OPTIMIZATION http://help.sap.com/saphelp_scm70/helpdata/EN/76/8b623c8a6da167e10000000a1 1402f/frameset.

htm Supply Network Planning Run Comparison of the Planning Methods Optimization-Based Planning Application Examples for the SNP Optimizer Finite Capacity Planning Source Determination (Optimizer) Consideration of Incoming Quota Arrangements Lot Size Planning Stock Planning Optimization Profiles Decomposition Running the Optimizer from the Interactive Planning Desktop Definition of Time-Based Constraints in Interactive Planning Running the Optimizer in the Background Automatic Cost Generation Definition of the Business Goals Costs Maintenance Prioritization of Customer Demands and Demands with High Volume Penalty Cost Group Profile Sequence-Dependent Lot-Size Planning Cross-Period Lot Size Planning

Application Logs for Optimizers Optimization Input Log Resulting Costs of Optimization Result Indicators Explanation of the Optimization Results Configuration of the Explanation Tool Optimization Run Termination

Supply Network Planning Run
Use
You can use any of the following planning methods to perform the planning run in Supply Network Planning (SNP): • • Optimization-Based Planning Heuristic-Based Planning

• Supply and Demand Propagation You can run optimization-based and heuristic-based planning interactively from the interactive planning desktop in Supply Network Planning or you can run them in the background. You run supply and demand propagation in a dedicated planning book in interactive Supply Network Planning. Based on these planning methods, SNP supports special planning processes, such as: • • • • • • Aggregated Planning Planning with Aggregated Resources Product Interchangeability Procurement Scheduling Agreement in Heuristic-Based SNP Planning Subcontracting with Source Location in SNP Subcontracting with Third-Party Provision of Components in SNP

• Direct Delivery from Production Plant to Customer For detailed information about the individual planning methods and processes, see the related sections of this documentation. Your individual planning environment influences which planning method would be the most suitable for your requirements. For a comparison of the heuristic and optimization planning methods with Capable-toMatch (see below), see Comparison of the Planning Methods.

See also
Capable-to-Match planning (CTM) is an alternative to the optimization-based or heuristic-based planning methods from Supply Network Planning. For more information, see the Multilevel Supply and Demand Matching section of the SAP APO documentation.

Comparison of the Planning Methods

This topic compares the planning methods of Supply Network Planning (SNP), optimization-based planning and heuristic-based planning, as well as the Capable-to-Match (CTM) planning method. For more information, see Optimization-Based Planning, Heuristic-Based Planning and Capable-to-Match (CTM). We recommend that you use optimization-based planning or CTM planning if one of the following conditions applies to you: • • • • Your business environment is subject to strict constraints (for example, you must take into account production capacities, transportation capacities, storage capacities, and/or handling capacities) You have alternative production locations and sources of supply (locations, production process models, and external procurement relationships) You can decide between early production and late production You share resources, meaning that multiple products are produced simultaneously on one resource

If you wish to plan on an infinite basis (meaning that you do not wish to consider capacities) for the medium to long-term horizon, we recommend that you use heuristic-based planning. If you wish to plan or fulfill demands on the basis of priorities, we recommend that you use CTM planning. The following table describes the main features of each planning method: Business Environment

Area

Heuristic and Capacity Leveling

Capable-to-Match

Optimizer To create a feasible plan with minimum costs

Business Objective

To create a feasible plan To create a feasible plan with few by fulfilling the highest bottleneck resources priority demand first

Demand Type Capacity

Not relevant

Heuristic run: Based on the assumption that capacity is infinite (infinite capacity planning) Capacity leveling: This is

To maximize profits Demand can be Prioritized demand and aggregated for three demand-specific supply demand classes or by strategies customer locations Finite capacity planning Finite or infinite (taking capacity capacity planning constraints into account) or a simulation of infinite planning

or quota • Can be used to priorities arrangements modify quota arrangements Considered Considered Considered . transportation. production. The leveling does not consider stock levels or target days' optimizer calculates the the target stock level supply for planning target days' supply before method specified the actual optimization run • Considers lot sizes for production and transportation • Considers crossperiod lot sizes for Considers lot sizes for Considers lot sizes for production production. and procurement and procurement • Transportation lot sizes have to be used to map lot sizes for procurement • Cost-based sourcing decisions Based on priority.Area Heuristic and Capacity Leveling a step following on from the heuristic run to level capacities Capable-to-Match Optimizer Planning Approach Bucketed (period-based) planning Bucketed or continuous planning Bucketed planning Constraints and Business Scenarios Area Heuristic and Capacity Leveling • Production • Transportation • Capable-to-Match • • • Optimizer • • • • Resources Handling (heuristic only) Production Transportation Handling Production Transportation Storage Target Stock Levels Lot Sizes Source Determination (sourcing) Time-Based Production Parameters Handling Can use absolute target Flexible definitions for the stock levels or target days' heuristic but capacity Can use absolute target supply for planning. costs Based on quota (PPM/PDS and arrangements and transportation). transportation.

Supports Supersession 1:1 . A backlog is created for externally planned products Capable-to-Match Optimizer Can consider material constraints for externally planned products or by setting a high procurement cost for procured products Not supported 1:1 . external Material products are not planned Constraints and do not represent a material constraint Supply You can define supply Not supported Categorization categories 1:1 .Area Heuristic and Capacity Leveling Material staging is not a constraint.Supports supersession (forward and supersession (supersession interchangeable Discontinuation chains and form-fitsupersession chains and of Products function classes) form-fit-function classes) Supports aggregation planning and Supports aggregation disaggregation.Supports supersession (supersession chains and form-fitfunction classes) Considers material constraints. You can Aggregated planning and also choose to aggregate Planning disaggregation demands and supply on a time basis or by order types for product Maximum Stock Levels by Not considered Not considered Product Push Distribution Not supported (but is Supported by supply Stock to supported by deployment) distribution Downstream Locations Supports aggregation planning and disaggregation Considered as a constraint Can be controlled using storage costs You can define a minimum available capacity for a resource and assign costs for falling below this minimum level (this only applies to production resources) Can make a distinction between standard and extended capacity Minimum Resource Utilization Not supported Can consider minimum receipt quantities Resource Capacity Does not make a distinction between standard and extended capacity Does not make a distinction between standard and extended capacity Demand Prioritization Shelf Life Demand can be Capacity leveling does not Demand can be sorted by aggregated for three recognize demand different sort criteria demand classes or by priorities customer locations Not considered Can consider shelf life • Can consider shelf .

CTM does not consider shelf life propagation). multimixed. and so on) You can modify aspects of the calculation by changing profile settings and maintaining parameters • Locations Products Resources (singlemixed or multimixed. and bucket resources) PPMs and PDSs (SNP) Transportation lanes • • Locations Products Resources (singlemixed or multimixed.Area Heuristic and Capacity Leveling Capable-to-Match constraints in a restricted way (for example. but some restrictions) Transportation lanes • • • • • • • Flexibility of Algorithm Macros can be used to modify heuristic values that are entered CTM profile (supply profiles. and bucket resources) PPMs and PDSs (SNP) Transportation lanes SNP optimizer profile Optimizer costs Has a user function for modifying the optimizer input log Macros can be used to modify optimizer values • • • . and bucket resources) PPMs and PDS (SNP and PP/DS. Optimizer life constraints in a restricted way (see SAP note 579556) Batches are not recognized Supported (the subcontractor has to be modeled as a location) • Supported (the Subcontracting subcontractor has to be modeled as a location) Scheduling Agreement Supported Processing Configuration Supported (the subcontractor has to be modeled as a location) Not supported Not supported Area Heuristic and Capacity Leveling Capable-to-Match • • • Optimizer • • • Relevant Master Data • Locations Products Resources (singlemixed. demand profiles.

capacity consumption. The analysis complexity is • Requires some governed by the understanding of supply chain cost trade offs complexity • Order tracking by • Cost summaries pegging are available after • Graphical the optimization representation of run results • Explanation of planning results by the system • • Integration with PP/DS Bucketed plans need to be converted into continuous plans • Bucketed plans need to be converted into continuous plans Continuous plans can be created Bucketed plans need to be converted into continuous plans Recognizes material flow.Area Heuristic and Capacity Leveling Capable-to-Match Optimizer Daily Operation After you have configured the parameters. the heuristic can run automatically • Transparent results Explanation of planning results by the system Comprehensibility • that are entered After you have After you have fine-tuned configured the the costs. CTM can run can run automatically automatically • Transparent results based on priorities.with options for dynamic and fixed pegging • . and setup statuses from PP/DS Have to replan all demands Can use the SNP optimization bound profile to restrict replanning • • Net Change Planning Supported Supported . the optimizer parameters.

Due dates and safety stocks are Soft Constraints (constraints to which you assign violation costs). This means that it uses costs as a basis for deciding the following: • • • • Which products are to be produced. Total costs refers to the following: • • • • • Production. transported. the optimization problem becomes more complex. The optimizer makes sourcing decisions within optimization-based planning. delivery. and transportation costs Costs for increasing the production capacity. procurement. storage. procurement. . storage. transportation. Therefore. transportation capacity. This means that it searches through all feasible plans in an attempt to find the most cost-effective (in terms of total costs). it is the most cost-effective plan. procured. you can also include setup operations in Supply Network Planning. which usually increases the time required to solve the problem. and handling capacity Costs for violating (falling below) the safety stock level Costs for late delivery Stockout costs You use the SNP cost profile to fine-tune the relative importance of different cost types. a plan is feasible when it satisfies all the Supply Chain Model constraints that you set in the SNP optimizer profile. you should run optimization as a background job. As a rule. procurement. stored. The optimizer only proposes a plan that will violate soft constraints if. and delivery The locations for production. you can also use the SNP optimizer for lot size planning. The optimizer uses the linear programming method to take account of all planningproblem-related factors simultaneously within one optimal solution. storage capacity. The optimizer also supports cross-period lot size planning where orders are grouped into large lots due to high set up costs. and delivered and in which quantities (product mix) Which resources and which production process models (PPMs) or production data structures (PDSs) to use (technology mix) The dates and times for production. and the source and destination locations for transportation Since you can enter PPMs or PDSs with fixed resource consumption in master data. A feasible solution might involve due date or safety stock constraint violations. storage.Optimization-Based Planning Purpose The SNP optimizer offers cost-based planning. In the optimizer view. As more constraints are activated. according to the costs specified in the system.

A good way of assessing the application is to do a benchmarking based on a test scenario. However. Therefore. Linear Optimization You can choose one of the three following methods in the SNP optimizer profile to solve continuous linear optimization problems: • • • Primal simplex method Dual simplex method Interior point method All three methods arrive at an optimal solution. Convex cost functions do not complicate the planning problem and can be solved efficiently. The piecewise linear cost function that you can define in master data makes a distinction between the convex cost function (cost per unit increases for higher volumes. you must use one of the discrete optimization methods from the SNP optimizer profile. for modeling overtime or night shifts for instance) and the concave cost function (cost per unit decreases for higher volumes.The optimizer makes a distinction between continuous linear optimization problems and discrete optimization problems. in a productive environment. for modeling freight rates for instance). daily benchmarking is not necessary. Runtime could be the main influencing factor when deciding which of these methods to use. Discrete Optimization A problem is not continuous (and is therefore discrete) in Supply Network Planning. there is no general rule for selecting the best method for a given problem (apart from to test each method individually). production. However. or procurement Fixed PPM/PDS resource consumption Fixed PPM/PDS material consumption Cross-period lot size planning If you want the optimizer to consider any of the above constraints. This is because the optimal choice of method depends more on the structure of the supply chain and less on the input data. • • Mode 1 with $50 per unit and a limited capacity of eight models . they can also be modeled using alternative modes without using piecewise linear cost functions. when the model contains: • • • • • • • • Discrete (integer-value) lot sizes for transportation or PPMs/PDSs Discrete means of transport Discrete increase of production capacity Minimum lot sizes for transportation or PPMs/PDSs Piecewise linear cost functions for transportation.

Using the discrete optimization method can significantly increase runtime requirements. the optimizer takes into account the linear cost function defined in addition to the piecewise linear cost function.• • • Mode 2 with $100 per unit and a limited capacity of six models • Convex functions of labor cost per day.Vertical indicator. For more information. Within every priority class. If piecewise linear functions are modeled but the optimizer is run without discretization or the discretization horizon is smaller than the planning horizon. Plans are distributed to lower level products based on demand for the lower level products. Decomposition You can use the decomposition methods. When cost-based prioritization is used. see Decomposition. defined in the SNP optimizer profile. Prioritization The optimizer can differentiate between the priority of sales orders and forecast demand. Aggregated Planning . sales orders always have priority 1. the optimizer can restrict planning to location product group level (assuming you have defined the demands at the lower level). The discrete optimization method cannot be used with strict prioritization (see below). Note that Supply Network Planning is a medium-term planning function and its focus should not be on solving integer problems (that is. Decomposition may also represent the only way for the optimizer to find a feasible solution in the event of large discrete problems.Vertical To reduce the size of the model to be optimized. concave piecewise linear cost functions cannot be solved by an LP solver but only by using discretization methods (mixed integer linear programming). the optimizer uses penalty cost information from the product master data (the SNP1 tab page) to determine the optimal solution. if you set the Aggregated Planning . You also must define the PPMs or PDSs for the product groups and create the PPM or PDS hierarchy in the hierarchy master. assuming eight normal working hours and a maximum of six hours of overtime paid at double time In contrast. With strict prioritization. To plan at product group level. they are disaggregated again. to reduce runtime and memory requirements for optimization. . you must define hierarchies for products and locations in the hierarchy master. the products are automatically aggregated to the relevant groups for planning and after planning is complete. This data is used to generate the location product hierarchy. the corrected demand forecast priority 5. using the discrete optimization method). the system uses all available cost information to determine the final solution. and the demand forecast priority 6. In the SNP optimizer profile.

2. You run the optimizer. The plan might be infeasible with this type of optimization since the optimizer cannot plan receipts for shortages that are the result of fixed orders from previous planning runs.Aggregated Planning . This means that shortages are possible but are subject to the calculation of infinitely high penalty costs that are internally defined in the optimizer. You run deployment. the demand forecast.. For example. you can specify in the SNP optimizer profile that the optimizer is to take into account the stocks of non-selected input products or source locations products. You can limit the products or locations to be taken into account during the optimization run. meaning that the optimizer will permit shortages subject to the calculation of penalty costs for not delivering. Setting this ensures that the optimizer will only permit shortages if it cannot find any other feasible solution. if optimization is only run to plant level but forecasts are at customer level. and the stocks of non-selected input products or source location products as a pseudo-hard constraint. Incremental Optimization Incremental optimization is the name given to optimization-based planning that is run for only part of the model or on the basis of an already existing plan. the optimizer can sum (aggregate) the demands to plant level and use this value during the optimization run.. You run the TLB. Process Flow . . You can also set that the optimizer is to consider the dependent demand and distribution demand of fixed orders. as well as the duration of the PPMs or PDSs. 1. The transportation times. are also taken into account. 3. You define penalty costs for not delivering for customer demand. and corrected demand forecast in the product master data.Horizontal This function allows you to plan a subset of your supply chain. To prevent this. for example. It is also possible that the optimizer will ignore input products (and associated stock) that are defined in PPMs/PDSs or products that are available for procurement at a source location using a transportation lane (source location products). from the plant to the distribution center and to the customer. You can also specify that the dependent demand and distribution demand of fixed orders is to be treated as an independent requirement.

maximum. Factors Considered During the Run • • • • • • • • • • • • • • • • • • Valid transportation lanes Lead times Transportation capacity Transportation costs Handling capacity Handling costs Production capacity Production costs Storage capacity Storage costs Time stream (location master data) Lot size (minimum. and rounding value) Scrap Alternative resources Penalty costs for not fulfilling demand (supply shortage) Safety stock violation penalty costs Procurement costs Shelf life .The Optimization Run Note: The optimizer plans all distribution demands for all locations in the distribution network before exploding the BOM and processing dependent demand at the production locations.

