportion on each shipment is as equal as possible. that the TLB does not use optimization methods and is therefore unable to guarantee an optimal solution. All rights reserved. Changing the shipment quantity enables the system to avoid remaining quantities that do not lie with the applicable parameter limits for a shipment when it is building same. You have the following options: Threshold value based on remainder before shipment alteration. A loading group may be too big or too small for a shipment. If the relationships are the same for all products. the TLB loads the rest of the loading group onto the next shipment. The system increases the quantities to be transported by including demands that lie within the pull-in horizon. threshold value based on result of shipment alteration. Use the decision basis for shipment quantity changes to define how the Transport Load Builder calculates the value that it uses to make decisions regarding shipment quantity changes. if the value is below the threshold. Individually. PO guidelines. The pull-in horizon defines the number of days. the TLB considers the loading methods as follows: • Product-by-product loading: The TLB first sorts the loading groups alphabetically. The TLB the pull-in horizon into account when increasing the shipment quantity. If a loading group can only be partially loaded onto a shipment.Unit 9: Deployment and the Transport Load Builder SCM230 the products equally among all the shipments (equal loading). A rounding value that indicates the smallest relationship between the quantity of the product already loaded and the total demand is added to a shipment by the TLB. the TLB adds a rounding value from a randomly selected product to the shipment. transport guidelines.

you can view the deployment and TLB stock transfers generated automatically by the TLB for a specific day. If the load does not meet the minimum capacity requirements specified for a full transport load within the specified pull-in horizon. It thus 2005/Q2 © 2005 SAP AG. it redistributes the product quantities. you can manually add TLB stock transfers that are planned for a later shipment and ship them early to achieve a full truckload. It then tries to ensure that all shipments lie within the applicable upper and lower parameter limits. If deployment stock transfers were not converted. It does this by loading some shipments as far as the defined lower limits only. you can use Drag&Drop to include them in existing TLB stock transfers or create new TLB stock transfers. How the TLB treats remaining shipment quantities: If the Transport Load Builder was unable to load one of the TLB shipments up to the defined lower limit using the stock transfers or replenishment orders from the current period. All rights reserved.SCM230 Lesson: Transport Load Builder Figure 203: Building Consolidated Loads In the Transport Load Builder's interactive planning table. 487 .

Unit 9: Deployment and the Transport Load Builder SCM230 rebuilds all shipments. the search method for increasing the shipment. The TLB can only reschedule as many deployment stock transfers of the product as are necessary to cover demand within this period. You can also decide whether you want to set a shipment decrease in the event that the shipment increase fails. In addition to this. In the master data of the location product you can define a coverage period for a product. taking their days' supply into account.1. the search method for decreasing the shipment. the system normally increases the quantities to be transported until they reach a point where they lie within the valid range between the upper and lower parameter limits. where this is possible. • 488 © 2005 SAP AG. Shipment quantity decrease: The TLB decreases the product quantities to be transported by prioritizing and reducing the current period's deployment stock transfers or replenishment orders. you define the method used to build the shipment. the heuristic for decreasing the transport quantities. Here. All rights reserved. You can also exclude the shipment quantity increase for a product. If you set the flag. taking the loading methods into account. the TLB sorts the stock transfers within this horizon according to their days' supply. Hint: As of SCM 4. and back-tracking just to look for valid or maximum transport loads. 2005/Q2 . the system will increase the shipment quantities up to the defined upper limit. If the TLB is still unable to find a valid solution. When using this method. the heuristic for increasing the transport quantities. the basic settings in SNP Customizing allow you to implement settings for the TLB. it uses the following methods for changing the shipment quantity: • Shipment quantity increase: The TLB increases the product quantities to be transported by including more deployment stock transfers or replenishment orders from within the pull-in horizon. The TLB increases the transport quantities with individual rounding values of the products until all shipments lie with the applicable upper and lower parameter limits. You will also find the shipment quantity increase flag here.

489 . pallets) and free capacity of the means of transport.SCM230 Lesson: Transport Load Builder TLB Run Figure 204: Input Parameters for the TLB Run If you do not enter an end date for the planning horizon. it displays the capacity used (volume. All rights reserved. weight. 2005/Q2 © 2005 SAP AG. the TLB run is only performed for the first day of the planning horizon. Figure 205: Results of TLB Run When the TLB run is executed in the background.

All rights reserved. 2005/Q2 .Unit 9: Deployment and the Transport Load Builder SCM230 490 © 2005 SAP AG.

Task 3: 1. 1. or generate new TLB orders. If deployment stock transfers were not converted. Check that the PUMP TLB profile is assigned to the transportation lane from plant 1000 to distribution center 2400. You must also group the unconverted deployment stock transfers interactively into TLB stock transfers so that stock transport orders will be generated in SAP ECC. These can then be converted to deliveries in SAP ECC or using SCM TP/VS. Check the PUMP TLB profile and note down the lower and upper limits for volume and weight: Lower limit Volume (M3) Weight (TO) Upper limit Task 2: 1. To do this. Continued on next page 2005/Q2 © 2005 SAP AG. Check that the lower and upper limits for volume and weight that you noted above have been observed. you must make sure that the TLB planning run distributes the deployment stock transfers sensibly among the means of transport. All rights reserved.SCM230 Lesson: Transport Load Builder Exercise 29: TLB Planning Exercise Objectives After completing this exercise. select the transportation lanes of version SNP-## from plants 1000 and 2300 to distribution centers 2400 and 2500. you will be able to: • Explain the role of the TLB in the SNP process • Complete the configuration settings for the TLB • Execute a TLB planning run Business Example Task 1: As the transportation planner at Precision Pump Company. Now run the Transport Load Builder for the stock transfers confirmed by deployment in interactive planning. use Drag&Drop to include them in existing TLB orders. and perform a TLB run for each of these transportation lanes. 491 .

What happens to stock transfers that are not converted? What effect would this action have had in SAP ECC if you had planned in the active version 000? 492 © 2005 SAP AG.Unit 9: Deployment and the Transport Load Builder SCM230 2. 3. All rights reserved. 2005/Q2 .

start location 1000. You must also group the unconverted deployment stock transfers interactively into TLB stock transfers so that stock transport orders will be generated in SAP ECC. These can then be converted to deliveries in SAP ECC or using SCM TP/VS. Enter your model SNP-##. and destination location 2400. and you will obtain the following information in the lower section: Lower limit Volume (M3) Weight (TO) 10 5 Upper limit 40 38 Upper limit Task 2: 1. Now run the Transport Load Builder for the stock transfers confirmed by deployment in interactive planning. Continued on next page 2005/Q2 © 2005 SAP AG.SCM230 Lesson: Transport Load Builder Solution 29: TLB Planning Task 1: As the transportation planner at Precision Pump Company. and perform a TLB run for each of these transportation lanes. Task 3: 1. Then click Display. To do this. All rights reserved. a) b) Select Advanced Planning and Optimization → Master Data → Transportation Lane → Transportation Lane. 493 . you must make sure that the TLB planning run distributes the deployment stock transfers sensibly among the means of transport. Check that the PUMP TLB profile is assigned to the transportation lane from plant 1000 to distribution center 2400. 1. Double-click the PUMP TLB profile. Check the PUMP TLB profile and note down the lower and upper limits for volume and weight: Lower limit Volume (M3) Weight (TO) a) b) Select Supply Network Planning → Environment → Current settings → Profiles → Define Transport Load Builder (TLB) Profiles. select the transportation lanes of version SNP-## from plants 1000 and 2300 to distribution centers 2400 and 2500.

