AP210 Demand Planning

AP210
Demand Planning
? SAP AG 2001 AG

?? SAP APO ?? Release ?? April

3.0A

2001

?? Material number: 50041878

© SAP AG

AP210

Preface-1

Copyright

Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproducedor transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. All rights reserved.

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Preface-2

Curriculum Advanced Planner and Optimizer (APO)

Level 2 SAP R/3

Level 2 SAP APO

Level 3 SAP APO
AP210 3 days Demand Planning

5 days LO050 PP - Planning & control of discrete & repetitive manufacture

AP010

2 days

AP215

3 days

SAP APO Overview AP205 Master Data Integration 2 days

Supply Network Planning AP220 3 days Production Planning / Detailed Scheduling AP230 BC555 2 days 2 days

Level 2 SAP R/3
LO060 5 days

PP PI Process Manufacture

Global Available to Promise

liveCache Administration

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?? The

level 2 course, AP010, is the first of the SAP Advanced Planner and Optimizer training courses and provides an overview of the individual SAP APO components. It is also a prerequisite for the advanced level 3 SAP APO training courses. level 3 courses improve on the knowledge base provided by AP010 and deepen your subject area knowledge of the individual SAP APO components. The five level 3 courses consider the following areas in detail: Demand Planning, Integration, Supply Network Planning, Production Planning and Detailed Scheduling, and Global Available to Promise. administrators have the opportunity to take the course BC555 "LiveCache Administration" which forms part of the Basis Administration Training curriculum.

?? The

?? System

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Preface-3

Course Prerequisites

Prerequisites
? AP010 SAP APO Overview

Recommended
? LO935 Flexible Planning ? BW220 Business Information Warehouse – SAP – OLTP Extraction

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Preface-4

Target Group

Target group

? Project team members who are responsible for configuring Demand Planning, and creating demand plans

?

Duration
? 3 Tage

?

? SAP AG 2001

?? Notes

for the user

?The training materials are not teach -yourself programs. They complement the course ? instructor's explanations. Your material includes space for noting down this additional information. ?There may not be enough time to do all the exercises during the course. The exercises are intended ? to be additional examples. Participants can also use them to deepen their knowledge after the course.

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Company Profile, Precision Pump Company Precision Pump Company
? The Precision Pump Company was launched in 1971, and is the market leader, selling a large variety of hi-tech standard pumps. It has been indexed in the New Yorker stock index NASDAQ 100 since 1998.

Products

?

? The company’s product catalog includes turbo-molecular pumps, rotational pumps, and membrane pumps (to produce ultra high vacuums)

Customers

?

? From the electronics industry, semiconductor industries, chemical technology, pharmaceutical technology, and industrial technology, up to and including vehicle manufacturers, and universities.
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?? The

Precision Pump Company was launched in 1971, and is the market leader, selling a large variety of hi-tech standard pumps. Its product catalog includes turbomolecular, centrifugal, rotational, and membrane pumps. The customer base is wide-ranging. It consists of the electronics, and semiconductor industries, chemical, and pharmaceutical companies, and others in the process industry, but also includes vehicle manufacturers, and universities. The company recently became ISO certified and has been indexed in the New Yorker stock index NASDAQ 100 since 1998. ?Especially in the rapidly growing business area of turbomolecular pumps, the company has shown ? a clear rise in revenue over the past fiscal year: in the semiconductor industries countless steps, from wafer manufacture, to the final chip, can only be made under high vacuum conditions. In this area, there must be an ultimate pressure of < 10-10 mbar (i.e. ultrahigh vacuum). ?During the current fiscal year, the company is planning to enter the booming DVD growth market. ? DVDs are a form of rewritable optical memory media. They are distinguished from the CD by their large memory capacity. Coating equipment needed to create these rewritable DVDs also use vacuum technology. ?Via intensive 'co-engineering' with manufacturers, Precision Pump Company has optimized a large ? number of products to match these special requirements.

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Plants and Distribution Centers

3000 New York

2500 DC Rotterdam 1000 Hamburg (main plant and company Hamburg plant and company headquarters) 2400 DC Milan

3800 Denver Denver

2300 Barcelona

Plant
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DC

?? This

slide shows the central section of the Precision Pump Company’s supply chain. All the locations shown exist as plants in the connected OLTP (R/3) system: ?Three production plants: ? 1000 – Hamburg 2300 – Barcelona 3000 – New York ?Three Distribution Centers(DC) ? 2400 – Milan 2500 – Rotterdam 3800 – Denver

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Sales from Sales Organizations Italy and Holland
2503 Norwegian Import & Export 2502 Miller & Son, London 2500 DC Rotterdam
P-102, P-103, P-104 P-102, P-103, P-104

80 %

1000 Hamburg (headquarters)
20 %

20 % P-102, P-103, P-104 80 %

2300 Barcelona

P-102, P-103, P-104

2400 DC Milan

1320 Naples Export
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2402 Jashanmal Trading, Dubai

?? This

slide shows the distribution of finished products P-102, P -103 and P-104.

?? DC 2400 can

obtain finished products P-102, P-103, and P-104 from both plants 1000 (Hamburg) and 2300 (Barcelona). Quota arrangement controls the amount obtained from each plant, in this case 80% from plant 2300, and 20% from plant 1000. 2500 can obtain finished products P-102, P-103, and P-104 from both plants 1000 (Hamburg), and 2300 (Barcelona). Quota arrangement controls the amount obtained from each plant, in this case 80% from plant 1000, and 20% from plant 2300. are delivered to customers 2502, and 2503 from DC 2500 are delivered to customers 1320, and 2403 from DC 2400 (Milan). (Rotterdam).

?? DC

?? Pumps P -102, P -103, and P -104 ?? Pumps P -102, P -103, and P -104

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Customers
? Customers of sales organization 1000 (Germany), distribution channel 10, division 00:
? ? ? ? ?

1000 Becker, Berlin (transportation zone DE-D000010000) 1032 Institute of environmental research, Munich (transportation zone DE-D000080000) 1320 Becker, Cologne (transportation zone DE-D000050000) 1031 Global Trade AG, Frankfurt (transportation zone DE-D000060000) 1030 DELA , Energy Trading Company mbH, Darmstadt (transportation zone DED000060000) 1410 Pilar on the Neckar, Heidelberg (transportation zone DE-D000060000) 1321 Becker, Stuttgart (transportation zone DE-D000070000)

? ?

? Customers of sales organization 2400 (Italy):
? ?

2401 Naples Export, Naples (Italy) 2402 Jashanmal International Trading Co, Dubai (United Arab Emirates)

? Customers of sales organization 2500 (Holland):
? ?

2502 Miller & Son Trading Ltd., London (GB) 2503 Norwegian Import & Export Group, Oslo (Norway)

? Customers of sales organization 3000 (USA)
?

3140 Rainbow Chemical, Boston

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Product Group

Product group Pumps

APO
Pump Precision 101 Pump Precision 102

APO
Pump Precision 103

APO
Pump Precision 104

P-100
(T-F1xx)

P-102
(T-F2xx)

P-103
(T-F3xx)

P-104
(T-F4xx)

Pump P-100 only maintained in R/3 and can be transferred to APO for Master Data integration demo

Legend:

(Demo material number for SD, consulting) (training material number (xx = 00 - 20) for training)

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Preface-10

Course Overview

Contents:
? Architecture & Integration ? InfoCubes ? Demand Planning Configuration ? Interactive Planning ? Forecasting Techniques ? Promotion Planning ? Demand Planning Release

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Course Objectives

At the conclusion of this course, you will be able to: ? Configure Demand Planning in APO ? Create planning books and macros ? Create demand plans using univariate forecasting, causal analysis, and composite forecasting ? Utilize marketing and sales tools such as promotion planning, lifecycle management, and "like" modeling ? Release demand plans to the liveCache of APO (Supply Network Planning and Production Planning / Detailed Scheduling).
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Course Content

Preface

Unit 1 Unit 2 Unit 3 Unit 4 Unit 5

Course Overview InfoCubes Configuration

Unit 6 Unit 7 Unit 8

Forecasting Promotions & Lifecycle Planning Mass Processing Conclusion

Planning Books & Macros Unit 9 Interactive Planning

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Course Overview Diagram

1 Course Overview 1 2 InfoCubes 2 3 Configuration 3

1

4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 Conclusion 9
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Business Scenario

? The Precision Pump company will implement APO Demand Planning and use it to execute their monthly finished product forecasting. ? Consistent planning allows you to enter the forecast data on different planning levels and automatically consolidate the data in the master forecast.

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?? Demand

Planning is the application component in the Advanced Planner and Optimizer (APO) that allows you to forecast market demand for your company's products. The result of APO Demand Planning is the demand plan. Planning is a complex, powerful, and flexible tool that supports your company's demand planning process. User-specific planning layouts and interactive planning books not only allow you to include different departments, you can also use them to include other companies in the forecast creation process. With APO Demand Planning you can use statistical forecasting methods and advanced macro techniques to do the following: - Create forecasts from sales history, based on many different causal factors; - Test predefined, and user-defined forecast models, and forecast results; And use a consensus-based approach to consolidate the demand plans of different departments. You can use forecast overrides and promotions to add marketing intelligence and management adjustments. The seamless integration with APO Supply Network Planning supports an efficient Sales and Operations Planning (S&OP) process.

?? Demand

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Demand Planning Concept

Aggregated actual data

Location Product hierarchy Sold-to party Sales organization Region

Future demand forecast

? Incoming

order BW R/3 Excel Non-SAP system
? Statistical

value
? ?

forecasting forecasting

Quantities Values

? Collaborative ? Promotions

? Invoice
? ?

Quantities Values

?…

? SAP AG 2001

?? The

APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on sales history as well as any number of causal factors, and use a consensus -based approach to consolidate the results. intelligence and management adjustments can be added by using forecast overrides and promotions. actual data can be extracted from the R/3 system in exactly the same way as it can be imported from BW, Excel, and legacy systems.

?? Marketing

?? Aggregated

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The Demand Planning Lever Effect

Demand Planning

Supply Network Planning

Production Planning
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?? Small changes made during Demand Planning cause large changes to be made during Production

Planning. The aim of Demand Planning therefore is to create sales quantity forecasts that are as accurate as possible.

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Influencing Factors in Demand Planning
Company 1
Central Promotion Store Promotion Sales Force Sales Force Regional D/C

Company 2
Central Store Regional Store Promotion D/C Promotion

Customer
Season Season

Price Price Advertisement Advertisement ? ?

Price Price Weather Weather

Understanding demand in a dynamic business environment Multiple sources of demand plan data such as: internally created forecasts based on history, forecasts from customers, or point of sale (POS) data direct from retailers Managing all significant factors that influence demand Tracking and management of product lifecycles

? ?

? SAP AG 2001

?? The

complexity and competitive nature of today's business environment requires organizations to consider many variables when developing a sales and operations plan. ?Multiple sources of demand plan data (e.g. manufacturer forecast is based on a distributor’s sales ? history, and/or point of sales direct from retailer.) ?Factors influencing demand (sales force size, R&D expenditures, advertising expenditures, price, ? promotions, seasonality.) ?Demand data can be exchanged with sales organizations, customers, and suppliers over the ? Internet (Collaborative Demand Planning).

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Range of Planning Functions

Planning Horizon
Demand Planning (DP)

Supply Network Planning (SNP)

Production Planning (PP)

Detailed Scheduling (DS)

Deployment

Transportation Planning
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?? Planning

horizons vary depending on the tools used within APO and their application. In an extreme case, demand planning might typically consider a 1-3 year planning horizon where TLB will have a horizon of days. seamless integration with APO components Supply Network Planning (SNP), and PP/DS supports an efficient S&OP process.

?? The

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APO Application Architecture

OLTP (R/3) OLTP (R/3) LIS, CO-PA HR, FI Planned Indep. Requirements Customer orders Production Scheduling Inventory management Transportation processing
Global ATP

APO
Supply Chain Cockpit Demand Planning

Information Warehouse Warehouse (SAP BW) Historical data

PP / DS

Supply Network Planning

Deployment

Key Performance Key figures (KPIs)

Transportation Planning

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?? Aggregated

actual data can be transferred to APO from OLTP, BW (Business Information Warehouse), Excel, and Legacy systems, and saved in InfoCubes. This data is the basis for forecasting. The demand plan is created as a result of the forecast. release the demand plan to Production Planning, which creates planned independent requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand plan to the operating system (OLTP) as planned independent requirements. seamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient S&OP process.

?? You

?? The

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Alert Monitor Integration
Exception messages from forecasting techniques and selfdefined macro alerts DP

Cockpit
PP/DS

Problem Resolution Screen
Example: Production Planning / Detailed Scheduling Supply Network Planning

SNP

APO Alert Repository

Others

Alert Monitor

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?? Exception ?? In

messages in APO are generally known as alerts.

Demand Planning you can define your own alerts using macros.

?? The

Alert Monitor can be accessed from either the DP planning table, or the Supply Chain Cockpit (SCC). ?Exceptions detected are automatically collected in the alert repository, and evaluated in the Alert ? Monitor.

?? To

display information in the Supply Chain Cockpit (SCC), you must first preselect all the objects for which you want to receive alerts in the Alert Monitor profile. ?The Alert Monitor profile functions as a filter for viewing specific sets of alerts. You must create a ? separate profile for each alert selection. Furthermore, you must enter the name of the Alert Monitor profile you want to use in the Supply Chain Cockpit user profile.(See APO documentation: Supply Chain Cockpit). If no Alert Monitor profile name is specified in the SCC profile and no work area is assigned to the alert selection, no alerts will be displayed in the monitor.

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APO Integration - Business Warehouse

Demand Planning
Forecast Reporting

APO Data Mart

Sales history, Price, Costs, ... Forecast

Business Information Warehouse

Demand Planning specific data ? ? ? ? ? Forecast & planning scenarios Causal factors Lifecycle patterns Seasonal patterns Promotional patterns

Central Data Pool ? Summarized data ? POS, order, and shipment data ? Syndicated POS data ? Cost information ? ...

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?? SAP's ?? If

Business Information Warehouse (SAP BW) is contained in the APO scope of supply and is completely integrated with it. you are going to execute extensive reporting, it is a good idea to set up an independent BW server, and only transfer the data that is relevant for planning to the APO system. data structures in BW and APO are identical, you can also evaluate APO data with the BW frontend.

?? As

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Evaluations in APO

? Using the BW Business Explorer you can evaluate:
? ?

Order data from the liveCache Aggregated data in InfoCubes

Extraction structure RemoteCube

Planning area

liveCache

Business Explorer
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DP InfoCube

?? You

can also evaluate data from APO using the BW frontend.

?? is not only the aggregated actual data It ?? The

from the InfoCubes that are evaluated, but also all of the order and time series objects from the liveCache. prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO; an extraction structure for the planning area; an infosource, and an SAP RemoteCube that reflects the liveCache data.

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Data Structure: InfoCubes

Aug.

Sept. Time series

W32 W33 W34 W35 W36 W37 W38 W39 W40 W41

Regions Product

InfoCubes are used to store actuals from OLTP systems in APO Product hierarchy
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?? An

InfoCube consists of a number of relational tables that are arranged according to the star schema: a large fact table in the center, surrounded by several dimension tables. Dimension tables are independent of one another. The fact table connects the dimensions with the key figures. are used in BW and Demand Planning as central data containers They consist of key figures, attributes, and time characteristics. is a numerical value that is either a quantity or a monetary amount; for example, projected sales value in dollars or projected sales quantity in pallets. are the objects by which you aggregate, disaggregate and evaluate business data.

?? InfoCubes

?? key figure A

?? Characteristics ?? Time ?? The

characteristics define the periods in which you view, plan and store data.

multidimensional nature of the InfoCubes allows for powerful data analysis capabilities using the Demand Planning selection and drill up / drill down functions.

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Regions
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1-1 4

Defining a Planning Area
Collaboration Planning book I Interactive Planning Planning book II

Planning Areas

Time series
liveCache liveCache

Orders
liveCache liveCache

Actuals Extraction
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Business Explorer

Core Interface

?? A

planning area is the central data structure of Demand Planning and Supply Network Planning. It groups together the parameters that define the scope of planning activities. It also determines where and how the planning results are saved. Demand Planning and Supply Network Planning, data is divided into planning areas, and subdivided into versions. Consequently, the data that you save in planning version 1, planning area 1 does not overwrite the data in planning version 1, planning area 2. planning area contains characteristics, and key figures for planning, and must be initialized for every planning version. key figure is a numerical value that is either a quantity or a monetary amount; for example, projected sales value in dollars or projected sales quan tity in pallets. are the objects by which you aggregate, disaggregate and evaluate business data.

?? In

?? The ?? A

?? Characteristics ?? Key

figure data can be read from different InfoCubes or time series objects. liveCache.

?? Key figure planning data is stored in time series objects in the

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The Planning Table

Selection
APO - Product ID Object Object 1 Object 2 Object 3 Object 4 Text Text 1 Text 2 Text 3 Text 4
Design Graph

Total W 24 W 25

APO - Location
Capacity Leveling

Total W 27 W 28

Title view Key figure 1 Key figure 2 Key figure 3 Key figure 4 Key figure 5

W 26

Selection profile

User Selection ID

Header information Selected objects

Planning book Data views Standard selections Macros

Right mouse button: additional settings

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?? The

APO modules Demand Planning and Supply Network Planning have a standard user interface. It consists of two significant components: the selection range and the work area. selection range (Shuffler) is the window, where you choose the InfoObjects to be planned.

?? The ?? In

the Shuffler, you can save commonly used selections, and load existing selections. To open the Shuffler, choose the symbol selection window. selection profile displays all the selection IDs which have been assigned for the planner. The planner can access commonly used selections quickly using the selection IDs. the data view area, you choose your planning books, and views. You can define a filter for available planning books and views.

?? The ?? In

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Planning & Reporting

Customer

? Slice & dice ? Drill downs & ups ? Multiple demand plans to be simulated ? Standard forecast accuracy analysis
Regions

Pe rio d

? Consistent planning (top down, middle out, bottom up)

Aug.
W2 3 W3 3 W4 3 W5 3 W6 3 W37

Sept.
W8 3 W39 W40 W41

time sequence

203

124

Material

Product Groups

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?? Planning

supports online simulation in multiple planning scenarios, consistent planning throughout your enterprise (top down, middle out, or bottom up), drilling up and down, aggregation and disaggregation, and slice-and-dice techniques. on all planning levels can be consistently held (automatic aggregation and disaggregation).

?? Consistent planning means that planning data

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Statistical Toolbox
? Univariate Forecasting
? ?

Moving average Models (constant, seasonal trend, seasonal) Exponential smoothing Seasonal linear regression Holt-Winters Croston's method (for sporadic demand)

? ? ? ?

? Causal Analysis
?

Multiple linear regression

? Composite forecasting
?

Weighted average of multiple models

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?? The

product portfolio of a company covers a variety of products in different stages of their lifecycle and with different demand types. Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to choose the best method for a specific demand type. forecasting extends the idea of pick-the-best; with this technique you combine two or more methods. method allows you to model "lumpy" (sporadic) demand. statistical forecasting toolbox provides all the features you require to efficiently create accurate forecasts, including everything from data analysis via time series models through multiple linear regression.

?? APO

?? Composite ?? Croston's ?? The

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Lifecycle Management & Like Modeling

Actual data of the old product

Sales

Forecasting of the new product

Like Lifecycle

Time
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?? You ?? A

use lifecycle planning and "Like" modeling to forecast the launch (phase and -in) discontinuation (phase-out) of a product. product's lifecycle consists of different phases: launch (phase-in), growth, maturity, and discontinuation (phase-out). This process models launch, growth and discontinuation phases. all characteristic value combinations, you can use either a "like" profile, a phase-in profile, or a phase-out profile, or any combination of these. the phase-out profile period is within the history horizon of the master forecast profile, the system adjusts history input values, displays the adjusted values in the original history and corrected history key figures, and writes the adjusted values in the corrected history. the phase-in profile period is within the future horizon of the specified master forecast profile, the system adjusts baseline (original) forecasts, and writes the adjusted values in the corrected forecast key figure.

?? For ?? If

?? If

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Promotion Planning

Forecast simulation Sales Total sales:

Profit

Total profit:

Promotion 1

Promotion patterns ’95 ’96

-10%

Price

Planner Planner

’97

’98

Quantity

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?? Promotions ?? In

can have a major impact on consumer behavior.

APO Demand Planning, you can plan promotions or other special events independently of the rest of your forecast. Promotion Planning to record either one-time events, such as the millennium, or repeated events such as quarterly advert ising campaigns. Other examples of promotions are trade fairs, coupons, free-standing inserts, competitors' activities, market intelligence. Examples of events that also have an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as hurricanes, and tornadoes. uplifts can be defined in units or percentages by common promotion patterns. The effect of a promotion pattern that occurred in the past can be automatically detected using sales history or estimated by the planner. A promotion pattern can be archived in a promotion catalog; it can therefore be reused if a promotion of the same type is repeated. A copy function in the promotion catalog also supports "like" modeling of "like products," "like regions", and so on. There are several techniques available to determine the impact of a historical promotion. One such technique is multiple linear regression with or without a trend or seasonality.

?? Use

?? Promotional

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Release of Sales Quantities as Planned Independent Requirements

Demand Planning

Production Planning

Key figure: sales quantity

Planned independent requirements

Macros Alerts

SNP PP/DS

Key figure: feasible sales quantity

Production quantities

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?? Once ?? You

the various stakeholders in the forecast have reached a one-number, consensus plan, you release the demand plan as a planned independent requirement. release the demand plan from Demand Planning (DP) via either the demand planner or the SNP planner. release causes planned independent requirements to be created in the order liveCache. These anonymous demands form the basis of SNP, or PP/DS, where BOM explosion, capacity planning, and sourcing are carried out for the complete supply network. feasibility of the planned sales quantities in SNP or PP/DS has been checked, the results can be transferred back to Demand Planning. Macros are used to analyze the differences between the demand plan and feasible quantities and alerts are generated if large differences occur.