CTM can provide exactly this information by tracking orders). • 4. In the event of a capacity overload. After the optimization (or heuristic) run. depending on the system settings.• • • • Cost multipliers Location Products Fixed PPM/PDS resource consumption Fixed PPM/PDS material consumption Other Considerations • • The optimization run results do not include pegging orders back to the original individual requirements because requirements are bucketed. the optimizer. • • • • See also: Optimization Profiles Running the Optimizer from the Interactive Planning Desktop Running the Optimizer in the Background Cross-Period Lot Size Planning Comparison of the Planning Methods Application Examples for the SNP Optimizer Application Examples for the SNP Optimizer Below is a list of examples showing where you can use the SNP optimizer within production planning and distribution resource planning and what you should keep in mind: 1. • 3. handling. The settings in the SNP optimizer profile govern whether or not a constraint is active. see Stock Planning). • Finite Capacity Planning Source Determination (Optimizer) Lot Size Planning Stock Planning . Supply Network Planning does not support order-based planning. The optimizer considers all active types of capacity constraints. production. • 2. The optimizer takes into account the shelf life of products in a restricted fashion (for more information about this. The optimizer considers the entire capacity and the entire alternative capacity that is globally available (at all locations). including transportation. it is not possible to determine information about links between specific planned orders and original sales orders (however. and storage constraints. either does not provide a solution or increases the capacity based on a penalty cost calculation. Since orders are not pegged back to the individual requirements.

you can take capacities into account and make it easier for the subsequent detailed scheduling (such as SAP APO Production Planning and Detailed Scheduling.Finite Capacity Planning Purpose It is particularly advisable to use the SNP optimizer to plan capacities as finite if you have limited business resource capacities and these limited capacities have an impact on your production planning and distribution resource planning. subject to the calculation of additional costs. by using the SNP optimizer to plan finite capacities. Furthermore. you can include a possible extension of your capacities into your plan. meaning that it checks whether the capacity available in SNP is already being used by other system application areas (PP/DS. . deployment. for example) or by fixed SNP orders. or the Transport Load Builder. By already planning capacities as finite in Supply Network Planning (SNP). You can use the SNP optimizer to plan the following resource categories and types as finite: • Resource categories: • • • • •  Production resources Transportation resources Handling resources Storage resources    Resource types: • • •  Single-mixed and multimixed resources Bucket resources Transportation resources   Integration The SNP optimizer takes into account the net available capacity only. PP/DS) to create feasible plans.

For single-mixed and multimixed resources. normal.• 4. If the capacity consumed by PP/DS exceeds the aggregated available capacity in a bucket in SNP. or maximum capacity in the quantities/rate definition or the capacity profile of the resource master data. This means that the optimizer takes into account the available capacity of all resources at the same time. You can define multiple capacity variants for resources and label these as the minimum. handling capacity. Thus. Master Data Note that the optimizer takes into account the minimum available capacity and the costs you defined for a capacity variant with the status Normal Capacity only for production resources. go to the resource initial screen and choose: Current Settings -> Capacity Variants (see also. you can let the optimizer decide to increase capacity or fall below the minimum capacity subject to the calculation of additional costs. it will only increase capacity or fall below the minimum if this course of action is the most cost-effective total solution despite the additional costs. for instance. or storage capacity) you want the optimizer to take into account. from the capacity available in SNP. You define the costs for the capacity variants with minimum. all the manufacturing levels are incorporated simultaneously into planning. Prerequisites The prerequisites for finite capacity planning are the same as those for general optimization-based planning: 1. you can set which capacity constraints (production capacity.• • • • • Planning Area Administration Master Data Setup for the Optimizer Model/Version Creation Supply Chain Model Setup Release of the Demand Plan to SNP Features of Finite Capacity Planning General Information 2.• The optimizer determines the available capacity based on the defined factory calendar. Setup for the Optimizer).• Generally. 3. transportation capacity. normal. the optimizer assumes that there is an available capacity of 0 in the corresponding bucket and plans no further capacity consumption in this bucket. . In the SNP optimizer profile. Thus. meaning that it only uses days defined as workdays to determine the bucket capacity. for example. the SNP optimizer subtracts the capacity consumed by PP/DS. To set the status indicator. or maximum available capacity. Since the optimizer generally chooses the solution with the lowest costs. during multilevel production. the SNP optimizer takes into account all model constraints simultaneously.

If you want the optimizer to also take into account fixed resource consumption. For a daily planning buckets profile. you have to choose discrete optimization in the SNP optimizer profile and define a discretization horizon for the Fixed Material and Resource Consumption. You can use time-based consumption to model varying consumption levels over the course of the bucket. Available Capacity 8. This means that the optimizer ignores the consumption type defined for the activity and always assumes that consumption is continuous (consumption type C). 7. choose discrete optimization or do not define a fixed resource consumption in the PPM. Capacity Costs 9. .• The SNP optimizer takes into account the capacity consumption of a production resource. for example). you want to use fixed resource consumption to model setup times during lot size planning with the SNP optimizer (see also. you can define that the optimizer is permitted to either increase the capacity by this variant’s entire available capacity (an entire layer. In the SNP optimizer profile. If you are running an integrated SNP and PP/DS planning and set the Lot Size Planning: Not Cross-Period indicator in the SNP optimizer profile (the Integration tab page).• For the maximum available capacity variant of production resources (see above). or not increase it at all. for example. It has no influence on resource consumption and instead is used only for scheduling within the PPM. if you want the optimizer to take into account the fixed resource consumption. This can cause a resource overload to be displayed in the capacity view of interactive Supply Network Planning. fixed resource consumption is not taken into account when creating SNP orders in liveCache if there is already an existing PP/DS order for the associated PP/DS PPM (see also the F1 help at the indicator). for instance. The duration of an SNP PPM (that is. the optimizer only takes into account the variable resource consumption defined in the PPM. choose the discrete optimization method and define a discretization horizon in the Discrete Production Capacity Increase field. Therefore. you could include the following information in your plan: A machine consumes more lubricant at the beginning of production than it does towards the end.• You can also define time-based costs for increasing the capacity of production resources. Note that the optimizer ignores the fixed resource consumption defined in the PPM if you choose the linear optimization method in the SNP optimizer profile. This is necessary if.• If you use the linear optimization method. For example. In this instance. the optimizer either takes into account the entire costs of the increase or no costs at all. The resource consumption defined per activity is distributed evenly over the length of the activities.Production Resources Capacity Consumption 5. One PPM can load several resources and one resource can be loaded by several PPMs. you can define that the increase costs more on a Monday than it does on a Tuesday. This also applies for Cross-Period Lot Size Planning if you set the accompanying Cross-Period Lot Size Planning indicator. which you define in the production process model (PPM) mode. fixed resource consumption is taken into account if orders are created in liveCache during planning. However.• The optimizer also takes into account time-based resource consumption that you defined in the PPM. the sum of the duration of all PPM activities) is fixed. Lot Size Planning). 6.

the transportation costs entered in the Means of Transport section). you cannot define any alternative resources for a production activity.10. • The transportation costs considered by the optimizer consist of the product-specific transportation costs (that is. specify a transportation resource in the Resource field of the Means of Transport section in the transportation lane. If you do not enter a value in the Consumption field or do not define any data for the Product-Specific Means of Transport. If you do this. 15. Available Capacity 14. for example). you must create one PPM per mode combination. 11. the transportation costs you entered in the Product-Specific Means of Transport section in the transportation lane) and the transportation costs for the means of transport (that is.Size field of the resource master data. To do this. no resource consumption exists. Transportation Resources Capacity Consumption 13.Res. you can set that you want the available means of transport to be treated as discrete (in non-divisible integer numbers). You can specify these costs (also on a time basis) per capacity unit and bucket. However. the optimizer calculates consumption using the conversion factor for units of measure that you specified on the Units of Measure tab page in product master data. If the transportation duration is 0. You can also specify these costs for each capacity unit and bucket. Constraints 12. • If you wish to define a minimum available capacity (see the General Information section). Capacity Costs 16. You can use the SNP PPM Generation With Lot Size Margin function to generate SNP PPMs automatically for multiple PP/DS PPM mode combinations. considering means of transport as discrete is not relevant for you. if you commission external transportation service providers. you have to define costs for falling below it. • In the SNP optimizer profile. The means of transport costs are dependent on the transportation resource consumption of all the products transported on the transportation lane and the distance that was defined for the transportation lane between the start location and destination location. • You can assign transportation resources to multiple transportation lanes and so limit the transportation capacity on these transportation lanes. You define the capacity of the means of transport in the Transp. You can use this option to model the means of transport that are available in your company (a truck. • The SNP optimizer only takes into account the means of transport’s variable capacity consumption (per day) that you specified in the Consumption field of the Product-Specific Means of Transport section. The costs incurred are proportional to the amount fallen below the minimum available capacity. . the means of transport is treated as discrete for each transportation lane. To define alternative resources. • You also have the option of defining costs for the normal capacity variant (standard capacity) for production resources. • Since you can only create one mode per activity in the SNP PPM. You specify consumption for the product that is defined in this section. Consumption is dependent on the transportation duration. The costs incurred are proportional to the resource usage.

If. the optimizer will always try not to exceed the storage capacity. the optimizer must be allowed to violate the storage capacity and incur penalty costs. you do define a size (5 t. you do not define a size for the transportation resource. PP/DS. for instance. To be able to find a solution. • You can define the means of transport costs either as costs per transportation resource unit or as costs per means of transport. for example) and set the Integral Means of Transport indicator in the SNP optimizer profile. Cost functions are most appropriate when you are working together with external transportation service providers. The handling-in resource is loaded by inbound shipments (SNP stock transfers) and external procurement during the goods receipt processing time and the handling-out resource is loaded by outbound shipments during the goods issue processing time. Resource consumption refers to the handling operation and is therefore proportional to quantity but not time. For the costs per transportation resource unit. These penalty costs are assigned by the optimizer. which means that you cannot set them in the master data. if required (when activating this indicator. Available Capacity 22. you must also choose the discrete optimization method in the SNP optimizer profile). 23. Storage Resources Capacity Consumption 21. • The optimizer takes into account the capacity consumption of the storage resource that you define for the respective location product in location product master data (on the GR/GI tab page). you can use cost functions. due to the high penalty costs incurred. for example) because of this integration that cannot be reduced within a bucket and exceed the storage capacity. . Handling Resources Capacity Consumption 18. The optimizer always takes into account the capacity that is available on the final day of a bucket. for the costs per means of transport. • The optimizer considers the storage capacity constraint as a soft constraint that can be violated by the optimizer.17. and SAP R/3. • You can define the capacity consumption of the handling-in and handling-out resources for the respective location product in location product master data (on the GR/GI tab page). • You can define a maximum of one handling-in resource and one handling-out resource per location. subject to the calculation of penalty costs. • In contrast to other resource categories. 19. you want to model discount scales for the costs per transportation resource unit option. Constraints 20. • You can assign handling units to a location (on the Resources tab page) as handling-in resources or handling-out resources in location master data. There might be initial on-hand stocks or fixed material receipts (from PP/DS. the available capacity of the storage resource is not aggregated by bucket. Storage capacity is a soft constraint due to the integration between Supply Network Planning. However. However.

Constraints 25. store. transport. 24. You can also define a time-based upper bound for stock. procurement. production plant-> distribution center or distribution center -> customer) The SNP optimizer bases its decisions about sources of supply on costs. you can use the optimizer in Supply Network Planning (SNP) to solve the following issues: • • • • • Where to produce. we recommend that you choose a factory calendar with no non-working days. The optimizer considers this a soft constraint. store. and delivery Which locations to transport from and to (for example. • In addition to the storage resource capacity. meaning that it can be violated subject to the calculation of penalty costs. • Optimization-Based Planning Running the Optimizer from the Interactive Planning Desktop Running the Optimizer in the Background Source Determination (Optimizer) Purpose If your company has alternative source of supply options with different costs. The optimizer takes this upper bound into account if you set the Maximum Product-Specific Quantity Stored indicator in the SNP optimizer profile. transportation. and deliver (for example. • • 27. If the final day of a bucket were a non-working day. The optimizer uses the following as possible sources: • • Transportation lanes PPMs/PDSs . you can define a product-specific upper bound for on-hand stock in the location product master. These penalty costs are assigned by the optimizer. For more information about this. it can decide whether to use in-house production or external procurement) Which products and product quantities to produce. storage. and deliver (product mix) Which resources and which production process models (PPMs) or production data structures (PDSs) to use (technology mix) The dates and times for production. the optimizer would assume an available capacity of 0. procure. procure. • You can assign a maximum of one storage resource to each location. see Definition of Time-Based Constraints in Interactive Planning. which means that you cannot set them in the master data. see: 26.For the storage resource. See also: For more information about optimization-based planning and its execution.

If you have assigned a means of transport to the transportation lane generated from the external procurement relationship. nor purchasing info records. You define penalty costs for the violation of quota arrangement values that the optimizer also takes into account during source of supply determination. For more information. you can define that the SNP optimizer is to taken into account incoming.Moreover. the optimizer does not create any orders for scheduling agreements or contracts during planning (it only takes into account existing orders as fixed orders). if you want to define priorities for three different PPMs/PDSs. it is generally only possible to influence its choice of sources by using costs. the optimizer takes this transportation lane into account. higher costs for the PPM/PDS with medium priority. Consideration of Incoming The main purpose of optimized source determination using the SNP optimizer is to define the production locations in such a way as to reduce the number of stock transfers and associated stock transfer costs. you can use costs to prioritize sources by reducing the production costs at your preferred location. and the highest . For example. no scheduling agreements. remember that the optimizer always takes all influencing factors into account: • Using Production Costs to Prioritize Production Resources You can influence the optimizer’s decision regarding which location and resources to use for production by defining corresponding production costs in the PPM/PDS. However. However. Prerequisites The prerequisites for source determination are the same as those for general optimization-based planning: • • • • • Set Up of Planning Area Set up of Master Data for the Optimizer Creation of Model Name and Version Set Up of Supply Chain Model Release of Demand Plan to Supply Network Planning Using Costs to Control Source Determination Since the SNP optimizer simultaneously takes into account all the conditions of a model to determine an optimal (most cost-effective) solution. Constraints The optimizer does not take into account external procurement relationships as sources of supply. you can specify the lowest production costs for your highest priority PPM/PDS. see Quota Arrangements. contracts. that is. For example. time-dependent quota arrangements.