Stock transfers that are not converted can be converted manually by the planner. If deployment stock transfers were not converted. All rights reserved. What effect would this action have had in SAP ECC if you had planned in the active version 000? a) In SAP ECC. c) d) 2. or generate new TLB orders. the stock transport requisitions are converted into stock transport orders using the TLB.Unit 9: Deployment and the Transport Load Builder SCM230 Check that the lower and upper limits for volume and weight that you noted above have been observed. or generate new TLB orders. 494 © 2005 SAP AG. If deployment stock transfers were not converted. use Drag&Drop to include them in existing TLB orders. What happens to stock transfers that are not converted? a) 3. Field Show APO Planning Version APO Source Location APO Destination Loc. Click above the middle window to execute the TLB run. to open the selection window. Double-click on the first transportation lane. 2005/Q2 . a) b) Select Advanced Planning and Optimization → Supply Network Planning → Planning → Transport Load Builder (TLB). Your deployment stock transfers appear in the upper window on the right. Value APO Transportn Lane SNP-## 10002300 24002500 Hint: Use the multiple selection button to enter multiple values. TLB orders are displayed if the conditions of the TLB profile can be met. use Drag&Drop (from the right window) to include them in existing TLB orders (in the left window). Then enter the data in the Click table below.

495 . All rights reserved.SCM230 Lesson: Transport Load Builder Lesson Summary You should now be able to: • Describe the role of the Transport Load Builder • Explain how the TLB functions in the SNP process • Execute a TLB run 2005/Q2 © 2005 SAP AG.

2005/Q2 . All rights reserved.Unit Summary SCM230 Unit Summary You should now be able to: • Explain deployment concepts • Calculate the ATD quantity for the plant • Describe the main settings for the deployment run • Explain the factors that influence deployment • Describe fair share rules for deployment • Describe push rules for deployment • Describe the role of the Transport Load Builder • Explain how the TLB functions in the SNP process • Execute a TLB run 496 © 2005 SAP AG.

Describe some of the push rules for deployment. 7. Fill in the blanks to complete the sentence. Push deployment takes into account only stock on hand within . All rights reserved. or the 3. The deployment method focuses on the entire network and aims to maximize coverage and minimize costs. 4. □ □ □ □ □ 6. □ □ True False 2005/Q2 © 2005 SAP AG. 497 . constraints. Determine whether this statement is true or false. Fill in the blanks to complete the sentence. . Fill in the blanks to complete the sentence. A B C D E Proportional to demand Percent of target stock level Outbound quota arrangement Priority All of the above. Fill in the blanks to complete the sentence. Fair share rules are used if Fill in the blanks to complete the sentence. Deployment must be executed before the TLB can be executed. 5. 8.SCM230 Test Your Knowledge Test Your Knowledge 1. You can execute deployment using the . Which of the following are fair share rules in the SCM system? Choose the correct answer(s). generates optimized distribution plans based on 2.

The TLB profile is assigned to the the Fill in the blanks to complete the sentence. 2005/Q2 .Test Your Knowledge SCM230 9. 10. All rights reserved. Determine whether this statement is true or false. □ □ True False 498 © 2005 SAP AG. in . The primary purpose of the TLB is to use the results of the deployment run to create multiproduct transport orders.

You can execute deployment using the Heuristic or the Optimizer. Stock is distributed according to the priorities of the outbound transportation lanes from the souce location to the target locations.SCM230 Test Your Knowledge Answers 1. Answer: demand exceeds supply 5. Push deployment takes into account only stock on hand within the push deployment horizon. 499 . Answer: Optimizer 4. Answer: the push deployment horizon 2005/Q2 © 2005 SAP AG. Optimizer 3. All rights reserved. Fair share rules are used if demand exceeds supply. Which of the following are fair share rules in the SCM system? Answer: E The SCM system offers a number of fair share rules: • • • • Quantities are deployed in proportion to the original demands in the distribution centers. Stock is distributed according to the outbound quota arrangements of the source location products. The system increases stock on hand at all demand locations to approximately the same percentage of target stock levels. 6. Deployment generates optimized distribution plans based on constraints. Answer: Heuristic. Answer: Deployment 2. The Optimizer deployment method focuses on the entire network and aims to maximize coverage and minimize costs.

8. The primary purpose of the TLB is to use the results of the deployment run to create multiproduct transport orders.demands within the pull deployment horizon must be fulfilled by the due dates (' '). Answer: True Using the results of the deployment run to create multiproduct transport orders within predefined parameter limits is the primary purpose of the TLB. Answer: • Pull only. • Push stock immediately so that all demands are fulfilled. • User-defined rule ('U'). All rights reserved. • Push so that demands are fulfilled within the safety stock horizon of the source location ('S').Test Your Knowledge SCM230 7. You make this setting in the Push Distributn field of the product location master record or the Push field of the SNP deployment profile. • Push stock immediately so that demands within the pull deployment horizon are fulfilled ('P'). transportation lane 10. Answer: means of transport. 2005/Q2 . • Push demand according to the outbound quota arrangements of the transportation lanes ('Q'). no push . Describe some of the push rules for deployment. not only those within the pull deployment horizon ('X'). The TLB profile is assigned to the means of transport in the transportation lane. Deployment must be executed before the TLB can be executed. Answer: True 9. 500 © 2005 SAP AG.

.... you will be able to: • • • • List the benefits of propagation Transfer order data into time series Use the propagation algorithm for planning Convert the propagation results back into orders Unit Contents Lesson: Time Series Propagation ....502 2005/Q2 © 2005 SAP AG................... Unit Objectives After completing this unit... All rights reserved. 501 .............Unit 10 Time Series Propagation (Optional) Unit Overview In this unit you will learn about the benefits of propagation and understand how the propagation algorithm is used for planning.. You will also learn how to convert the propagation results back into orders....