?? This

?? After

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Conclusion

You are now able to:
? Define the basic concepts of Demand Planning and its integration with other APO components ? Describe the basic architecture of Demand Planning within APO

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InfoCubes

Contents:
? Administrator Workbench ? InfoCubes defined ? Creating InfoCubes ? Settings to load data to InfoCubes

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Describe the tasks and functions of the Administrator Workbench ? Describe how InfoCubes, characteristics, and key figures are set up ? Describe the methods used to populate InfoCubes with data from R/3, Excel, and BW

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Course Overview Diagram

1 Course Overview 1 2 InfoCubes 2 3 Configuration 3

2

4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & 8 Mass Processing 8 9 Conclusion 9
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Lifecycle Planning

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Business Scenario

? In preparation for the use of demand planning, the Precision Pump Company will create the data structures that will store the historical data ? The data structures will then be populated with actual data

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Demand Planning

Aggregated actual data

Location Product hierarchy Sold-to party Sales organization Region

Future demand forecast

? Incoming order

value
? ?

? Statistical

forecasting

Quantities Values

? Collaborative forecasting

R/3 Excel Non-SAP system

? Promotions

? POS data ? Nielsen

/ IRI data

? SAP AG 2001

?? Administrator

Workbench is the tool you use to create InfoObjects and InfoCubes, and to load data from a source system to the InfoCubes. APO Release 3.0 contains the complete Business Information Warehouse (BW), Release 2.0. use InfoCubes to store actual data and archive old planning data. If you have an external data warehouse such as the SAP Business Information Warehouse (BW), you transfer data relevant for planning to the Demand Planning InfoCubes (DP data mart). actual data can be extracted from the R/3 system in exactly the same way as it can be imported from BW, Excel, and legacy systems. (Point of Sales) data is consumer sales data. This can be procured from firms like Nielsen or IRI (Information Resources Inc.).

?? You

?? Aggregated ?? POS

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Extracting Transaction Data

InfoCubes
Update rules
Communication structure Communication structure

InfoSource
Transfer rules
Transfer structure Transfer structure

Transfer rules
Transfer structure Transfer structure Transfer structure Transfer

Transfer structure Transfer

Transfer structure Transfer

Transfer structure Transfer structure Extraction source structure Extraction source structure

Extraction source structure Extraction source structure

Extraction source structure Extraction source structure

Transaction data

Transaction data

OLTP System 1

OLTP System 2

DataSource
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?? A

DataSource is an infrastructure which allows information to be transported between OLTP systems and the APO Data Mart. This infrastructure consists of various DDIC structures, which have specific transformation rules between one another. DataSources thus regulate the data flow from the extraction source structure in the source system to the communication structure in the SAP BW, which then provides the data. DataSources can provide both transaction data (this data is stored in InfoCubes), and master data (attributes, texts, and hierarchies - this data is stored in separate transparent tables). DataSources for transaction data and master data have almost an identical structure. describe how many pieces of information are available concerning a particular business transaction or transaction type (such as Cost Center Accounting). There are therefore many DataSources in an operative SAP BW environment that describe the individual activities within the applications to be analyzed. a DataSource is generated, the transfer structure, and communication structure are generated in the APO Data Mart system. Transfer structures always exist as a pair in both a source system, and the associated APO Data Mart system. Data is transported in its original application format from a source system into an APO Data Mart, via the transfer structure. From there transformation rules are used to transfer the data to the communication structure of the InfoSource. The communication structure is independent of the source system and contains all the InfoSource fields that it represents in the APO Data Mart.

?? DataSources

?? When

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Administrator Workbench

? Central tool for maintaining
?

Source systems of aggregated order data (R/3, Excel, BW, non-SAP systems) InfoAreas InfoObjects (characteristics and key figures) InfoSources InfoCubes

? ? ? ?

? Data load scheduling and monitoring ? Used by APO and BW

? SAP AG 2001

?? The

Administrator Workbench is the central location for maintaining InfoCubes, InfoObjects, and all system extraction tools for retrieving external data. together R/3 and non-R/3 systems, other data warehouses, and application data files, as well as, use third party extraction tools.

?? The APO data mart uses the same extraction tools as SAP's BW; so it has the same capability to tie

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InfoObjects and InfoObject Catalogs
Characteristics
? ? ? ?

Specific characteristic types:

Texts and attributes Hierarchies Navigation attributes

? Time characteristics such as "fiscal
year"

? Unit characteristics such as
"currency" or "local currency"

Key figures: numeric fields in amounts and quantities that are constantly being updated (such as "turnover", and "sales quantity")
? ?

Values / quantities Currency / units of measure

InfoObject Catalogs
?

Organize characteristics and key figures

? SAP AG 2001

?? 'InfoObject' is the gener ic

term for the key figures and characteristics of the APO DataMart. It comes with both standard BW InfoObjects, and standard APO InfoObjects (starting with '9A'). When you are creating your own InfoObject, you can decide whether to create an APO InfoObjec t, or a BW InfoObject. For characteristics it is not important whether you create APO characteristics, or BW characteristics. For key figures, you should create APO key figures if you will want to fix values or quantities to this key figure at a later stag e. They are used to organize characteristics and key figures. attributes are used for grouping and selecting actual and planning data. Typical navigation attributes are for example, MRP controller, or customer group who do not represent a separate planning level but are used for grouping.

?? InfoCatalogs can be user-defined. ?? Navigation

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InfoArea

? InfoAreas are user-defined work areas used to maintain, monitor, and organize:
? ? ? ?

InfoObjects InfoCubes Update rules InfoCube content queries

InfoArea
Key figure Catalog Characteristic Catalog

InfoCubes

InfoObjects

? SAP AG 2001

?? Within

the Business Information Warehouse, InfoAreas are used to group objects:

?Each InfoCube is assigned to an InfoArea. ? ?InfoObjects can also be assigned to different InfoAreas via InfoObject catalogs. ?

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Data Structure: InfoCubes

Aug.

Sept. time series

W32 W33 W34 W35 W36 W37 W38 W39 W40 W41

Regions Product

Regions

Pe rio d

Product hierarchy
? SAP AG 2001

?? InfoCubes are the data repository for Demand Planning. ?? The

architecture of an InfoCube is based on what's known as a "star schema" which consists of fact tables and dimension tables. multidimensional nature of an InfoCube allows the user to slice and dice the data in many different ways.

?? The

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InfoCube

? Central data store for reports, evaluations and data used in forecasting ? Contains two types of InfoObjects
? ?

Key figures Characteristics (grouped in dimensions)

? 1 fact table with multiple dimension tables
?

3 dimensions are predefined by SAP

?Time ?Unit ?Data packet

? SAP AG 2001

?? Key ?? A

figures are currency, quantity or number fields such as sales revenue or sales quantity.

characteristic is an object on which you aggregate and report data. Examples of characteristics are region, product, customer (unit characteristics) and month, week, day (time characteristics). that: ?Characteristics define the levels to which you can aggregate data ? ?Characteristics define the levels at which you can maintain data ?

?? When deciding which characteristics to include in your InfoCube for Demand Planning, consider

?? In

addition to the three dimensions that are generated automatically (time, unit, Info Package), your InfoCube contains user-defined dimensions. In Demand Planning, one of these user-defined dimensions is "version". BW InfoCubes only, as APO InfoCubes are only used internally.

?? Create

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Fact Table

? A fact is a figured quantity such as quantity, revenue, discount, sales overhead. It is a key figure used in evaluations generated by the Data Warehouse. ? The fact table below shows the table design used in the data mart. Fact tables usually contain numeric data.

P C T

Order qnt. Turnover 250 50 … $ 500.000 $ 100.000 …

Forecasts 500 100 …

Promotions 20 5 ...

Fact Table

? SAP AG 2001

?? The

fact table contains the key figure data for each unique combination of characteristic values. The referencing of the fact table takes place using the artificially entered dimension key (DIM-ID). As artificial keys are formed for the connection between the dimension and fact table, changes to the master data table can take place relatively problem-free, without having to rebuild the (natural) key every time. In the evaluation, a resulting quantity is first formed by the selections in the dimension tables. This quantity is then selected directly by the artificial key from the fact table.

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Dimensions
? Dimensions are used to group characteristics logically ? A dimension table contains a primary key, a dimension number, and characteristics

Customer dimension
C Customer # 13970522 Region … West ...

Product Service Line dimension
P Product # 2101004 Product group … Display ... T

Time dimension
Time 10 Fiscal year 1998 ... …

? SAP AG 2001

?? Dimensions

are a way to organize the characteristics of an InfoCube.

?? From a technical point of view, the characteristics of the dimension table form the "edges" of the

data cube that is stored as the InfoCube in the data mart. The dimensions are connected with the fact table using the DIMs. The data in the fact table is accessed by selecting characteristics and their characteristic values from the dimension tables and by generating a corresponding SQL statement that is used to access the fact table.

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Star Schema
? Combinations of Fact and Dimension Tables

Customer dimension C Customer # Region … 13970522 West ...

P C T

Order qnt. 250 50 …

Turnover $ 500.000 $ 100.000 …

Forecasts 500 100 …

Promotions 20 5 ...

Fact table

P Product # 2101004

Product group … Display ...

T

Time 10

Fiscal year 1998 ...

Product Service Line dimension

Time dimension

? SAP AG 2001

?? InfoCubes

produce a multi-dimensional data model on the database server of the APO data mart. In this way, the facts are collected in separate fact tables and the dimensions grouped into separate dimension tables. Both table types are connected with one another in a relational way. Individual dimension characteristic values can in turn be subdivided by master data tables. In this way, master data, classification and hierarchy data tables as well as dimension tables are finally grouped in a star like formation around one central fact table. During the analysis, first the data from the surrounding smaller tables is collected together in order to reduce the reading time in the large fact table. database schema "Star Schema" guarantees high reporting efficiency and provides a flexible solution that can be easily adjusted to changing business requirements. planning. You must then group together your characteristics in dimensions, including a time dimension, and a quantity dimension. Using your entries the system automatically generates a Star Schema in the database.

?? This

?? When creating an InfoCube you concentrate on the key figures and characteristics that you require in

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Source System

? All systems which provide data for extraction into the data mart ? Types of source system
? ? ?

SAP R/2 Systems SAP R/3 Systems (From Release 3.0D) External systems (third party tools or files)

? Data is extracted and transformed using the InfoSource for the source system

? SAP AG 2001

?? Each ?? In

source system represents a logical system.

a test system, you can use the same source system several times to upload data; you don't need to create a source system every time you upload data. source system represents one physical source of data.

?? Each

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Data Extractors: LIS Example

Types of extractor Application-specific BW Content extractors
FI CO HR ... LO Cockpit Transparent Table

Application non-specific Generic extractors extractors
Database table/view FI SL SAP Query CO PA

Generic extractors
LIS

Transparent Table Enhancements Enhancements

Data source

? SAP AG 2001

?? Transaction

data that is transferred to InfoCubes via extractors can come from a number of different modules. Multiple extraction mechanisms are necessary for this purpose, and for historical development reasons. The next few slides will provide an example of transaction data extraction from LIS.

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Updating Information Structures
APO System

InfoCubes
Update rules Communication structure Communication Transfer rules Transfer structure Transfer structure

R/3 OLTP

Transfer structure Transfer structure Extraction source structure Extraction source

Transfer structure Transfer Extraction source structure Extraction source

S5nn

S5nnBIW1 S5nnBIW2

S5nn

S5nnBIW1 S5nnBIW2

OLTP 1: LIS info structure OLTP 1: LIS info structure
? SAP AG 2001

OLTP 2: LIS info structure OLTP 2: LIS

?? Above

you see the flow of data from the source system into the Demand Planning data mart. You carry out this transfer using tools in the Admin Workbench.

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LIS Extraction

8. Load transaction data into the InfoCube 7. Define loading process 6. Maintain InfoCube and update rules 5. Maintain transfer rules 4. Maintain communication structure 3. Replicate/assign DataSource 2. Generate DataSource in the OLTP 1. Set up LIS environment

? SAP AG 2001

?? The

following scenario provides an example of how actuals are loaded onto the APO system from an R/3 information structure. This is simply one of the ways the data mart can be configur ed for Demand Planning. You can find details on the APO Administrator Workbench in the SAP Business Information Warehouse documentation under Administrator Workbench. procedure is valid from R/3 release 3.1H.

?? This

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Setting up the LIS Environment

BW integration for LIS info structures

Information structure Display settings

S5nn

Set up LIS environment Generate DataSource Delete environment/DataSource Delta update in LIS Activate/deactivate Generate update

? SAP AG 2001

?? You ?? You

must first define several settings so that LIS info-structures can be used as source tables. first have to configure the LIS environment for the associated info structures.

?? do this, choose 'Administrator Workbench' => To

'Source Systems' => (choose appropriate source system and click the right mouse button) 'Customizing for extraction...' => 'Generated DataSources' => 'Logistics' => 'Logistics Information System' => 'Connect information structures'. you can call up transaction 'SBIW' in the R/3 system, or start report 'RMCSBIWC' in the menu.

?? Alternatively,

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Process: First Delta Update
R/3 OLTP system APO

S5nn

LIS Update Process

1.
S5nnBIW1

te pda u lta De

InfoSource 2LIS_01_S5nn

TMCBIW
Control table
BIW Status '2' S5nnBIW2
R

? SAP AG 2001

?? If

you start the delta update from OLTP into APO, tables S5nnnBIW1 and S5nnBIW2 are used.

?? The

info structure is active in OLTP. Data from S5nnBIW1 is loaded into the BW for the first delta update. the first delta update in APO, the LIS update process in the OLTP system updates both the LIS info structure itself, and the table S5nnBIW2 that is then used for the second delta update request in the BW. the start of every delta update request, table S5nnBIW1 is automatically exchanged with table S5nnBIW2 to avoid data inconsistencies during upload. During a delta update in the BW, the indicator "BIW status" in table "TMCBIW" is automatically switched from 1 (for table S5nnBIW1) to 2 (for table S5nnBIW2). table remains in the table until the next delta upload, so that a reload is possible up to that point.

?? During

?? At

?? The data from a delta

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Summary of Source System and InfoCubes

InfoArea 1
InfoCube

InfoArea 2
InfoCube

Update rules

Communication structure

InfoSource Transfer structure

R/3

Source System
Legacy BW

Excel

? SAP AG 2001

?? Above ?? The

you see the flow of data from the source system into the Demand Planning data mart. You carry out this transfer using tools in the Admin Workb ench. data is passed from the source system to the InfoSource in the DP data mart via an extract structure. In the extract structure, data from an R/3 application, for example, is prepared for the InfoSource. InfoSource is a provider structure in the Admin Workbench. It contains data that from a business point of view logically belongs together. The InfoSource metadata defines which InfoObjects are contained in the InfoSource, as well as the descriptions and technical information of the InfoObjects. In the Admin Workbench you assign the InfoSource to an application component. metadata. The data is passed through these two structures into the InfoCube from the InfoArea.

?? An

?? The system generates the transfer structure and the communication structure from the InfoSource

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InfoSource
? Supplies the data mart with data from a source system that belongs logically together from a business point of view ? Types of InfoSources:
? ?

Transaction data Master Data, texts, hierarchies

? Transfer structures and communication structures are generated from the InfoSource

? SAP AG 2001

?? The

InfoSource allows the APO system to:

?transfer the extracted data from the extraction structure into the SAP R/3 OLTP ? ?transfer the data to the APO transfer structure using the OLTP transfer structure ? ?convert the data using the APO transfer rules, and ? ?transfer the data to the APO communication structure. ? ?The InfoSource prepares the data to be stored permanently in the InfoCube. ?
?? For

the delta upload, in addition to the LIS info structure, two more tables are needed as extractors in the OLTP system.

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Update Rules

? Link InfoSource to the InfoCube ? Map the characteristics and key figures between the InfoSource and the InfoCube ? Two methods:
?

InfoArea 1
InfoCube

Based on key figures from the communication structure (standard) Using a routine

?

Communication structure Communication
? SAP AG 2001

?? A

number of operations can be performed within the update rules.

?InfoObjects can be transferred from the communication structure into an InfoCube. ? ?Constants can be used for InfoSource actuals. ? ?More complex calculations can be made using ABAP/4 routines. The ABAP editor is directly ? embedded in the update rule maintenance - a User Exit does not need to be defined. ?Routines can be used to access customer -specific tables and APO-generated tables (master data ? tables, hierarchy tables...). Because of this, update rules do not need to be used for fast information changes; all that requires maintaining are the table contents. ?Currency conversion for key figures. ?

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Info Package

InfoSource

? Info Package
? ? ? ? ?

Control parameters for loading data Control of data target Controlling the InfoCubes to be updated Update parameters Scheduling & monitoring of jobs

? SAP AG 2001

?? An

Info Package is created for each InfoSource.

?? The

Info Package contains all of the upload process control parameters as well as appropriate scheduling and monitoring functions. the Info Package you can control which InfoCubes are populated in each load.

?? From

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Data Mart: Unit Summary

You are now able to:
? Describe the tasks and functions of the Administrator Workbench ? Describe how InfoCubes, characteristics, and key figures are set up ? Describe the methods used to populate InfoCubes with data from R/3, Excel, and BW

? SAP AG 2001

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© SAP AG

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Exercises
Unit: InfoCubes

Topic: Administrator Workbench
At the conclusion of this exercise, you will be able to: ?? Identify the dimensions that are defined for an InfoCube ?? Identify the characteristics that are defined for an InfoCube ?? Identify the key figures and data types that are defined for an InfoCube The course scenario is as follows: Sales data from customer orders and invoices has been updated in the R/3 information structure S628. These data records have been transferred to the APO SALES InfoCube and are to be used as the actual data for demand planning.

You will be allocated a group number ## for all exercises in this course. Ask your instructor. 1-1 Explore the structure of the SALES InfoCube in the Administrator Workbench .

1-2

What dimensions have been defined in the SALES InfoCube and which characteristics are assigned to each individual dimension? In the following table, note down the dimensions and characteristics from the SALES InfoCube: Dimension Characteristics

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1-3

What key figures are defined for the SALES InfoCube? What data type do they have?

Key figure

Long description

Key figure type

Data type

1-4

Display the contents of the SALES InfoCube and analyze the characteristic combinations and entries for the key figures.

1-5

Call up the BW Business Explorer Analyzer, to evaluate the data that is saved in the SALES InfoCube. Log on to the APO system and open the query SALES DATA for the SALES InfoCube. Exit the query and Business Explorer Analyzer without saving.

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Solutions
Unit: InfoCubes

Topic: Administrator Workbench

You will be allocated a group number ## for all exercises in this course. Ask your instructor. 1-1 Explore the structure of the SALES InfoCube in the Administrator Workbench . Demand Planning ? Environment ? Current Settings ? Administrator Workbench You are now in the Modeling screen for Data Targets Expand the SALES InfoArea by pressing the “+” in front of the InfoArea Right click on the SALES InfoCube: Display data model Stay in the Administrator Workbench for steps 1-2 to 1-4.

1-2

What dimensions have been defined in the SALES InfoCube and which characteristics are assigned to each individual dimension? Dimensions are represented by the three triangle icon. When you expand a dimension, you see the characteristics assigned to it In the following table, note down the dimensions and characteristics from the SALES InfoCube: Dimension Planning version Sales Product Time Data packet Unit Characteristics APO Planning version Sales organization, division, sold-to party Product hierarchy, APO product, APO location Calendar year/month Change run ID, record type, request ID Unit of measure, currency key

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1-3

What key figures are defined for the SALES InfoCube? What data type do they have? Right click on the SALES InfoCube: Change Choose the <Key figures> tab. Choose <Detail view>.

Key figure INORDQTY INORDVAL INVQTY INVVAL

Long description Incoming order qty Incoming order value Invoiced sales qty Invoiced sales value

Key figure type Quantity Amount Quantity Amount

Data type QUAN CURR QUAN CURR

1-4

Display the contents of the SALES InfoCube and analyze the characteristic combinations and entries for the key figures

Right click on the SALES InfoCube: Manage Select the <SALES> InfoCube at the top of the screen Choose <Display Contents> or F6 Choose <Field selct. for output> Select the characteristics that you want to analyze Do not select SID characteristics that contain the dimension table internal key Choose <Execute> Choose <Execute> Review the data in your InfoCube. Exit the Administrator Workbench

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1-5

Call up the BW Business Explorer Analyzer, to evaluate the data that is saved in the SALES InfoCube. Log on to the APO system and open the query SALES DATA for the SALES InfoCube. To call up the BW Business Explorer Analyzer: Start? Programs ? BW ? SAP Business Explorer Analyzer Activate the macros and press the “open” icon in the blue Business Explorer tasks bar. Log on to your APO system. Select the “Queries” pushbutton. Expand the SALES InfoArea, and select the query SALES DATA for the SALES InfoCube. Press OK. You are given an aggregated view of the invoiced sales quantity and invoiced sales value of the three sales organizations. By clicking the right mouse button over key figures or characteristics you can display data in terms of products, sold -to parties, or months. Exit the query without saving, and log out of the SAP Business Explorer Analyzer.

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Demand Planning Configuration

Contents:
? Planning object structures ? Characteristic Value Combinations ? Planning Areas ? Proportional Factors ? Releasing the Demand Plan

? SAP AG 2001

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Configure planning area settings ? Create planning networks ? Provide an explanation of consistent planning ? Describe alternative disaggregation methods ? Maintain proportional factors ? Release sales data

? SAP AG 2001

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3-2

Course Overview Diagram

1 Course Overview 1 2 InfoCubes 2 3 Configuration 3

3

4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 Conclusion 9
? SAP AG 2001

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3-3

Business Scenario

? After the Precision Pump Company has created its InfoCubes for saving actual data, they now have to define the planning areas, and make the characteristics, and key figures available for planning.