Note however that in addition to taking into account transportation costs when making its decision. For example. if you want to define the priorities of two different procurement locations. the optimizer also considers other influencing factors. time-dependent quota arrangements that you have defined in the master data for optimization-based planning in Supply Network Planning (SNP). by defining corresponding costs in the transportation lane. To do this. such as the storage costs and production costs of the location. the system creates an SNP stock transfer with no reference to a source of supply. See also: Optimization-Based Planning Production Data Structure in SNP Consideration of Incoming Quota Arrangements Use You can define that the system considers incoming. If this indicator is set. Transportation costs consist of the means of transport costs (costs from the Means of Transport section of the transportation lane) and the product-specific means of transport costs (from the Product-Specific Means of Transport section). enter lower transportation costs for the transportation lane of your preferred location than those for the other transportation lane. the SNP optimizer does not create any planned orders. If there is no valid PPM/PDS for procurement type E (in-house production). the optimizer considers the costs for storing the PPM/PDS products and the available capacity of the resources required for the PPM/PDS. The consideration of quota arrangements is valid for the following receipt types: ● In-house production . System Action if Source Cannot Be Found If there is no valid transportation lane for procurement type F (external procurement). the SNP optimizer creates planned orders with no reference to a PPM/PDS. the system’s behavior is governed by whether or not the SNP: No Planned Order indicator has been set in the planning version. Note however that in addition to taking into account production costs when making its decision. define single-level production costs or a cost function in the PPM/PDS. • Using Transportation Costs to Prioritize the Procurement Location You can influence the optimizer’s decision regarding which locations to procure from.costs for the PPM/PDS with lowest priority. if it is not set.

you can define how the SNP optimizer proceeds if multiple quota arrangements exist for a certain period. Penalty Costs for Quota Arrangement Violations Quota arrangement values are soft constraints for the SNP optimizer that the system can violate in return for incurring penalty costs. you must specify product groups and product group types. The optimizer ignores the remaining quota arrangements within the period. which you have already defined in Customizing for the master data under Product → Product Groups. ● The validity period does not have to agree with the periods in the planning buckets profile. ● Ignore: The optimizer plans procurement from all sources of supply that come into question. the indicator is not set. For more information. In the SNP optimizer profile. Prerequisites In the SNP optimizer profile on the General Constraints tab page. the quota arrangement refers to the total receipts of the corresponding product group. You can define these . you can define how the SNP optimizer proceeds if a quota arrangement has not been defined for a possible source of supply. Quota Arrangements for Products and Product Groups ● You can specify in the quota arrangement master data whether the quota arrangements are to be valid for a product or a product group. Quota arrangements are taken into account for the sources of supply for which they were defined. in other words. You create the quota arrangements in a time-dependent way. In the SNP optimizer profile on the General Constraints tab page. In this case. you have set the Consider Quota Arrangements indicator. ● If you want to define the quota arrangements for product groups. All the products in the product group must have the same base unit of measure. You have the following options: ● Treat as Zero: The optimizer does not plan any procurement from sources of supply for which no quota arrangements have been defined. see Source Determination.● ● External procurement Stock transfers from other locations You can define penalty costs for cases where the SNP optimizer exceeds or falls short of the quota arrangements. for a particular validity period that you have also specified in the quota arrangement master data. The SNP optimizer takes these costs into account in addition to the other costs that are relevant to source determination. By default. Incomplete Quota Arrangements You do not have to define quota arrangements for all sources of supply. Features Time-Dependent Quota Arrangements ● The SNP optimizer takes into account incoming quota arrangements that you have defined in the quota arrangement master data. in the product master data on the Properties 2 tab page. You can use the Multiple Quota Arrangements in Bucket indicator on the General Constraints tab page to define that the optimizer considers the first or the last quota arrangement in a period.

the system will try to adhere to the quota arrangements (since the optimizer always tries to find the solution with the lowest costs). During source determination. To do this. The advantages of this method include low procurement and setup costs. ● To group several product demand quantities from consecutive buckets into larger procurement lots or production lots. for instance). Lot Size Planning Purpose You use lot size planning to specify which demand quantities are to be made available in which buckets (periods). . The order size corresponds to the demand quantity. the optimizer might overwrite quota arrangements that you created previously. Activities You run the SNP optimizer interactively or in the background. you still have to define penalty costs for the quota arrangements created by the optimizer so that the system can take them into account in the next optimization run. If you set the penalty costs suitably high. procurement or production is done in advance and you can make use of the economy of scale cost savings. set the Modify quota arrangements indicator when you run the optimizer in the background (see also the F1 help).penalty costs for exceeding or falling short of the quota arrangement value in the quota arrangement master data. Its main disadvantage is the high storage costs. Its disadvantages include high costs for procurement and setup. If you set the Modify quota arrangements indicator. For example. you can perform shorter term heuristic planning runs using the quota arrangements created in the optimization planning run as the basis for the heuristic planning runs. after a longer term optimization-based planning (monthly. the system considers the penalty costs that you have assigned to potential quota arrangement violations. You can choose to do one of the following: ● To procure or produce the exact demand quantities of a product. Creating and Changing Quota Arrangements The SNP optimizer can also create quota arrangements for subsequent optimizationbased or heuristic-based planning runs. For more information. The main advantage of this method is the low storage costs. Moreover. see Running the Optimizer from the Interactive Planning Desktop and Running the Optimizer in the Background. With this method.

SAP APO Production Planning and Detailed Scheduling. In order for the optimizer to be able to take into account the fixed resource consumption defined in the PPM. If setup consumption varies across the different buckets. you can model setup consumption by reducing the available capacity of the production resource accordingly. and transportation lot sizes. In this instance. meaning that discretization is not required. you can model both setup consumption and setup costs in the system. and discrete (integer value) lot sizes. Prerequisites The prerequisites for lot size planning are the same as those for general optimization-based planning: ● ● ● ● ● Planning Area Administration Configuring Master Data for the Optimizer Model/Version Creation Supply Chain Model Setup Release of the Demand Plan to Supply Network Planning Lot Size Planning for Production When using the SNP optimizer for lot size planning in production. If the setup consumption remains the same across all buckets. 1. For example. Setup Consumption You can choose any of the following three options for modeling setup consumption in the system: . for a setup consumption of 20%. You can also influence lot size planning by defining minimum lot sizes.The SNP optimizer uses all the costs to determine the optimal (most cost-effective) procurement lot sizes. you must define a discretization horizon in the . For finite capacity planning with the SNP optimizer.. maximum lot sizes. you can reduce the standard capacity for individual buckets accordingly. 2. This makes it easier for Production Planning and Detailed Scheduling to create feasible plans. Increased setup consumption and/or higher setup costs can be taken into account during planning or rough-cut planning in Supply Network Planning (SNP) for integration with the subsequent Production Planning and Detailed Scheduling (for example. If the setup consumption level is not known but setup consumption is relatively low in comparison to bucket capacity. PP/DS). enter a bucket capacity utilization rate of 80%. production lot sizes. If the past setup consumption amount per bucket is known to you. you can choose the linear optimization method for the optimization run. both costs and available capacities are relevant for lot size planning.. you can reduce the rate of the resource utilization in resource master data. you can define setup consumption in the PPM as a fixed bucket resource consumption.

If the setup consumption level is not known and setup consumption is relatively high in comparison to bucket capacity. the optimizer is most likely to plan large lots whereas if setup costs are low and storage costs high. This allows you to optimize your setup costs. you must set the Cross-Period Lot Size Planning indicator (for Cross-Period Lot Size Planning) or the Lot Size Planning: Not Cross-Period indicator (if your lot size planning is not cross-period) on the Integration tab page in the SNP optimizer profile. You also have to choose the discrete optimization method in this profile. you can define minimum and maximum lot sizes. Minimum and Maximum Lot Sizes If. You must also choose the discrete optimization method in the SNP optimizer profile and enter a discretization horizon in the PPM Execution field within the Discrete Constraints tab. You define the minimum and maximum lot size in the PPM. the optimizer takes into account setup transitions. If you want to have this integration. Integration If you have integrated SNP and PP/DS planning (the SNP PPM and PP/DS PPM are linked). setup costs. 3. 2. 1. you can run cross-period lot size planning.. and setup times that you have defined in a setup matrix. see Sequence-Dependent Lot-Size Planning. You can define the setup costs as fixed costs within the PPM cost function (choose the Maintenance pushbutton near the Cost Profile field and enter the setup costs in the Fixed costs field). If you want to perform sequence-dependent lot-size planning. the optimizer takes into account setup statuses from PP/DS. For more information. due to technical constraints for instance. For more information. The minimum lot size defined in the product master applies to all the PPMs that use this product as the header material. a minimum or maximum lot size is required for your production (for example. If setup costs are high and storage costs low. The SNP optimizer takes these settings into account for integration purposes (with PP/DS. You define the minimum lot size on the Lot Size tab page in location product master data in conjunction with the Fixed Lot Size or Lot-for-Lot lot-sizing procedure. This means that the optimizer does not take into account setup consumption and setup costs if a PP/DS order for the associated PP/DS PPM already exists in the corresponding bucket. Setup Costs The optimizer primarily uses setup and storage costs as a basis for determining optimal lot sizes and lot numbers.. You can choose one of the following two options for defining these minimum and maximum lot sizes: . for example). it will plan small lots. see Cross-Period Lot Size Planning. If the minimum lot size in the product master is larger than the minimum lot size in the .Fixed Material and Resource Consumption field of the SNP optimizer profile. at least one entire tank of active ingredient must be produced).

the optimizer takes into account the value from the product master. the PPM output quantity (the output component quantity) is the same as this fixed lot size. The maximum lot size defined in the product master has no relevance for the SNP optimizer. the SNP optimizer always sets the output quantity in the PPM to the value you entered for the fixed lot size. Lot Size Planning for Transportation Fixed Means of Transport Costs As with setup costs for production. • ○ Fixed lot size: The SNP optimizer considers the value you specified for the fixed lot size as the minimum lot size. due to technical constraints for instance. you can only produce entire tanks of active ingredient and not 1. For this. Discrete (Integer Value) Lot Sizes If. ○ Lot-for-lot: The optimizer takes into account the minimum lot size defined in the location product master as the minimum lot size. the SNP optimizer primarily uses fixed means of transport costs as a basis for determining optimal transportation lot sizes. If these costs are high. you must also choose the discrete optimization method in the SNP optimizer profile and enter a discretization horizon in the Integral PPMs field within the Discrete Constraints tab. the optimizer always plans production in integer multiples of the output component quantity. you must set the Maximum PPM Lot Size indicator from the General Constraints tab of the SNP optimizer profile. you can set the Discretization indicator in the PPM. Defining a fixed lot size or lot-for-lot in the Lot Size tab of the location product master data for integration reasons (with PP/DS. the SNP optimizer sets the output quantity in the PPM to the value you entered in the Rounding Value field (on the Lot Size tab page) of the location product master. The quantity of input components and amount of resource consumption are adjusted accordingly. • In order for the SNP optimizer to be able to take into account the minimum lot sizes defined in the PPM or location product master. In order for the optimizer to be able to consider this indicator. once every two weeks.PPM. If you do this. the optimizer is most likely to plan larger transportation lots (meaning less shipments. you can only produce integer multiples of a lot (for example.5 tanks). The optimizer also takes into account the maximum PPM lot size defined in the PPM when the linear optimization method has been chosen. you can plan with greater precision. ● Lot-for-lot: Every time the PPM is executed. for example). you must also choose the discrete optimization method in the SNP optimizer profile and enter a discretization horizon in the Minimum PPM Lot Size field within the Discrete Constraints tab. Since you can also use the lot sizes defined in the location product master when creating PP/DS orders. . Per PPM execution. for instance) has the following implications: ● Fixed lot size: Per PPM execution.

You must also choose the discrete optimization method in the SNP optimizer profile and enter a discretization horizon in the Means of Transport field within the Discrete Constraints tab. Discrete (Integer Value) Transportation Lots and Means of Transport If you only want to transport integer multiples of a transport lot size (entire pallets of a product only. Minimum and Maximum Lot Sizes You can define minimum and maximum lot sizes for transportation in the SNP lot size profile (transportation lanes). the optimizer is most likely to plan large procurement lots (meaning less procurement operations. To do this. enter a discretization horizon in the Integral Means of Transport field. by choosing the discrete optimization method in the SNP optimizer profile and by entering a discretization horizon in the Integral Transport Lots field of the Discrete Constraints tab. for example). you can define that you want the optimizer to take this into account during planning. specify a transportation cost function. In the CostFunctn field. for example). If you set the Maximum Transportation Lot Size indicator of the General Constraints tab page in the SNP optimizer profile. You can thus define minimum and maximum transportation lot sizes for specific products. You then specify this lot size profile for a particular product in the Product-Specific Means of Transport section of the transportation lane. In order for the optimizer to be able to consider the defined minimum lot size. the SNP optimizer also takes the maximum transportation lot size into account when the linear optimization method is chosen. Alternatively however. the SNP optimizer primarily uses fixed procurement costs as a basis for determining optimal lot sizes for procurement. You usually define the transportation lot size as a rounding value in the SNP lot size profile (transportation lanes). for which you have defined fixed costs.You can define these fixed means of transport costs in the Means of Transport section of the transportation lane. for example. you can define that you want the optimizer to plan means of transport only in integer values. you can set in the Maintain Global SNP Settings activity in Customizing for SNP that the optimizer is to use the rounding value defined in the destination location’s location product master as the transportation lot size. by only scheduling whole trucks for a shipment. you must choose the discrete optimization method in the SNP optimizer profile and enter a discretization horizon in the Minimum Transport Lot Size field within the Discrete Constraints tab. once every two weeks. Lot Size Planning for Procurement Fixed Procurement Costs As with setup costs for production and fixed means of transport costs for transportation. If these costs are high. Similarly. .

. Therefore. You can now model the procurement lot size constraints as transportation lot size constraints (see the section on Lot Size Planning for Transportation) See also: For more information about optimization-based planning and its execution. the SNP optimizer’s main purpose in stock planning is to keep the onhand stock between specific upper and lower bounds. Prerequisites The prerequisites for stock planning using the SNP optimizer are the same as those for general optimization-based planning: • • • • • Set Up of Planning Area Set up of Master Data for the Optimizer Creation of Model Name and Version Set Up of Supply Chain Model Release of Demand Plan to Supply Network Planning . the SNP optimizer cannot take into account minimum. You must also choose the discrete optimization method in the SNP optimizer profile and enter a discretization horizon in the Procurement Quantity field on the Discrete Constraints tab page. 1. First create your supplier as a location in your model 2. Maximum. However. holding an excessive amount of stock ties up too much capital and generates high storage costs. Create a transportation lane between the supplier and the demand location 3. In the Cost function field. maximum. see: ● ● ● ● Optimization-Based Planning Running the Optimizer in the Background Running the Optimizer from the Interactive Planning Desktop Definition of Time-Based Constraints in Interactive Planning Stock Planning Purpose Companies have stock on hand to safeguard against uncertainties and fluctuations in demand.You can define these fixed procurement costs on the Procurement tab page of the location product master. specify a procurement cost function. there is a danger that unexpected demand might arise that cannot be fulfilled.. However. and Integral Lot Sizes At present. for which you have defined fixed costs. there is a workaround for modeling these lot size constraints: . Minimum. and integer value procurement lot sizes during lot size planning. If there is insufficient on-hand stock.