After these constraints have been identified. All rights reserved. 502 © 2005 SAP AG.Unit 10: Time Series Propagation (Optional) SCM230 Lesson: Time Series Propagation Lesson Overview This lesson will help you understand the benefits of propagation. You will learn how to transfer order data into time series and use the propagation algorithm for planning. In addition. you need to meet customer requirements and deliver products on time. Lesson Objectives After completing this lesson. you will learn how to convert the propagation results back into orders. You need to consider various constraints while developing a plan to solve the problem. you will be able to: • • • • List the benefits of propagation Transfer order data into time series Use the propagation algorithm for planning Convert the propagation results back into orders Business Example As Planning Manager at Precision Pump Company. 2005/Q2 . you need to take into account the quantity and time restrictions to analyze whether or not you can arrive at a feasible solution.

quota arrangements. Only SNP production process models are used during constraint propagation. The propagation algorithm is fast because of these time series. Propagation uses SNP relationships that reflect the dependencies between the key figures. 2005/Q2 © 2005 SAP AG. which means that supply and demand propagation does not use rounding logic. Propagation is done on a finite basis. shipping calendars. Time series are optimized data structures for Demand Planning and Supply Network Planning. Constraint consideration means that only the feasible portion of an existing demand is confirmed. and priorities. The purpose of constraint propagation in SNP is to propagate key figure value changes in the time series throughout the time series network. As a result. your planning has to be based on time series and not on orders. In contrast to heuristic or optimization planning. All rights reserved. supply and demand propagation does not take account of lot sizes.SCM230 Lesson: Time Series Propagation Basics of the Propagation Algorithm Figure 206: The Propagation Scenario You use the supply and demand propagation method in Supply Network Planning (SNP) to implement changes caused by constraints throughout the supply chain and find a feasible solution to meet demands. 503 . This means that propagation takes into account quantity restrictions such as resource capacities and time restrictions such as move times.

aggregated planning and supports the Sales and Operations Planning process (SOP). Initialization for time series key figures creates the master data and time series for the characteristic combinations. 504 © 2005 SAP AG. You need to initialize the planning area for each version. All rights reserved. 2005/Q2 . such as the classic SNP environment. liveCache time series: The data is stored in time buckets and does not reference orders.Unit 10: Time Series Propagation (Optional) SCM230 Figure 207: Orders and Time Series in liveCache liveCache orders: The data is stored with reference to orders. both for order and time series key figures. This storage method is best suited to operative planning. Initialization for order key figures initializes the master data for the version. This storage method is best suited to tactical.

and supplies can be transferred from the orders to the time series. 505 . Available capacities. Figure 209: liveCache Orders 2005/Q2 © 2005 SAP AG. time series are created for all characteristic combinations. aggregated planning with high performance.SCM230 Lesson: Time Series Propagation Figure 208: Definition of a liveCache Time Series Object liveCache time series The data is stored in time buckets and has no reference to orders. initial stock levels. demands. When the planning area is initialized for the version. All rights reserved. This storage method is best suited to tactical.

All rights reserved. you can define that sales orders. 2005/Q2 . You can use ATP category groups to group ATP categories that represent an order type. This data storage method is best suited to operative planning.Unit 10: Time Series Propagation (Optional) SCM230 liveCache Orders The data is stored with reference to orders. You enter the ATP category groups in the planning area key figure. For example. and inquiries should contribute to the sales order key figure. Standard Time Series Planning Figure 210: Assigning Orders to SNP Key Figures You use this configuration activity to assign key figures to ATP categories. quotations. 506 © 2005 SAP AG. such as on-hand stock or sales order quantity. such as that used in the classic SNP environment. you can use real-time integration with the OLTP systems. When you save a key figure in liveCache orders.

507 . choose Delete time series objects. Enter the planning version. Right-click on your planning area on the Administration screen and choose Create time series objects. choose Supply Network Planning → Environment → Current Settings → Administration of Demand Planning and Supply Network Planning.SCM230 Lesson: Time Series Propagation Figure 211: Initializing the Planning Area for the Version You need to initialize the planning area for your version. To initialize the planning area for your version. and the end date. All rights reserved. Before you do this. Then create time series objects (i. This deletes “obsolete” time buckets and adds new buckets for the future. reinitialize the SNP planning area. 2005/Q2 © 2005 SAP AG. Set the Update master data indicator. the start date. You can reinitialize the planning area periodically on a rolling basis.e. concrete object instances) in liveCache and generate relationships between them. To refresh any changes made to the master data for SNP time series.

2005/Q2 . 508 © 2005 SAP AG. select the capacity as the Data transfer details. ATP category group. to a planning area key figure. This releases a planning area key figure to an ATP category. • For example. to transfer the resource capacity. You can release time series objects to order objects by choosing Supply Network Planning → Environment → Release to Demand Planning. go to Key figure assignment in Release to Demand Planning. This releases a key figure. and enter the 9ATSR0000C key figure as the Destination.Unit 10: Time Series Propagation (Optional) SCM230 Figure 212: Integration of Time Series Order Objects You can release order objects to time series objects by choosing Supply Network Planning → Environment → Release to Demand Planning. All rights reserved. select Resource.

you need to activate the constraint interactively from resource view SOP(4) by right-clicking the available capacity. the following prerequisites must be met: • • • You should not have entered data in the InfoCube. 9ASOP. you need to set the SNP mode to W for the available capacity key figure. choose Edit → Select SNP Time Series Objects. To adopt a series of standard key figures stored in liveCache time series objects into an SNP planning area. or Category group fields when creating new key figures for the planning area. 9ATSR0000C. Before you can save data in liveCache time series. For soft constraint. This can be done by choosing Planning area → Create time series objects. • 2005/Q2 © 2005 SAP AG. Category. To do this.SCM230 Lesson: Time Series Propagation Figure 213: Standard Time Series Planning Structure The standard APO system provides an example of the Sales and Operation Planning time series storage method in planning book. You need to leave the Key figure semantics field blank for new key figures or used semantic 001 (TS quantity). You initialized time series objects for the planning area. All rights reserved. and planning area 9ASNP01 (transaction /SAPAPO/SNPSOP). 509 .

2005/Q2 .Unit 10: Time Series Propagation (Optional) SCM230 Figure 214: Standard Planning Books Supply Network Planning is available with the following standard planning books for orders: • • • 9ASNP94 for Supply Network Planning 9ADRP for Distribution Resource Planning (DRP) 9AVMI for Vendor-Managed Inventory Supply Network Planning is available with the following standard planning books for time series: • 9ASOP for Sales and Operations Planning (SOP) 510 © 2005 SAP AG. All rights reserved.

set key figure. 511 . You transfer the propagation results to Demand Planning as a confirmed demand plan or directly to the order liveCache as SNP planned orders and purchase requisitions. such as available capacity. as follows: Transfer the data you need. Demands are prioritized according the sequence used when copying into Forecast demand. confirmed and propagation directly provides the quantity that can feasibly be procured from the supply chain. set into Forecast demand. You cannot do this in the standard planning area because Forecast demand. opening stock levels. you copy demands into the Forecast demand. the total demand cannot be met. set. For example. 2005/Q2 © 2005 SAP AG. All rights reserved. demands. set is an auxiliary key figure. Use a macro to copy the demands from Forecast demand. If the system calculates a difference between the set demand and confirmed demand. and receipts from the orders to time series.SCM230 Lesson: Time Series Propagation Figure 215: Planning Process You can execute the planning process.

enter a value for key figure 9ATSML0LFO (forecast) at a later period. You have the following options: • • E and no PPM: Check stock levels. For the demand. Other combinations with X: Similar to E and F. then produce. X.Unit 10: Time Series Propagation (Optional) SCM230 Figure 216: Executing Propagation Choose an APO . you prioritize the various procurement options used in propagation. 2005/Q2 . All rights reserved. a value for key figure 9ATSML0SXI (fixed storage receipt). Double-click a location product in the list. choose Enter. • • 512 © 2005 SAP AG. and inbound transportation lanes: Check warehouse first and then produce and then use stock transfer receipts. F and no inbound transportation lanes: Check warehouse first and then trigger external procurement. E and PPM: Check stock levels first. To trigger propagation. PPM. for example. Enter a constraint. The system only confirms the amount the warehouse can deliver (fixed receipt). By selecting a procurement type. By choosing Save you can transfer the values from interactive planning to the liveCache time series objects. F and inbound transportation lanes: Check warehouse first and then create stock transfer receipts.Location product in the shuffler. P: Check warehouse first.