? SAP AG 2001

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Demand Planning Configuration
Planning table

Planning book

Characteristics

Key figures

Planning area
Characteristics:
• Region • Sales area • Product hierarchy • Sold-to party • Location
? SAP AG 2001

Key figures:
• Demand Plan • Actual sales • Overrides • Promotions • Production quantity

Version:
• 000 Active version • Sim1 Simulation 1 • Sim2 Simulation 2

?? In

Demand Planning and Supply Network Planning, data is divided into planning areas, and subdivided into versions. Consequently, the data that you save in planning version 1, planning area 1 does not overwrite the data in planning version 1, planning area 2. planning area contains characteristics, and key figures for planning, and must be initialized for every planning version. key figure is a numerical value that is either a quantity or a monetary amount; for example, projected sales value in dollars or projected sales quantity in pallets. are the objects by which you aggregate, disaggregate and evaluate business data.

?? The ?? A

?? Characteristics ?? Key ?? Key ?? To

figure data can be read from different InfoCubes or time series objects. figure planning data is stored in time series objects in the liveCache.

save planning data in an InfoCube, create an extraction structure for the planning area, and connect it to the InfoCube.

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Assigning Characteristics to a Planning Area

Planning table

Planning book

Characteristics

Key figures

Planning area

Characteristics

Key figures

Version

? SAP AG 2001

?? Demand

Planning characteristics define the levels on which the demand plans are created, changed, aggregated, and disaggregated. For example, your Master Data could include all the products, product families, regions, and customers that your company is going to plan with APO Demand Planning, plus all the appropriate combinations of these (for example, which customers buy which products, in which regions). You map these levels in a non-hierarchical selection tree. From a technical point of view, specify which characteristic values can be planned for the characteristics in your planning area. Demand Planning or Supply Network Planning master data includes all the allowed values of a characteristic. These are called the characteristic values. Characteristic values are specific names. Thus the characteristic " Location", for example, can have the values London, Delhi, or New York. can only use a planning area that is shared by both Demand Planning, and Supply Network Planning, if Demand Planning in your company is done on a "product" level or "product plus location" level. If Demand Planning is done on other levels, such as on a brand or regional level, separate planning areas are required. A planning area used for Supply Network Planning can only contain Standard SNP characteristics. that are used both in Demand Planning, and Supply Network Planning can be used in one planning area.

?? You

?? Characteristics

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Master Planning Object Structure

Planning area
Characteristics

Aggregates

Master planning object structure
SNP characteristics DP characteristics

tes ttribu ion a at Navig

Characteristic value combinations

? SAP AG 2001

?? A

master planning object structure contains characteristics that can be planned for one or more planning areas. In Demand Planning characteristics can be either standard characteristics and/or characteristics that you created in the Administrator Workbench. Characteristics define the levels to which you can plan and save data. Particular characteristics are required for Supply Network Planning, characteristics-based planning, and als o dependent demand forecasting. These characteristics can be included in the master planning object structure. demand planning, the InfoCube must be used to generate characteristic combinations for the planning area. aggregates in APO are not identical to those in the Business Information Warehouse (BW), but they do have the same purpose: they access data quickly and thus improve performance. SAP recommends the use of aggregates within Demand Planning. APO aggregate consists of a subset of the characteristics contained within the master planning object structure. Creating and working with aggregates is optional. Data is always saved at the lowest detailed level. If aggregates do exist, the system saves the planning data both at the defined aggregate level and at the lowest detailed level. Data is saved consistently in duplicate. This means that the total of details is the same as the aggregate value. the APO Administrator Workbench you create characteristics as navigation attributes. These should be used for selecting and navigation but not as planning levels. You then assign these attributes to the characteristics they belong to. This is how you can assign the attributes "sales employee", and "priority", for example, to the characteristic "customer" during definition of the InfoObject "Customer".

?? For

?? The

?? An

?? In

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Characteristic Value Combinations

Customer dimension
C Customer Baker Region West

Product dimension
P Product

Which customer and product combinations should be planned?

Product group Pumps

P-102

? SAP AG 2001

?? Each ?? From

characteristic value combination represents a planning object in Demand Planning.

a technical point of view, each unique combination of characteristic values in each dimension is represented by a key.

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3-8

Create Characteristic Value Combinations

?

Create single characteristic value combinations Delete single characteristic value combinations Generate characteristic value combinations Analyze characteristic value combinations

Customer dimension

?

?

?

Fact table:

Product dimension

? SAP AG 2001

?? Characteristic

value combinations define the valid relationships between characteristic values and form the basis for aggregation/disaggregation of key figure values. There are two ways of creating characteristic value combinations: ?Automatically, by generating characteristic value combinations based on existing data from an ? InfoCube. With this option, the system generates all the new combinations that it finds in the horizon specified. You can plan automatic generation periodically so that new characteristic value combinations are added each time but old ones are never deleted. ?Individually, by completely defining characteristic values (this creates one data record) ? ?If you want to create multiple characteristic value combinations (for new products, for example), it ? is often a good idea to maintain the characteristic value combinations in Excel, then load them into an InfoCube, and start to generate the characteristic value combinations for this InfoCube. ?Realignment also provides possibilities for reorganizing actual data and characteristic value ? combinations. For more information, read SAPnet R/3 frontend note 360935, and access report /SAPAPO/TS_REALIGNMENT via transaction SE38.

?? The

result of the creation process is a network of planning objects.

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Basic Parameters for Planning Area

Planning area

General parameters

Storage buckets profile

• Base unit of measure • Base currency • Exchange rate type

• Day • Week • Calendar year/month • Quarter • Year • Posting period

? SAP AG 2001

?? Planning ?? All ?? A

data is stored in the base unit of measure and the base currency.

the products you want to plan in a planning area need to be converted into the base unit of measure at least once. storage buckets profile defines the periods over which data (based on a given planning area) in Demand Planning, and Supply Network Planning will be saved. You need to have a storage buckets profile before you can create a planning area. create a storage buckets profile, choose Periodicities for Planning Area from the Current Settings in Demand Planning or Supply Network Planning. Make the following specifications in a storage buckets profile: ?one or more periodicities where you would like to save data ? ?a typical valid time period Horizon (you set the actual horizon when creating the time series for ? the planning version)

?? To

?? If

data is saved with a special time stream (such as factory calendars), enter a time stream ID (entry optional). The time stream must be as long as or longer than the horizon. It may not be shorter. ?If at the start of a planning horizon data is to be saved in a fixed number of rolling days, then in a ? larger time bucket, specify the number of days (specification optional).

?? You

can for example store your actual data in the InfoCube on a monthly time basis and enter the planning data in the planning area within a more detailed time buckets profile, such as weekly.

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Assigning Key Figures to a Planning Area

Planning table

Planning book

Planning area
Characteristics Key figures

Master planning object structure
SNP characteristics DP characteristics Aggregates
? SAP AG 2001

Time series objects liveCache liveCache

?? Key ?? Key

figure data can be read from different InfoCubes or time series objects. figures are only stored in time series objects in the liveCache.

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Actual and Planning Data

Planning area
Actual key figures Forecast Planning key figures

Time series objects objects liveCache

Forecasts to SNP

? Incoming

order value

R/3 Excel

? ?

Quantities Values

Planned independent requirements for SNP and PP/DS Order objects liveCache liveCache

Administrator Workbench
? SAP AG 2001

?? Key ?? Key ?? To

figure data can be read from different InfoCubes or time series objects. figure planning data is stored in time series objects in the liveCache.

store planning data in the database (in an InfoCube), create an extraction structure for the planning area. This extraction structure appears as a DataSource for the APO source system in the Administrator Workbench. You link this DataSource with the InfoCube via an InfoSource. For more information read notes 373756, and 374534.

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Create Proportional Factors

? Version dependent ? Period specific (optional) ? Storage in key figure APODPDANT ? Maintenance in planning table Product family
70 % 30 %

Product A
50 % 50 %

Product B

?

?
Plant A Plant B

? SAP AG 2001

?? Constant

proportional factors are one way of executing disaggregation. Constant proportional factors are derived from historical data or occasionally past planning data. Disaggregation can be executed in different ways for different key figures. proportional factors define the percentage rates at which aggregated data is disaggregated to the members. the version, key figure and horizon to perform an automatic calculation of proportional factors. The system first calculates the entire quant ity (value) for the key figure in the specified horizon. The quantities (values) of the individual members are then defined and the percentage calculated. must then specify for which version, and which horizon the proportional factors are to be saved. you select "detailed proportions", you can choose for example which historical periods should be saved for which future periods, for example, the proportions of June 99 based on the proportions of June 98 etc. can also maintain the proportional factors interactively via the planning table.

?? The

?? Enter

?? You ?? If

?? You

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Disaggregation Methods
The aggregated data is distributed to the members per period according to the following criteria:

S

Pro rata
According to member data, with no equal member data

Based on a different key figure

P

The disaggregation proportions are predefined via another key figure (for example, the APODPDANT key figure)

I

Pro rata / in case blank after another key figure
According to member data with no member data according to another key figure

? SAP AG 2001

?? Data

is disaggregated using the procedure detailed above

?? Generate

constant proportional factors when you want to disaggregate the planning data in the following ways. ?Always based on the constant proportional factors ? ?Based on constant proportional factors, if there is no existing planning data ?

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Pro Rata Disaggregation

Total
Region Europe Aggregation Customer Sales 350 Sales 700 Disaggregation

Details
USA Europe USA Europe Customer1 Customer1 Customer2 Customer2 100 150 50 200 100 300 50 400

? SAP AG 2001

?? The

above slide illustrates how disaggregation is performed if you set key figure Sales to calculation type Pro rata. data is disaggregated according to the distribution ratio that the system derives dynamically from the existing planned data. The proportional factors are not used with this disaggregation type. this example, the data is distributed to customer 1 and customer 2 in region Europe based on the ratio 3:4 (150:200).

?? The ?? In

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Disaggregation: APODPDANT Key Figure
Total
Region Europe Customer Sales 350 Aggregation New sales Prop. factor 700 0.5 Disaggregation 100 150 50 200 100 350 50 350

Details
USA Europe USA Europe

Customer1 Customer1 Customer2 Customer2

0.25 0.25 0.25 0.25

? SAP AG 2001

?? The

above slide illustrates how disaggregation is performed if you set key figure Sales to calculation type P with key figure APODPDANT. customer 2 in region Europe have the same proportional factors (0.25), so the data is distributed equally between them.

?? The data is disaggregated according to the proportional factors. In this example, customer 1 and

?? The proportional factors are percentage-based

and held in the key figure APODPDANT. You can make the system calculate proportions for the key figure APODPDANT based on Actual_data.

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Defining a Planning Area: Version

Planning table

Planning book

Characteristics

Key figures

Planning area

Characteristics

Key figures

Planning version

? SAP AG 2001

?? In

order to be able to save data for a planning area version, time series must be created for that version. The system creates time series in the liveCache for each characteristic value combination, and each key figure. a planning area after actualizing your master data or extending the planning horizon, you must not delete the old time series objects before creating new objects. The system can see where new characteristic value combinations already exist, and only creates time series objects for the new master data time series objects.

?? you have to re-initialize If

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Initializing Version Planning Area
APO Master data (model independent)

Active Model 1model
PPM Products Locations Transportation lanes

Simulation model

Active Version 000
version dependent master and transaction data

Planning Version 1

Planning Version n
version dependent master and transaction data

...

version dependent master and transaction data

Planning area
Characteristics
? SAP AG 2001

Key figures

?? You

initialize the planning area by right clicking on the planning area, and choosing Create time series objects. plus the start and end date. You can re-initialize the planning area in rolling periods. This deletes "obsolete" periods, and adds new periods for the future. a planning area after actualizing your master data or extending the planning horizon, you do not have to delete the old time series objects before creating new objects. The system is able to recognize where new characteristic value combinations already exist, and only creates time series objects for the new master data time series objects. delete time series objects, for example, if you are working with five versions, but only want to keep two of them.

?? Enter the planning version ?? you have to re-initialize If

?? You

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Version Management

? Copy versions ? Delete versions

Planning area 1
Characteristic allocation Version 1

Planning area 2

Version 2

Key figures allocation

? SAP AG 2001

?? Each

planning version (or DP version) is a separate set of data. You can display only one version at a time in interactive planning. Different versions of the plan can be saved for archiving or comparison purposes. can also copy demand planning versions using Version Management. A version number must first be created. After the version number is created, you can copy the data using the copy function. the version data and the version number are deleted when you delete using Version Management. planning versions are 10 characters long and are alphanumeric. for the versions you use in SNP and PP/DS.

?? You

?? Both

?? Demand

?? Different version management tools are provided

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Releasing the Demand Plan
Demand Planning Production Planning

Time series objects liveCache

Order objects liveCache

Key figure

Category (FA)

? Creating planned independent requirements with a time buckets profile ? Workdays are taken from the location shipping calendar ? Location split ? Product split ? Daily buckets profile when DP storage buckets profile does not contain any days
? SAP AG 2001

?? If

the forecast is completed in demand planning, release the forecasted amount to the liveCache as a planned independent requirement. do this follow the path Demand Planning->Environment->Release to SNP

?? To

?? The

"add data" flag means that the released amounts will be added to planned individual requirements that may already exist. It is a good idea to use this setting if you want to release from multiple planning areas. the "location" characteristic is contained in the DP planning area, the sales quantities are disaggregated to the locations automatically. If you have maintained the distribution of products to various locations in the location split table, the system will use the corresponding factors. can, for instance, control distribution of a product group to members via product split. Product split is used when you want to remove characteristic 9AMATNR using extended characteristic selection. the storage buckets profile from the DP planning area does not contain days, you can still split the sales quantities over days using the daily buckets profile. How this split is made depends on the settings in the SNP requirements profile in SNP 2 product master view.

?? If

?? You

?? If

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Location Split

In contrast to location level disaggregation in the planning area, a percentage split can be defined in location splits.

?Product demand ?Product demand

40 % Define either generic or specific quotas for each product.
DC 1

40 %

20 %

DC 2

DC 3

? SAP AG 2001

?? If

the "location" characteristic is contained in the DP planning area, the sales quantities are disaggregated to the locations automatically. When you release it, you specify your product and location characteristics (such as 9AMATNR and 9ALOCNO), and the system releases the exact location product quantities planned. you are using location split, you are not permitted to enter the location characteristic name, as allocation will be made according to that in the location split table.

?? If

?? Product split will always be checked.

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InfoCubes & Demand Planning: Unit Summary

You are now able to:
? Configure planning area settings ? Create planning networks ? Explain consistent planning ? Describe alternative methods of disaggregation ? Maintain proportional factors ? Release sales data

? SAP AG 2001

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Exercises
Unit: Configuration

Topic: Creating a planning object structure
At the conclusion of this exercise, you will be able to: ?? Create a planning object structure ?? Generate characteristic value combinations ?? Create and initialize a planning area ?? Calculate proportional factors The course scenario is as follows: The actual data is transferred to the APO SALES InfoCube. Each group now creates its own planning object structure and planning area to generate planning data based on shared actual data from the InfoCube.

1-1

Create a planning object structure called POS##. This planning object structure should contain the following characteristics: 9ALOCNO 9AMATNR CUST DIVISION PRODH SALESORG APO - Location APO - Product Sold-to party Division Product hierarchy Sales organization

Activate your planning object structure. A dialog box appears: A master plng object structure already exists for this character. comb Do you want to create an identical master planning object structure? ? Yes

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Unit:

Configuration

Topic: Characteristic Value Combinations

2-1

Generate characteristic value combinations for your planning object structure POS##. Use historical data from the SALES InfoCube, version 000 from the previous year.

You must not select Create time series objects. If planning areas already existed for your planning object structure, the system would create time series for these planning areas and new characteristic combinations.

2-2

Check the characteristic value combinations that have been generated.

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Unit:

Configuration

Topic: Create planning area

3-1

Create a planning area called PLAN## for your planning object structure POS##. Store the following parameters: Storage buckets profile Statistics curr. Exchange rate type Unit of measure PUMP EUR M PC

This planning area should contain the following key figures: 9APROM1 CORR CORRFOR CORRHIST FINFOR FORECAST INVQTY Promotion 1 Correction Corrected forecast Corrected history Final forecast Forecast Invoiced sales qty

Make sure that invoice quantity is read from the SALES InfoCube. When setting the forecast, correction, and corrected forecast key figures, make sure that the proportional factor from key figure APODPDANT is taken into consideration for disaggregating blank columns. Data from an InfoCube in a planning area is generally read-only. Writing data in the InfoCube is not usually possible. Time series can be read and written. If you want to save planning data in an InfoCube, you must create an extraction structure for the planning area, and update the data in the InfoCube using the Administrator Workbench. 3-2 Create time series for your planning area (PLAN##), for version 000, for 24 months in the past, and 12 months in the future.

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Unit:

Configuration

Topic: Calculating Proportional Factors

4-1

Generate proportional factors for your planning area PLAN## based on the SALES InfoCube. Calculate fixed proportional factors for plng version 000, and the next 6 months. Base the calculation on the mean proportional factor in key figure Invoiced sales quantity from version 000 for the past 6 months. The proportional factor calculation results can be displayed and changed interactively in the planning table. This function is discussed in more detail in the Interactive Planning unit.

For the proportion calculation in this example, the system sums the invoiced sale amount data of the past 6 months. The system then calculates the mean proportional factor of each characteristic value combination in this horizon, and saves it in the APODPDANT key figure.

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Solutions
Unit: Configuration

Topic: Creating a planning object structure

1-1

Create a planning object structure called POS##. This planning object structure should contain the following characteristics:

9ALOCNO 9AMATNR CUST DIVISION PRODH SALESORG

APO - Location APO - Product Sold-to party Division Product hierarchy Sales organization

Demand Planning ? Environment ? Current Settings ? Administration of Demand Planning and Supply Network Planning Press the “planning area” button, and select planning object structures. Right click on the Plng object structures folder icon: Create master plng object struct. Enter the name POS## and choose Enter. For text, enter “Group ## planning object structure”, and select the above characteristics from the right hand column, and choose “Add char.”. Select the “Activate” symbol, and activate your planning object structure. A dialog box appears: A master plng object structure already exists for this character. comb Do you want to create an identical master planning object structure? ? Yes Return to Administration of Demand Planning and Supply Network Planning

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Unit:

Configuration

Topic: Characteristic Value Combinations

2-1

Generate characteristic value combinations for your planning object structure POS##. Use historical data from the SALES InfoCube, from version 000 of last year. In Administration of Demand Planning and Supply Network Planning, right click on your planning object structure POS##: Maintain char. combinations Choose <Generate characteristic combination...> For the InfoCube enter “SALES” and version number 000. As your “Start date”, enter a year ago from today. Give today’s date as your “End date”. Choose <Execute>. Return to the <Maintain Characteristic Values Relevant to Planning> screen

You must not select Create time series objects. If planning areas already existed for your planning object structure, the system would create time series for these planning areas and new characteristic c ombinations.

2-2

Check the characteristic value combinations that have been generated. Display characteristics combinations. Return to S&DP Administration

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Unit:

Configuration

Topic: Create planning area

3-1

Create a planning area called PLAN## for your planning object structure POS##. Store the following parameters: Storage buckets profile Statistics curr. Exchange rate type Unit of measure PUMP EUR M PC

This planning area should contain the following key figures:

9APROM1 CORR CORRFOR CORRHIST FINFOR FORECAST INVQTY

Promotion 1 Correction Corrected forecast Corrected history Final forecast Forecast Invoiced sales qty

Make sure that invoice quantity is read from the SALES InfoCube. When setting the forecast, correction, and corrected forecast key figures, make sure that the proportional factor from key figure APODPDANT is taken into consideration for disaggregating blank columns.

Data from an InfoCube in a planning area is generally read-only. Writing data in the InfoCube is not usually possible. Time series can be read and written. If you want to save planning data in InfoCubes, you must create an extraction structure for the planning area, and update the data in the InfoCube using the Administrator Workbench.

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In Administration of Demand Planning and Supply Network Planning, press the “Planning object structures” button, and select planning area Right click on the planning area folder icon: Create planning area. Enter the name PLAN##, your planning object structure POS## and the above parameters. Press OK enter. Select the Key figs tab Select the key figures you require from the right hand side and move them to the left -hand column. Choose the Details: key figure button and enter the InfoCube SALES for the INVQTY key figure. Choose the Key fig. aggregatn tab In the Key fig. column set Forecast and Corrected Forecast to Calculat. type “I”, and in “Disaggreg. key figure” column set them to APODPANT. Save and return to Administration of Demand Planning and Supply Network Planning

3-2

Create time series for your planning area (PLAN##), for version 000, for 24 months in the past, and 12 months in the future.

Right click on your planning area: Create time series objects Specify Plng version 000, a start date of two years ago, and for the end date, enter the date one year from now. Execute Exit Administration of Demand Planning and Supply Network Planning

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Unit:

Configuration

Topic: Calculating Proportional Factors

4-1

Generate proportional factors for your planning area PLAN## based on the SALES InfoCube. Calculate fixed proportional factors for plng version 000, and the next 6 months. Base the calculation on the mean proportional factor in key figure Invoiced sales quantity from version 000 for the past 6 months. The pr oportional factor calculation results can be displayed and changed interactively in the planning table. This function is discussed in more detail in the Interactive Planning unit.

For the proportion calculation in this example, the system sums the invoiced sale amount data of the past 6 months. The system then calculates the mean proportional factor of each characteristic value combination in this horizon, and saves it in the APODPDANT key figure.

Demand Planning ? Environment ? Calculate Proportional Factors. Enter PLAN## as your planning area, and SALES as your InfoCube (in the Basis for proportion calc.). Select version 000 on which to calculate the proportional factors. Choose Planning version 000 in Basis for proportion calc. plus key figure Invoiced sales quantity, and the period of the last six months. In Create proportions in horizon enter the next six months. In Proportion calc. type: choose Calculate fixed proportions in entire horizon. Select Detailed period overview. Choose <Execute>.

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Planning Books and Macros

Contents:
? Definition of planning books ? User-defined planning views ? Time Buckets Profile ? Advanced macros ? Default, start, exit macros

? SAP AG 2001

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Create a planning book ? Configure a user-defined planning view ? Create macros

? SAP AG 2001

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Course Overview Diagram

1 Course Overview 1 2 InfoCubes 3 Configuration 3

4

4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 Conclusion 9
? SAP AG 2001

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Business Scenario

? Now that InfoCubes and planning areas have been defined, planning tables can be configured for the Precision Pump Company demand planners. ? Each planner is assigned the planning books plus planning views and macros needed to perform the necessary planning tasks.