However. This makes the problem feasible for the optimizer. procurement.  • Stock on hand at end of period: The optimizer calculates the storage costs by multiplying the stock on hand with the storage costs defined in the location product master. deployment. the storage costs defined in the location product master (see below). You should always define storage costs since this is how you ensure that the SNP optimizer does not plan any unnecessary production. which means you can define storage costs without creating a corresponding storage resource. Storage Costs field on the Procurement tab page of location product master data. You have to provide the optimizer with the information about the level of safety stock that is required. In the product master on the SNP1 tab page. the optimizer has an infeasible problem.Integration When planning the on-hand stock. you can use them to control where (in which locations) a product is stored. meaning that these demands do not have to be fulfilled. This option is most appropriate when receipts and issues are evenly distributed over a bucket. you define penalty costs for non-fulfillment of these demands. Storage costs are independent of storage resource consumption. demand forecast. and if so. To avoid this. • • Adhering to a Lower Bound for Stock Safety Stock Planning • • The SNP optimizer decides whether safety stock is to be created for a product in specific locations.  • • You define storage costs for a specific product at a specific location in the Prod. You can either enter this level directly in the location product master based on past . Storage costs • First. which the SNP optimizer takes into account. for example) or fixed SNP orders. This option is most appropriate when receipts and issues are unevenly distributed over a bucket. the solution provided may contain shortfall quantities. and the number of days in the bucket. you can set for the storage cost calculation whether you want the SNP optimizer to interpret the on-hand stock per bucket as the average stock on hand per bucket or as the stock on hand at the end of the bucket: • Average stock on hand: The optimizer calculates the storage costs by multiplying together the on-hand stock. If these orders involve goods issues that cannot be balanced by the optimizer within the relevant bucket (period). or corrected demand forecast. and transportation always match demand as near to the time as possible. you can specify in the SNP optimizer profile (in the Integration tab) that goods issues caused by stock transfers or planned orders are to be treated the same as the customer demand. how it is to be created. the SNP optimizer takes into account goods receipts and issues that were caused by other system application areas (PP/DS. or Transport Load Builder. Since storage costs are defined on a product-specific basis. Using storage costs helps you to ensure that production.

The optimizer uses the days’ supply planning results as a basis for creating the safety stock. If not. For relative deviation. To do this. • The optimizer considers safety stock as a soft constraint that can be violated with incurring penalty costs. In the SNP optimizer profile (on the General Constraints tab page). or define them as a time-based key figure in interactive planning (planning book 9ATSOPT for instance). For absolute deviation. you can define whether you want the optimizer to take into account safety stock at all. In order for the optimizer to take safety stock into account. • The safety stock level is not permitted to exceed the product-specific upper bound for storage defined in the location product master (the Maximum Stock Level field of the Lot Size tab page). see also Definition of Time-Based Constraints in Interactive Planning. The optimizer automatically includes the results of extended safety stock planning in a key figure. For more information. it should be ensured that there is at all times at least as much on-hand stock of a product as is required within the days’ supply horizon. Note that for safety stock methods SM and MM. the optimizer multiplies the absolute value fallen below with the penalty costs defined in the product master (per day). enter a value in the Maximum Stock Level field of the Lot Size tab page. SM. the optimizer would never plan safety stock. the SNP optimizer only considers independent requirements as well as dependent and distributed demands caused by fixed orders.experience or use extended safety stock planning to allow the system to determine it. since these demands and the demand locations are already known before the optimization run. To do this. whether you want it to use the absolute deviation value or the relative deviation value when calculating the penalty costs for falling below the safety stock level. These costs must be higher than the storage costs. you have to either define penalty costs for violating safety stock in the Safety Stock Penalty field on the Procurement tab page of the location product master. MZ. When using static days’ supply planning. The SNP optimizer takes this upper bound into account when planning if you set the Maximum Product-Specific Quantity Stored indicator of the General Constraints tab page in the SNP optimizer profile. Days’ Supply Planning You can also use safety stock for static days’ supply planning with the SNP optimizer. see Safety Stock Planning. the optimizer multiplies the percentage fallen below with the penalty costs defined in the product master (per day). The optimizer considers the . and if so. define a safety stock method for the appropriate product on the Lot Size tab page in the location product master (SZ. Adhering to an Upper Bound for Stock Static Upper Bound for Stock You can define a product-specific stock upper bound for a location product in the location product master data. or MM) and enter either a safety days’ supply that is not period-dependent in the location product master or a safety days’ supply that is period-dependent in the interactive planning table.

To do this. In product master data. you are specifying that you do not want any goods receipts to be planned for the demand that exists in the week before this horizon. In order for the SNP optimizer to be able to take into account the product’s shelf life that you defined in the product master. if you enter a shelf life horizon of a week. if a larger product quantity has to be stored than the quantity to be used in the bucket. which you set yourself in the accompanying field. which means that you cannot set them in master data. Product Shelf Life The SNP optimizer can also take into account the shelf life of a product but in a restricted way. go to the General Constraints tab and select the Continue Using Expired Product radio button. Dynamic Upper Bound for Stock You can use the shelf life functionality to define a dynamic stock upper bound for optimization-based planning. These penalty costs are assigned by the optimizer. the optimizer does not use the procurement costs of the location product to calculate penalty costs (the default setting) but instead uses penalty costs that are not product-dependent.upper bound for stock as a soft constraint. meaning that it can be violated subject to the calculation of penalty costs. The SNP optimizer takes this upper bound into account when planning if you set the Storage Capacity indicator on the General Constraints tab page in the SNP optimizer profile (see also. Finite Capacity Planning). However. the optimizer considers the surplus as quantities that are to be disposed of as waste and calculates corresponding penalty costs. but calculates penalty costs for doing so. Key figure Use Penalty Costs. You can specify a multi-product stock upper bound by defining the available capacity of a storage resource in the resource master data. At no point in time does it try to plan more on-hand stock of this product than is required in the corresponding bucket. see Definition of Time-Based Constraints in Interactive Planning. if you set the Plng with Shelf Life indicator of the Attributes tab page and enter a horizon in the associated Shelf Life field. You can also define a time-based upper bound for stock in interactive Supply Network Planning. If you do this. the optimizer ensures when planning that at no time is there more stock on hand than required in the specified horizon. you must set shelf life as a soft constraint in the SNP optimizer profile. . For example. which means that no stock should be kept on hand for longer than a week prior to the demand. We also recommend that you set the Product-Indep. For more information about this. The optimizer then plans to continue using products that have passed their expiration date.

choose Supply Network Planning → Environment → Current Settings → Profiles from the SAP Easy Access screen. the optimizer would be able to continue using a product that. see: • • • Optimization-Based Planning Execute Optimizer in the Background Execute Optimizer in Interactive Planning Optimization Profiles Use The following table describes the profiles used by the SNP optimizer. This means that if a product is transported from one location to another. Key figure Use Penalty Costs. the system does not transfer this shelf life to the subsequent pills containing this ingredient or their packaging. For example. As with production.We do not recommend that you set the Product-Indep. . which means for instance that the shelf life of an input component has no effect on the shelf life of an output component. in the SNP optimizer profile. the product shelf life defined in the product master is not passed onto multiple locations during transportation. For more information. see the Implementation Guide (IMG) or the field-level help (F1 help). Then. The product shelf life defined in the product master data is not passed onto all the manufacturing levels. You can also define the profiles in the Customizing for Supply Network Planning (SNP). for example). needed disposing as waste. if you define the shelf life of an active ingredient. In this instance. To access each profile individually. products lose their shelf life upon return arrival. define shelf life as a hard constraint by selecting the Dispose of Expired Product radio button on the General Constraints tab page. Constraints • When creating orders at the end of the optimization run. in fact. first set the Plng with Shelf Life indicator of the Attributes tab page in the product master data (as previously mentioned) and enter a horizon in the associated Shelf Life field. This means that the sum from both quantities is displayed as the planning results (in interactive planning. • • The consequence of this is that when there are cycles in the distribution network (transporting a product from one location through another and then back to the start location). See also: For more information about optimization-based planning and its execution. the shelf life horizon starts anew.For this. the optimizer calculates the costs for procuring the location product (defined in the product master) as penalty costs. the system does not distinguish between the quantities the optimizer considers as waste and the other planned quantities. In this case.

and the server SNP cost profile SNP lot size profile (transportation lanes) SNP optimization bound profile SNP penalty cost group profile SNP priority profile SNP planning profile Parallel processing profile . you assign a weighting to different cost elements in the objective function (thus determining how the costs relate to one another). you can make basic settings for the various SNP planning procedures. you can change the sequence in which the optimizer groups and plans products and resources in partial problems. To enable the optimizer to take into account the minimum lot sizes and rounding values defined. you can overwrite the settings of the active profile by entering another SNP planning profile during execution of planning in the background. The SNP planning profile that you activate in the SNP Customizing under Maintain Global SNP Settings applies globally for all SNP planning procedures. You then specify this profile for one specific product in the Product-Specific Means of Transport section of the transportation lane. For some planning procedures. the number of objects per processing block. deployment heuristic. such as heuristic. For more information. For example. We recommend that you only change the standard settings for test purposes when modeling. you should not change the default setting of 1. deployment optimizer. In this profile. you have to choose the discrete optimization method in the SNP optimizer profile. If you wish to make shipments in integer multiples of a transportation lot size only. optimizer. that is. see Decomposition. you choose which optimization method you want to use during the optimization run (linear optimization or discrete optimization) and which constraints you want the system to take into account. To avoid undesired side-effects. For more information. In this profile. you can permit smaller deviations at the start of the planning horizon and then increase these towards the end of the horizon to avoid too many last-minute planning changes. you can also choose earlier runs. and Transport Load Builder (TLB). You can specify the number of concurrent parallel processes. You use this profile to define how background jobs are divided in parallel processes. see Prioritization of Customer Demands and Demands with High Volume. You can thus define minimum and maximum transportation lot sizes for specific products.0 in the production system if possible. In this profile. You use this profile to define that certain customer demands are to be prioritized during optimization. You can use the SNP priority profile to define priorities for product decomposition and resource decomposition . If you want to perform a new planning run after an SNP optimizer planning run. This setting corresponds to the costs entered in cost maintenance. you can also define the transportation lot size as a rounding value in this profile. Your new plan does not have to be based on the directly preceding optimization run. you define minimum and maximum lot sizes for the shipment.Profile SNP optimizer profile Used in Optimization Planning Run In this profile. you use this profile to improve planning stability by restricting possible decision variable deviations from the previous optimization plan.

Resource decomposition speeds up the solution process by analyzing the material flow and basic optimizer decisions about production. you define the profile for one specific application function. • • Time decomposition speeds up the solution process by dividing the source problem into a series of partial problems. in fact. You can use time decomposition as well as product decomposition in conjunction with the linear and discrete optimization methods. the SNP cost profile. The optimizer makes decisions in every sub-problem that cause the resource to be loaded. using decomposition could assist the optimizer to find a better or. and resource decomposition. feasible solution. product decomposition. Features Decomposition Methods The following decomposition methods are available: Time decomposition. Decomposition may also represent the only way for the SNP optimizer to find a feasible solution in the event of large discrete problems. the less time it will take the system to find a solution. Decomposition Use Using the decomposition methods can reduce optimization runtime and memory requirements in Supply Network Planning (SNP). however.Profile Used in Optimization Planning Run group. when a fixed runtime has been specified. procurement. Product decomposition speeds up the solution process by forming product groups. If you would like to . The rule of thumb is as follows: The smaller the window size. and transportation to determine a resource sequence. the better the quality of the solution found. It is only advisable to use resource decomposition in conjunction with discrete optimization. Decomposition is a flexible tool for balancing the tradeoff between optimization quality and required runtime. When runtime is unrestricted. The system then solves these partial problems sequentially. In each case. but the larger the window size. such as the SNP optimizer. which are solved in sequence. The system solves the complete model for one product group at a time according to the window size selected. the SNP optimizer usually provides a better (optimal) solution without decomposition. Resource decomposition does not reduce memory requirements. • It is particularly advisable to use resource decomposition if the production processes always load the resources in a similar sequence. You can also maintain the SNP optimizer profile. and the SNP optimization bound profile in the interactive planning desktop of Supply Network Planning. The optimizer can then create sub-problems for the individual resources.

the partial problem takes on the priority of the product with the highest priority (that is. the system plans the products with the highest priority first. due to prioritization. you can reverse the standard order that the system uses to plan the assembly and then the end products. you could use time decomposition alongside this decomposition method. If you select a larger window size. SNP Priority Profile You can use the SNP priority profile to define priorities for product and resource decomposition. or you can plan important resources that must be utilized for cost reasons first. that is. In this way. the planning sequence is generally predetermined by the production process models (PPMs) or production data structures (PDSs). you can change it by assigning priorities to resources. so no overlapping occurs. since the partial problems are very small (0% = separate planning). the optimizer plans products with the same priority together in one partial problem (99% = planning together in one partial problem). control the sequence for planning. the optimizer no longer exclusively considers the defined costs when covering demand. The system plans partial problems with different priorities separately. The product decomposition then tries to improve upon the results of the resource decomposition. due to product dependencies. the system carries out the resource decomposition first. You can use the priority profile to assign priorities for important products and. Note that. the sequence of planning is normally based on the costs for non-delivery and the total demand quantity of the product. The following rules apply: • The system groups the products into partial problems according to their priorities and their dependencies defined in the bill of materials. If many products have the same or no priority. For product decomposition. or if you want another sequence. the priority with the lowest number). If the sequence is not clear.. Instead.reduce memory requirements. You cannot use resource decomposition in conjunction with strict prioritization If you want to use product and resource decomposition together. which you can specify for the decomposition methods in the SNP optimizer profile. For resource decomposition.. you can change the sequence in which the optimizer groups and plans products and resources in partial problems. If you select a small window size. If a partial problem contains products with different priorities. • • For product decomposition. you can also control division into partial problems using window size. division into partial problems and the sequence of planning are also based on the costs of non-delivery and the product quantity. Activities . The system only considers costs when solving the individual partial problems. . thus. the optimizer plans products with the same priority separately.