513 .SCM230 Lesson: Time Series Propagation Lesson Summary You should now be able to: • List the benefits of propagation • Transfer order data into time series • Use the propagation algorithm for planning • Convert the propagation results back into orders 2005/Q2 © 2005 SAP AG. All rights reserved.

All rights reserved.Unit Summary SCM230 Unit Summary You should now be able to: • List the benefits of propagation • Transfer order data into time series • Use the propagation algorithm for planning • Convert the propagation results back into orders 514 © 2005 SAP AG. 2005/Q2 .

SCM230

Test Your Knowledge

Test Your Knowledge
1. Propagation planning takes place in
Choose the correct answer(s).

□ □ □ □ 2.

A B C D

liveCache Time Series liveCache Order Based liveCache All of the above

To refresh any changes to master data for the time series, you need to reinitialize the planning area.
Determine whether this statement is true or false.

□ □

True False

2005/Q2

© 2005 SAP AG. All rights reserved.

515

Test Your Knowledge

SCM230

Answers
1. Propagation planning takes place in Answer: B Propagation takes place in time series liveCache. 2. To refresh any changes to master data for the time series, you need to reinitialize the planning area. Answer: True

516

© 2005 SAP AG. All rights reserved.

2005/Q2

Unit 11
Summarizing SNP
Unit Overview
This unit will give you a brief overview of all the topics discussed in the previous units. You will discuss the supply chain planning process and the role of SNP in SAP SCM planning. You will learn to configure settings for SNP and understand the role of SNP optimization, deployment, and the TLB. You will also learn how SCM integrates with the execution system.

Unit Objectives
After completing this unit, you will be able to: • • • • • Describe the supply chain planning process Describe the role of SNP in SAP SCM planning Summarize the configuration of SNP Explain the activities of the SNP heuristic, Capable-to-Match (CTM), and SNP optimization, as well as deployment and the TLB Describe how SCM integrates with the execution system

Unit Contents
Lesson: SNP: Unit Summary..................................................518

2005/Q2

© 2005 SAP AG. All rights reserved.

517

Unit 11: Summarizing SNP

SCM230

Lesson: SNP: Unit Summary
Lesson Overview
This lesson summarizes the supply chain planning process once more. You will review the activities of Supply Network Planning (SNP) and SAP configuration. This lesson will also recap on the differences between the SNP heuristic, Capable-to-Match (CTM), and SNP optimization planning methods, as well as the tasks of deployment and the TLB. In addition, you will see how the SNP planning results are integrated with the execution system.

Lesson Objectives
After completing this lesson, you will be able to: • • • • • Describe the supply chain planning process Describe the role of SNP in SAP SCM planning Summarize the configuration of SNP Explain the activities of the SNP heuristic, Capable-to-Match (CTM), and SNP optimization, as well as deployment and the TLB Describe how SCM integrates with the execution system

Business Example
As supply chain planning manager at Precision Pump Company, you need to ensure availability and timely delivery of products to customers, as well as optimum use of resources. Achieving this would result in an increase in the service level for your products and a reduction in the cost to the company.

518

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: SNP: Unit Summary

SNP Process

Figure 217: Supply Chain Planning at a Glance

The process of supply chain planning can be divided into many steps, some of which can be executed by components in SAP ECC and others that can be executed in SAP SCM. You need to integrate these two systems for planning and execution. The APO Core Interface (CIF) is used to integrate SAP ECC and SAP SCM. Demand planning, where past sales figures can be used to derive a future program of production, can be executed both within flexible planning in SAP ECC using standard Sales and Operations Planning (SOP) and within Demand Planning (DP) in SAP SCM. ECC demand management is used for maintaining planned independent requirements that can be transferred to the SCM system. Planned independent requirements can also be derived from Demand Planning in SAP SCM. In principle,sales orders are only created in SAP ECC. An availability check (ATP Available-to-Promise) for a sales order can be run in ECC or SCM. Supply Network Planning (SNP) in SAP SCM is used for cross-plant planning of defined requirements. SNP decides which vendor supplies which components, at what plants manufacturing takes place, when the finished products will be delivered and to which distribution centers. Material Requirements Planning can be executed in either SAP ECC or SCM. However, in SAP ECC, capacity requirements planning must be executed separately in a second step, whereas in the Production Planning and Detailed Scheduling (PP/DS) component of SCM, quantities and capacities can be planned simultaneously.

2005/Q2

© 2005 SAP AG. All rights reserved.

519

Unit 11: Summarizing SNP

SCM230

Production execution, which is the processing of manufacturing orders (production orders or process orders), takes place in SAP ECC.

Figure 218: Configuration of Supply Network Planning (SNP)

A planning area is the central data structure of DP and SNP. It defines the key figures for planning and associated activities. It also determines whether the planning results are saved as orders or time series in liveCache. Since the characteristics and key figures differ for Demand Planning and Supply Network Planning, different planning areas are created for DP and SNP. For simulation purposes, planning can be performed in different versions. The planning area defines the planning characteristics and key figures and must be initialized for each planning version. A key figure handles transaction data as a quantity or value, for example the sales budget in dollars, the sales quantity in pallets, the planned SNP production quantity, or the planned stock. Key figure data can be read from order objects or time series objects. SNP planning is purely quantity planning. Characteristics are the objects for which transaction data is selected, aggregated, disaggregated, and planned. Typical SNP characteristics are product, location, activity, and transportation lane. The most important planning tool for the SNP planner is the data view, which defines the planning table or planning layout. The data view prepares the liveCache data for planning. Planning books involve a grouping of data views and provide characteristics and key figures of the planning area for the data view. Only the planner can maintain planning areas, planning books, and data views.

520

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: SNP: Unit Summary

Figure 219: The Supply Network Planning Process Flow

When the demand plan is released, planned independent requirements are created for SNP or PP/DS. In addition, sales orders can be transferred from ECC, and they can consume the planned independent requirements. The task of the SNP run is to cover cross-plant requirements. Planning can be performed using the SNP heuristic, SNP optimization, or Capable-to-Match (CTM), and it generates a medium-term procurement, production, and distribution plan. Exception messages (alerts) are generated after the SNP run, and these need to be checked and resolved by the SNP planner. The final SNP plan consists of feasible purchase requisitions, stock transport requisitions, and rough-cut SNP planned orders. You can automatically convert SNP planned orders into PP/DS planned orders in the PP/DS production horizon. PP/DS creates detailed planned orders for covering planned independent requirements and stock transfer requirements, and generates a feasible production plan taking note of detailed restrictions and bottlenecks. The final SNP or PP/DS plan can be released to DP to compare the unconstrained demand plan with the feasible procurement plan. If the unconstrained demand plan does not match the feasible SNP plan, you can use a macro to trigger alerts so that the demand planner can adapt the forecasts. After production planning is complete, the deployment run confirms the SNP stock transfers based on current receipts and demands. Deployment decides which quantities will be distributed to which distribution centers for the different products in the coming days. The Transport Load Builder (TLB) run groups the deployment stock transfers into TLB stock transfers according to threshold values. The TLB thus ensures that means of transport are loaded optimally and decides which products will be transported when and by what means of transport.