? SAP AG 2001

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Planning Books and Data Views
Planning table 1 Planning table 2

Data view 1

Data view 2

Key figures

Key figures

The planning view also determines the horizon and time buckets for planning

Planning book

Characteristics

Key figures

Planning area
? SAP AG 2001

?? The

most important Demand Planning tool is the planning book. A planning book is based on information or subgroup of information from a planning area. The demand planner does not maintain the planning area. the planning book, select the characteristics, and key figures required for the demand planner's individual tasks. planning book can contain several views where you can store key figures for detailed analyses and planning tasks. each view you must also determine the planning horizon and time buckets profile.

?? In

?? Each ?? In

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Planning Books
Selection of your own key figures from the planning book such as: Invoiced sales qty Incoming order value Invoiced sales value

Planning area

User-defined planning views

Standard views

Promotion 1 Univariate Forecasting Causal Analysis Composite Forecasting

Standard functions

Manual proportion maintenance

? Multiple books for one planning area ? Planning views determine the planning table layout
? SAP AG 2001

?? A ?? A

planning book contains one or more views on the planning data in the planning area. planning book has both user-specific views and SAP defined standard views.

?? To

create a planning book, choose Define Planning Book from the Current Settings in Demand Planning or from Customizing for Demand Planning. An "Assistant" then helps you through all the necessary steps. Once you have made all your tab page entries, choose 'Continue' and you will go to the next tab page. Once you have finished processing the various tab pages, you can save the planning book. To do this choose 'complete', and confirm the each message that appears. The system saves the planning book and also adds the standard key figures required to execute the chosen functions (see below). can now go directly from Interactive Planning to Planning Book Maintenance by switching from Live mode to Design mode. first time you create a planning book, you can only get to the next view by choosing "Continue" in the wizard. You can only use the tab in change mode. you call up interactive planning for the first time, you go into default planning book 9ADP01

?? You ?? The

?? When

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Creating a User-Defined Planning View
The planning view determines the horizon and time buckets for planning Macros can be used to show the previous year's actual data

Planning view:

The planning view determines which key figures are to be displayed in interactive planning

You can create macros to calculate new key figures Row attributes define: • Planning status • Aggregation/ • Information only disaggregation • Text

? SAP AG 2001

?? Create a

view for the planning book. You need at least one view for planning.

?? You enter a view description. ?? You specify the

The data view description appears in the planning book shuffler, to the left of the interactive planning table. status as either private (1), (the view can only be used by the current user), or protected (2), which means that other users are not able to change the view, but they can use it as a create template for their own views. planning horizon by entering planning buckets profiles. The planning buckets profiles must contain either all the periods or a subset of periods from the time buckets profile that the planning area is based on. If you plan past and future dates, you must enter the planning buckets profile for past and future. You can specify which part of the historical buckets profile should be displayed as (i) initial value, and which part (ii), changeable. You specify the start of the future planning horizon by entering either a date, or an offset. The offset refers to the number of days between today's date, and the start of the future planning horizon. The period type, i.e. days, weeks, months etc, is predefined in the future planning buckets profile. By selecting the indicator "horizon", you can also specify that a column be created to add up all the future horizon values; in the next release, this column is intended to be used for version comparisons. two grids on one screen (for example the capacity view in planning book 9ASNP94), select the indicator next to the second grid title; you can also enter a text for this grid. An additional tab screen appears in the planning book maintenance assistant where you define the key figures for the second grid.

?? You define the

?? you wish to use If

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S&DP Time Buckets Profile

Planning buckets profile
The planning buckets profile defines the periods where data is displayed and planned in the planning table.
Number of promotions 3 2 1 M W Basic periodicity Display periodicity M W D

1. Calendar year/month 2. Calendar year/month3. Calendar year/month 1. 2. Days 3. Weeks

? SAP AG 2001

?? The

planning buckets profile defines:

?which periods are used for planning ? ?how many periods of each period type are used ? ?the display sequence of the periods in the planning table ?
?? You

can plan according to months, weeks, or (in combination with fiscal year variants) user -defined periods. creating a planning buckets profile, only use periodicities or a subset of periodicities that have also been defined in the storage buckets profile that the planning area is based on. Do not include any periodicity in a planning buckets profile that is not contained within the storage buckets profile. planning buckets profiles, and thus multiple planning horizons can be created for one planning book. The planning buckets profile is assigned to the data view within the planning book. This, for example, is how you create three data views for three different users with each view based on a different planning buckets profile: the marketing department in months, the sales department in months and weeks, and the logistics department in weeks and days. ? In the example above, the planning horizon is three months. The first two of the three months ar e ? displayed in weeks. The first week is displayed in days. ?The first row defines the entire time horizon length, and the following rows define the different ? time segments of the horizon. You make specifications in the columns Number, and Display Periodici y. The contents of the other columns appear automatically, once you have pressed the t Enter key. You see exactly which periods are displayed if you choose List of Periods.

?? When

?? Multiple

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Variable Time Buckets

Details Week Month 12/99 3/99

Display In weeks 12/99

Display In months 3/99

13/99

3/99

13/99

4/99

13/99

4/99

14/99

14/99

4/99

? Use of multiple time characteristics possible ? Data can be displayed in any of the time buckets in the storage buckets profile ? Data always stored at detailed level

? SAP AG 2001

?? Data ?? You

is always stored in the smallest periodicity and is aggregated from the time buckets profile being used. use the planning buckets profiles you created to define the future planning horizon and past horizon of a planning book. You enter both of these horizons into the planning book. In both interactive Demand Planning and interactive Supply Network Planning the system shows the horizons with the smallest period at the start and the largest period at the end. The future horizon starts with the smallest period (the start date of the planning horizon) and continues processing from that point onwards, with the largest period at the end. The past horizon starts with the smallest period (the day before the start of the future horizon) and continues processing from that point backwards, with the largest period at the end.

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Macros

? Promotions (unit based / percentage) ? Consensus based forecast ? Overrides ? Sales budgets ? Deviations ? Flexible alerts

? SAP AG 2001

?? Advanced Macros

are user -defined formulas that can be executed within the grid of a planning book. They are much like spreadsheet formulas, but provide more flexibility and function better than typical formulas in spreadsheets. extreme flexibility of the advanced macros allows the planner to model a user-specific planning environment based on individual business tasks.

?? The

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Macro Functions
? Operations on single fields, rows, columns and areas ? Several steps possible in one macro ? One step can contain several arguments ? Control statements such as if, else if ? Operators such as (), <>, sin, sqrt, exp, trunc ? Functions such as SUM, AVG, MAX, MAD, VAR ? Alerts, Mails
? SAP AG 2001 Invoiced sales Actual sales Forecast Corr. Forecast Profit

?? Among

the many functions of advanced macros are options to:

?Control how macro steps are processed through control instructions and conditions. ? ?Build a macro consisting of one or more steps. ? ?Control how macro results are calculated through control instructions and conditions. ? ?Use a wide range of functions and operators. ? ?Define offsets so that, for example, the result in one period is determine d by a value in the ? previous period. ?Restrict the horizon in which the macro is executed to a specific period or periods. ? ?Write macro results to either a row, or a column, or a cell. ? ?Write the results of one macro step to a row, column, cell or variable, and use them only in ? subsequent iterations, macro steps or macros. ?Analyze forecasting or business data at a glance through the use of special identifying icons. ? ?Create context- and user -specific planning views. ? ?Trigger an alert in the Alert Monitor to inform the planner of particular business situations. ?

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Creating a Macro
? MacroBuilder
?

Maintain from planning book design or separate transaction „Macrobuilder“

Elements
Actual sales Forecast Corr. Forecast

M 08.1999 M 09.1999 100 150 150 100 150 130

Events Default Level change Start Exit

Macros New macro Step 1 Drag & Drop Depot Macro work area

Clipboard

? SAP AG 2001

?? Macros are a fast and simple method of performing complex mathematical calculations. Macros are

either executed by the user directly, or at a predefined point in time. Defining macros is optional.
?? You can

edit macros either during planning book maintenance or in Customizing. A macro can either be created for an entire planning book or for a specific data view. You can also copy macros from existing books into a new book.

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Creating a Macro

1. Level

2. Level

3. Level

4. Level

1. Macro

1. Step

1. Result

Key figure A + Key figure B Key figure A * 100

2. Result

2. Step

2. Macro

1. Step

3. Result

Calculation

? SAP AG 2001

?? Macros

are maintained in four levels:

?The first level contains the different macros. ? - In the second level you can subdivide the calculation operations within a macro into different steps. This corresponds to the use of brackets in mathematical formulae. ?The third level contains the semi-finished results and the end result. ? - On the fourth level you define the operands and calculation operations.

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Macro Example
"Adjust demand plan" macro 1. Step New demand plan = Corrected forecast + Manual adjustments "Check adjustment" macro 1. Step IF Adjustment > 500 (condition) Manual adjustments > 500 Enter adjustment <= 500! (procedural message) ENDIF
? SAP AG 2001

?? It

comes with a number of macro examples. To access them, go to the MacroBuilder and select: Macros for: SAP example and template macros. macros can be imported into planning books.

?? All

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Automatic Macro Execution

Event:

Read data

Enter, read, and save data

Planning level change

Save data

Macro execution:

START

DEFAULT

Level change

EXIT

Time

? SAP AG 2001

?? You

can specify that a macro is to be carried out automatically for a particular planning book. There are three ways to execute a macro automatically: ?The start macro is run whenever you call up the planning table. ? ?The default macro is run whenever you regenerate the planning, (for example, when you press ? ENTER), when you open or save the plan. It happens that it is run several times. ?A level change macro is always executed with a drillup or drilldown. ? ?The exit macro is run immediately before the data is saved. ?

?? To ?? If

define a macro for automatic execution, drag it over the Default, Start or Exit node.

a macro is not set for automatic execution, it can be executed directly in interactive planning or mass processing. exclude a start, default or exit macro from the list of macros that can be executed from the interactive planning screen, select Not directly executable in the macro's attributes.

?? To

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Using Macros to Generate Alerts
? In Demand Planning you can define your own alerts using macros. ? For forecasting there are standard alerts
Macro Types of alert Type of alert Requirement Generate alerts Type of alert Priority Execute macro: Alert profile:

?Dynamic alerts ?Database alerts

Alert monitor

Display Evaluation
? SAP AG 2001

?? The

role of the alert monitor is to inform you about exceptional circumstances that have originated in your plan. Demand Planning alerts are generated through macros and through the forecast. alerts are based on the current planning situation but are not stored in the database. One of the differences that SNP alerts in APO version 3.0 have from those in version 2.0, is that the alerts are now macro-dependent, and can be used to model data in the liveCache. This alert type is NOT suitable for large alert quantities, as large numbers reduce performance. alerts show the planning situation as it was during the planning run, or the last time the macro was executed. If you are working with large quantities of data, you should perform a batch planning run using the database macro. The planning run results show the situation as it was at the time of the planning run. This means that database alerts give a snapshot of the plan during runtime. can also use macros to create customer-specific alert types, dynamic alert types, or database alert types. To generate alerts in the background, create a planning view using the corresponding default macro, or use Demand Planning mass processing. must maintain your alert profile if you want to trace alerts from Demand Planning and Procurement Planning in APO. This profile allows you to maintain a user-specific alert selection for your area of responsibility.

?? Dynamic

?? Database

?? You

?? You

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Planning Books and Macros: Unit Summary

You are now able to:
? Create a planning book ? Configure a user-defined planning view ? Create macros

? SAP AG 2001

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Exercises
Unit: Planning Books and Macros

Topic: Planning Books

At the conclusion of this exercise, you will be able to: ?? Create planning books and data views

1-1

Create a planning book called SALES## for your planning area PLAN##. Enter “SALES” as planning book text, activate the Manual maintenance of proportional factors, and all four of the Navigate to views. Ensure that all the characteristics and key figures from your planning area are added into the planning book. Also create a data view called DEMAND PLAN with all key figures. It should have a history horizon of 24 months and a future horizon of 12 months. The historical data should be visible in interactive planning. Complete the planning book.

1-2

In the planning book, change the description of the “Invoiced sales quantity” key figure to ACTUAL SALES. Also create an auxiliary key figure, ADDITION, with the description LAST YEAR’S SALES, and assign it to the data view. Change the sequence of the key figures in the data view by dragging LAST YEAR’S SALES below ACTUAL SALES.

Auxiliary key figures are only used for displaying in the planning table. The data in this key figure is neither saved, aggregated, nor disaggregated.

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1-3

Create a second data view called PROPORTION with the descriptive text MANUAL MAINTENANCE OF PROPORTIONAL FACTORS for your planning book SALES##. This view should allow proportional factors to be maintained in the APODPDANT key figure for the next 12 months.

1-4

Go to interactive demand planning, and select your DEMAND PLAN data view from the SALES## planning book. Open the planning book and data view selection window by moving the gray bar on the lower left upwards.

1-5

Check your planning book SALES## with both data views in interactive planning. Are all the key figures displayed correctly? Also change to design mode and define the key figures LAST YEAR’S SALES and PROMOTION as an output key figure.

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Unit:

Planning Books and Macros

Topic: Macros

In this exercise you will create three macros: 1. One macro for mapping sales from the past year 2. One macro for calculating the final demand plan using the sum from forecast and correction 3. One macro for generating alerts if the correction is too large.

2-1

In the DEMAND PLAN data view, create a macro called LAST YEAR for your SALES## planning book. This macro copies last year’s actual sales into the current year’s auxiliary key figure LAST YEAR’S SALES. When you set up the macro make sure that it is automatically executed whenever changes are made in the planning table.

2-2

Write a macro called DEMAND PLAN CALCULATION for your SALES## planning book in the DEMAND PLAN data view that will calculate the final demand plan from the sum of the corrected forecast, promotion and correction according to the following formula: CORRECTED FORECAST + PROMOTION + CORRECTION = DEMAND PLAN Set the macro so that it is automatically executed whenever a change is made in the planning table.

2-3

In the DEMAND PLAN data view, create a macro called ALERT for your SALES## planning book. This macro should generate an alert when the correction in one column is larger than the corrected forecast. When you set up the macro make sure that it is automatically executed whenever changes are made in the planning table.

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2-4

In Interactive Planning check your macros for your SALES## planning book with the DEMAND PLAN data view. The planning table is not described here as it is covered in more detail in the next chapter. Open the selection window, and choose product hierarchy in “show”. Continue. Double click on Hierarchy 0110. The rows for this selection can now be entered in the planning table. Also assign the SDP “PUMP” alert profile to your user in interactive planning so that your alerts will be displayed 2-4-1 Is the actual data from the previous year shown? 2-4-2 In the corrected forecast key figure, enter 100 PC for the current month. Is the demand plan calculated? 2-4-3 In the correction key figure, enter 200 PC for the current month. Has the demand plan been corrected? Refresh your alerts, is an alert generated? Do not save

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Solutions
Unit: Planning Books and Macros

Topic: Planning Books

1-1

Create a planning book called SALES## for your planning area PLAN##. Enter “SALES” as planning book text, activate the Manual maintenance of proportional factors, and all four of the Navigate to views. Ensure that all the characteristics and key figures from your planning area are added into the planning book. Also create a data view called DEMAND PLAN with all key figures. It should have a history horizon of 24 months and a future horizon of 12 months. The historical data should be visible in interactive planning. Complete the planning book.

Demand Planning ? Environment ? Current Settings ? Design Planning Books Enter SALES## as your planning book and choose create Enter SALES as your Planning book text, and PLAN## as your Planning area. Select the Manual maintenance of proportional factors box, and also select all four of the Navigate to views. Choose <Continue>, to go to the next tab. Choose the green “+” button (Add all key figures) to copy all the key figures from the planning area into the planning book. Choose <Continue>, to go to the next tab. Choose the green “+” button (Add all charact.) to copy all the characteristics from the planning area into the planning book. Choose <Continue>, to go to the next tab. Changes can only be made in the “Key fig. attributes” tab once the Planning Book has been completed.

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Choose <Continue>, to go to the next tab. In the “Data view” tab, enter Demand Plan as both Data view and Data view descr. For the future Time Bucket profile enter 12MONTH and for the history TB profile, 24MONTH. Select “visible from”, and enter the date from 24 months ago. Choose <Continue>, to go to the next tab. Choose the green “+” button (Add all key figures) to copy all the key figures from the planning area into the data view. Choose <Complete>, to save the planning book and data view. Stay in the SDP: Interactive Planning - Initial Screen

1-2

In the planning book, change the description of the “Invoiced sales quantity” key figure to ACTUAL SALES. Also create an auxiliary key figure, ADDITION, with the description LAST YEAR’S SALES, and assign it to the data view. Change the sequence of the key figures in the data view by dragging LAST YEAR’S SALES below ACTUAL SALES. Edit your planning book and choose the first tab, “Key fig. attributes”. Choose the Invoiced sales quantity key figure (INVQTY), choose “FreeText”, and enter ACTUAL SALES. Save the settings. For key figure, enter ADDITION by overwriting the existing key figure, and in the free text, enter LAST YEAR’S SALES. Save the settings. Go to the last “Key figures” tab, drag the ADDITION key figure from the righthand to the left-hand side of the book, and choose “Complete”. Stay in the SDP: Interactive Planning - Initial Screen

Auxiliary key figures are only used for displaying in the planning table. The data in this key figure is neither saved, aggregated, nor disaggregated.

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1-3

Create a second data view called PROPORTION with the descriptive text MANUAL MAINTENANCE OF PROPORTIONAL FACTORS for your planning book SALES##. This view should allow proportional factors to be maintained in the APODPDANT key figure for the next 12 months.

Edit your planning book. Select Data view, enter PROPORTION; and choose Create. Go to the “Data view” tab, and for the Data view description enter MANUAL MAINTENANCE OF PROPORTIONAL FACTORS, with a future Time Buckets profile of 12MONTH. Go to the last “Key figures” tab, and drag the “Proportional factor” key figure from the right-hand to the left-hand side of the book. Press “Complete”. Exit the SDP: Interactive Planning - Initial Screen.

1-4

Go to interactive demand planning, and select your DEMAND PLAN data view from the SALES## planning book. Open the planning book and data view selection window by moving the gray bar on the lower left upwards. Demand Planning ? Planning ? Interactive Demand Planning Drag the bar from the lower left-hand window upwards to open the planning book window. Expand the planning book SALES## and double click on your data view. Stay in Interactive Planning.

1-5

Check your planning book SALES## with both data views in interactive planning. Are all the key figures displayed correctly? Also change to design mode and define the key figures LAST YEAR’S SALES and PROMOTION as an output key figure.

Double click on each of your data views in turn. Are all of your key figures displayed correctly? You open Design mode by choosing “Design”. Right click on the LAST YEAR’S SALES, and PROMOTION key figures, and choose Selected Rows ? Output only. The rows are grayed out. Return to interactive planning via the “live” button, and save everything. They are only colored after data selection. Exit interactive planning.

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Unit:

Planning Books and Macros

Topic: Macros

In this exercise you will create three macros: 1. One macro for mapping sales from the past year 2. One macro for calculating the final demand plan using the sum from forecast and correction 3. One macro for generating alerts if the correction is too large.