For detailed information. • • • • • 1. we also recommend that you use the same time zone for both the location and the planning calendar or for the location and the resource. If necessary. you have to set the Local Time Zone indicator in Model and Version Management. Use this information as a checklist before you run the optimizer to make sure you have maintained all the master data for your supply chain model.. see the SAP APO master data documentation. When using local time zones. specify a priority profile in the current settings of SNP. Field ● ● ● ● Base Unit of Measure Gross Weight and Unit Volume and Unit Shelf Life Tab Page/Screen Header data Attributes Units of Measure Define a conversion from the volume unit into the base unit of measure (based on the unit of measure of the planning area) .1. we recommend that you use the UTC time zone. Configuring Master Data for the Optimizer Purpose This section lists all the master data that must be created to successfully run the optimizer in Supply Network Planning. select SNP Optimizer Profile in the SNP Customizing or in the current settings. It also lists all the required entry fields and other data that the optimizer takes into account. under Define SNP Priority Profiles. 2. You specify a decomposition method in the SNP optimizer profile. and then select the Solution Methods tab page. You create products. and assign it to the decomposition methods on the Solution Methods tab page. For more information.... ○ ○ ○ ○ ○ Location type Storage resource Handling resource Calendar Time zone . You create locations (that are not product-dependent). To do this. If you do not set this indicator. see the field-level help (F1 help). If you want to work with local time zones. Process . 2. 1.

the optimizer uses the Volume specified on theAttributes tab page as the default value. Note however that bucket-oriented block planning is possible in PP/DS in conjunction with SNP only if you are using different resources for block planning in PP/DS and Supply Network Planning.SNP 1 For customer demand. . Location-dependent penalty costs are also available. You can specify in the SNP optimizer profile on the Integration tab page whether the horizons are to be taken into account or not. You ensure this by setting the Not SNP-Relevnt indicator for the resource used in PP/DS. the optimizer uses the Volumespecified on the Attributes tab page as the default value. demand forecast. and the corrected demand forecast. You have the option of creating the following resource types for Supply Network Planning: • • • • ○ ○ ○ ○ Single-mixed resource Multimixed resource Bucket resources Transportation resource Use single-mixed resources or multimixed resources if the resources are to be used for both Supply Network Planning and Production Planning and Detailed Scheduling (PP/DS). A bucket resource can only be used for SNP. We recommend that you create mixed resources if possible.if not specified. GR/GI ● ● 3. SNP 2 Procurement ● ● ● ● ● ● Procurement type Planned delivery time (with external procurement) Cost function (with external procurement) Procurement costs Production storage costs Penalty costs for shortfall of safety stock Handling capacity consumption . ● No delivery penalty ● Delay penalty ● Maximum lateness ● SNP production horizon ● SNP stock transfer horizon ● SNP forecast horizon The first two horizons are also relevant if you are using Production Planning and Detailed Scheduling (PP/DS). Storage consumption . You create resources.if not specified.

you must enter the following additional data: ● Period type ● Number of periods ● Bucket capacity ● Utilization rate for bucket-oriented capacity (%) You can use the Available Bucket Capacity button to display the defined available bucket capacity for the individual buckets. For more information about this.To create transportation resources. use the same procedure as for creating bucket resources. Below is a list of the data that must be defined for optimization-based planning in SNP. You can also still define an available capacity profile and capacity variants.) here. see theCapacity variants button section below).set this indicator if you want to run SNP optimizer cross-period lot size planning on this resource. see the SAP APO master data documentation. for example. Planning Parameters Bucket Resources Tab Page/Screen Field . the PP/DS available capacity is used to generate the available bucket. You can also define a loss factor (for maintenance or setup times. If you choose Maintain Buckets. Single-Mixed Resources/Multimixed Resources Tab Page/Screen Standard Capacity Field You must define the available bucket capacity: ● Buckets – If you choose Buckets from Conti. and change the periodicity and capacity of individual buckets.. Cross-period lot sizes (only valid for single-mixed resources!) . You can define costs for the SNP optimizer in the capacity profile or in the quantity/rate definition for the individual capacity variants (for details. For more information about creating resources. see the resource section in the SAP APO master data documentation.

if this has not been defined. Day -/Day + .Activate this indicator if you want to run an SNP optimizer cross-period lot size planning on this resource. Period type Number of periods Bucket capacity Utilization rate for bucket-oriented capacity (%) Capacity variant Valid from/to Capacity utilization Qty/rate definition Planning Parameters ● ● ● ● Standard Capacity ● ● ● ● ● ● ● ● Capacity Variants Button .General Data ● ● ● ● ● ● ● Resource Resource category Location – when you define a location. the system refers to the time zone from the location master data. If you have defined multiple capacity variants. During the capacity check in interactive planning.The resource capacity’s validity period Capacity overload (%) Minimum load (%) Cross-period lot size planning . the normal capacity variant. For more information. you should specify the maximum capacity variant as the active variant or. the system considers the active variant. otherwise you have to enter the time zone. see the explanation of theCapacity Variants button. Time zone Planner Factory calendar Active variant – information about the active variant of a resource is required forliveCache purposes only.

The optimizer considers the entries within this field when calculating the available capacity of the capacity variant but always uses the factory calendar for planning. You define the status indicator globally for all resources that have been assigned with the capacity variant.You can define multiple capacity variants and use a status indicator to label the available capacity of this variant as normal capacity. if this has not been defined. If the normal capacity is below the minimum capacity. You can define costs for using the normal or maximum capacity and for falling below the minimum capacity in the quantity/rate definition or the capacity profile of the resource. the SNP optimizer only takes into account the minimum available capacity and the costs you defined for a capacity variant with the statusNormal Capacity for production resources. or minimum capacity. The default value is a maximum capacity (blank field). the system uses the normal capacity as the maximum capacity. the normal capacity variant. the system uses the normal capacity as the minimum capacity. If the normal capacity exceeds the maximum capacity. If you have defined multiple capacity variants with the same status. From the resource initial screen. The SNP optimizer does not consider theWorkdays field for planning. We recommend that on the General Data tab page you always define the maximum capacity variant as the active variant or. choose Current Settings → Capacity Variants. However. maximum capacity. The SNP optimizer then takes these costs into account during planning. the system uses the smallest numbered variant. The system includes the default available capacity for periods for which you have not created a capacity variant. .

5.Each operation can also contain only one activity. The optimizer only takes into account costs you define for a capacity variant with status Normal Capacity if the resource is a production resource. You assign resources to locations in the location master data. For more information. ● Qty/rate definition (name) ● Valid to ● Planner ● Number of periods ● Period type ● Bucket capacity ● Unit ● Costs – You define costs for falling below a minimum capacity or for using a normal or maximum capacity (you define costs for a capacity variant that you assign with statusMinimum Capacity. ● Activity number ● Description (of activity) ● Activity category ● Scrap % .the Quantities/Rates Tab Page You use the Qty/Rate Definition to define the available capacity for the capacity variant. Normal Capacity. Field ● ● ● ● ● ● ● Plan number Use of a plan: S (for SNP) Description of PPM Single level costs Cost function (cost profile) Operation Description (of operation) Tab Page/Screen Initial screen Operations Activities In Supply Network Planning.) 4.Definitions Button . each activity must be at least one day long or a multiple of one day. You create PPMs. or blank ( = maximum capacity). see the Capacity Variants Button section above.

Components ● ● ● ● ● ● ● ● ● ● ● ● ● Product Input/output indicator From date To date Unit of measurement Material consumption (variable) Time-dependent data Mode . but required only if resources are connected to this PPM) Unit of measure (required only if resources are connected to this PPM) Calendar resource (for the entire PPM) Variable and fixed bucket consumption (required only if resources are connected to this PPM) Time-dependent data Operation name Activity number PPM and description Validity (date/time) Location Discretization Bucket offset Minimum and maximum lot size Modes Resources ● ● ● ● ● Activity relationships .you can specify only one mode per activity Unit of measure (must be Day) Duration (fixed) Primary resource (required only if resources are connected to this PPM) Location (required only if resources are connected to this PPM) Resource consumption (rate) and unit (required only if resources are connected to this PPM) Resource (can enter several. before you can perform any planning runs. including the creation and maintenance of transportation lanes. you must set up the supply chain model in the Supply Chain Engineer. See also: The SAP APO master data documentation .Predecessor/successor Tab Pages Product plan assignment button ● ● ● ● ● ● ● ● Results After you have configured the master data.

If required.. 7. and production costs without overloading resources.). You can choose either all the location products displayed (choose Select all). transportation costs. 6. 1.For example. Select the location products to be planned. From the dropdown box in the first sort statement (Show. 4. In addition. or place your cursor on a location product and choose the Load data icon. 2. clicking and holding down the left mouse button while dragging the cursor until all desired ... or particular location products by placing your cursor on a location product.You then choose the location products you want to be used in the optimization run from here. Choose to display the shuffler. 5. Prerequisites ● ● ● ● ● ● You have set up the planning area and planning book Master Data Setup for the Optimizer You have maintained optimization profiles Model/Version Creation Supply Chain Model Setup Release of the Demand Plan to SNP Procedure .). limit the range of location products to be planned by making selections from the dropdown boxes under the second sort statement (that fulfill the following conditions. you can perform a consistency check for this data by choosing Check Entry.. you can choose different planning versions. The Planning Book: SNP Interactive Planning / SNP Plan (Live) screen appears. storage costs. The location products are now displayed in the selector.. Choose . Double-click on a location product to display the current situation in the workspace to the right of the selector.Supply Chain Model Setup Running the Optimizer from the Interactive Planning Desktop Use The optimizer proposes a plan for multiple products simultaneously based on the minimum procurement costs. 3. Select Advanced Planning and Optimization → Supply Network Planning → Planning → Interactive Supply Network Planning from the SAP Easy Access screen. choose: APO location product.. You can also choose specific location products to be used by choosing the icon to the right of this dropdown box.

If you create your own planning books and wish to use the optimizer in interactive planning. Choose to start the optimization run. If you select an optimization run in the left-hand screen area. optimization bound profiles. 10. to call the optimizer. 12. Choose the Messages tab page to view messages about the previous optimization runs. You do this in the Design mode of the interactive planning desktop. The individual steps of the optimization process are displayed in the Status area during the optimization run and information about intermediary solutions is displayed in the Solution Run area. you must specify that you want this icon to be displayed.) 11. and . in certain circumstances. You usually use the SNP optimizer profile to specify which constraints you want the optimizer to consider during the optimization run. it might be necessary to define constraints that are time-based. See also: Application Logs for Optimizers Definition of Time-Based Constraints in Interactive Planning Use A number of constraints are taken into account during the SNP optimization run. You can also display the products that were selected for this optimization run by choosing . However. for example. or results in a text file for example. for example. you choose one of your predefined SNP optimizer profiles. From there.location products have been highlighted (alternatively. you branch to the maintenance screens for the profiles to make changes to existing profiles. On the Optimization tab page in the SNP Optimizer window. The SNP Optimizer window appears. By choosing the icons . The current solution resulting costs determined by the optimizer are displayed in the Current Solution area of the Optimization tab page. Choose to branch to the Supply Network Planning: Optimizer log file screen. input log. The Optimizer icon is displayed on the interactive desktop automatically if you are using the standard SNP planning book SNP94. use the Shift and Arrow keys on your keyboard). including capacity constraints that have been defined for resources. the data corresponding to that solution appears in the left-hand area. . If you select a solution in the right-hand screen area. you can decide which type/form of log to display (the message log. the messages corresponding to that optimization run appear in the right-hand area. In addition to this. and penalty cost group profiles. Choose Optimizer. messages about the current optimization run are displayed in the Messages area. if a supplier . 9. 8. cost profiles. Choose the Solutions tab page to view information about the previous optimization runs. However.

activate or deactivate the Consider Upper Bounds for Stock as a Soft Constraint indicator). Features Upper Bounds for External Procurement. These upper bounds are then taken into account by the system when you perform an SNP optimization run. You can define these penalty costs in a time-based key figure in planning book 9ATSOPT. There is another timebased key figure in planning book 9ATSOPT that you use to define penalty costs for falling below the safety stock level.10. you cannot define any time-based lower bounds because this could prevent the optimizer from finding a feasible solution. transportation. It is always a soft constraint for the optimizer. Stock on Hand. and Transportation ● In the data view OPT_TSBD in the standard SNP planning book 9ATSOPT. you can specify whether you want the optimizer to consider the upper bounds for stock as a soft constraint or a pseudo-hard constraint (on the Extended Settings tab page. and Transportation Upper Bound that you can use in addition to the standard functions of interactive SNP planning. ● In the SNP optimizer profile. You use a SAP GUI as of version 7. there is a table in the lower part of the screen containing the four key figures Procurement Upper Bound. You can define these time-based constraints in interactive planning. You can set the following bounds: ● ● ● ● ● An upper bound for external procurement (at product-location level) An upper bound for stock on hand (at product-location level) An upper bound for production (at product-PPM/PDS level) An upper bound for transportation (at product-transportation lane level) An upper bound and a lower bound for total receipts (at product-location level) Prerequisites The following prerequisites must be met for considering time-based constraints: ● ● You have not set the Ignore Time-Based Constraints indicator in the SNP optimizer profile. The safety stock is the lower bound that can be defined on a time basis for stock on hand. You define the upper bounds for external procurement and stock on hand at location product level. which means that the optimizer only violates this type of constraint if it cannot find any other feasible solution. Stock Upper Bound. The optimizer can violate soft constraints by calculating penalty costs. you can see in interactive SNP planning whether or not you have entered 0 in a key figure. In this case. This is particularly useful for the receipt upper bound. ● You can use the Display Dependent Objects function to define the upper limit for production for specific production process models (PPMs) or production data structures (PDS) and the upper limit for transportation for specific transportation lanes. and production. Production Upper Bound. You can define upper bounds for the individual key figures in specific periods. production. For external procurement. and transportation are considered by the optimizer as pseudo-hard constraints. .provides varying quantities of a product from bucket to bucket. Production. Pseudo-hard constraints can be violated but only by calculating infinitely high penalty costs. ● The three upper bounds for external procurement.

Only the relevant upper bounds are displayed on screen, based on your selection. Thus, if you choose a location product, only the upper bounds for external procurement and stock on hand are displayed. Note that when entering the upper bound for production, you do not enter the production quantity, instead enter the number of times the PPM or the PDS concerned is to be executed. To do this, you set how often you want PPM execution to be started within a period. The duration of the PPM or the PDS then determines the period in which product quantities are available. For example, if you want to define a quantity of 30 pieces as the upper bound on the third workday and the associated PPM or PDS produces 10 pieces each time it is executed (taking 3 days), on the first workday you have to specify that you want the PPM or the PDS to be executed for a maximum of three times - and therefore enter 3 as the value for the first workday.
● In an additional key figure for the individual upper bounds, you can show that an upper bound value of 0 is to be interpreted as an actual upper bound by specifying not equal to 0. Otherwise, a value of 0 signifies that there is no upper bound.