2005/Q2

© 2005 SAP AG. All rights reserved.

521

Unit 11: Summarizing SNP

SCM230

The task of deployment or the TLB is to convert the stock transport requisitions in ECC into stock transport orders, since the corresponding ECC transaction does not check the availability of the receipts during conversion. The converted stock transfers can then provide the basis for the availability check on the sales orders in the distribution centers.

SNP Planning Methods

Figure 220: Heuristic Scenario

The heuristic is the most frequently used cross-plant planning method in SCM. It is used to: • Plan cross-plant receipts to cover demands in the supply chain. Planning is infinite: it does not take constraints such as available capacities and materials into account (infinite scheduling). Plan receipts for purchasing (purchase requisitions), production (SNP planned orders), and distribution (stock transport requisitions) within the entire supply network on a cross-plant bucket-oriented basis. Synchronize the flow of material throughout the supply chain.

522

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: SNP: Unit Summary

The above figure shows how the Heuristic works: 1. The system determines the sequence of locations internally and finds demand in the distribution center. The net requirements calculation does not find any existing receipts to cover the demand. The product is procured externally. The system analyzes the possible transportation lanes and generates a transfer of stock to the plant with the highest priority. In the plant, the net requirements calculation does not find any existing receipts to cover the demand. The product is produced in-house. Therefore, the SNP plans, production process models (PPMs), are exploded, planned orders are created for the finished product, and dependent requirements are created for the components. The planned order in the plant is not feasible due to limited capacity. As a result, an alert must be generated so that the supply chain planner knows where to intervene. Components are then procured through the possible transportation lanes according to quota arrangements or priorities. The supplier with the highest priority cannot deliver the required quantity. The system generates an alert and the supply chain planner has to solve the problem.

2.

3.

The heuristic is used for rapid cross-plant distribution and supply planning, for which restrictions can still be resolved through intervention from the planner.

Figure 221: Capable-to-Match (CTM) Scenario

CTM is a rules-based, cross-plant planning method that takes into account constraints such as available capacity and materials, during the planning run, finite planning. The feasibility of receipts is checked successively against priorities or quota arrangements and the first feasible solution is scheduled.

2005/Q2

© 2005 SAP AG. All rights reserved.

523

Unit 11: Summarizing SNP

SCM230

CTM is an order-based planning method for individual demands that uses pegging to track orders back to the individual demand. Therefore, CTM is not a true form of SNP because SNP provides quantity-based and not order-based planning. However, CTM is a part of this course because it is a form of cross-plant planning. Neither the optimization nor heuristic run generates an assignment (pegging relationship) of planned receipts for the original sales order. The above figure shows how CTM works: 1. The system determines the sequence of locations internally and finds demand in the distribution center. The net requirements calculation does not find any receipts. The product is procured externally. The system determines the possible transportation lanes. CTM checks whether or not the finished product and components can be procured from the plant with the higher quota arrangement. The entire quantity cannot be procured. As a result, procurement is distributed according to feasibility and transferred to the plants using stock transfers. There is no stock at the plants. Therefore, the SNP plans, PPMs, are exploded, planned orders are created for the finished product, and dependent requirements are created for the components. The plants have the required capacity to supply the planned orders. The supply chain planner does not need to intervene. Components are procured through the possible transportation lanes according to quota arrangements or priorities. The suppliers can deliver the required quantity. The supply chain planner does not need to intervene.

2.

3.

Figure 222: Optimizer Scenario

524

© 2005 SAP AG. All rights reserved.

2005/Q2

SCM230

Lesson: SNP: Unit Summary

The SNP optimizer is a cost-based, cross-plant planning method that takes into account constraints such as available capacity and materials during the planning run and finite planning. The feasibility of receipts is checked globally and the solution that is feasible and cost-effective is scheduled. Priorities are set using control costs that you maintain in SAP SCM, excluding procurement costs. The optimizer ignores quota arrangements although these quota arrangements can be optimized and created during the planning run. The optimization run, similar to the heuristic run, is a quantity-based planning method without pegging. The optimization run does not generate an assignment of planned receipts for the original sales order. The above figure shows how an optimizer functions: 1. There is demand but no receipt at the distribution center. The system determines the possible transportation lanes. The optimizer makes global checks to find the most cost-effective way of procuring the finished product and its components. The entire quantity cannot be procured from the most cost-effective plant. As a result, procurement is distributed to the plants according to feasibility and costs using stock transfers. There are no existing receipts at the plants. As a result, the SNP plans and PPMs are exploded and planned orders are created for the finished product. Dependent requirements are created for the components. The plants have the required capacity to supply the planned orders. The supply chain planner does not need to intervene. Components are then procured through the possible transportation lanes based on costs and, possibly, delivery capacities. The suppliers can deliver the required quantity. The supply chain planner does not need to intervene.

2.

3.

2005/Q2

© 2005 SAP AG. All rights reserved.

525

and PP/DS can only create planned orders inside of the PP/DS horizon. If requirements within the SNP production horizon cannot be covered by PP/DS.Unit 11: Summarizing SNP SCM230 Relationship Between SNP and PP/DS Figure 223: Transition from Medium to Short-Term Planning If you decide to use both SNP and PP/DS for planning. for example. the SNP planning run can only create planned orders outside of the SNP production horizon. So. All rights reserved. 2005/Q2 . then SNP plans the receipt outside of the SNP production horizon (this corresponds to the logic of the PP/DS planning time 526 © 2005 SAP AG. the PP/DS and SNP horizons are used to separate the areas of responsibility for these two planning functions.

The master data for rough-cut production planning is referred to as SNP plans (PPMs) or SNP PDS (production data structures).SCM230 Lesson: SNP: Unit Summary fence in short-term planning). all dependent orders can be adjusted automatically due to this pegging. it is irrelevant whether a demand is in the early shift or late shift. The receipts are planned per bucket. PP/DS is used for short-term planning. you can perform structural aggregated planning. 527 . • Pegging is the link between receipts and issues along the supply chain. When an order is moved to an earlier or later time. for example. that is sequence planning and optimization. If the PP/DS horizon in the product master is set to a greater length than the SNP production horizon. This master data is either generated from PP/DS PPMs or transferred directly from ECC using the CIF interface. 2005/Q2 © 2005 SAP AG. are considered. this information is stored in liveCache. In addition to time-based aggregated planning in SNP. this gives rise to an overlapping area in which both SNP and PP/DS receipts can be created. In this instance. if required: You can define specific “bucket resources” to be used for SNP. Demands are aggregated for the defined bucket. Order sequences with their exact times do not play a role in SNP. SNP is based purely on quantities and buckets. All rights reserved. especially if there are several plants and distribution centers. This function is only available in Detailed Scheduling. which can represent the available capacity of an entire warehouse. • Supply Network Planning (SNP) is used for medium to long-term planning across the entire supply chain. and no account is taken of break times or setup times. The planning run determines which demand is covered by which receipt element. where orders are scheduled to the minute and order sequences. a day.