2-1

In the DEMAND PLAN data view, create a macro called LAST YEAR for your SALES## planning book. This macro copies last year’s actual sales into the current year’s auxiliary key figure LAST YEAR’S SALES. When you set up the macro make sure that it is automatically executed whenever changes are made in the planning table. Demand Planning ? Environment ? Current Settings ? MacroBuilder Enter the Planning book and data view. Drag the macro from the Elements window in the top left-hand corner, and drop it onto macros in the central window. In the dialog box, enter LAST YEAR as the name of the macro. Continue. Drag the step from the Elements window and drop it over your new macro in the central window. In the descriptive text section of the dialog box, enter 1. STEP and reduce the Processing area to the past 12 months. Continue. Drag a planning table row from the Elements window and drop it over your 1. Step in the central window. In the Attributes of results row section of the dialog box, choose LAST YEAR’S SALES and define the current month as the start of calculation. Continue. Drag a planning table row from the Elements window and drop it over your results row in the central window. Choose “Create in next level”. Enter ACTUAL SALES as the row in the dialog box. Continue. Select your macro and first choose Check, and then Generate Drag the macro from the central window, and drop it over DEFAULT in the Events window, in the top right-hand corner of the screen. Stay in the MacroBuilder

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2-2

Write a macro called DEMAND PLAN CALCULATION for your SALES## planning book in the DEMAND PLAN data view that will calculate the final demand plan from the sum of the corrected forecast, promotion and correction according to the following formula: DEMAND PLAN = CORRECTED FORECAST + PROMOTION + CORRECTION Set the macro so that it is automatically executed whenever a change is made in the planning table. Drag the macro from the Elements window in the top left-hand corner, and drop it onto macros in the central window. In the dialog box, enter DEMAND PLAN CALCULATION as the name of the macro. Continue. Drag the step from the Elements window and drop it over your new macro in the central window. In the descriptive text section of the dialog box, enter 1. STEP and reduce the Processing area to the next 12 months. Continue. Drag a planning table row from the Elements window and drop it over your 1. Step in the central window. Enter FINAL FORECAST as the row in the dialog box. Continue. Drag a planning table row from the Elements window and drop it over your results row in the central window. Choose “Create in next level”. Enter CORRECTED FORECAST as the row in the dialog box. Continue. Drag the Operator/function from the Elements window and drop it over your CORRECTED FORECAST row in the central window. Use "Append". Operator “+“ is selected already, continue. Drag a planning table row from the Elements window and drop it over your Operator in the central window. Use "Append". Enter CORRECTION as the row in the dialog box. Continue. Drag the Operator/function from the Elements window and drop it over your CORRECTION row in the central window. Use "Append". Operator “+“ is selected already, continue. Drag a planning table row from the Elements window and drop it over your Operator in the central window. Use "Append". Enter PROMOTION as the row in the dialog box. Continue. Select your macro and first choose Check, and then Generate Drag the macro from the central window, and drop it over DEFAULT in the Events window, in the top right-hand corner of the screen. Stay in the MacroBuilder

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2-3

In the DEMAND PLAN data view, create a macro called ALERT for your SALES## planning book. This macro should generate an alert when the correction in one column is larger than the corrected forecast. When you set up the macro make sure that it is automatically executed whenever changes are made in the planning table. Drag the macro from the Elements window in the top left-hand corner, and drop it onto macros in the central window. In the Descriptive text section of the dialog box, enter ALERT. Continue. Drag the step from the Elements window and drop it over your new macro in the central window. In the Descriptive text section of the dialog box, enter 1. STEP. Continue. Drag a Control statement from the Elements window and drop it over your 1. Step in the central window. Choose “Create in next level”. The “IF” condition is selected already, continue. Drag a Condition from the Elements window and drop it over your Control statement in the central window. Use "Append". Enter “Correction > Corr. Forecast” as the descriptive text in the dialog box. Continue. Drag a planning table row from the Elements window and drop it over your results row in the central window. Choose “Create in next level”. Enter CORRECTION as the row in the dialog box. Continue. Drag the Operator/function from the Elements window and drop it over your CORRECTION row in the central window. Use "Append". Choose Operator “>”, continue. Drag a planning table row from the Elements window and drop it over your Operator in the central window. Use "Append". Enter CORRECTED FORECAST as the row in the dialog box. Continue. Drag the Alert/status from the Elements window and drop it over your condition in the central window. Use "Append". Enter “Correction > Corr. Forecast” as the descriptive text in the dialog box. Continue. Drag a Control statement from the Elements window and drop it over your Alert in the central window. Choose “Append”, and choose “ENDIF” as reference, continue. Select your macro and first choose Check, and then Generate Drag the macro from the central window, and drop it over DEFAULT in the Events window, in the top right-hand corner of the screen. Save and leave the MacroBuilder

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2-4

In Interactive Planning check your macros for your SALES## planning book with the DEMAND PLAN data view. The planning table is not described here as it is covered in more detail in the next chapter. Open the selection window, and choose product hierarchy in “show”. Continue. Double click on Hierarchy 0110. The rows for this selection can now be entered in the planning table. Also assign the SDP “P UMP” alert profile to your user in interactive planning so that your alerts will be displayed 2-4-1 Is the actual data from the previous year shown? 2-4-2 In the corrected forecast key figure, enter 100 PC for the current month. Is the demand plan calcula ted? 2-4-3 In the correction key figure, enter 200 PC for the current month. Has the demand plan been corrected? Refresh your alerts, is an alert generated? Do not save. Demand Planning ? Planning ? Interactive Demand Planning Double click on the DEMAND PLAN data view for your SALES## planning book Open the selection window, and choose product hierarchy in “Show”. Continue. Double click on Hierarchy 0110. The rows for this selection can now be entered in the planning table. Also assign the SDP “PUMP” alert profile to your user in interactive planning so that your alerts will be displayed: Settings ? Assign alert profile Do not save and exit interactive planning

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Interactive Planning

Contents:
? Selection ? Navigation within the planning table ? Interactive proportional factor maintenance ? Fixing of values ? Collaborative planning

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Create characteristic value combinations ? Navigate within the planning table ? Maintain planning data on different levels, and identify the disaggregation mechanisms ? Describe the use of proportional factors ? Access planning from the Internet

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Course Overview Diagram

1 Course Overview 1 2 InfoCubes 2 3 Configuration 3 4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 Conclusion 9
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Business Scenario

? After the planning table layout has been set using the planning book, the demand planner from the Precision Pump company explores the data entry, and data analysis possibilities. ? Discussions are also taking place regarding which customers or international subsidiaries would benefit from being able to enter data over the Internet.

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The Planning Table Selection Range
Change between areas: InfoObjects, Data views Macro area and overview Open the Shuffler. In the Shuffler you make selections and save new selections
ID Object Object 1 Object 2 Object 3 Text Text 1 Text 2 Text 3

Display dependent objects; For example, all the products from one particular brand Select all characteristic values in InfoObject area Deselect all characteristic values in InfoObject area Go back to last selection Re-execute last selection Define the format to be used to display the characteristic values in the InfoObject area

Object 4 Text 4 Selection profile

User Selection ID

Planning books Data views Macros

Display current selection Hide selection range

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?? The

Shuffler is the window, where you choose the InfoObjects to be planned. You choose information types that fulfil particular conditions from the selection statement dropdown boxes (show... that meet the following conditions...). the selection profile you are shown which selection IDs the present planner is working with. The demand planner can access commonly used selections quickly using the selection profile. To add selection IDs to the selection profile click on Selection Profile. the data view area, choose your planning books, and data views. When all the available planning books can be seen, the planner has access to planning books used in Supply Network Planning, as well as in Demand Planning. component area displays the macros that are active for all the data views in this planning book including this data view.

?? In

?? In

?? The

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Data Selection

Object selection

Characteristic values that should be selected
APO Products

Show:

that meet the following conditions: APO version Customer 000 Baker

Criteria, by which the characteristic values should be selected

User Selection 1 Selection 2 P-100 P-101 P-101

Selection 3
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?? The

Shuffler is the window, where you choose the InfoObjects to be planned. You choose information types that fulfil particular conditions from the selection statement dropdown boxes (show... that meet the following conditions...).

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Aggregation and Disaggregation
1. Select your characteristic values and planning version. 2. Load the data for one or more characteristic values. 3. The key figures are aggregated and displayed for the characteristic values and version in your selection.

5. The key figures are disaggregated automatically using the characteristics combinations in the fact table.

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?? You

choose the data you want to plan by selecting characteristic values and the version number.

?? Once

you have loaded the data, an aggregate view of the selected data is displayed in the interactive planning screen. you save the data, it is automatically disaggregated and stored at the detailed level. store selections (characteristic values and versions) that are used on a regular basis, you define selection variants. These variants can be organized into folders. A delete function is also available for selection variants.

?? When ?? To

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Aggregation

4. Create or change your plan.

Disaggregation
5-7

Planning

The Planning Table Work Area

Selected objects
ID Object Object 1 Object 2 Object 3 Object 4 Text Text 1 Text 2 Text 3 Text 4

Header information
APO Product
Design Graph

Total W 24 W 25

APO Product
Capacity Leveling

Total W 27 W 28

Title view

W 26

Key Load current selection data in table Key figure 1 figure 2 Key figure 3 Switch from live to design mode Key figure 4 Switch from table to graphic view Key figure 5

Selection profile

User Selection ID

Save graphic settings Use distribute function Save displayed data in Excel

Planning book Data views Macros

Send displayed data to another user Show/hide/refresh alerts Open the alert monitor and note management Maintain/display a note for a point in the graphic Display one key figure, some key figures, or all the key figures

? SAP AG 2001

?? The ?? To

work area is the key display, and planning area. It is situated on the right hand side of the screen, and consists of one table, and one graphic. By default, only the table is shown. display data on selected objects in the work area, double click on the selected object. If you have selected multiple objects, choose Load data. can use the magnifying glass icon to set the planning view key figures to be shown in the work area.

?? You ?? You

can send plans internally or externally via email if the system is connected to a mail server. The system automatically creates a Microsoft Excel attachment containing the plan.

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Drill Down in Interactive Planning

Current selection:

Customer Region Region Customer
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Product

Product

?? Demand

Planning's method of aggregation and disaggregation is referred to as a "consistent" planning model. The drill up/down functions in the selection tree allow you to navigate through the various characteristic combinations and display the matching key figure values. can drill down or drill up through one or multiple levels, in any sequence; that is, the process is not hierarchical.

?? You

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Navigation Within the Work Area

Header information
Product Total Location Total

Shows the details in sequence

Shows all the details in one overview

?Total details (all) ?P-100 ?P-101 ?P-102

?Total details (all) ?DC 2400 ?DC 2500

Title view

Right mouse click: Swap rows/columns Synchronize table/graphic Units of measure Graphic Pivot sorting

Choose key figure

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?? To

set header information, choose Settings -> Header Information from the planning table.

?? You

can display your characteristic values in sequence using the arrows in the header information. The total shows you the total of your data in the work area. If you choose details (all), you will see an overview of everything that is in your work area. Swap rows/columns, you can arrange the periods vertically. Synchronize table and graphic is used to arrange the same periods below one another. sorting allows the sequence of key figures and characteristic values to be set in the View of all details.

?? With

?? Pivot

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Interactively Changing Proportional Factors

? Version dependent ? Period specific (optional) ? Stored in APODPDANT ? Maintained in planning table
50 %

Product family
70 % 30 %

Product A
50 %

Product B

Plant A

Plant B

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?? For

the basis of the automatic calculation you have to specify the version, the key figure and the horizon. also have to specify for which version the proportional factors are to be calculated and for which horizon. you select "detailed proportions" the systems uses for example the proportions of June 98 to calculate the proportions of June 99 and so on. can also maintain the proportional factors via the planning table.

?? You ?? If

?? You

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Planning Grid Basic Functions

Distribute functions
Operator

Swap Rows/Columns Synchronize table/graphic Change units of measurement Pivot sorting

OP Short text
= + * / % etc. Replace time series values by value Add value to time series Minus value from time series Multiply time series values by value Divide time series values by value Value as a percentage of the time series ...

Locked entries

Row totals

?

Total

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?? You ?? A

can swap columns with rows, synchronize table and graphic, change units of measurement, and perform pivot sorting by right clicking. wide range of distribution functions is available for speedy data entry.

?? When ?? You

you start to plan, the selected data is locked. Other planners can work on other characteristic values and versions in the same InfoCube simultaneously. can insert a column for row totals either in interactive planning or in the planning book.

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Notes in Demand Planning
? Note Management
? ?

Entering a note Note navigation Demand Plan Actual sales Forecast Corr. Forecast UN Box Box Box M 08.1999 M 09.1999 100 150,150 150,130
1. Right mouse key -> Display Note

100

(Forecast/199908) No note available
Select to see administration information

2. Enter your note here

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?? You

use notes when you want to explain (for your own information or for another demand planner), the reasons why a sales forecast, for example, is particularly low or high at a particular period and on a particular level. can drill down from a higher level to a note on a lower level using note navigation. You use this option when you (as demand planner), are working at a higher level (for example, at Region level), and want to display the forecast explanations created by a different planner at a lower level (for example, at Product level).

?? You

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Value Fixing

Planned total sales: 20,000 pcs
3,000 (15%) 5,000 (25%)

Planned total sales: changed to 30,000 pcs
3,000 (10%) 9,545 (32%)

3,000 (15%)

3,000 (10%) 3,000 (10%)

3,000 (15%)

6,000 (30%)

11,454 (38%)

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can fix the value of a key figure in interactive planning before running the forecast. Once fixed this value will not change when you change other values of this key figure at other planning levels. Where a change to the sum of the details' values conflicts with the individual details' values, the values of the details take precedence. 1: you have already created an APO key figure in the Administrator Workbench and assigned it a fixed key figure. Prerequisite 2: If you want to fix values at aggregated levels, you must define an aggregate for this level in your planning object structure. fix a key figure value, right click on the key figure value's cell. The color changes red and a padlock icon appears, indicating that this value is now fixed. undo the fixing of a key figure value, right click once again on the cell.

?? Prerequisite

?? To ?? To

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Collaborative Planning

APO Collaboration Engine
Alert Monitor Planning books Planning Areas InfoCubes and time series Administration component Advanced Macros

C O M M U N I C A T I O

APO Collaboration Client Planning books, selections, alert monitor
Internet/Intranet

L A Y E R:

N

R/3 systems APO systems

Others

? SAP AG 2001

Collaborative planning prer equisites:
?? Set ?? In

up an ITS server for your system and publish the CLP* Services

the APO system, maintain the WEB_SERVER in the table TWPURLSVR for the logical system, "IGOTO-800.WDF.SAP-AG.DE:1080", for example, and the WEB_PROTCL "HTTP". follow the menu path: Demand Planning->Planning->Collaborative Demand Planning, to go to the Internet and the relevant Internet address. You then inform the user of this address. prerequisites:

?? You

?? Planning

? ?You have assigned a planning book to the user and have given auth orization ? You have assigned selection variants to the user ? ? ?You have set up planning table header information for the user, if drilldown is required
?? In

order to be able to enter data in the internet, press the change switch at the bottom right of the planning table

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Interactive Planning: Unit Summary

You are now able to:
? Create characteristic value combinations ? Navigate within the planning table ? Maintain planning data on different levels, and identify the disaggregation mechanisms ? Describe the use of proportional factors ? Access planning from the Internet

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Exercises
Unit: Interactive Planning

Topic: Selections

The aim of this exercise is for you to explore the functions of interactive planning. The data that you enter here will not be used in any of the later exercises. This exercise is subdivided into the following categories. 1. Creating selections 2. Configuring header information and the key figure view. 3. Fixing key figure values 4. Manual proportional factor maintenance

1-1

Selections are made to enable fast access to characteristics combinations that are used on a daily basis. Therefore in your SALES## planning book in the DEMAND PLAN data view in Interactive Planning, create a selection called PRODUCT## for version 000 and create products P-102 to P-104. Assign this selection to your selection profile. Which sold-to parties buy product P -102? Load data for all three products into the planning table and distribute 1000 pieces over the next 4 months for the Corrected Forecast key figure. Show the row totals for the future columns.

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Unit:

Interactive Planning

Topic: Header Information and Key Figure View

The aim of the following exercises is for you to explore the navigation functions in the planning table. Do not save the entered planning data. 2-1 In the planning table, choose the Corrected forecast and Last year’s sales key figures only.

2-2

In the planning table, set the header information so that you can navigate through products and sold-to party. D isplay all the product details. Check aggregation and disaggregation for the Corrected forecast key figure. If you change data at detailed level, the changes will also be aggregated up to the totals level. If you change data at the totals level, the changes will be disaggregated and made at detailed level too. The new detail ratio will be incorporated as the planning area is set so that the key figure “Pro rata” is disaggregated.

2-3

Use pivot sorting to display first the products and then the key figures.

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Unit:

Interactive Planning

Topic: Fixing Key Figure Values

3-1

Call up the key figure view for the Correction key figure for the three products and perform a drilldown according to product. Enter 100 pieces as the total in one period and fix the value of one detail value. At the totals level enter 120 pieces instead of 100 and check that the fixed value remains the same. Return to the totals display (drill up), and enter a comment on the corrected value.

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Unit:

Interactive Planning

Topic: Manual Proportional Factor Maintenance

4-1

In the “Configuration” chapter you have already calculated the proportional factors based on actual data. In your PROPORTION data view for product P-102, and for the fifth month of the future, change the calculated percentage proportion for sold-to party (customer) 1000. Save. Return to the DEMAND PLAN data view and for the Corrected forecast key figure in the fifth month, enter 1000 pieces for product P-102. Execute a drill down according to sold-to party. Were your new proportional factors used for the disaggregation?

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Solutions
Unit: Interactive Planning

Topic: Selections
The aim of this exercise is for you to explore the functions of interactive planning. The data that you enter here will not be used in any of the later exercises. This exercise is subdivided into the following categories. 1. Creating selections 2. Configuring header information and the key figure view. 3. Fixing key figure values 4. Manual proportional factor maintenance

1-1

Selections are made to enable fast access to characteristics combinations that are used on a daily basis. Therefore in your SALES## planning book in the DEMAND PLAN data view in Interactive Planning, create a selection called PRODUCT## for version 000 and create products P-102 to P-104. Assign this selection to your selection profile. Which sold-to parties buy product P -102? Load data for all three products into the planning table and distribute 1000 pieces over the next 4 months for the Corrected Forecast key figure. Show the row totals for the future columns. Demand Planning ? Planning ? Interactive Demand Planning If necessary double click on the DEMAND PLAN data view for your SALES## planning book Click on the “Selection window” icon, and in “Show” choose APO - product. In the lower section you can now store conditions for the products. Version 000 is the default version. In the next row, again choose product and enter the three products in the righthand side. Press the “Save selection” icon, and write “PRODUCT##” as the Selection description. Save.

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In order to enable fast access to this selection, assign the selection to the selection profile by clicking on the Selection Profile button. A dialog box appears where you can drag your selection from the right-hand side into your book. Save. To find the sold -to party for product P-102, select the product, click on the “Display dependent objects” icon, and choose Sold-to party. Click on the “Previous selection” icon, and select the three products by clicking on the “Select all” icon. Now click on the “Load data” icon. You will now be able to enter data for this selection in the planning table rows. Highlight the next four periods using the left mouse button. Press “Distribute”, check the horizon, enter 1000 pieces for the Corrected Forecast key figure and choose Operator “==” (the value will then be distributed over all the cells). Press “Distribute” (the green check mark). To find the row totals go to Settings ? Row totals ? Future Stay in interactive planning for the next exercise

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Unit:

Interactive Planning

Topic: Header Information and Key Figure View

The aim of the following exercises is for you to explore the navigation functions in the planning table. Do not save the entered planning data. 2-1 In the planning table, choose the Corrected forecast and Last year’s sales key figures only. Press the magnifying glass (key figure selection) that is above the planning table and choose the Corrected forecast key figure followed by Last year’s sales. 2-2 In the planning table, set the header information so that you can navigate through products and sold-to party. D isplay all the product details. Check aggregation and disaggregation for the Corrected forecast key figure. If you change data at detailed level, the changes will also be aggregated up to the totals level. If you change data at the totals level, the changes will be disaggregated and made at detailed level too. The new detail ratio will be incorporated as the planning area is set so that the key figure “Pro rata” is disaggregated. Fix the value of a detail and change the value at totals level: unfixed values are not disaggregated. Go via Settings ? Header information and choose the characteristics Product and Sold-to party. A navigation bar now appears above the planning table (if it does not appear click on the “Header on/off” icon). You can now use the different functions on the navigation bar to set characteristic value totals, single characteristic values, or a characteristic value overview (all details). Check aggregation and disaggregation in the overview. 2-3 Use pivot sorting to display first the products and then the key figures. Right click on the field in the upper left-hand side of the planning table, and choose Pivot sorting. In the dialog box, drag Product so that it is above Key figure. Continue. Stay in interactive planning for the next exercise

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Unit:

Interactive Planning

Topic: Fixing Key Figure Values

3-1

Call up the key figure view for the Correction key figure for the three products and perform a drilldown according to product. Enter 100 pieces as the total in one period and fix the value of one detail value. At the totals level enter 120 pieces instead of 100 and check that the fixed value remains the same. Return to the totals display (drill up), and enter a comment on the corrected value. Enter 100 pieces in one of the Correction key figure periods. Choose the Correction key figure only and drill down according to product by choosing All details in the product header information. To fix values in the planning table or to store notes, right click on the appropriate field. Fix the value of a detail using the right mouse button Enter 120 pieces instead of 100 and check that the fixed value remains the same. Execute a drill up according to product by choosing “Total” in the product header information. Store a note for the fixed value using the right mouse button. Stay in interactive planning for the next exercise

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Unit:

Interactive Planning

Topic: Manual Proportional Factor Maintenance

4-1

In the “Configuration” chapter you have already calculated the proportional factors based on actual data. In your PROPORTION data view for product P-102, and for the fifth month of the future, change the calculated percentage proportion for sold-to party (customer) 1000. Save. Return to the DEMAND PLAN data view and for the Corrected forecast key figure in the fifth month, enter 1000 pieces for product P-102. Execute a drill down according to sold-to party. Were your new proportional factors used for the disaggregation?

Double click on the PROPORTION data view for your SALES## planning book. Do not save the entered data. Load the data for product P -102. Switch the data display from absolute (unit-based) to percentage based by choosing the Double Sum icon above the planning table. Execute a drill down according to Sold-to party by choosing “All details” in the Sold-to party header information. Change the proportion of a sold-to party in the fifth month. Save. Double click on the DEMAND PLAN data view for your SALES## planning book. Load the data for product P -102. For the Corrected Forecast key figure, in the fifth month, enter 1000 pieces. If planning data is already present here, first change it to 0, press enter and then change it to 1000 pieces. Choose the Corrected forecast key figure only and drill down according to sold -to party by choosing “All details” in the Sold -to party header information. The sold -to party proportions should now reflect the changed proportions. Exit interactive planning without saving.

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Forecasting

Contents:
? Univariate Forecasting ? Multiple Linear Regression (MLR) & Causal Analysis ? Composite forecasting ? Consensus-Based Forecasting ? Forecast Profile

? SAP AG 2001

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Configure the forecast profile using relevant control parameters and forecast errors ? Describe the differences between the various forecasting methods and models for Univariate Forecasting, Causal Analysis, and Composite Forecasting ? Perform forecasts in the APO system

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Course Overview Diagram

1 Course Overview 1 2 InfoCubes 2 3 Configuration 3 4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6

6

7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 Conclusion 9
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Business Scenario

? The Precision Pump company first investigates which of the forecasting techniques they should use. ? The demand planner then uses the various forecast models interactively to analyze the forecasts for his characteristic value combinations. He then sets the forecast profile for mass processing. ? The real forecasting is then done periodically using mass processing and is revised using forecast alerts.

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Automatic Historical Data Aggregation

History
Product level Forecast 150 pieces

Future

180 pieces

Disaggregation based on proportional factors Customer level

100 pieces
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50 pieces

120 pieces

60 pieces

?? If

you carry out the forecast at a high level, the historical data is automatically aggregated.

?? For ?? If

this reason, the forecast results of a forecast run at a high level (with the results then disaggregated to detailed level) will differ from the results of a forecast run at detailed level. you carry out the forecast in the background, you define the aggregation level for forecasting in the mass processing job. you design your planning process, you need to consider what aggregation level is meaningful from a forecasting perspective; for example do you want to forecast individual products, product families or customer specific demands?