Upper Bound and Lower Bound for Total Receipts In the data view OPT_TSRCBD, a table with key figures is available that you can use to define receipt upper bounds and receipt lower bounds. Both of these bounds are soft constraints for the optimizer. In two additional key figures, you can define the penalty costs for falling short of the receipt lower bound and for exceeding the receipt upper bound. Deactivation of Consideration of Time-Based Constraints You can specify in the SNP optimizer profile that you would like the system to ignore the time-based constraints in the optimization run (by going to the Extended Settings tab page and setting the Ignore Time-Based Constraints indicator). This can be a good idea if you want to use an SNP optimization bound profile for the optimization run, for example. If you use time-based constraints in conjunction with the bounds from the optimization bound profile, the constraints might cancel each other out. If this occurs, the optimizer will not be able to find a feasible solution. However, if you do use the SNP optimization bound profile in conjunction with the time-based constraints, the optimizer takes into account the smaller of the upper bound values that have been defined. Note that you can also define lower bounds in the optimization bound profile. If the lower bound defined here is higher than the upper bound defined in interactive planning, the optimizer will not be able to find a feasible solution. Mass Maintenance of Key Figures You can also define values for key figures using mass processing. To do this, choose the function Mass Maintenance of Time Series Key Figures (on the SAP Easy

Access screen, choose Advanced Planning and Optimization → Supply Network Planning → Environment → Mass Maintenance of Time Series Key Figures).

Activities
...

1. On the SAP Easy Access screen, choose Supply Network Planning →Planning → Interactive Supply Network Planning (all Books). Choose the planning book 9ATSOPT in the planning area and the relevant data view. 2. Define the time-based upper and lower bounds as well as the relevant penalty costs in the planning tables. 3. Run the SNP optimizer in interactive Supply Network Planning or in the background. For more information, see running the optimizer from the interactive planning desktop and running the optimizer in the background.

Running the Optimizer in the Background
Use
The optimizer proposes a plan for multiple products simultaneously based on the minimum procurement costs, storage costs, transportation costs, and production costs without overloading resources.

Prerequisites
● ● ● ● ● ● ● You have set up the planning area and planning book You have set up the master data for the optimizer You have maintained optimization profiles You have You have created a model name and version set up the supply chain model

You have released the demand plan to Supply Network Planning You have locked any inbound or outbound queues in the ERP system during the time of the optimization run:

○ If you cannot rule out that data will be transferred from an ERP system to the SAP SCM system (or from SAP SCM to ERP) using the Core Interface (CIF) during the optimization run, you can lock inbound or outbound queues in the ERP system from the SAP SCM system. This should prevent plan inconsistencies due to transaction data that is transferred from the ERP system to SAP SCM during the optimization run, which the optimizer then ignores. During the CIF transfer, you can also prevent planning objects from being locked for CIF or the optimizer. ○ To lock outbound queues, you can use the /SAPAPO/CIFSTOPQUEUES and /SAPAPO/CIFSTARTQUEUES reports in SAP SCM. Reports RSTRFCI1 and

RSTRFCI3 are available for locking inbound queues (see also, OSS note 487261).

Procedure
...

1. From the SAP Easy Access screen, choose Advanced Planning and Optimization ® Supply Network Planning → Planning → Supply Network Planning in the Background → Supply Network Optimization. 2. Enter the planning book and data view. 3. Enter an SNP planning profile that you may have defined in Customizing for SNP. This contains basis settings for the SNP planning procedures. If you do not specify a profile, the system uses the default profile activated in Customizing. 4. Enter a parallel processing profile that you may have defined in Customizing for SNP. This determines how the background jobs are divided into parallel processes. 5. Enter a selection profile in which you stored your selections in interactive Supply Network Planning or manually select data for planning. To enter data manually, follow this procedure:

2. ... 1. 2. a. Enter the planning version. b. Enter the products and locations you wish to plan. If you intend to plan all the products and locations of the planning version, you can leave these fields blank.

6. If you also want to plan all the products of a supersession chain as part of product interchangeability in SNP, make the relevant setting. For more information, see Product Interchangeability in Supply Network Planning. 7. In the Source Determination field, select the level of a source of supply hierarchy at which you want the system to consider sources of supply for in-house production. The default value is All Levels.

You can use this field in the planning with aggregated resources process, for example.
8. Specify the start and end date that you want the system to consider for planning. This entry is optional. If you do not enter a start and end date, the system uses the planning buckets profile that was specified in the data view. 9. Enter the name of the optimizer profile that you want to use for this optimization run. 10. Enter the name of the cost profile that you want to use for this optimization run. 11. Enter the identifier for the optimization bound profile you want to use for this optimization run. This entry is optional. 12. If you want to prioritize customer demands during optimization, specify a penalty cost group profile. For more information, see Prioritization of Customer Demands and Demands with High Volume. 13. If required, set the Modify Quota Arrangements indicator.

The results of the optimization run can be used to calculate quota arrangements for use in the heuristic (inbound quota arrangements) and the deployment heuristic (outbound quota arrangements). If you set the Modify Quota Arrangements indicator, the system automatically creates optimal quota

You should use this feature with caution since there is no back-up of the original quota arrangements. you can display the results in interactive SNP planning (Supply Network Planning → Planning →Interactive Supply Network Planning). you access the results by choosing Supply Network Planning →Reporting → Optimizer Log Data. If you define a subset of the model for the optimization run (for example. which means that you do not need to maintain them manually in the Supply Chain Engineer.Alternatively. You can provide the optimizer with the costs for planning by specifying your actual costs such as production and transportation costs in the system. We recommend that you either optimize for the whole model or check the quota arrangements for the remaining locations and manually change them if necessary. Results At the end of the optimization run. you can specify the horizon within which the system is to modify and create quota arrangements. The optimizer selects the plan with the lowest total costs from all the permitted production and distribution plans. Choose Execute. Outbound. Only use this function if the planning situation for the optimization run can be viewed as a representative planning situation and the overall planning environment is fairly stable. some of the locations). outbound quota arrangements. If you leave these fields blank. 14. This means that the optimizer also makes business decisions based on the costs involved for covering a demand at a certain point in time. See Also Application Logs for Optimizers Automatic Cost Generation Use Costs play an essential role for optimization-based planning in Supply Network Planning (SNP). You can also specify the smallest period size for which the system is to modify and create quota arrangements. for example. then the quota arrangements will only be changed for the locations that are part of the subset. and Both indicators to set whether the optimizer is to modify and create inbound quota arrangements. In the Start Date for Modification and End Date for Modification fields. the system modifies quota arrangements over the entire planning horizon. You use the Inbound. You can also define . Otherwise the results of optimization will not lead to adequate quota arrangements. The quota arrangements for the other locations remain unchanged. These options can help you to improve performance.arrangements. or both.

Thesystem generates these costs automatically based on the business goals you have defined. the cost model). Product-specific transportation costs Procurement costs Penalty costs for shortfall of safety stock Penalty costs for non-delivery Penalty costs for late delivery In order for the system to be able to calculate the costs for a late delivery. however. you can use this function to quickly and easily create an optimizationbased production plan. however. shipment. You can also define the following goals: • • Consideration of demand and product priorities Consideration of procurement priorities In addition. For the planner. that is. you can easily generate all the control costs relevant to the optimizer (that is. The system requires the main goal to be the maximization of the service level. To create a finite (capacity-based) production plan. They remain unchanged in the system even after cost generation. . you must define a maximum delay in the product master data on the SNP 1 tab page.control costs that are in accordance with your business goals. Features Generating the Cost Model The system generates the following control costs: • • • • • • • Storage costs Production costs. the system does not consider the cost profile for weighting costs that you can define for optimization-based planning. With the automatic cost generation function. you only have to make a few additional settings (such as the consideration of capacities). The system ignores all the costs you may have defined in the master data. The system does not generate the following costs. procurement) Costs for means of transport Costs for the use of the available capacity of resources (costs for using the normal and maximum available capacities or for falling short of the minimum available capacity) In addition. because it would require additional information from the planner or because the costs are only relevant to complex scenarios: • • • Cost functions (production. the conversion of business goals into control costs is not easy. costs of the production model (PPM) or of the production data structure (PDS).

The system defines the costs such that undesired effects do not arise. If. Definition of the Business Goals The system calculates the costs based on the business goals you have defined. the transportation costs increase proportionally to the shipment length and the product value increases with the depth of production. The costs are. Execute an SNP or deployment optimization run. The system does not support a combination of these two cost models (for example. 4. • • The model is stable. For further information see Definition of the Business Goals. The system cannot guarantee this model property. Actions S 1. you want to create a finite (capacity-based) plan. Set the Automatic Cost Generation indicator in the SNP or deployment optimizer profile. The system automatically uses the value 1 for the value of raw products (products without input products). The model is coherent. For more information. for example. see Running the Optimizer in the Background. Define your goals for optimization-based planning as described. Running the Optimizer from the Interactive Planning Desktop. independent of period length and transaction data.Properties of the Generated Cost Model The system ensures the following properties of the generated cost model: • The model has no anomalies. or Running Deployment Optimization. because the first two properties have higher priority and it is not always possible to guarantee all three. The generated cost model is independent from the costs defined in the master data (except for possible consideration of storage costs). for example. 2. completion of the master data cost model). If you want the system to base the calculation of the product value on the actual storage costs. For example. you can make this setting in the SNP or deployment optimizer profiles on the Automatic Cost Generation tab page. . 3. such as: • • •  Not covering a demand due to too low penalties costs for non-delivery Planning a shipment due to too low costs at the destination location Planning a shipment to save storage costs   The system also covers the demands as timely as possible. set the corresponding indicator for the consideration of capacity restrictions on the General Restrictions tab page of the SNP or deployment optimizer profile.

see Application Logs for Optimizers. and C products. The main goal of planning is to maximize the service level. You can also define the following additional goals: • • Consideration of demand and product priorities Consideration of procurement priorities You define these goals in the SNP or deployment optimizer profile on the Automatic Cost Generation tab page. first define your business goals for planning. Definition of the Business Goals Use If you want to create an optimization-based production plan with the automatic cost generation function. In addition. The system considers the product priority in combination with the demand priority. Display the application log that is in the Results Log section and contains information about the generated costs. To simplify this combination of both priority types. For more information about optimization logs. You can define which priority is more important and is to be considered by the system first.5. based on which the optimizer makes planning decisions. Features Consideration of demand and product priorities You can define priorities for three different priority classes of the demand and the safety stock: • • • • Customer demand Corrected demand forecast Demand forecast Safety stock The standard setting is that all priority classes and the safety stock have the same priority. You can enter this priority in the master data of the location product on the SNP 2 tab page. you can define that the system also considers the priority of products. B. . The system then uses these goals to automatically generate the corresponding control costs. you must also subdivide the product priorities into three classes of A.

it may not be able to follow this principle in this period. and so on. the system covers all the demand with priority class 1 (such as customer demand) for all location products first. If the product priority is more important. If the system has to switch to an earlier or later period. It then covers all the demand with priority class 2. the system covers all the demand of all priority classes for the location products with class A first. then all the demand for the location products with class B.The following figure shows exactly how the system proceeds if the demand priority is more important than the product priority or vice versa: If the demand priority is more important than the product priority. The procurement priority of sources of supply for inhouse production is always more important than the priority of sources of supply for external procurement (same as the SNP heuristic procedure). . Consideration of procurement priorities You can define that the system considers the procurement priorities of production process models (PPMs) or production data structures (PDS) as well as transportation lanes. and so on. Only after this does it try to cover the demand with receipts from sources of supply from an earlier period. You define this priority in the master data of the PPMs/PDS and transportation lanes (specific to the product). The system always tries to first cover all the demand of a period with receipts from all the sources of supply available in this period (in the sequence of the procurement priority of these sources of supply).

To call the function. you can influence the prioritization of demands by assigning correspondingly high penalty costs for non-delivery or delay to the customer demands and to the demands with high volume. If you want to create a profit-oriented plan that considers .Costs Maintenance Use Costs play an essential role for optimization-based planning in Supply Network Planning (SNP). on the SAP Easy Access screen. Features You can define the following costs: • • • • • • • • • Production costs Storage costs Handling costs Transportation costs Procurement costs Costs for late delivery Costs for non-delivery Costs for using the available capacity of resources Cost functions See Also Master Data Setup for the Optimizer Master Data Setup for the Deployment Optimizer Automatic Cost Generation Application Examples for the SNP Optimizer Prioritization of Customer Demands and Demands with High Volume Use During optimization-based planning in Supply Network Planning (SNP). that demands from important customers or from customers with a high service level are covered by the SNP optimizer first. for example. choose Advanced Planning and Optimization →Master Data → Application-Specific Master Data→ Supply Network Planning → Maintain Costs(Directory) or Maintain Costs (Table). The optimizer selects the plan with the lowest total costs from all the permitted production plans. In this way. you can prioritize customer demands and demands with high volume. you can ensure. The master data is then automatically updated for the selected planning version. Use this function to define all costs used by the optimizer and assigned to the master data from a single point of access. These demands are then prioritized by the SNP optimizer. Since the SNP optimizer searches on the basis of costs for the solution with the lowest costs.

The upper bound is defined by the lower bound of the next interval. . If you specify the actual prices as the penalty costs for non-delivery. choose Business-Add-Ins (BAdIs) → Release SNP/DP → Change Data During Release to SNP or R/3. For more information. Changes to the profile are valid for the next SNP optimization run. You can use penalty cost groups to group demands so that you can assign penalty costs to them. Moreover.both the costs and the revenue. For more information. you can specify the actual prices of the products as the penalty costs for non-delivery of the products. see the documentation for DP under Release of the Demand Plan to SNP. for example. In order that the SNP optimizer can prioritize demands with high volume. on the SAP Easy Access screen. On the SNP 1 tab page in the product master data. the demands that you prioritized in the SNP optimizer can be planned as priority in PP/DS too. This makes the penalty costs customer-specific. Prerequisites In order that the SNP optimizer can prioritize customer demands and generate proposals for capacity reservation. You always enter the lower bound of the interval only. You define quantity intervals in the profile and assign them to penalty costs. In this way. in Customizing for Demand Planning (DP). The lower bound of the first interval is always 0 and cannot be changed. ● You have used BAdI /SAPAPO/SDP_RELDATA to assign the penalty cost groups to forecasts or to sales orders. To do so. you must have activated Profit Maximization on the Solution Methods tab page in the SNP optimizer profile. choose Advanced Planning and Optimization → Master Data ® Application-Specific Master Data ® Supply Network Planning → Define Profile for Quantity-Based Penalty Costs. Alternatively. the SNP optimizer can generate proposals for capacity reservation in Production Planning and Detailed Scheduling (PP/DS). The upper bound of the last interval is infinite. the following prerequisites must have been met: ● ● You have created penalty cost groups. you have assigned penalty costs for nondelivery and for delay to the penalty cost groups. see the Implementation Guide (IMG). on the SAP Easy Access screen. For more information. the following prerequisites must have been met: ● You have defined a profile for quantity-based penalty costs (quantity profile) in the applicationspecific master data. choose Advanced Planning and Optimization → Master Data ® Application-Specific Master Data ® Supply Network Planning ® Define Penalty Cost Group. To do so. you can use Core Interface (CIF) to transfer sales orders from SAP ERP to SAP SCM. To do so. see the documentation for integration via Core Interface under ● Integration of Orders. ● You have released the forecast from DP to SNP by specifying descriptive characteristics such as Customer in a consumption group.