inventory and planned receipts can be deployed to distribution centers and vendor-managed inventory (VMI) accounts. several deployment strategies can be used: • • • Fair share deployment. Rule-based deployment can be substituted by an optimization of the deployment stock transfers with minimum costs. and in what quantity. All rights reserved. if the receipt at the plant is insufficient to cover total demand from the distribution centers. which can be transferred to ECC in the form of executable stock transport orders. If the ATD (available-to-deploy) quantity is insufficient to cover all demands. • 528 © 2005 SAP AG. Depending on the current situation. Pull/push deployment. if the receipt at the plant exceeds total demand from the distribution centers and the surplus quantity is to be deployed directly. 2005/Q2 . if the receipt at the plant exceeds total demand from the distribution centers for the next few days and the surplus quantity is to be deployed directly. minimum cost approach or replenishment strategies). distribution plans with constraints (e.Unit 11: Summarizing SNP SCM230 Overview of Deployment Figure 224: Deployment The deployment function in SNP plans the short-term distribution of the produced or procured products to the distribution centers. or even optimized. Push deployment.g. It determines when. These generate feasible.g. transportation capacities) and business rules (e. the fair share rules define the DC prioritization.

If the confirmed stock transfers do not meet either the minimum or maximum requirements. volume. 2005/Q2 © 2005 SAP AG. The TLB ensures that. 529 .SCM230 Lesson: SNP: Unit Summary Figure 225: Transport Load Builder The principal function of the Transport Load Builder (TLB) is to group the confirmed deployment stock transfers for individual products into feasible freight units from several products. The TLB can maximize transportation capacities by optimizing load building. or number of pallets Stock transport orders are only generated to maximum capacity Stock transfers can also be split. All rights reserved. the system generates an alert and the planner can readjust the TLB plan. in ECC: • • Stock transport orders are generated with a definable minimum weight. The system checks the confirmed stock transfers against the minimum and maximum values defined in the system.

the planned orders are adjusted in the OLTP system. You can transfer the SNP planning results to the OLTP system as planned orders. you can set the type of transfer you want to make. Cross-system stock transfers are also allowed. ECC systems) are known as online transaction processing (OLTP) systems. 2005/Q2 . 530 © 2005 SAP AG. All rights reserved. for example. Planned orders can only be transferred to the OLTP system as production orders from PP/DS. purchase requisitions. Deployment and TLB confirm stock transport requisitions and can convert these requisitions into stock transport orders or VMI sales orders in the execution system. You transfer the PP/DS planning results to the OLTP system as planned orders. cross-company. If you convert SNP planned orders into PP/DS planned orders. which is similar to the transfer from Flexible Planning or Sales and Operations Planning to demand management. and stock transport requisitions. You can transfer the results of DP as planned independent requirements to SCM or the OLTP systems. you can define whether you want the stock transfer using stock transport orders or purchase orders with sales orders to take place. In Customizing in the execution system. and stock transport requisitions. purchase requisitions. These systems (for example.Unit 11: Summarizing SNP SCM230 Integrating SCM with ECC Figure 226: Integration Between SCM and ECC The above graphic shows how transaction data is exchanged between SCM and the connected execution systems. Using the Customizing → APO → Supply Chain Planning → SNP → Basic Settings → Configure Transfer to OLTP Systems command.

All rights reserved. and also for all order and time series objects from liveCache.SCM230 Lesson: SNP: Unit Summary SCM Reports Figure 227: Reports in SCM You can use the BW front end in the internal SAP BW system to run reports for SCM planning data. You require the following to generate live reports for orders and time series: A planning area in SCM. 531 . and an SAP RemoteCube that reflects the liveCache data. 2005/Q2 © 2005 SAP AG. Reports can be run for the data of the internal BW system. an extraction structure for the planning area. for example from InfoCubes. an InfoSource.

as well as deployment and the TLB • Describe how SCM integrates with the execution system 532 © 2005 SAP AG. Capable-to-Match (CTM). 2005/Q2 . and SNP optimization. All rights reserved.Unit 11: Summarizing SNP SCM230 Lesson Summary You should now be able to: • Describe the supply chain planning process • Describe the role of SNP in SAP SCM planning • Summarize the configuration of SNP • Explain the activities of the SNP heuristic.

and SNP optimization. Capable-to-Match (CTM).SCM230 Unit Summary Unit Summary You should now be able to: • Describe the supply chain planning process • Describe the role of SNP in SAP SCM planning • Summarize the configuration of SNP • Explain the activities of the SNP heuristic. 533 . All rights reserved. as well as deployment and the TLB • Describe how SCM integrates with the execution system 2005/Q2 © 2005 SAP AG.

Unit Summary SCM230 534 © 2005 SAP AG. 2005/Q2 . All rights reserved.

Fill in the blanks to complete the sentence. 6. you need to check the availability of capacities and components required for production when receipts are created. order-based planning within the PP/DS horizon. Production Planning and Detailed Scheduling are used for short-term. Integration with Supply Network Planning (SNP) and Demand Planning (DP) supports efficient . 4. Fill in the blanks to complete the sentence. 2. saved in InfoCubes. You can perform the SNP run using the SNP heuristic. □ □ 7. All rights reserved. SNP optimization. 3. andMicrosoft Excel to SCM and Warehouse. or results in a medium-term production and distribution plan. During . Fill in the blanks to complete the sentence. Fill in the blanks to complete the sentence. You can transfer the results of medium-term SNP to an Online Transaction Processing (OLTP) system as Fill in the blanks to complete the sentence. True False The Supply Chain Engineer is used to: Choose the correct answer(s). Aggregated actual data can be transferred from Business Information . Determine whether this statement is true or false. □ □ □ □ A B C D Edit supply chain models Collect alerts in the system Analyze supply chain data Create views of supply chain data 2005/Q2 © 2005 SAP AG. 5.SCM230 Test Your Knowledge Test Your Knowledge 1. 535 .

Which SNP planning results can be transferred to OLTP system? 536 © 2005 SAP AG.Test Your Knowledge SCM230 8. What is the function of Deployment in SNP? 11. □ □ □ □ 9. 2005/Q2 . A B C D A medium-term production and distribution plan A sales plan An independent requirements plan Stock transport orders What is the role of the heuristic? 10. you get Choose the correct answer(s). All rights reserved. If you run the SNP heuristic.

you need to check the availability of capacities and components required for production when receipts are created. stock transport requisitions. Answer: infinite planning 5. stock transport requisitions. Production Planning and Detailed Scheduling are used for short-term. order-based planning within the PP/DS horizon. Answer: purchase requisitions. Answer: OLTP systems 3. You can transfer the results of medium-term SNP to an Online Transaction Processing (OLTP) system as purchase requisitions. and planned orders 6. Answer: Sales and Operations Planning (SOP) 4. SNP optimization. Answer: Capable-to-Match 2. Integration with Supply Network Planning (SNP) and Demand Planning (DP) supports efficient Sales and Operations Planning (SOP). You can perform the SNP run using the SNP heuristic. OLTP systems.SCM230 Test Your Knowledge Answers 1. 7. 537 . All rights reserved. 2005/Q2 © 2005 SAP AG. Answer: True PP/DS is used for short-term planning. The Supply Chain Engineer is used to edit supply chain models. and planned orders. The Supply Chain Engineer is used to: Answer: A Correct. andMicrosoft Excel to SCM and saved in InfoCubes. During infinite planning. or Capable-to-Match results in a medium-term production and distribution plan. Aggregated actual data can be transferred from Business Information Warehouse.