?? When

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Assigning Products to Forecast Profiles

Characteristic combinations:

Master Forecast Profile:

A - Products

Profile A

B - Products

Profile B

C - Products

Profile C

Set interactively and use in mass processing

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?? The

forecasting methods used to plan important products (A products), are usually m ore detailed than those used for less important products (B, and C products). are various ways of assigning characteristic combinations: ?You set up your master forecast profile interactively, and assign selection IDs to it in mass ? processing. ?You then save the assignment that you interactively set up, and use it in mass processing. ? ?When saving a selection ID's demand plan data you get the system to create it a forecast profile ? with a unique name. This has the following two advantages: - The next time you work with this selection ID, the system uses the uniquely named forecast profile by default to create the forecast. - If you make changes to the forecast configuration, (by switching from a seasonal model to a seasonal trend model for example), the system then keeps the new settings without overwriting the original forecast profile. If you do not set this indicator, the original forecast profile will be overwritten with the new settings once you save the interactive planning data.

?? There

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Master Forecast Profile

? Planning area assignment ? Definition of the key figure that will be forecasted ? Horizon definition for history and forecast ? Specification of procedure to be used for the following forecasts:
? ? ?

Forecast profile

Univariate profile

Univariate Forecasting Multiple linear regression Composite Forecasting

MLR Profile

Composite profile

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?? The ?? If

planner interactively defines various master forecast profiles to forecast typical historical time series showing the constant, trend, or seasonal patterns. different key figures are to be forecasted, you must have master profiles for each key figure to be forecasted. period indicator defines the forecast's period pattern. It must refer to a time characteristic that has actual data forecast: this is used for lifecycle planning and/or "like" modeling. horizon: the start and end dates of the horizon for which you want to run the forecast. Enter a start date in combination with either an end date or a number of periods. If you do not enter a start date, you must enter a number of periods; the system then uses the current date as the start of the forecast horizon. horizon: the start and end dates of the historical time horizon, the actuals from which will be used to run the forecast. assign a master forecast profile with a univariate forecast profile and/or an MLR profile and/or a composite profile.

?? The

?? Material ?? Forecast

?? History ?? You

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Statistical Forecasting Tools

? Univariate Forecasting Model ? Causal Analysis ? Composite Forecasting

Forecast

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?? The

product portfolio of a company covers a variety of products in different stages of their lifecycle and with different demand types. There is no such thing as a forecasting model that creates 100 percent accurate statistical forecasts for both mature slow-moving products and new products. Approaches that attempt to cover most of such demand types are very complex and tend to be a "black box" for the planner. APO Demand Planning offers a "toolbox" of all practical, proven forecasting methods. The system allows the planner to choose the best method for a specific demand type. forecasting models are models that investigate the historical data from constant, trend, and seasonal patterns, and then issue relevant forecast errors. analysis is based on causal factors such as prices, budgets, and campaigns. The system uses multiple linear regression (MLR) to calculate the influence causal factors had on the sales history, and thus allows an analysis to be made of the success of specif ic actions. The connection between causal factors and sales history that was calculated is then used as a basis for modeling future actions. forecasting is used to weight multiple forecasts, and then bring all the information together in one fina l forecast.

?? Univariate ?? Causal

?? Composite

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The Forecasting Procedure

Reading Reading the the actuals actuals

Corrected Corrected History History

? Actuals can be adjusted both automatically and manually ? Analysis of historical data helps to predict future patterns

Forecast Forecast

? Usage of proven forecasting models ? Automatic model selection can be used

Corrected Corrected forecast forecast

? Graphic monitoring and correction of historical data, and forecast results

Used as demand plan Used as demand plan
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?? Forecasting ?? You ?? The ?? The ?? You ?? If

is a tool used to predict future activity based on specific criteria. The system reads historical data and calculates values which it proposes as future data. can create statistical baseline forecasts based on any key figure (such as invoiced sales) in any version. forecast can be calculated using actuals or corrected historical data. corrected forecast includes workday adjustment. usually make manual corrections to the statistical forecast in your own key figure.

you do not have any historical data for a product (for example, because it is new), you can base the forecast on the actuals of a "like" product or products. For this purpose, you define a "like" profile in the product master record. your historical and forecast data, you must define which key figures you want to use in current settings "define parameters for InfoCubes". You must also include rows for these key figures in your planning book.

?? you want to correct If

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Actuals Adjustment

Actual sales key figure

Delivery problems

Trade fair sales

Sales

Corrected history key figure

Correction

Time
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?? In

order to generate more exact forecasts, the impact of one-time promotions, or delivery problems must be removed from the actuals. These adjustments are not usually executed in the original key figure, but in the adjusted history key figure. the forecast profile you can define whether the forecast should be based on original actual data or on corrected actual data. adjustment of corrected history ?This allows you to base your forecast on the Corrected history key figure if no forecast has been ? carried out for a long time. ?For periods where there is no corrected history in the database, the system uses the original ? history. ?It is July 1st and you have not created any forecasts over the past two months. The corrected ? history from two months ago contains manual corrections that you do not want to lose. Your corrected history therefore contains no values for May or June. ?If the system were to base the forecast on these historical values, the forecast results would be ? inaccurate because of the zero values from May and June. ?To exclude the possibility of such inaccuracies, you must set the key figure Automatic adjustment ? of corrected history. The system will then use the original historical values for May and June.

?? In

?? Automatic

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Actuals Adjustment

Original actuals

1. Phase In/Out profile 2. Workday adjustment 3. Past promotions 4. Outlier correction 5. Manual adjustments

Corrected history

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Various automatic procedures that you activate in the forecast profile, can be used to adjust the actuals.
?? The

procedures are executed in the above sequence.

? ?The lifecycle planning phase in/out profiles control the phase ins of new products, and the phase outs of old products ? ?Workday adjustment ensures that higher values are forecasted for periods that have many workdays. Historical data must be adjusted to take this into account ? ?With promotion planning you can extract past actions (special offers etc.) from the actuals so that they are not included in the forecast ? ?You can use outlier correction to automatically correct actuals that are outside of the tolerance range. ? ?You can also adjust the actuals manually
?? A

key figure to be forecasted can also be assigned the following elements:

? key figure for storing corrected history ?A ? key figure for storing the corrected forecast ?A ? key figure for storing ex-post forecasts ?A ? key figure for storing ex-post forecasts for the MLR ?A

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Univariate Forecasting Model

? Supports constant, trend, and seasonal patterns ? Available tools:
? ? ? ? ? ? ?

Manual forecasting Moving average Simple linear regression
Forecast

Seasonal linear regression Exponential Smoothing Holt-Winters Croston method

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?? Times

series models are more commonly referred to as univariate models.

?? Time series models develop forecasts

by assessing the patterns and trends of past sales. The key determinant in the selection of a time series model is therefore the pattern of previous sales data. The general premise is that future sales will mimic past sales. Past sales patterns are identified and reproduced in the forecast. Once the pattern is identified, the forecaster can select the time series model best suited to that particular pattern. For example, if there is a seasonal influence in past sales (for example, sales are consistently highest in October and April), then a forecasting model that compensates for seasonality should be used (i.e. classical decomposition or Winters' method). If past sales have small fluctuations with no major pattern or trend, then some type of smoothing model (moving average or exponential smoothing) might be best. series techniques all have the common characteristic that they are endogenous methods. This means that a time series model looks only at the patterns of the history of actual sales (or a series of sales through time, hence the term time series). If these patterns can be identified and projected into the future, you can use them to produce a forecast. Time series models are the most commonly used forecasting methods.

?? Time

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Automatic Model Selection

Forecast model Forecast model Constant Constant Moving average Moving average Weight. mov. average Weight. mov. average Trend Trend Season Season Trend and season Trend and season Copy history Copy history Croston Croston

Manual

Model selection Model selection Automatic Test using trend Test using trend Test using season Test using season Test using trend and season Test using trend and season

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?? Automatic

Model Selection: you can instruct the system to select the most suitable forecast model. In order to make this selection, the system analyzes the historical data. If the system cannot detect any clear pattern in the historical data, it automatically selects the constant model. 1: if you want the system to select the forecast model, you can choose between various statistical tests and test combinations which determine the model. To use procedure 1, set one of the forecast strategies 50-55 in the univariate forecast profile. Which strategy you choose, and which test the system should carry out, depends on the historical data. ?In the trend test, the system subjects the historical values to a regression analysis and checks to see ? whether there is a significant trend pattern. ?In the seasonal test, the system clears the historical values of any possible trends and then carries ? out an autocorrelation test.

?? Procedure

?? Procedure

2: the system calculates the models to be tested using various combinations for alpha, beta, and gamma. The smoothing factors are also varied between 0.1 and 0.5 in intervals of 0.1. The system then chooses the model which displays the lowest mean absolute deviation (MAD). Procedure 2 is more precise than procedure 1, but takes much longer. To use procedure 2, set forecast strategy 56 in the time series forecast profile (univariate profile).

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Univariate Forecasting Model: Example

Forecast results based on constant model

Standard light bulbs

Profile 1: assuming constant model model

Forecast results based on seasonal model

Christmas lights

Profile 2: assuming seasonal model model
Christmas

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?? When ?? The

setting up Demand Planning, you decide which forecasting models you are going to use for each of your products or product families. above example shows the different models a hardware wholesaler would use to forecast two kinds of light bulb.

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Exponential Smoothing Parameters

B(T) = B(t-1) + ? (V(t) - B(t-1))

Seasonal value (?) Trend value (? ) Basic value (? )

History

Future

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?? The

system uses the alpha factor to smooth the basic value, the beta value to smooth the trend value, and the gamma value to smooth the seasonal value. basic value for the current period t

?? B(t) is the ?? B(t-1) ?? V(t) ?? To

is the basic value from the previous period t-1

is the actual requirement (version 000) from period t

determine the forecast value, all you need is the preceding forecast value, the last historical value, and the "alpha" smoothing factor. This smoothing factor weights the more recent historical values more than the less recent ones, so they have a greater influence on the forecast.

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Exponential Smoothing

The smoothing principle:
? ?

Weighting of the current value: ? ?? ??? parameters Weighting of the previous value: (1 – parameters)

Weighting examples (in %): Parameter 0.1 0.3 0.5 0.7
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Current period

1. Historical period

2. Historical period

3. Historical period

10 30 50 70

9 21 25 21

8 15 13 6

7 10 6 2

?? How

quickly the forecast reacts to a change in pattern depends on the smoothing factor. If you choose 0 for alpha, the new average equals the old one. In this case, the basic value calculated previously remains; that is, the forecast does not react to current data. If you choose 1 for the alpha value, the new average equals the last value in the time series. most common values for Alpha are between 0.1, and 0.5. An Alpha value of 0.5 weights historical values as follows:

?? The

?? Example:

?1st historical value: 50%, 2nd historical value: 25% ? ?3rd historical value: 12.5%, 4th historical value: 6.25% ?
?? The

default alpha factor is 0.3. The default beta factor is 0.3. The default gamma factor is 0.3

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Automatic Outlier Correction

8 7 6 5 4 3 2 1 0
Today Tolerance range = ep ±

?

*1.25* MAD

ep = Expost Forecast

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?? To

correct outliers automatically in the historical data on which the forecast is based, select Outlier correction in the univariate forecast profile. The system then calculates a tolerance lane for the historical time series, based on the sigma factor. Historical data that lies outside the tolerance lane is corrected so that it corresponds to the ex-post value for that point in time. width of the tolerance lane for automatic outlier correction is defined by the sigma factor. This defines how many standard deviations you want to allow. The smaller the sigma factor, the less the tolerance and the greater the number of outliers which ar e detected and corrected. The standard sigma factor is 1.25. If you set the sigma factor yourself, SAP recommends that you set it at between 0.6 and 2. the outlier correction has been made, the Expost forecast is calculated for a second time with the corrected values.

?? The

?? After

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Workdays Correction

History
M1 Original act. 1900 Days Corr. 19 2000 M2 2100 21 2000 M3 2300 23 2000 Uncorr. Days Corr.

Forecast
M4 2000 22 2200 M5 2000 20 2000 M6 2000 18 1800

Specify average number of workdays (such as 20) in the forecast profile

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?? Use ?? The ?? In

this function to account for the varying number of workdays in a month.

system bases the forecast on an average number of workdays per forecast period. You specify these in the field Average no. of days in the univariate forecast profile. the above example, the forecast period is "month" and we assume that the number of workdays in each month is 20. The forecast is run as follows: ?1. The system corrects the historical data using the formula: ? - Corrected history = (original history divided by actual workdays) multiplied by average workdays ?2. The system calculates the forecast using the corrected historical data. ? ?3. The system adjusts this first "uncorrected" forecast result based on the formula: ? - Corrected forecast = (uncorrected forecast divided by average workdays) multiplied by actual workdays

?? The ?? The

number of workdays in the period is defined by the factory calendar in the planning area. results of the planning data correction appear in the corrected forecast key figure

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Univariate Forecast Errors

? MAD (Mean Absolute Deviation) ? ET (Error Total (Total Forecast Error)) ? MAPE (Mean Absolute Percentage Error) ? MSE (Mean Square Error) ? RMSE (Root of the Mean Square Error) ? MPE (Mean Percentage Error)

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?? MAD (Mean Absolute Deviation), ET (Error Total), MAPE (Mean Absolute Percentage Error), MSE

(Mean Square Error), RMSE (Root of the Mean Square Error), MPE (Mean Percentage Error).
?? If

you run the forecast in interactive planning (the user -defined or the forecast view), the univariate measures of fit are displayed in the Forecast errors tab. errors prevent positive errors being canceled out by negative errors.

?? Absolute ?? See

the Application Documentation for APO Demand Planning for more information on univariate forecast error formulas.

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Forecast Versions

? Comparing forecasts
?

Access via planning table

Planning area Key figure Planning version Selection ID

Forecast errors Version ID MAPE MSE...

Parameter Fcst ID Alpha Beta... Changes ID Planner Date...

Fcst

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?? Forecast

versions are used to save and compare the parameters from several forecast runs. Both forecast errors, and the model used (including parameters, and users who have already forecasted this selection) are saved. you have executed several forecasts using different models and parameters, you can sort via forecast errors to find out the best model, and best parameters.

?? After

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Univariate Forecast Profile
Entries:
History entry Version and key figure use of corrected history Model parameters Strategy, length of season, smoothing parameters Control parameters Outlier correction, workdays correction
Planning version Key figure

Forecast strategy Periods per season Parameters: ? , ? ???? ? ? With or without zero consumption Outlier Average number of days

MAD, total of errors,

Forecast errors
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MAPE, RMSE, MSE, MPE *

?? In

the forecast view of interactive planning, you can make changes to the univariate profile configuration (the forecast model, planning horizons, forecast parameters and/or forecast settings). To save the new forecast configurations in a profile with a unique name, choose Settings -> Forecast profile -> and select Create unique forecast profiles when saving. A new forecast profile is created for the current selection variant when you save the demand planning data. The next time you run the forecast for the same selection variant, the system uses this profile by default. The advantage of working with uniquely named profiles is that if you change the forecast configuration in some way (for example, by switching from a seasonal to a seasonal trend model), the system retains the new settings for you without overwriting the original forecast profile. If you do not set the indicator Create unique forecast profiles when saving, the original forecast profile is overwritten with the new settings when you save the interactive planning data. To see which forecast profiles were last used for which selection variants, choose Goto -> Assignment in the master forecast profile. The name of the GUID profile is generated automatically and you cannot change it. Persmo (number of periods for seasonal moving average smoothing) field is used to smooth seasonal regression. An entry of 0 means linear regression, 1 = seasonal regression with no smoothing, and larger than 1 means smoothing by the number of periods entered. promotion key figure is used to create historical value markings to correct the outlier, and adjust the actuals using past promotions. can define upper limits for the forecast errors in the diagnosis group. If the calculated forecast errors exceed the threshold values, alerts are generated, and the planner can review this characteristic combination again.

?? The

?? The

?? You

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Multiple Linear Regression (MLR)

? MLR is used to correlate a dependent variable (sales, for example), with independent (causal) variables (such as prices, advertising, and seasonal factors). ? MLR uses historical data to calculate the “b” regression coefficients for causal analysis. ? The demand planner has the difficult task of identifying and quantifying the most important independent variables, and of modeling the causal correlation.

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Multiple Linear Regression
? Modeling options:
? ? ?

Linear and nonlinear trends Seasonal patterns Dummy variables and time lags

? Model fit analysis
? ? ? ? ? ?

R2 Adjusted R2 Durbin-Watson Durbin-h t-test Mean elasticity

Forecast

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?? Causal

analysis is based on causal factors such as prices, budgets, and campaigns. The system uses multiple linear regression (MLR) to calculate the influence causal factors had on the sales history, and thus allows an analysis to be made of the success of specific actions. The connection between causal factors and sales history that was calculated is then used as a basis for modeling future actions. linear regression (MLR) is a form of causal analysis. It allows you to analyze the relationship between a single dependent variable and several independent variables. You use the independent variables, whose values are known to you, to predict the single dependent value (the value you want to forecast). Each predictor variable (Xi) is weighted, the weights (bn) denoting their relative contribution to the overall prediction. you run the forecast in Demand Planning using an MLR model, the system calculates a number of statistics that measure its accuracy (see above). If necessary, you can then adjust the model. For information on these statistics, see the APO Glossary.

?? Multiple

?? When

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Causal Analysis: Advertising Budget

History

Future

Unit Sales

Calculation of ?

Calculation of sales using ?

$ 1000

$ 1500

budget: May June

budget: Feb.
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Mar.

April

July

Aug.

$ 800 Sept.

Actual advertising

$ 2000

Planned

?? In

the above example, the key figure UNIT SALES is the dependent variable. The advertising budget is one of the independent variables. The MLR model calculates the influence of the advertising budget on the unit sales in the past. Using the calculated coefficient, the model incorporates the effect of planned advertisement into the unit sales forecast. multiple linear regression, coefficients - or weights - of the independent variables describe the relative importance of the explanatory variables. Coefficients in a causal model indicate how changes in each of the independent variables (X's) influence the value of the dependent variable (Y). For example, we can find out the effect on quantity sold of decreasing the advertising budget by $1000 when all of the other variables remain constant. measures the effect of a 1 percent change in an explanatory variable on the dependent variable. This is calculated as the percentage change in Y divided by the percentage change in X. Elasticities tend to differ when measured at different points on the regression line. The mean elasticity is the mean average of the elasticities at these different points.

?? In

?? Elasticity

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Causal Analysis

Constant

Coefficients

Yi = ? o + ? 1 X1 + ? 2X2... + ? n?Xn
Sales history Causal factor

? Unlimited causal factors (price, temperature, ...) ? Multiple Linear Regression (lags, dummy variables, ...) ? What-if analysis / marketing mix planning

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?? In

the above formula: = dependent variable = Y intercept or constant = coefficients or weights = independent variables

?Y ? ?Beta0 ? ?betan ? ?Xi ?
?? A

practical example of MLR:

?Consumer demand for product Y = constant + price + advertising + merchandising +distribution + ? free market price
?? APO

demand planning uses the ordinary least squares method to do MLR.

?? Autocorrelation occurs when a regression model's error terms are not independent; or in other words,

when the values of historical periods in the forecast model influence the values of current periods. Time series with a strong seasonal or cyclical pattern are often highly correlated.
?? Autocorrelation

is an indication that your independent variables are too closely related. If you detect a level of autocorrelation that is no longer acceptable, it could mean that you need to improve your MLR model. Durbin-h and Durbin-Watson are autocorrelation measures. For more information, see the APO Glossary.

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Causal Analysis: Frequently Asked Questions

? How can we sell X units? What is the most cost-effective way? ? What will market reaction be if we (or our competitors) increase/reduce the price by X %? ? How successful were the past promotional events? ? To what extent are sales effected by the weather (for example, ice creams, and drinks)? ? What effect will cyclical changes have on our sales? ? What are the factors that determine long-term sales improvement?

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?? Example

for point 1: if you have modeled both product price, and advertising budget as causal factors, you can use causal analysis to find out the most cost-effective way of achieving target sales. Is it more effective to reduce the price, or increase the advertising budget?

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Causal Analysis Requirements

? Data requirements
? ?

Actuals for all variables Companies often want to compare with competitors but it is difficult to obtain the necessary actuals Forecasts for independent variables

?

? Logical challenges
? ? ?

Which variables influence sales? In what way do variables influence sales? Outlier, trend, and season modeling

? Statistical problems
?

Correlation, autocorrelation

Experience in statistics is necessary if you want to model causal relationships!

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MLR Profile

? Historical data (for example, sales history)
?

Key figure, version

? Diagnosis group
?

Threshold values for forecast errors

? Causal factors:
? ?

Key figure from version (price, for example) Time series variables (marketing budget, temperature, Easter weeks) Time lags

?

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?? You

enter:

?A name and a brief description for the MLR profile. ? ?A key for the diagnosis group containing the MLR upper and lower error limits. If the MLR errors ? exceed the threshold values, alerts are generated, and the planner can then review this characteristic combination. ?The key figure on which the forecast is to be based. This is a key figure from the planning area ? you specified in the master forecast profile. It does not have to be the key figure to which the forecast results are written. The system uses this key figure's historical values to calculate the coefficients in the MLR model. They are the historical values of Y in the MLR equation. ?The version of the historical data on which you want the forecast to be based. ? ?Key figures either from a planning area or from time series can be used as caus al factors. ? ?Transformation: You can set a lag here. For example, if you enter -1, the forecast value is shifted ? one period into the future; that is, it takes one period for the variable to impact demand.

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Measures of Fit: Causal Analysis
? Influence of an independent variable
?

Coefficient, elasticity

? A measure of goodness-of-fit
? ?

R2 (above 0.90 means a fairly good model) Adjusted R2 (if it is significantly lower than R2 you are probably missing some explanatory variable)

? Correlating the dependent to an independent variable
?

t-statistic (no correlation if t-test greater than +/- 1.4)

? Autocorrelation (past past periods are influencing current periods)
?

Durbin-Watson (without lagged variables the acceptable range is 1.5 - 2.5) Durbin-h (with lagged variables acceptable below 1.96)

?