In PP/DS. Prioritization of Customer Demands You perform one or more consecutive optimization runs by creating a penalty cost group profile for the demands to be prioritized in the next run and by specifying this profile for the next run. see the documentation for Capable-to-Promise (CTP) in PP/DS under Capacity Reservation. and for which you have specified a penalty cost group profile for the optimization run. the prerequisites described above for the prioritization of customer demands must also be met.. For more information. you perform an optimization run for which you have assigned a quantity profile to the products and demand types as described above.. Prioritization of Demands with High Volume You have the following options: ● If you want to prioritize demands with high volume. You can assign the profile in a time-dependent way or in a time-independent way. bucket. However. the quantity-based penalty costs are valid for the relevant demand type. the SNP optimizer generates proposals for capacity reservation in PP/DS that you can release in PP/DS. demand types. Result The result of these optimization runs is a production and distribution plan that covers the demands according to their priority and that takes into account all capacity constraints. Penalty Cost Group Profile Definition Profile that you can use for optimization-based planning in Supply Network Planning (SNP) to specify that customer demands are to be prioritized. you can reserve capacity on the level of product. . it can be the case that demands cannot be covered. you perform one or more optimization runs for which you have assigned a quantity profile to the products. In this case. Activities . ● If you want to prioritize demands with high volume in a customer-specific way. and penalty cost groups. For more information. and descriptive characteristic. You can also specify the profile for certain penalty cost groups (see above) and thereby assign the quantity-based penalty costs to certain customer demands. as described above. see Penalty Cost Group Profile as well as Running the Optimizer from the Interactive Planning Desktop and Running the Optimizer in the Background.● You have assigned the quantity profile to the product and to certain demand types on the SNP 1 tab page in the product master data. Based on the optimization results. If you do not specify a penalty cost group (or you specify group 000).

you specify the penalty cost groups that were planned with priority in the previous run and that are to have a higher priority than the groups that you specify under penalty costs with normal priority in the next run. on the SAP Easy Access screen. you should use a penalty cost group profile in which all the penalty cost groups were defined under penalty cost groups with normal priority. The SNP optimizer only takes the various penalty cost groups into account if you specify a penalty cost group profile when running the optimizer. To define the profiles. Integration You create the penalty cost groups in the application-specific master data and assign them to penalty costs for non-delivery and delay on the SNP 1 tab page of the product master data (see Prerequisites section under Prioritization of Customer Demands and Demands with High Volume). In the table for entering the penalty costs with high priority. Run. the system uses the penalty cost values from the default penalty cost group 0000 for all demands. Otherwise. If you want to run the SNP optimizer with all the penalty cost groups. If you choose Generate Profile for Next Opt. you specify in a step-by-step way the penalty cost groups that you want to plan with higher priority in the next run. it copies the penalty cost groups from the previous run to the Penalty Cost Groups with High Priority area. In the table for entering penalty costs with normal priority. in other words. the system supports you when you create the next profile.Use You can use the penalty cost profile to define that the system first covers demands from penalty cost groups with a higher priority before covering those from penalty cost groups with a lower priority. Example For example. choose Advanced Planning and Optimization → Supply Network Planning → Environment → Current Settings → Profiles → Define SNP Penalty Cost Group Profiles and then assign them to individual optimization runs in interactive planning or when executing the SNP optimizer in the background. Structure The profile consists of the following components: ● ● ● Fields to enter profile names and the corresponding descriptions Table to enter penalty costs with normal priority Table to enter penalty costs with high priority The profile transaction is intended to allow you to create multiple profiles for multiple consecutive optimization runs. you define multiple profiles for multiple consecutive optimization runs as follows: .

groups 7-9). on the SAP Easy Access screen. You then execute the optimization run. Under Penalty Cost Groups with High Priority. The SNP optimizer then takes this data into account and determines the solution with the lowest costs. Prerequisites In order that the SNP optimizer can optimize the setup costs. you specify the penalty cost groups planned previously with high priority (for example. Alternatively. 2. If you choose Generate Profile for Next Opt.0 SAP Advanced Planning and Optimization (SAP APO) Production .. the demands from the penalty cost groups with high priority are considered during planned. only these demands are planned. You define the second profile for the second optimization run by specifying an interval of penalty cost groups under Penalty Cost Groups with Normal Priority that are to be planned by the optimizer with medium priority (for example. We recommend that you fix the orders for these penalty cost groups for the next run. Under Penalty Cost Groups with High Priority.sap. 1. but they are treated with higher priority than the demands from the other penalty cost groups. Run.com under SAP Business Suite SAP Supply Chain Management SAP SCM 7. these demands are considered during planning and can be rescheduled. and setup times in a setup matrix. choose Advanced Planning and Optimization Master Data Application-Specific Master Data Production Planning Setup Group/Setup Matrix Maintain Setup Groups .. You define the first profile for the first optimization run by specifying an interval of penalty cost groups under Penalty Cost Groups with Normal Priority that are to be planned by the optimizer with the highest priority (for example. In this run. 3. You define the third profile for the third optimization run by specifying an interval of penalty cost groups under Penalty Cost Groups with Normal Priority that are to be planned by the optimizer with low priority (for example. you can specify that the system considers sequence-dependent lot-size planning. You then execute the third optimization run. This allows the SNP optimizer to optimize the setup costs. groups 1-3). groups 4-6). The SNP optimizer uses the order sequence numbers to generate proposals for block planning in Production Planning and Detailed Scheduling (PP/DS). you define setup transitions. the following prerequisites must have been met: • You have created setup groups. groups 1-6). Sequence-Dependent Lot-Size Planning For optimization-based planning (see Optimization-Based Planning) in Supply Network Planning (SNP). To do so. An order sequence number is displayed for the SNP planned orders in the detail view of interactive SNP planning and in the optimization results log. groups 1-3). the system copies the first three penalty cost groups to the Penalty Cost Groups with High Priority area. First of all. You then execute the second optimization run. but they are not rescheduled.. you specify the penalty cost groups planned previously with high and medium priority (for example. you can transfer the setup groups from a connected ERP system to SAP SCM. For more information. If you have not fixed the orders. see SAP Library at http://help. If you have fixed the orders. setup costs.

The SNP optimizer checks the setup groups of the production data structures used and determines the optimum sequence of PDS and created planned orders on the basis of costs. In other words. In other words. The PDSs that run on sequence-dependent resources must not exceed any planning period (bucket).Planning and Detailed Scheduling (PP/DS) PP/DS Process Interactive Planning Detailed Scheduling Topics Detailed Scheduling Setup Matrix Integration of Setup Groups . Capacity tab page. • In the SNP optimizer profile. Other resource types are not supported. they are automatically transferred to the relevant PDS. choose Advanced Planning and Optimization Master Data Application-Specific Master Data Production Planning Setup Group/Setup Matrix Maintain Setup Matrix . Note that the SNP optimizer considers standard setup transitions only. PDS that were created using iPPE are not supported either. You have set the PerLotSize indicator for the resource to Sequence-Dependent Lot-Size Planning on the SNP Bucket Cap tab page. on the SAP Easy Access screen. you have specified a time period in which the SNP optimizer takes sequence-dependent lot sizes into account. To do this.0 SAP Advanced Planning and Optimization (SAP APO) Master Data Application-Specific Master Data Master Data for Production Planning Setup Matrix . the following prerequisites must also be met: • You have activated block planning in Customizing for SNP under Basic Settings Maintain Global SNP Settings .com under SAP Business Suite SAP Supply Chain Management SAP SCM 7. For more information. it does not consider exception setup transitions. production process models (PPMs) are not supported. • • You have specified the setup matrix in the master data of a single-mixed resource or a bucket resource on the Time-Cont.sap. setup costs. The production data structure (PDS) used must contain a setup group. and setup times that you defined in the setup matrix. you have selected Discrete Optimization as the optimization method and. The function supports PDS only. Features Sequence-Dependent Lot-Size Planning • • • The sequence-dependent lot-size planning function offers the following: The SNP optimizer considers the setup transitions. see SAP Library at http://help. in the Sequence-Dependent Lot Size field on the Discrete Constraints tab page. . • You have defined the setup statuses. setup transitions and the corresponding setup costs and setup times in the setup matrix. A PDS must not exceed any planning period (bucket) within the defined time period for sequencedependent lot size planning. This is also a prerequisite for displaying information about the blocks in the detail view of interactive SNP planning. If you have transferred setup groups from the ERP system and have specified a setup group in the routing. If you want the SNP optimizer to generate proposals for blocking planning in PP/DS. A PDS can use only one resource for which this indicator has been set.

You can use Bucket View to switch back to the normal detail view. some of the prerequisites described in the PP/DS documentation mentioned above must be met.• • The setup costs are displayed in the planning result of optimization in both interactive SNP planning and in the optimization results log. Block Planning The SNP optimizer uses the order sequence numbers to generate proposals for block planning in PP/DS. You then display the results in interactive SNP planning. meaning that lot size planning can only be done at production level. These proposals can be loaded to PP/DS. Here. the system displays all the orders belonging to a block. .com under SAP Business Suite SAP Supply Chain Management SAP SCM 7. see Running the Optimizer from the Interactive Planning Desktop and Running the Optimizer in the Background. For more information. If the setup costs are relatively high in comparison to the storage costs. This means that the optimizer only schedules one setup operation per lot size. For this reason. For more information. The SNP optimizer does not support multi-level cross-period lot size planning. you can display the start and end dates and times of the blocks for the planned orders. the optimizer takes into account the setup statuses from the previous bucket if the same production process model (PPM) is being used to produce a product in that bucket. see the SAP Help Portal at http://help. orders are grouped into large lots to save on set up costs. Cross-Period Lot Size Planning Use In some industry sectors (such as the process industry).sap. planned orders are combined to form blocks. setup activities have a great influence on lot size planning.0 SAP Advanced Planning and Optimization (SAP APO) Production Planning and Detailed Scheduling (PP/DS) Planning with Characteristics Functions for Block Planning Downloading of SNP Blocks . The sequence number of the order is displayed for the SNP planned orders in the detail view of interactive SNP planning and in the optimization results log. For this setup operation. Activities You run the SNP optimizer in interactive SNP planning or in the background. In the detail view of interactive SNP planning. it is possible to run a cross-period lot size planning as part of optimization-based planning within Supply Network Planning. Since these SNP blocks deviate from the PP/DS blocks. together with the relevant detailed information. If you select a planned order in the detail view and choose Block View. the system then calculates the setup costs and setup consumptions (fixed resource consumption and material consumption) that were defined in the PPM for the resource set with the Cross-Period Lot Size indicator. In SNP.

it is possible to run an SNP PPM in a bucket (period) without taking into account setup expenses. When doing this.Integration 1. • 2. see Converting SNP and CTM Orders into PP/DS Orders. For more information. Prerequisites The steps listed below are general prerequisites for running the SNP optimizer: 1. • 5. • Within the campaign planning business process. During planning. if there is a PP/DS order with the associated PP/DS PPM. You can convert these SNP planned orders into PP/DS orders. 1. • 3. or if the corresponding setup expenses can be adopted from the previous bucket. • Planning Area Administration Master Data Setup for the Optimizer Model/Version Creation Supply Chain Model Setup Release of the Demand Plan to SNP The following are special prerequisites for cross-period lot size planning: . • The optimizer is also able to consider setup statuses resulting from already planned PP/DS orders. the SNP optimizer creates SNP planned orders that correspond to a production campaign that is created at a later point in PP/DS. cross-period lot size planning represents the preliminary stage of the actual campaign creation that is done in Production Planning and Detailed Scheduling (PP/DS). • 4.

2. 4. you have also maintained the relevant profiles for SNP optimization. see Optimization Profiles and the corresponding Implementation Guide (IMG) documentation. − The PPM duration must be less than or equal to the smallest bucket from the planning buckets profile used. − The minimum PPM lot sizes and the discrete (integer value) lot sizes refer to the cross-period lot quantity. − The optimizer plans a maximum of one setup operation per bucket. − The PPM is not permitted to use any other resources that have been specified with a fixed resource consumption.1. 1. see Running the Optimizer from the Interactive Planning Desktop and Running the Optimizer in the Background. 3. Activities 1. For more information. Resource master data − The optimizer only takes into account the setup statuses from previous buckets for the resource for which the cross-period lot size indicator has been set. Profiles In Supply Network Planning. • You run the optimizer from the interactive planning desktop or in the background. see Optimization-Based Planning. • The optimizer determines the most cost-effective solution to fulfil the demands. • 1. 2. 2. the optimizer uses storage . Production process model (PPM) − The PPM is permitted to use a maximum of one resource only for which the cross-period lot sizeindicator has been set. For general information on the SNP optimizer. you have made the following settings for cross-period lot size planning in the SNP optimizer profile: 1. you must have activated the indicator CrossPeriod Lot Size Planning on the Integration tab page. choose SAP Advanced Planner and optimizer (SAP APO) ® Supply Chain Planning ® Supply Network Planning ® Profiles ® Define SNP Optimizer Profiles). For example. • You have chosen Discrete Optimization as your optimization method. • 1. • If you want the optimizer to take account of setup statuses resulting from already planned PP/DS orders. The optimizer can only do this if the PPM from the previous bucket is used to produce a product. In particular. A prerequisite for this is that the corresponding PP/DS PPM must be assigned to the SNP PPM. 3. in particular the SNP optimizer profile (from the Implementation Guide (IMG). • You have entered the horizon over which you want the optimizer to take into account the setup statuses from this previous bucket in the Cross-Period Lot Size field from the Discrete Constraints tab page. to decide about lot sizes. For more information. 5.

such as planned orders and stock transfers created. Having larger lot sizes and only one setup operation per lot size saves on setup costs but results in higher storage costs. multiple setups mean that more capacity is required and this results in higher setup costs. The central Optimizer Log Data function is available for accessing optimization run logs. the system automatically generates an application log. You can use this function to access the following SNP planning functions: • • • • • SNP Optimizer Deployment Optimizer Capacity Leveling (optimization-based method) Sourcing of Forecast Features The Optimizer Log Data function provides an overview of the generated logs. Amongst other things. • • •  Log creator Optimizer profile used Start and finish time of the run   . choose Advanced Planning and Optimization ® Supply Network Planning ® Reporting ®Optimizer Log Data. From the SAP Easy Access screen. and information messages. the list of logs contains the following data: •  Log status A traffic light or flag indicates whether the optimization run is still in progress. or was terminated with a message (see F1 help). The input data for the optimization run and the costs of the solution determined by the optimizer are also displayed. Amongst other things. Application Logs for Optimizers Use When you execute an optimization-based planning function in Supply Network Planning (SNP) in the background (mass processing).costs and setup costs. has already ended. this log contains planning results. You also receive a list of the costs determined by the optimizer. • You display the individual stages and final results of the optimization run in interactive planning on the Optimization tab page within the optimizer window. 1. warning. as well as error. With smaller lot sizes. for example.