9. 538 © 2005 SAP AG. 10. If you run the SNP heuristic. What is the function of Deployment in SNP? Answer: The deployment function in SNP determines how and when inventory and planned supplies should be deployed to distribution centers. What is the role of the heuristic? Answer: The heuristic's role is to: • • • Plan supply to fulfill demand without taking into account constraints such as available capacities and materials (infinite planning). customers. is a medium-term production and distribution plan is created. production. purchase requisitions. and stock transport requisitions.Test Your Knowledge SCM230 8. Which SNP planning results can be transferred to OLTP system? Answer: The SNP planning results that can be transferred to the OLTP system are planned orders. 2005/Q2 . and distribution within the entire supply network on a cross-plant bucket-oriented basis. Plan receipts for purchasing. and Vendor-Managed Inventory (VMI) accounts. All rights reserved. you get Answer: A If you perform the SNP run using the SNP heuristic. 11. Synchronize activities and plan the flow of material through the entire supply chain.

All rights reserved. and Capable to Match Execute a Deployment run to determine the distribution of available supply Use the Transport Load Builder to create multi-product loads 2005/Q2 © 2005 SAP AG. the SNP Optimizer. 539 .SCM230 Course Summary Course Summary You should now be able to: • • • • • • • Create a model that represents your supply chain network and all relevant locations. and relationships Develop queries and collect information about the supply chain Detect and resolve problems in the supply chain using the Alert Monitor Set-up SNP master data and configure SNP Perform SNP runs using SNP Heuristics . resources.

All rights reserved.Course Summary SCM230 540 © 2005 SAP AG. 2005/Q2 .

Appendix Figure 228: mySAP SCM Curriculum (Planning) 2005/Q2 © 2005 SAP AG. All rights reserved. 541 .

especially in the rapidly growing business area of turbomolecular pumps: Many semiconductor industry processes. DVDs are rewriteable optical storage mediums that have much more storage capacity than a CD. the chemical. Its product catalog contains turbomolecular. The Precision Pump company has customers from the electronics industry. 542 © 2005 SAP AG. and process technology industries as well as car manufacturers and universities. The Precision Pump company has optimized a range of products to meet these special requirements through intensive co-engineering with manufacturers. All rights reserved. Coating equipment needed to create these rewritable DVDs also uses vacuum technology. centrifugal. only function under high vacuum. the Precision Pump company plans to enter the booming DVD growth market. selling a large variety of high-tech standard pumps. pharmaceutical. and membrane pumps. the semiconductor industry. In the current fiscal year. The company was recently ISO-certified and has been indexed on the New York stock index NASDAQ 100 since 1999. This area requires final pressures of < 10-10 mbar. The company has shown a significant increase in returns in the last fiscal year.Appendix 1: Appendix SCM230 Figure 229: Company Profile: Precision Pump Company The Precision Pump company was launched in 1971 and is the market leader. which are in the ultra high vacuum range. rotation. from wafer production to the finished chip. 2005/Q2 .

SCM230 Appendix 1: Appendix Figure 230: Plants and Distribution Centers This slide shows the main part of the Precision Pump company’s supply chain. All rights reserved. All the locations displayed exist as “plants” in the connected OLTP (ECC) system: Three production plants: 1000 – Hamburg 2300 – Barcelona 3000 – New York Three distribution centers (DC) 2400 – Milan 2500 – Rotterdam 3800 – Denver 2005/Q2 © 2005 SAP AG. 543 .

it was specified that only products P-102. stock. 102-300. The SCM Core Interface (CIF) was used to transfer this bill of material as a PP/DS BOM. course material number (xx = 00 .Appendix 1: Appendix SCM230 Figure 231: Bill of Materials for P-102 This slide shows the ECC bill of material (BOM) for product P-102 (T-F2##). Only hexagon head screw 102-130 is planned in ECC. individual/collective requirement indicators) 544 © 2005 SAP AG. consulting) (Type of material. 102-110.20)) (Plant. 102-100. and 102-310 are relevant to SNP. An SNP BOM was then generated from the PP/DS BOM. Legend: (Material number demo for sales and distribution. During automatic conversion. All rights reserved. 2005/Q2 .

100-310. The following raw materials are delivered: 1003 – Gusswerke (100-110. Dependent demands for the raw materials are generated for the supplier locations. 100-310. 100-120. 100-210. (100-120) 1011 – Kugelmeier (100-120. 100-410) 1006 – Blacks Inc. 100-210. All rights reserved. 100-410) Figure 233: Sales from Sales Organizations Italy and The Netherlands 2005/Q2 © 2005 SAP AG.SCM230 Appendix 1: Appendix Figure 232: Partial Procurement and Production This slide shows the most important suppliers for the Precision Pump company’s European plants. 545 .

and P-104 from plant 1000 (Hamburg) and plant 2300 (Barcelona). and P-104 are distributed. Pumps P-102.Appendix 1: Appendix SCM230 This slide shows how finished products P-102. The quota arrangement function specifies that the DC receives 80% from plant 1000 and 20% from plant 2300. P-103. P-103. and P-104 are delivered to customers 2502 and 2503 from DC 2500 (Rotterdam). P-103. The quota arrangement function specifies that the distribution center (DC) receives 80% from plant 2300 and 20% from plant 1000. P-103. DC 2500 can obtain finished products P-102. All rights reserved. P-103. and P-104 from plant 1000 (Hamburg) and plant 2300 (Barcelona). DC 2400 can obtain finished products P-102. and P-104 are delivered to customers 1320 and 2403 from DC 2400 (Milan). 546 © 2005 SAP AG. 2005/Q2 . Pumps P-102.

Index A airline strategy. 287. 151 CIF. 19. 290 branch methods. 284. 458 ATP category groups. 151 APO Core Interface. 367 Beta (β) service level. All rights reserved. 105. 429 Bill of Material. 215. 458 Available-to-Promise rules. 519 dependent demand. 388. 388 capacity check. 430 Capable-to-Match. 257 component area. 256 assembly scrap. 150 characteristics. 458 ATP. 149 APO scheduling agreements. 5. 38 BW. 333 ATR. 364 COVER_CALC. 36 Collaborative Planning Forecasting and Replenishment. 36 critical replenishment path. 196. 19. 309. 364. 428 available-to-issues. 102 BOP. 458 Business Information Warehouse. 289 CTM planning run. 547 . 342. 110 βcalculation. 291 B Back Order Processing. 290 Basic Solve. 334 CTM profile. 107 bucket resources. 59. 150 characteristic values. 9 Alert Profile. 234 Alert Monitor. 432 CTM. 374 Available safety stock methods. 367 bucket. 91 D Database alerts. 180 DC. 156 characteristic. 181 Allow shortage. 155 ATP rules. 289. 102. 433 Demand Planning. 429 APO aggregate. 523 CTM Planning Mode. 284. 428 demand planning. 36 collaborative procurement. 179 CPFR. 458 availability dates. 327. 234 Category. 330 alert. 38 C Cache. 458 available-to-promise. 333 available-to-receipts. 329 Alpha (α) service level . 78 ATI. 6. 80 2005/Q2 © 2005 SAP AG. 133 BOM. 519 Collaborative planning. 6. 19. 196 cost minimization. 519 APO master data.