? SAP AG 2001

?? For ?? If

full definitions of the above measures of fit, see the APO Glossary.

you run MLR in interactive planning, you can view the MLR measures of fit by using the Switch parameters on or off toggle in the application toolbar (the causal view). you run MLR with mass processing, you can view the MLR measures of fit by defining alerts to show when the measures exceed certain limits. These alerts can then be viewed in the Alert Monitor.

?? If

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Composite Forecasting

? Weighted average of multiple forecasting methods ? Simple average

Univariate

1
Forecast

Univariate ...
MLR

Combine Combine & Reconcile Reconcile

Result MLR

n

? SAP AG 2001

?? Composite

forecasting combines forecasts from alternative forecasting techniques (i.e. time series, causal, and/or judgmental) for a particular brand, product family or product each of which contains the same sales history, but uses a different technique independently of the others. The underlying objective is to take advantage of the strengths of each method to create a single forecast, either by simply averaging the forecasts and giving each equal weight or by weighting each forecast and summing them based on the residual error associated with each method. combining the forecasts, the business analyst's objective is to develop the best forecast possible. The composite forecasts of several mathematical and/or judgmental methods have been proven to out-perform the individual forecasts of any of those methods used to generate the composite.

?? By

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Composite Forecast Profile

? Forecast method selection ? Percentage weighting factor specification ? Definition of time-dependent weighting (optional)

Example:

Constant: 30% + Seasonal: 30% + MLR: 40% = Final forecast

? SAP AG 2001

?? You

enter:

?A name for the composite forecast profile. ? ?A brief description of the composite forecast profile. ? ?The name of a univariate profile that you want to include in the composite forecast. You can ? choose one using the Univ.Profile pushbutton at the bottom of the dialog box. ?The name of an MLR profile that you want to include in the composite forecast. You can choose ? one using the MLR profile pushbutton at the bottom of the dialog box. ?A percentage to designate the weighting of this profile in the composite forecast. For example, if ? you have three profiles, you might enter 30, 30 and 40 in this column. This weighting is not timedependent. ?The name of a weighting profile. A weighting profile assigns different weightings to different ? periods. You can choose or create a weight ing profile using the Weighting profile pushbutton at the bottom of the dialog box. This entry is optional.

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Consensus-Based Forecasting
? Supports the S&OP process ? Has the ability to create multiple plans
? ?

Product level for Marketing Sales areas and customer/distribution channels for Sales Distribution centers and plants for S&OP Business units for Finance
Forecast

? ?

? Integrates plans into one Consensus Plan that drives business ? Reconciles and combines on same level and multi-levels

? SAP AG 2001

?? A

consensus-based sales and operations planning process is one in which you view forecasts from various departments with different business goals- such as sales, marketing, logistics, and financeand integrate them into a one-number consensus forecast. This then drives the business. Demand Planning supports participants in consensus meetings (for example, Sales & Operations Planning - S&OP) by providing information that enables them to compare forecasts for the purpose of identifying, discussing and closing gaps that affect their business decisions. The goal is to make changes that are agreed to by all parties. The result is a consensus based forecast.

?? APO

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Consensus-Based Planning: Example

User-defined view in planning book
Finance Budget Marketing Sales Actuals (previous year) Cons.-basd. Forecast 35 44 40 42 40 48 45 30 20 32 37 50 30 27 41

40% 30% 30% Macro

? SAP AG 2001

?? Above

you see what a planning book for consensus -based forecasting could look like. books are typically based on the user's data and tool needs for their role in the organization.

?? Planning ?? One

example of a commonly used planning book would be for consensus based forecasting. Such a book would show the forecasts collected from multiple departments such as finance, sales and marketing. the above example, a pre-defined average is calculated using a macro and displayed in a row defined as the consensus forecast. information only (no data entry) and the consensus row as a planning row to allow for adjustments.

?? In

?? this case, we would probably define the marketing, sales and finance rows of the book as In

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Statistical Toolbox: Unit Summary

You are now able to:
? Configure the forecast profile using relevant control parameters and forecast errors ? Describe the differences between the various forecasting methods and models for Univariate Forecasting, Causal Analysis, and Composite Forecasting ? Perform forecasts in the APO system

? SAP AG 2001

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Exercises
Unit: Statistical Toolbox

Topic: Statistical Forecasting
Interactive forecasting is used mostly for the setting and checking of parameters in the forecast profile. You can for example create different forecast profiles for products A, B, and C with this tool. Assigning profiles to characteristic value combinations and periodic forecasting is usually carried out in mass processing.

1-1

Define the special functions for the forecast key figures. Assign the relevant key figures (FORECAST, CORRHIST, and CORRFOR) to Forecast, Corrected history, and Corrected forecast. You can use these special functions to forecast based on the corrected history and can use the workday adjustment to calculate the corrected forecast.

1-2

Create a forecast profile for your planning area. Enter the following parameters: Planning area Master profile Name Forecast key figure Period indicator Forecast horizon periods History horizon periods PLAN## Master Profile for product P-102 FORECAST M 12 24

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1-3

Create a univariate forecast profile for your planning area. Show the recommendation and enter these parameters: Profile Name Planning version Key figure Forecast strategy Alpha, Beta, Gamma Sigma Persmo Seas. periods Forecast errors Promotion key figure UNI## Statistical forecast for P -102 000 INVQTY 11 0.3 1 1 12 select all 9APROM1

1-4

Assign your UNI## univariate forecast profile to your master profile.

1-5

Go to Interactive planning, and create a selection for product P-102. Load the data for product P-102 into the planning table and execute a univariate forecast. Switch on graphic and analyze the historical data. Execute multiple forecasts using different models and smoothing parameters. Each time, check the forecast errors (especially the mean absolute d eviation MAD), and the forecast messages. Also perform a graphic analysis of the forecast results. Switch on the outlier correction and check whether deviations between the original history and corrected history have occurred. The correction depends on the forecast model! Compare the results from the past 10 forecast runs and save the parameters from the run using the smallest MAD in the forecast profile. Where can you automatically assign the selection to the profile? Save your plan.

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Solutions
Unit: Statistical Toolbox

Topic: Statistical Forecasting
Interactive forecasting is used mostly for the setting and checking of parameters in the forecast profile. You can for example create different forecast profiles for products A, B, and C with this tool. Assigning profiles to characteristic value combinations and periodic forecasting is usually carried out in mass processing.

1-1

Define the special functions for the forecast key figures. Assign the relevant key figures (FORECAST, CORRHIST, and CORRFOR) to Forecast, Corrected history, and Corrected forecast. You can use these special functions to forecast based on the corrected history and can use the workday adjustment to calculate the corrected forecast. Demand Planning ? Environment ? Current Settings ? Administration of Demand Planning and Supply Network Planning Select the planning area view Right click on your Planning area (PLAN##): Forecast settings Assign the FORECAST key figure to Forecast, the CORRHIST key figure to Corrected history, and the CORRFOR key figure to Corrected forecast. Adopt.

1-2

Create a forecast profile for your planning area. Enter the following parameters: Planning area Master profile Name Forecast key figur e Period indicator Forecast horizon periods History horizon periods PLAN## Master Profile for product P-102 FORECAST M 12 24

Demand Planning ? Environment ? Maintain Forecast Profiles First create a master profile and enter the above parameters

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1-3

Create a univariate forecast profile fo your planning area. r Show the recommendation and enter these parameters: Profile Name Planning version Key figure Forecast strategy Alpha, Beta, Gamma Sigma Persmo Seas. periods Forec ast errors Promotion key figure UNI## Statistical forecast for P -102 000 INVQTY 11 0.3 1 1 12 select all 9APROM1

1-4

Assign your UNI## univariate forecast profile to your master profile. Enter the above parameters in the Univariate profile tab. Save the single profile. Go back to the Master profile tab and select your univariate forecast profile UNI##. Save.

1-5

Go to Interactive planning, and create a selection for product P-102. Load the data for product P-102 into the planning table and execute a univariate forecast. Switch on graphic and analyze the historica l data. Execute multiple forecasts using different models and smoothing parameters. Each time, check the forecast errors (especially the mean absolute deviation MAD), and the forecast messages. Also perform a graphic analysis of the forecast results. Switch on the outlier correction and check whether deviations between the original history and corrected history have occurred. The correction depends on the forecast model! Compare the results from the past 10 forecast runs and save the parameters from the run using the smallest MAD in the forecast profile.

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Where can you automatically assign the selection to the profile? Save your plan. Demand Planning ? Planning ? Interactive Demand Planning If necessary double click on the DEMAND PLAN data view for your SALES## planning book Via the Selection window icon, create a selection for product P-102, and load the selection into the planning table Start the forecast by pressing the “STAT” (Univariate forecast) button The forecast is then run automatically In the upper part of the screen you will see the STAT icon for executing the forecast, the forecast comparison icon, and the show/hide table icon that switches the graphic on or off. In the lower section of the screen you can change the forecast parameters. You can automatically assign the selection to the profile by going to Settings ? Forecast profile and by selecting: “Save assignment of selection for forecast profile”. By saving in the forecast view, the planning data, the profile, and the assignment are all saved.

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Promotions and Lifecycle Planning

Contents:
? Promotion Planning ? Lifecycle Management ? "Like" Modeling

? SAP AG 2001

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Create and assign promotions ? Explain how promotions are extracted from historical data ? Describe how product lifecycles can be modeled in APO Demand Planning

? SAP AG 2001

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7-2

Course Overview Diagram

1 Course Overview 1 2 InfoCubes 3 Configuration 3 4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 7
Promotions & Lifecycle Planning

7

8 Mass Processing 8 9 Conclusion 9
? SAP AG 2001

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Business Scenario

? The marketing department at the Precision Pump Company plans to utilize promotion planning to better assess the effects of planned promotions on the demand plan. ? Additionally, the marketing department will use APO's Lifecycle Planning to plan introductions of new products and discontinuations of old products.

? SAP AG 2001

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Promotion Planning

Forecast simulation Sales Total sales:

Profit

Total profit:

Promotion

Promotion patterns ’95 ’96

-10%

Price

Planner Planner

’97

’98

Quantity

? SAP AG 2001

?? In

APO Demand Planning, you can plan promotions or other special events separately from the rest of your forecast. You can use Promotion Planning to record either one-time events, such as an earthquake, or repeated events such as quarterly advertising campaigns. Other examples of promotions are trade fairs, coupons, free-standing inserts, competitors' activities, market intelligence. Examples of events that also have an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as tornadoes etc. advantages of planning promotions separately are: ?You can compare forecasts with promotions to those without promotions. ? ?You can correct the sales history by extracting past promotions from it, thus obtaining unpromoted ? historical data for the baseline forecast. ?The processes of interactive planning and promotion planning can be kept completely separate. ? For example, the sales force might be responsible for interactive planning while marketing is responsible for promotion planning.

?? The

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Promotions
Start of promotion
Demand Plan

100 %

Forecast

M M 07/01 08/01

M M 09/01 10/01

M 11/01

Time

Period Corrected forecast Promotion Percentage Promotion key figure Demand Plan
? SAP AG 2001

M1 100

M2 100

M3 100

M4 100 -5% -5 95

M5 100

Unit KG

+10% +20% +10% 10 110 20 120 10 110

%
KG 100 KG

Macro

?? Promotional

uplifts can be defined in units or percentages by promotion patterns. A promotion pattern that occurred in the past can be automatically detected and recreated for future periods. A promotion pattern can be archived in a promotion catalog; it can therefore be reused if a promotion of the same type is repeated. above example shows how a promotion that has been defined as a percentage affects the forecast.

?? The

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Definition of a Promotion

Settings:

Promotion 1 Forecast key figure Percentage / unit based Time series Planning versions Start Dates & Periods
1999

Object assignment

Corrected history Promotion key figure characteristic level

Product 1 Product 1 .. .. Product 5 Product 5

Product 5 . . Product 20

? SAP AG 2001

?? The

definition of a promotion comprises:

?Start date ? ?Number of promotions ? ?Planning version ? ?Key figure (forecast) that the promotion refers to ?
?? In ?? In

order to see a promotion in interactive planning, you must activate it.

interactive planning, you can see which promotions make up the promotion key figure: right click on the key figure required, and choose "Promotion list". A window now appears showing this information. Remember that the promotions you see here depend on the products in the selection variant. via transaction /n/sapapo/mp39 (Report /SAPAPO/PROMOTION_REPORTING) (note 384550).

?? From SP 10 you can start promotion evaluations

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Assigning Characteristic Values to the Promotion

Object selection

Characteristic values, that can be selected
APO Products

Show:

that meet the following conditions: APO version Sold-to party 000 Baker

Sold-to party Product The last drilldown level must correspond to the characteristic level of the promotion level
? SAP AG 2001

Criteria, by which the characteristic values should be selected

Products P-101 P-101

Assign objects

Promotions Action 1 Action 2

?? Once

you have created a promotion and entered the planned absolute or percentage changes, you define the characteristic combinations for which the promotion is to be planned. You select the characteristic combinations in the selection window, and assign them to the promotion. must decide the characteristic level at which assignment should be made. If you choose the "Product" characteristic, then product level must be the last drilldown level for assignment. For example, at the first level you can assign sales organizations to the promotion, then sold-to parties, and finally the relevant products.

?? You

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Status and Promotion Types
Promotion created: Status "In process" Status “offered to customer” Collaborative promotion planning Status “Confirmed by customer"

Status "Planned, for future"

Stored in liveCache

? Promotion attribute types for classifying and selecting promotions ? For example, "store reduction", and "media support"
? SAP AG 2001

?? For

promotion planning without customer participation, after you have processed the promotion you must set status to "planned for future" to activate the promotion. internet based collaborative promotion planning, first set status to "Offered to customer". The customer can accept (status: confirmed by customer) or decline (status: rejected by customer) the promotion in the internet. The next step is to activate the promotions confirmed by the customer. Maintaining a partner at the customer location is a prerequisite of collaborative promotion planning. You can create a collaboration partner via Supply Chain Collaboration > Environment > Current Settings > Make Settings for Collaborative Planning. Status field in the promotion planning screen's Promotion tab displays the status of a promotion. If you want to change a status, choose the icon in the promotion planning application toolbar situated at the top right of the screen. company can have a maximum of 10 promotion attribute types. You could, for example, have the promotion attribute types "store reduction", and "media support". ? attributes for each promotion attribute type. For example, the promotion attribute type "media support" could have the attributes "TV", "Radio", and "Web".

?? For

?? The

?? Your

?? There can be many user -defined

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Cannibalization

? You use cannibalization groups to model the effect promotions will have on similar products.
Sales of product with special offer

Corrected forecast

100 %

Original Forecast

Sales of similar product

M M 07/99 08/99

M M 09/99 10/99

M 11/99

Time

100 %

Original Forecast

M M 07/99 08/99
? SAP AG 2001

M M 09/99 10/99

M 11/99

Time

?? A

single promotion has both a positive and negative influence on sales of products from one cannibalization group. use cannibalization groups, select the option, Check cannibalization group, from the Promotion tab in the Promotion Planning screen. When you create a promotion for one of the products from the group, the other promotions are created automatically. You plan a 5% price reduction on liter bottles of "Peach blossom" shampoo, which will cause a 30% increase in sales whereas sales of 250ml bottles will go down by 3%, and sales of 500ml bottles by 5%. ?You define the cannibalization group as follows: ? - Liter bottle +30 - 250ml bottle -3 - 500 bottle -5

?? To

?? Example:

?? You

create a promotion for the liter bottle. Negative promotions are created automatically for the 250 ml, and 500 ml bottle in the percentage ratio that is predefined in the cannibalization group factors.

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Impact of Promotions on History and Forecast

Corrected forecast + Promotion

History (Including a Promotion)

Corrected history

Forecast

History

Future

? SAP AG 2001

?? The

use of promotional calendars allows you to separate skewing effects of promotional activities.

?? Future ?? You

promotions are displayed in interactive planning in the promotions key fig ure. You can use a macro to make sure that promotions are included in the demand plan key figure. can forecast future demand using the corrected history (minus promotions). To remove past promotions from the corrected history key figure, specify the past promotions key figure in the forecast profile, and select "change values". can also define a post promotion key figure, and get the system to calculate the actual effect the promotions had on sales (how sales changed). Therefore, if you want to correct the history using the planned promotion, you do not need a post promotion key figure. techniques, such as multiple linear regression with or without a trend or seasonality, are available for measuring the impact of a historical promotion, and therefore for estimating the impact of a similar promotion in the future.

?? You

?? Several

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Actuals Adjustment

Original actuals 1. Phase In/Out profile 2. Workday adjustment 3. Past promotions 4. Outlier correction 5. Manual adjustments

Corrected history

? SAP AG 2001

?? In

order to generate more exact forecasts, the impact of one-time promotions, or delivery problems must be removed from the actuals. These adjustments are not usually executed in the original key figure, but in the adjusted history key figure. automatic procedures that you activate in the forecast profile, can be used to adjust the actuals.

?? Various ?? The

procedures are executed in the above sequence.

? The lifecycle planning phase in/out profiles control the phase ins of new products, and the phase ? outs of old products ? Workday adjustment ensures that higher values are forecasted for periods that have many ? workdays. Historical data must be adjusted to take this into account ?With promotion planning you can extract past actions (special offers etc.) from the actuals so that ? they are not included in the forecast ?You can use outlier correction to automatically correct actuals that are outside of the tolerance ? range. ? You can also adjust the actuals manually ?
?? A

key figure to be forecasted can also be assigned the following elements:

?A key figure for storing corrected history ? ?A key figure for storing the corrected forecast ? ?A key figure for storing ex-post forecasts ? ?A key figure for storing ex-post forecasts for the MLR ?
© SAP AG AP210 7-1 2

Lifecycle Management & Like Modeling

Actuals of the old product

Sales

Forecasting of the new product

Like Lifecycle

Time
? SAP AG 2001

?? A

product's lifecycle consists of different phases: launch, growth, maturity, and discontinuation. In APO Demand Planning, you can represent the launch, growth and discontinuation phases by using phase-in and phase-out profiles. use lifecycle planning and "Like" modeling to forecast the phase-ins of new products and phaseouts of old products. the phase-in profile you enter ever-increasing percentages during a specified period or periods to forecast the new product, thus mimicking the upward sales curve that you expect the product to display during its launch and growth phases. If past corrections fall, the corrected history key figure can be adjusted automatically. phase-out profile reduces the sales forecast for a product by ever-decreasing percentages during a specified period, thus mimicking the downward sales curve that you expect the product to display during its discontinuation phase. If the corrections in the past fall, the corrected history key figure can be reduced automatically. all characteristic value combinations, you can use a phase profile, or a phase -in -out profile, a "like" profile, or any combination of these profiles.

?? You ?? In

?? A

?? For

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"Like" Modeling
? To forecast a new product using historical data from old products, you create a Like Profile
Replacement Launching of a New Product

Old Product

New Product

?

New Product

x , å, å? ixi
Assigning the Like profile to characteristic values (maintain in the forecast profile)

? SAP AG 2001

?? Some

products do not have enough historical data to provide the basis for a forecast. With a "like" profile, you can create a forecast using the historical data of a product or products with similar sales behavior. Use "like" profiles for new products and products with short lifecycles.

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Lifecycle Management
? To model the lifecycle of old and new products, you define phase in and phase out profiles
Corrected History Forecast

Old Product

New Product

Phase Out

Phase In

Phase Out

100%

Assigning Phase In/out profiles to characteristic values (maintain in the forecast profile)
? SAP AG 2001

0% Phase Out

?? If

the phase-out profile period is within the history horizon specified in the master forecast profile, the system adjusts the corrected history. If no key figure has been assigned to the corrected history in the planning area, the corrected values are displayed in the statistical forecast view but that particular row is not saved. the phase-in profile period is within the future horizon specified in the master forecast profile, the system directly adjusts the forecast key figure. must select the Material forecast indicator in the master forecast profile.

?? If

?? You

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Promotions and Lifecycle Planning: Unit Summary

You are now able to:
? Create and assign promotions ? Explain how promotions are extracted from historical data ? Describe how product lifecycles can be modeled in APO Demand Planning

? SAP AG 2001

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Exercises
Unit: Promotions and Lifecycle Planning

Topic: Promotion Planning

1-1

Define the last object assignment planning level to your promotions. In this example the last level for your planning area PLAN## and key figure 9APROM1 should be product level

1-2

In Interactive Planning create and save a percentage promotion with the following parameters.

Name Description Type Number of promotions Start of promotion Planning version Promotion key figure Plan. key figure

Promo## Promotion, group ## % 3 The beginning of the next month 000 9APROM1 CORRFOR

1-3

Enter the percentage changes: the promotion should increase sales by 10% in the first month, 20% in the second month, and 10% again in the third. Assign product P-102 to the promotion, activate the promotion, and save it.

1-4

Go back to Interactive Planning, and see if the promotion data is displayed, and if your default macro sums this data in the demand plan.

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7-1 8

Unit:

Promotions and Lifecycle Planning

Topic: Like Modeling

“Like modeling” can be used to forecast new products with historical data from old products. You can also use it to define the life cycle of the old and new product. This exercise has the following structure: 1. The product master of the new product has already been transferred to the R/3 system and is the same as it is in APO 2. You create new characteristic combinations for the product. 3. You specify the product whose historical data is to be read, and you also choose the life cycle 4. You execute the forecast, but you do not save it because the final forecast is to be planned in Mass Processing.

2-1

Create a new characteristic value combination for the new product NEW for your planning object structure POS##. Enter the following characteristic values, and create time series objects for them: Location Product Sold-to party Division Product hierarchy Sales organization 2400 NEW 1000 01 0110 2400

2-2

Assign characteristic 9AMATNR to the basic lifecycle for your planning area PLAN##. Define the product whose historical data is to be read. Create a Like profile LIKE## and store 100% of the data from product P-102.

2-3

Create a Phase-in profile called PHASEIN##. The product introduction (phase in) should start one month from now with a duration of four months. There should be a 20% increase per month. Nothing should be forecasted before the product launch.