123 Inbound quota arrangement. 103 Discretization. 79 master data. 196 MacroBuilder. 123 F fair share rule. 122. 522 Heuristic. 367 distribution center. 59. 177 make-to-stock production strategies. 428 Distribution receipt. 2005/Q2 . 130. 218 inbound quota arrangements. 70 E external procurement. 22 make-to-stock production strategy. 519 Goods Issue. 129 INITIAL_STOCK. 427. 27 Distribution Centers. 460. 388. 180 integration models. All rights reserved. 199 notes navigation. 108. 511 G Global ATP. 309 discrete manufacturing master data. 519 Dynamic alerts. 199 548 © 2005 SAP AG. 264 Distribution Center. 264 H header information.Index SCM230 Deployment. 470 Descriptive characteristics. 77 Lot-sizing procedures. 27 I in-house production. 78 forecast demand. 330 DP. 287 liveCache order objects. 504 liveCache time series objects. 151 master recipe. 78 M macro area. 153 liveCache Orders. 5. 179 N network heuristic. 221 location-specific product master. 463 fixed lot size. 91 Model-Based Safety Stock Planning. 264 Goods Receipt. 217. 519 materials. 82 domino strategy. 216. 459 deployment optimization. 32. 76 Material Requirements Planning. 198 heuristic. 76. 24 K KEYFS_VERSION. 221 notes. 129 master data objects. 294 independent requirements. 76 multi-sourcing. 214. 68 mixed resources. 75 means of transport. 153 location heuristic. 519 global Available-To-Promise check. 504 liveCache time series. 103 material master. 218 multilevel heuristic. 179 L liveCache. 429 MRP. 5. 59 master planning object structure. 221 multiple transportation lanes. 528 deployment horizon. 19 MRP type. 19.

154 online transaction processing. 427 RLT. 463 push distribution. 374 outbound quota arrangements. 156 planning book. 431 Priorities. 519 Sales and Operations Planning process. 133 production procedure. 530 optimization. 134 PP-PI. 467 purchasing info records. 351 Optimization Method. 459 pull-push distribution. 19. 549 . 431 REORDER_CALC. 130. 530 OLTP system. 294 procurement type. 132 PP/DS. 122 P Pegging. 129. 95 reorder point method. 132. 19. 137. 64 Sales and Operations Planning. 166 planning process. 165 planning books. 19. 294 R reference resource. 361 Order Creation Horizon. 287. 7 Production Process Models. 351 pivot sorting. 467 pull horizon. 313 PPMs. 527 penalty costs. All rights reserved. 365 Product Plan Assignment. 68. 427 SAFTY_CALC. 104. 234 planning area. 76 2005/Q2 © 2005 SAP AG. 77. 431 profit maximization. 427 PP/DS horizon. 103 routing group. 7. 76 Product decomposition. 103 S safety stock. 457. 67 push deployment horizon. 342. 132. 432 Safety stock. 198 planned independent requirements. 467 push horizon. 179 Replenishment Lead Time. 149 Planning area. 132. 3. 310 planner. 215. 19. 427 production planning run. 364 pull deployment horizon. 366 procurement priority. 149 planning buckets profile. 459 Q Quota arrangement. 121 quota arrangements. 103 PPM. 294 Priority decomposition. 76 production process models. 457 Online Transaction Processing. 308 planned orders. 78 routing. 329 order dates. 37 Planning area 9ASNP02. 217 OLTP systems. 123 Production Planning and Detailed Scheduling. 427 rounding profile.SCM230 Index O OLTP. 215. 361 Optimization run. 29 optimizer. 104–105. 60. 31. 64. 504 SAP ECC. 463 pull distribution. 364 Optimization Parameters. 342. 129 PP. 3. 166 planning horizon. 179 Sales and Distribution processing.

66. 179 The Optimizer Profile. 82 total receipts. 342. 457. 8 supply chain planning. 457 Vendor-Managed Inventory. 426 standard capacity. 457 Transport Load Builder. 363 Time decomposition. 150. 342. 81. 482. 352 transportation lane. 66. 60. 77. 3. 3 supply chain mode. 33. 134 SNP run. 65 shuffler. 129 stock transport orders. 195–196 SNP. 233 SNP Heuristic run. 78 TARGET_CALC. 130 SAP ECC SD. 215. 110 SNP heuristic. 26. 9 SCM. 457. 149 Versions. 20. 4. 181 shipping calendar. 256 SNP Supply and Demand profile. 5. 91 vendor managed inventory. 138. 4. 76. 457 transportation resource. 525 SNP production horizon. 521 total demand. 219 SNP Heuristic planning. 62. 195 total receipt. All rights reserved. 130 SAP SCM. 23 SDP relevance indicator. 521. 2 T target day's supply. 237 TLB. 457 550 © 2005 SAP AG. 152 supply categories. 427. 530 SCM stock transfer. 70 transportation costs. 3 Supply Network Planning. 77 SOP. 129. 519. 138. 482. 342 SNP scheduling agreement schedule lines. 342. 483 versions.Index SCM230 SAP ECC Demand Management. 291 Supply Chain Cockpit. 457. 375 supply chain management. 237 Time-Based Capacity Leveling by decreasing product priority. 9 Supply Chain Engineer. 8–9. 342. 215. 105. 195 TP/VS. 129 Supply chain planning. 365 Time-Based Capacity Leveling by decreasing order quantity. 19. 215. benefits. 519 SStk. 233 SNP optimizer. 504. 69. 136 Transportation Planning and Vehicle Scheduling. 129. 138. 134 stock transfers. 165. 138. 9 SCE. 237 Time-Based Capacity Leveling by decreasing storage (days' supply). 343. 294 transportation lanes. 179 Storage buckets profile. 26. 218. 527 Supply Network Planning. 8 VMI. 457 SNP bucket. 25 STOCK_CALC. 95 stock transfer horizon. 215. 91 V variants. 29. 196. 109 selection variant. 2005/Q2 . 94. 529 transport lot size profiles. 94 Vehicle resource. 60 SCC.

90 2005/Q2 © 2005 SAP AG. 551 . All rights reserved. 36 work areas.SCM230 Index W Web browser. 10 work center.

Index SCM230 552 © 2005 SAP AG. 2005/Q2 . All rights reserved.

please record them in the appropriate place in the course evaluation. 553 . If you have any corrections or suggestions for improvement. 2005/Q2 © 2005 SAP AG. All rights reserved.Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials.

Sign up to vote on this title
UsefulNot useful