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2-4

Create a Phase-out profile called PHASOUT##. The phase out of the product should start six months from now and end nine months from now. There should be reduction of 20% per month. After the product discontinuation, nothing should be forecasted.

2-5

Assign your LIKE##, PHASEIN## and PHASEOUT## profiles to the NEW product. Enter a new master forecast profile called LIKE with the indicator “material forecast”, by overwriting the old MASTER profile.

2-6

For the new product NEW, create a selection NEW (you will also need this selection later for mass processing). Run a forecast in interactive planning, and check the results. Do not save. It should be generated in Mass processing

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Solutions
Unit: Promotions and Lifecycle Planning

Topic: Promotion Planning

1-1

Define the last object assignment planning level to your promotions. In this example the last level for your planning area PLAN## and key figure 9APROM1 should be product level Demand Planning ? Planning ? Promotion ? Maintain Promotion Key Figures For the planning area specify your PLAN##, th e key figure 9APROM1, and as characteristic for promotion level 9AMATNR.

1-2

In Interactive Planning create and save a percentage promotion with the following parameters.

Name Description Type Number of promotions Start of promotion Planning version Promotion key figure Plan. key figure

Promo## Promotion, group ## % 3 The beginning of the next month 000 9APROM1 CORRFOR

Demand Planning ? Planning ? Interactive Demand Planning Press the “PROMO” button Press the “Create promotion” button Enter the parameters and save.

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1-3

Enter the percentage changes: the promotion should increase sales by 10% in the first month, 20% in the second month, and 10% again in the third. Assign product P-102 to the promotion, activate the promotion, and save it. After saving the promotion you go to a table where you can enter percentage changes.

10

20

10

Choose product P-102 from the selection window and double click on it. To assign the product to the promotion, press the “Assign objects” button. The objects, and calculation of the promotion’s effect now appear in the planning table. To make the promotion effective for future requirements, change promotion status to “Planned, in the future”, using the “Change status” button. Save the promotion.

1-4

Go back to Interactive Planning, and see if the promotion data is displayed, and if your default macro sums this data in the demand plan. Press the “Interactive Planning” button The percentage changes are displayed in the promotion key figure. Your default macro calculates the demand plan from the following sum: Corrected forecast + Correction + Promotion.

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Unit:

Promotions and Lifecycle Planning

Topic: Like Modeling

“Like modeling” can be used to forecast new products with historical data from old products. You can also use it to define the life cycle of the old and new product. This exercise has the following structure: 1. The product master of the new product has already been transferred to the R/3 system and is the same as it is in APO 2. You create new characteristic combinations for the product. 3. You specify the product whose historical data is to be read, and you also choose the life cycle 4. You execute the forecast, but you do not save it because the final forecast is to be planned in Mass Processing.

2-1

Create a new characteristic value combination for the new product NEW for your planning object structure POS##. Enter the following characteristic values, and create time series objects for them: Location Product Sold-to party Division Product hierarchy Sales organization 2400 NEW 1000 01 0110 2400

Demand Planning ? Environment ? Current Settings ? Administration of Demand Planning and Supply Network Planning Choose Planning object structure Right click on your planning object structure POS##: Maintain char. combinations Choose <Create characteristic combination...>. Enter characteristic values, and select Create time series objects. Choose Display characteristics combinations to check the new entry.

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2-2

Assign characteristic 9AMATNR to the basic lifecycle for your planning area PLAN##. Define the product whose historical data is to be read. Create a Like profile LIKE## and store 100% of the data from product P-102. Demand Planning ? Environment ? Maintain Forecast Profiles Enter your planning area PLAN##, and the MASTER master forecast profile. Click on the “Basic life cycle” button, and use characteristic 9AMATNR. Go to ? LIKE profiles ? Define Enter the following data and save:

“Like” profile Description Ref. products Action Weighting factor (%)

LIKE## Like P-102 P -102 S 100

Stay in the forecast profile until exercise 2 -5 2-3 Create a Phase-in profile called PHASEIN##. The product introduction (phase in) should start one month from now with a duration of four months. There should be a 20% increase per month. Nothing should be forecasted before the product launch. Go to ? Phase-in/out profiles ? Define

Phase-in profiles ID Description Start date End date Period Constant factor to be applied before start date

PHASEIN## Introduction One month from now Five months from now M Select, Factor 0

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7-2 4

Press “Proposal”, to automatically insert the number of periods Press “Edit time series”, to enter the percentage values

20

40

60

80

Adopt.

2-4

Create a Phase-out profile called PHASOUT##. The phase out of the product should start six months from now and end nine months from now. There should be reduction of 25% per month. After the product discontinuation, nothing should be forecasted. Go to ? Phase-in/out profiles ? Define

Phase-out profile Description Start date End date Period Constant factor to be applied after end date

PHASEOUT# # Product phase out Six months from now Nine months from now M Select, Factor 0

Press “Proposal”, to automatically insert the number of periods Press “Edit time series”, to enter the percentage values

80

60

40

20

Adopt.

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2-5

Assign your LIKE##, PHASEIN## and PHASEOUT## profiles to the NEW product. Enter a new master forecast profile called LIKE with the indicator “material forecast”, by overwriting the old MASTER profile. Use the “Assign life cycle” button to assign your LIKE##, PHASEIN##, and PHASEOUT## profiles to the master profile for your new product NEW. Overwrite your old master forecast profile MASTER with LIKE. For description, choose “Material forecast” Save, and exit the forecast profile maintenance.

2-6

For the new product NEW, create a selection NEW (you will also need this selection later for mass processing). Run a forecast in interactive planning, and check the results. Do not save. It should be ge nerated in Mass processing Demand Planning ? Planning ? Interactive Demand Planning Open the selection window and choose APO - product in “Show”. Version 000 is the default version. Choose product again in the next row and enter NEW in the right-hand side. Press the “Save selection” icon, and write NEW for Selection description. Save. Double click on the NEW product in the selection window. Start the forecast by pressing the “STAT” (Univariate forecast) button Select your LIKE master profile The forecast is then run automatically. Switch on graphic and check the product phase-in, and discontinuation phase. DO NOT SAVE!

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Mass Processing

Contents:

? Macro calculation in the background ? Forecast in the background ? Release of Demand Planning data to the liveCache ? Transfer of Demand Planning data to the R/3

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Unit Objectives

At the conclusion of this unit, you will be able to: ? Configure and execute mass processing of macros, forecasts and demand plan releases. ? Describe how sales quantities are released to production planning, and explain how data is distributed to locations.

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Course Overview Diagram

1 Course Overview 1 2 InfoCubes 2 3 Configuration 3 4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 Conclusion 9
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Business Scenario

? Once the forecast profiles have been set interactively for the different products, the periodic background forecast is then set up. ? Mass processing offers the forecast data at the start of the planning cycle. The planners can then analyze and correct the data. ? At the end of the planning cycle, the data is then released to Production Planning automatically.

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Mass Processing Functions

Macro execution

Forecasting

40%

40%

20%

Release to APO Production Planning

Creating planned independent requirements

40%

40%

20%

Transfer to R/3 Demand Management

R/3 plants
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?? The ?? The

most convenient way to carry out planning activities involving large volumes of data is in the background. For this purpose, SAP provides a mass processing function. mass processing actions you can carry out in APO Demand Planning are listed above.

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Steps in Mass Processing (1)

Create Profile

Define Activity Planning book Planning view Action Profile

Create Job Activity

Schedule Job

Version Selection variant(s)

11 10 9 8 7

12

1 2 3 4

6 5

Aggregation level

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?? The

above sequence depicts the steps you perform to carry out mass processing. The action is either macro execution, forecasting or release to SNP. can carry out several planning actions within one job as long as th ey have the same activity. For example, you might run a mass processing job that executes several macros at the same time, or a job that carries out a statistical forecast and then releases the results to PP. sequence in which actions within one activity are processed depends on the sequential numbers you define for them in the activity. system performs all actions for the first characteristic value before processing the second characteristic value. Consequently, if you want the system to perform one action for all characteristic values before it starts the next action, you must define separate planning activities. each job you can define the selection of data which should be considered in the processing of the job as well as the level to which it should be aggregated before the actions are executed. jobs are reusable.

?? You

?? The

?? The

?? For

?? Planning

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Steps in Mass Processing (2)

Forecasting

Macro

Forecasting
40% 40% 20%

Release / transfer Profile Activity Create job and schedule

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?? To

create activities go to Demand Planning->Environment->Current Settings->Configure mass processing activities. prerequisite for creating a planning activity is the existence of either a macro, forecast profile, release profile, or transfer profile. create jobs, go to, Demand Planning->Planning->Demand Planning in the background->Create Demand Planning in the background.

?? The ?? To

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Release Transfer

Macro

8-7

Releasing the Demand Plan
Demand Planning Production Planning

Time series objects liveCache

Order objects liveCache

Key figure

Category (FA)

? Creating planned independent requirements with a time buckets profile ? Workdays are taken from the location shipping calendar ? Location Split ? Product split ? Daily buckets profile when DP storage buckets profile does not contain any days
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?? If

the forecast has been completed in demand planning, release the forecasted quantities to the liveCache as a planned independent requirement. do this follow the path Demand Planning->Environment->Release to SNP

?? To

?? The

"add data" flag means that the released amounts will be added to planne d individual requirements that may already exist. It is a good idea to use this setting if you want to release from multiple planning areas. the "location" characteristic is contained in the DP planning area, the sales quantities are disaggregated to the locations automatically. If you want to use the allocation in the location split table for products, you do not have to specify the location characteristic (for example 9ALOCNO). can, for instance, control distribution of a product group to members via product split. If product split has been maintained for a product, it will always be included. the storage buckets profile from the DP planning area does not contain days, you can still split the sales quantities over days using the daily buckets profile. How this split is made depends on the settings in the SNP requirements profile in SNP 2 product master view.

?? If

?? You ?? If

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Release Profile

? Specify planning area ? Define key figure ? Specify version ? Enter daily buckets profile (optional) ? Enter category (optional)

Time series objects liveCache

Key figure

Daily buckets profile

Order objects liveCache

Category (FA)

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key figure you release must be a quantity key figure.

the storage buckets profile from the DP planning area does not contain days, you can still split the sales quantities over days using the daily buckets profile. How this split is made depends on the settings in the SNP requirements profile in SNP 2 product master view. Customizing, you can define different categories for planned independent requirements (FA, FB, FC…) and use them to represent demand prioritization liveCache according to their category. The category is determined during the release to SNP as follows: ?1. Has a category been entered in the release profile? If yes, this category is used. ? ?2. If no, has a category been set in the definition of the requirements strategy in Customizing? ? (You define the product's strategy in the Proposed strategy field of the Demand tab of the product master record.) If yes, this category is used. ?3. If no, the category FA (forecasts) is used. ?

?? In

?? The system creates the orders in the

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Transfer Profile

? Specify planning area ? Define key figure ? Specify version ? R/3 requirements type ? R/3 Demand Management version ? Should version be active?

Time series objects liveCache

Key figure

Planned independent requirements

R/3

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?? The ?? If

key figure you release must be a quantity key figure.

you do not enter an R/3 requirements type, it will be taken from the main strategy in the R/3 material master.

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Executing a Job
Job Queue Job Overview Job finished

Schedule

Job Forecasting

Job Forecasting

?
Revise

Job
11 10 9 8 7 6 5 4

Spool List
12
1 2 3

Job 1 Product 1 Forecast Product 2 Forecast . . . . Product 100 Forecast

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?? To ?? To

create jobs, go to, Demand Planning->Planning->Demand Planning in the background->Create Demand Planning in the background find the job overview go to, Demand Planning->Planning->Demand Planning in the background>Demand Planning Job overview in the background The job overview lists your jobs and their system status. For a detailed results list, see the spool list. Job items with errors are indicated by a red traffic light. revision, to receive a list of the characteristic combinations with status, go to: Demand Planning->Planning->Demand Planning in the background->Check Demand Planning in the background.

?? During

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Mass Processing: Unit Summary

You are now able to:
? Configure and execute mass processing of macros, forecasts and demand plan releases. ? Describe how sales quantities are released to production planning, and explain how data is distributed to locations.

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Exercises
Unit: Mass Processing

Topic: Forecasting and Release to Production Planning
The aim of this exercise is to set up mass processing so that: 1. your new product forecast, and 2. the macro for calculating the demand plan, and 3. release to production planning can all be executed in the background.

1-1

Create a profile REL## for release to production planning using the following data. Make sure that your requirements do not overwrite the requirements of other groups (select the box marked “Create new orders”). Planning area Key figure Planning version Daily buckets profile Category Product characteristic Location characteristic FA 9AMATNR 9ALOCNO PLAN## FINFOR 000

1-2

Create a planning activity called ACT## for your SALES## planning book, and your DEMAND PLAN data view. Enter your LIKE master forecast profile, the DEMAND PLAN CALCULATION macro, and your release profile REL##, and increase the action counter after each entry. Create a job called JOB## for mass processing using your SALES## planning book, and your DEMAND PLAN data view, and planning version 000. Enter your activity ACT##, and the selection NEW for the new product. Set the aggregation level to product/location. Schedule the job, and review the results. Make sure that the forecast has been generated, that the macro has copied the forecast into the demand plan, and that planned independent requirements have been generated.

1-3

1-4

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Solutions
Unit: Mass Processing

Topic: Forecasting and Release to Production Planning
The aim of this exercise is to set up mass processing so that: 1. your new product forecast, and 2. the macro for calculating the demand plan, and 3. release to production planning can all be executed in the background.

1-1

Create a profile REL## for release to production planning using the following data. Make sure that your requirements do not overwrite the requirements of other groups. Planning area Key figure Planning version Daily buckets profile Category Product characteristic Location characteristic FA 9AMATNR 9ALOCNO PLAN## FINFOR 000

Demand Planning ? Environment ? Current Settings ? Maintain Release Profiles Create a release profile called REL##. Enter the above data. Select the “Create new orders” box.

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1-2

Create a planning activity called ACT## for your SALES## planning book, and your DEMAND PLAN data view. Enter your LIKE master forecast profile, the DEMAND PLAN CALCULATION macro, and your release profile REL##, and increase the action counter after each entry. Demand Planning ? Environment ? Current Settings ? Define Activities for Mass Processing Create a planning activity called ACT## with the text description “Forecast and release”. Then enter your Master forecast profile LIKE, and increase the action counter. Go to the Macro tab. Then enter the DEMAND PLAN CALCULATION macro, and increase the action counter. Go to the Release profile tab. Finally enter your release profile REL##, and increase the action counter. Save the activity.

1-3

Create a job called JOB## for mass processing using your SALES## planning book, and your DEMAND PLAN data view, and planning version 000. Enter your activity ACT##, and the selection NEW for the new product. Set the aggregation level to product/location. Demand Planning ? Planning ? Demand Planning in the Background ? Create Demand Planning in the Background.. Specify JOB## as the batch number, and for Jobname JOB Group ##. Enter your planning book SALES##, your data view DEMAND PLAN, and Version 000. Execute. Enter activity ACT##, and selection NEW for the new product. In Aggregation level, only select Location and Product. Save your job.

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1-4

Schedule the job, and review the results. Make sure that the forecast has been generated, that the macro has copied the forecast into the demand plan, and that planned independent requirements have been generated. Demand Planning ? Planning ? Demand Planning in the Background ? Schedule Demand Planning in the Background.. Enter JOB##, execute, press “Immediately”, and save. Is the job complete? Demand Planning ? Planning ? Demand Planning in the Background ? Job Overview of Demand Planning in the Background. Execute Check to see if the forecast and the macro have been carried out. Demand Planning ? Planning ? Interactive Demand Planning Open the selection window and get the NEW selection. Double click on the NEW product in the selection window. Planning data can now be seen in the forecast and demand plan key figures. Check to see if planned independent requirements have been generated. Production Planning ? Interactive Production Planning ? Product View Specify Version 000, product NEW, and loca tion 2400, and confirm twice: you will now see the planned independent requirements of all the groups that have been released to date.

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Conclusion

? Architecture & Integration ? InfoCubes ? Demand Planning Configuration ? Interactive Planning ? Forecasting Techniques ? Promotion Planning ? Releasing the Demand Plan

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?
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Course Overview Diagram

1

Course Overview

2 InfoCubes 2 3 Configuration 3 4 Planning Books and Macros 4 5 Interactive Planning 5 6 Forecasting 6 7 Promotions & Lifecycle Planning 8 Mass Processing 8 9 9
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Conclusion

9

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Course Objectives

At the conclusion of this course, you will be able to ? Configure Demand Planning in APO ? Create planning books and macros ? Create demand plans using univariate forecasting, causal analysis, and composite forecasting ? Utilize marketing and sales tools such as promotion planning, lifecycle management, and "like" modeling ? Release demand plans to the liveCache of APO (Supply Network Planning and Production Planning / Detailed Scheduling).
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APO Application Architecture

OLTP (R/3) OLTP (R/3) LIS, CO-PA HR, FI Planned Indep. Requirements Customer orders Production Scheduling Inventory management Transportation processing
Global ATP

APO
Supply Chain Cockpit Demand Planning

Information Warehouse Warehouse (SAP BW) Historical data

PP / DS

Supply Network Planning

Deployment

Key Performance Key figures (KPIs)

Transportation Planning

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?? Aggregated

actual data can be transferred to APO from OLTP, BW (Business Information Warehouse), Excel, and Legacy systems, and saved in InfoCubes. This data is the basis for forecasting. The demand plan is created as a result of the forecast. release the demand plan to Production Planning, which creates planned independent requirements for Supply Network Planning (SNP), and PP/DS. You can also transfer the demand plan to the operating system (OLTP) as planned independent requirements. seamless integration with Supply Network Planning (SNP), and PP/DS supports an efficient S&OP process.

?? You

?? The

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Defining a Planning Area
Collaboration Planning book I Interactive Planning Planning book II

Planning Areas

Time series
liveCache liveCache

Orders
liveCache liveCache

Actuals Extraction
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Business Explorer

Core Interface

?? A

planning area is the central data structure of Demand Planning and Supply Network Planning. It groups together the parameters that define the scope of planning activities. It also determines where and how the planning results are saved. Demand Planning and Supply Network Planning, data is divided into planning areas, and subdivided into versions. Consequently, the data that you save in planning version 1, planning area 1 does not overwrite the data in planning version 1, planning area 2. planning area contains characteristics, and key figures for planning, and must be initialized for every planning version. key figure is a numerical value that is either a quantity or a monetary amount; for example, projected sales value in dollars or projected sales quantity in pallets. are the objects by which you aggregate, disaggregate and evaluate business data.

?? In

?? The ?? A

?? Characteristics ?? Key ?? Key

figure data can be read from different InfoCubes or time series objects. figure planning data is stored in time series objects in the liveCache.

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Planning & Reporting

Customer

? Slice & dice ? Drill downs & ups ? Multiple demand plans to be simulated ? Standard forecast accuracy analysis
Regions

Pe rio d

? Consistent planning (top down, middle out, bottom up)

Aug.
W2 3 W3 3 W4 3 W5 3 W6 3 W37

Sept.
W8 3 W39 W40 W41

time sequence

203

124

Material

Product Groups

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?? Planning

supports online simulation in multiple planning scenarios, consistent planning throughout your enterprise (top down, middle out, or bottom up), drilling up and down, aggregation and disaggregation, and slice-and-dice techniques. planning means that planning data on all planning levels can be consistently held (automatic aggregation and disaggregation).

?? Consistent

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Statistical Toolbox
? Univariate Forecasting
? ?

Moving average Models (constant, seasonal trend) Exponential Smoothing Seasonal linear regression Holt-Winters Croston's method (for sporadic demand)

? ? ? ?

? Causal Analysis
?

Multiple linear regression

? Composite Forecasting
?

Weighted average of multiple models

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?? The

product portfolio of a company covers a variety of products in different stages of their lifecycle and with different demand types. Demand Planning offers a "toolbox" of proven forecasting methods. The system allows you to choose the best method for a specific demand type. forecasting extends the idea of pick-the-best; with this technique you combine two or more methods. method allows you to model "lumpy" (sporadic) demand. statistical forecasting toolbox provides all the features you require to efficiently create accurate forecasts, including everything from data analysis via time series models through multiple linear regression.

?? APO

?? Composite ?? Croston's ?? The

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Promotion Planning

Forecast simulation Sales Total sales:

Profit

Total profit:

Promotion

Promotion patterns ’95 ’96

-10%

Price

Planner Planner

’97

’98

Quantity

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?? Promotions ?? In

can have a major impact on consumer behavior.

APO Demand Planning, you can plan promotions or other special events independently of the rest of your forecast. Promotion Planning to record either one-time events, such as the millennium, or repeated events such as quarterly advertising campaigns. Other examples of promotions are trade fairs, coupons, free-standing inserts, competitors' activities, market intelligence. Examples of events that also have an impact on consumer behavior are upward/downward economic trends, and acts of nature, such as hurricanes, and tornadoes. uplifts can be defined in units or percentages by promotion patterns. A promotion pattern that occurred in the past can be automatically detected using sales history or estimated by the planner. A promotion pattern can be archived in a promotion catalog; it can therefore be reused if a promotion of the same type is repeated. A copy function in the promotion catalog also supports "like" modeling of "like products," "like regions," and so on. Several techniques are available for estimating the impact of a historical promotion such as multiple linear regression with or without a trend or seasonality.

?? Use

?? Promotional

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Evaluations in APO

? Using the SAP BW Business Explorer you can evaluate:
? ?

Order data from the liveCache Aggregated data in InfoCubes

Extraction structure RemoteCube

Planning area

liveCache

Business Explorer
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DP InfoCube

?? You ?? It

can also evaluate data from APO using the SAP BW frontend.

is not only the aggregated actuals from the InfoCubes that are evaluated, but also all of the order and time series objects from the liveCache. prerequisites for 'liveReporting' orders and time series are as follows: a planning area in APO; an extraction structure for the planning area; an InfoSource, and an SAP RemoteCube that reflects the liveCache data.

?? The

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Recommended Follow-up Activities

? Go through the exercises using Demand Planning Example ? Read online documentation ? Read IMG documentation ? Read release notes

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