model consistency check. stock transfers. However. you receive the following data and sub-logs for •  Input Parameter Contains the settings that you made on the initial screen for the planning function. • •  Total costs of solution Log expiration date  You specify the log expiration date globally for all optimization logs in Customizing for Advanced Planning and Optimization (APO) under Basis Settings → Optimization ® Basic Functions ® Maintain Global Settings. you can also change this date for one specific optimization run by choosing Change Expiration Date. The log is automatically deleted after the expiration date if you execute the /SAPAPO/OM_REORG_DAILY report. •  Input Log Contains the input data considered by the system during the optimization run (that is. and penalty costs. The data is divided into a number of tables (such as ET_PROMO). set filters and sort entries. and solution calculation. costs. The data is divided into a number of tables (such as ET_LOCMAT). •  Results Log Contains all results of the optimization run. •  Deletion Time Period Specifies a time period in which the system deletes existing planned orders and stock transfers before actual optimization. • If you double click a log or choose the log. see Optimization Input Log. Display Log. You can also delete the log from the list. master data and transaction data). as well as order creation). You can display the content of these tables on the right-hand side of the screen. such as planned orders.•  Runtimes of the individual optimization steps An optimization run has three steps (data reading. •  Location Products Contains the location products selected for the optimization run. resource consumption. You can display the content of these tables on the right-hand side of the screen. For more information. •  Result Indicators .

choose Download Input Log or Download Results Log. as well as the deletion time period. The logs are then saved in RELATIOM text format. but you can also download it to your own computer. you go to the Explanations of SNP Optimization Resultsscreen. see Result Indicators. •  Message Log Contains error messages. •  Explanations Contains the results of an explanation tool run (see below). such as service level and shortfall of safety stock. If you select a log and choose Explain. To do this. You can use the log to determine whether you can reduce the optimizer runtime without effecting solution quality. Even if an error occurred in the first step of the optimization run (data reading). the log may not be available. Note that the input log and the results log. whether they refer to the optimization run settings or to the three main steps of the run. • You can also download the input log and the results log to your own computer. warning messages. see Explanation of the Optimization Results.Contains indicators that display the quality of the optimization solution. you can also relate the costs the partial problem solved up to this time. If you used a decomposition method. are only displayed if you have set the Write All Log Data indicator in the optimizer profile being used. you can display the results of the optimization run in the interactive SNP planning form. see Resulting Costs of Optimization. . •  Solution Quality Contains the costs of the best solution determined by the optimizer up to the time displayed. and information messages generated by the system during the optimization run. •  Trace File All individual optimization run steps are logged in this text file. For more information. •  Costs Contains detailed information about the costs of the solution determined by the optimizer. •  Extended Results Log In this log. They are ordered according to meaning. From this screen you can execute the explanation tool which explains two important exceptional situations of an optimization run: non-deliveries and shortfall of safety stock. It is saved on the optimization server. that is. For more information. • For more information.

NBUCK NPROD NLOCS NSUBL Number of buckets Number of products Number of locations Number of sublocations .Optimization Input Log Definition Log generated during an optimization run in Supply Network Planning (SNP). It contains all input data considered by the system during the optimization run (that is. Structure The individual sections of the log are detailed below. choose Advanced Planning and Optimization → Supply Network Planning → Reporting → Optimizer Log Data. Use The input log is part of the application log. The data is utilized in numerous tables (such as ET_LOCMAT). master data and transaction data). on the SAP Easy Access screen. Discrete (integer value) transport lots are displayed in the History (‘trace file’) of Optimization Runs (choose Tools → APO Administration → Optimization → Log Display). Legend Flag: Prof: Units: X = Active. You can download the log and give it to SAP support as a text file for analysis. ' ' = Inactive SNP optimizer profile BTime = Base unit of time (days) BCurr = Base currency BProd = Base unit of measure of the product HanUn = Handling unit StoUn = Storage unit BRes = Base unit of measure of the resource ES_CTRL These entries describe the general properties of the model. see Application Logs for Optimizers. The entries are determined from the SNP optimizer profile or directly from the model. For more information. To access the log.

NPROM NRESO NREFA NARCS NFLEE NDEMC NDEMA DISRF DISRZ DISTR DISPR KAMPA TRLOS PRLOS COSTR COSPD COSPC SEQLS NPENG NQTAA NCHAI NFFC NSTUP NPROG Number of production process models Number of resources Number of resource families Number of arcs Number of fleets Actual number of demand classes Number of demand vectors Prof: End bucket for increasing production resource discretely Prof: End bucket for using fixed production resource consumption Prof: End bucket for using discrete fleet on transportation lanes Prof: End bucket for using integral PPM Prof: End bucket for campaign + D416 planning Prof: End bucket for using minimum transportation lot size Prof: End bucket for using minimum production lot size Prof: End bucket for using transportation cost function Prof: End bucket for using production cost function Prof: End bucket for using procurement cost function End bucket for sequence resource planning Number of penalty groups Number of quota arrangements Number of supersession chains Number of form-fit-function classes Number setup matrices Number of product groups .

1st day is 1/1/1970) BTime BTime ET_MATERIAL The validity period of all products selected for optimization is stored here. there is a list of calendar data for the day numbers. if dummy resource is used) MAXOU . End date of the bucket (day no. LOCID* RESIN MAXIN RESOU Location GUID Handling-in resource GUID or dummy resource. if dummy resource is used) Handling-out resource GUID or dummy resource.ET_INEXKEY These entries are the external keys for internal object keys. BUCKE* VALTO VALFR Bucket no. MATID* BCKTO BCKFR Product GUID Valid to bucket no. The source of this information is either the selected planning buckets profile or the planning start and end date.. if no handling-out resource is maintained Prof: Flag: Handling-out resource active (not activated. In particular. this always encompasses the entire planning horizon. At present. INKEY EXKEY GUID (unique internal key) Corresponding external key ET_BUCKDF These entries show the bucket definition (time intervals) upon which all optimizer planning is based. 1st day is 1/1/1970) Begin date of the bucket (day no. if no handling-in resource is maintained Prof: Flag: Handling-in resource active (not activated. Valid from bucket no. and a list of product and location numbers for the GUIDs.. ET_LOC Information about the existence or non-existence of a defined handling capacity (handling resource) is stored here for locations.

if dummy resource is used) ET_LOCMAT The properties of location-dependent products are shown here.ET_SUBLOC A storage resource is defined here with information about whether it can be extended. The source of this information is the location master and. if no storage resource is maintained Prof: Flag: Storage resource active (not activated. SUBID is currently the resource ID. LOCID* MATID* SUBID HCOST BUCFL SSPEN MAXST MAXFL STOCK CONIN COSIN CONOU COSOU RECTI ISSTI CACON WASFL WASTE STODU FCOST FPERF Location GUID Product GUID Storage GUID Storage cost Prof: Flag: Storage cost: Multiply by bucket length Penalty for not covering safety stock Maximum stock level of the product Flag: Maximum stock level active Initial stock Consumption of input handling capacity Handling-in cost Consumption of output handling capacity Handling-out cost Goods receipt processing time in days Goods issue processing time in days Storage capacity consumption Flag: Shelf life penalty is active Shelf life: Penalty for wasted quantity Shelf life: Storage duration Linear procurement cost Procurement permitted and/or product subject to incremental optimization BCurr/BProd BTime BCurr/BProd BProd HanUn/BProd BCurr/BProd HanUn/BProd BCurr/BProd BTime BTime StoUn/BProd BCurr/BProd BCurr/BProd . SUBID* MAXFL Storage resource GUID or dummy resource. in particular. Resource consumption is listed. The source for this is the location product master. Extension is allowed if the resource has two capacity variants. if in existence. storage resource maintenance.

QTAID LOCID MATID PROGR VALFR VALTO Unique key for quota arrangement header Location ID Product ID Product group Valid-from date Valid-to date ET_QTAITEM This table contains the item master data of the quota arrangements. LOCID MATID BUCKE LOWBN UPPBN Location ID Product ID Bucket Lower limit Upper limit . MATID PROGR Product ID Product group ET_QTAHEAD This table contains the header master data of the quota arrangements.SSMTH PLREL Safety stock method X if PPM/PDS relevant for planning ET_PROGRP This table contains the master data of the product groups for which you can define quota arrangements. QTAID SRCLO ARCID PROID FPERF QUOTA LOPEN UPPEN Unique key for quota arrangement header Source location ID Relationship between two locations Source PPM Switch external procurement (‘X’ = external procurement. ‘ ‘ = otherwise) Quota arrangement number Penalty for deviation below target quantity Penalty for deviation above upper quantity ET_RCPBND This table contains the data for the receipt bound that you can define as a timebased constraint.

LOPEN UPPEN BNDFL

Penalty for deviation below lower bound Penalty for deviation above upper bound Upper limit active flag

ET_RESOURCE Production resources that are used in the production process models are listed here (see the ET_PRORES section below). UNIVO is currently always equal to 1. RESID* RFAID UNIVO KAMPA SETID Resource GUID Resource family GUID (currently the same as resource) Unitary volume Flag: Resource is a campaign resource ID of setup matrix BRes

ET_SETUPMATRIX This table contains the data for the setup matrix. SETID GRFRO GROTO SCOST STIME Setup matrix ID Setup group ID Setup group ID Setup cost Setup times in sec.

ET_RESFAM Production resources are allowed to be extended here if a second capacity variant has been defined in the resource master. The resource family is currently always the same as the production resources (one-to-one). RFAID* MAXFL DISCR Resource family ID Flag: Resource has a capacity constraint Prof: Flag: Discrete increase of resource family

ET_FLEET Fleet refers to the transportation resource that has been specified for a transportation lane. A possible extension and the costs related to it are determined from the resource’s second capacity variant. FLEID* MAXFL TUNIA Fleet GUID Flag: Consider maximum fleet capacity Capacity 1 of one truck TraUn1

TUNIB TUNIC

Capacity 2 of one truck (not used) Capacity 3 of one truck (not used)

TraUn2 TraUn3

ET_ARC All the transportation lanes that have been defined for the model in the Supply Chain Engineer are listed here. ARC refers to a transportation lane/means of transport combination. ARCID* FLEID LOCFR LOCTO TTYPE DURAT RNDTR TCTYP DISCR RLDUR Arc GUID Fleet GUID Location from GUID Location to GUID ID for means of transport Duration of shipment (base time unit) Bucket offset (rounding limit for transportation times) Variable transportation cost for the fleet Flag: Using discrete transportation fleets Resource load duration BTime BCurr/TraUn1 BTime

ET_ARCMAT Product-dependent properties for the transportation lane are shown here. Data is taken from the Supply Chain Engineer. Standard entries are generated if the product has not been assigned to the transportation lane and the All Products indicator has been set at the transportation lane. The lot size information is taken from the lot size profile (transportation lanes) defined at the transportation lane. ARCID* MATID* VALTO VALFR MINLO MAXLO MAXFL TRVOL TCONA TCONB TCONC TCOST Arc GUID Product GUID Valid to date (base unit of time) Valid from date (base unit of time) Minimum number of lots Maximum number of lots Flag: MAXLO active Lot size in product units Capacity consumption for 24 hours Capacity consumption for the transportation time that is less than 24 hours Capacity consumption (not used) Variable transportation cost for "arc BCurr/BProd BProd TraUn1/BProd TraUn1/BProd BTime BTime TRVOL TRVOL

product" SUBCO Flag: ‘X’ Product will be subcontracted

ET_LOCC The handling resource’s available capacity is listed here. Figures are determined from the resource’s first capacity variant. Gaps in the intervals are defined by the resource calendar or shipping calendar of the location. RESID* VALTO* VALFR MAXHA COUND UNPEN Handling resource GUID Valid to date (base unit of time) Valid from date (base unit of time) Handling capacity Minimum resource consumption Penalty per unitary volume dropping minimum capacity BCurr/Univo BTime BTime HanUn/BTime

ET_LOCUC A possible extension of the handling resource’s available capacity is listed here. Figures are determined from the resource’s second capacity variant by subtracting the first capacity variant values. Gaps in the intervals are defined by the resource calendar or shipping calendar of the location. RESID* VALTO* VALFR INCHA INPEN Handling resource GUID Valid to date (base unit of time) Valid from date (base unit of time) Penalty per unitary volume for increasing capacity BTime BTime BCurr/Univo

Upper bound for increasing handling capacity HanUn/BTime

ET_SUBLOCC The storage resource’s available capacity is listed here. Figures are determined from the resource’s first capacity variant. The interval gaps are defined by the resource calendar. SUBID* VALTO* VALFR MAXSL COUND UNPEN Sublocation GUID Valid to date (base unit of time) Valid from date (base unit of time) Capacity volume of storage (sublocation) Minimum resource consumption Penalty per unitary volume dropping minimum BCurr/Univo capacity BTime BTime StoUn

The interval gaps are defined by the resource calendar. Figures are determined from the resource’s second capacity variant by subtracting the first capacity variant values. The interval gaps are defined by the resource calendar. RESID* VALTO* VALFR MAXRE COUND UNPEN CCOST Resource GUID Valid to date (base unit of time) Valid from date (base unit of time) Production resource capacity Minimum resource consumption Penalty per unitary volume dropping minimum BCurr/Univo capacity Cost per unitary volume for capacity BCurr/Univo BTime BTime BRes/BTime ET_RESFAMC A possible extension of the production resource’s available capacity is listed here. RFAID* VALTO* VALFR INCRF INPEN Resource family GUID Valid to date (base unit of time) Valid from date (base unit of time) Upper bound for increasing production resource Penalty per unitary volume for increasing capacity BTime BTime Univo/BTime BCurr/Univo .ET_SUBLOCUC A possible extension of the storage resource’s available capacity at a location is listed here. The interval gaps are defined by the resource calendar. Figures are determined from the resource’s first capacity variant. SUBID* VALTO* VALFR INCSL INPEN Sublocation (storage) GUID Valid to date (base unit of time) Valid from date (base unit of time) Penalty per unitary volume for increasing capacity BTime BTime BCurr/Univo Upper bound for increasing storage capacity StoUn ET_RESC The production resource’s available capacity is listed here. Figures are determined from the resource’s second capacity variant by subtracting the first capacity variant values.

PROID* LOCID MATID LOTSZ BCKTO BCKFR PMINQ Production process model GUID Location GUID Product GUID Fixed lot size of the location product Valid to date in buckets Valid from date in buckets Minimum production lot size ProMod BProd . however. This information is defined in master data maintenance for the PPM. A prerequisite. and the validity period of each one is set accordingly.ET_FLEETC The transportation resource’s available capacity is listed here. The interval gaps are defined by the resource calendar. Figures are determined from the resource’s second capacity variant by subtracting the first capacity variant values. The master resource is the PPM calendar resource. The interval gaps are defined by the resource calendar. Figures are determined from the resource’s first capacity variant. is that the PPM has been assigned to the model in the Supply Chain Engineer. FLEID* VALTO* VALFR INCFL INPEN Fleet GUID Valid to date (base unit of time) Valid from date (base unit of time) Upper bound for increasing fleet capacity Penalty per unitary volume for increasing capacity BTime BTime Truck/BTime BCurr/Truck ET_PROMO The properties of the production process model (plan or PPM) are stored here. Time-dependent PPMs are converted into multiple entries for the optimizer. FLEID* VALTO* VALFR MAXFL COUND UNPEN Fleet GUID Valid to date (base unit of time) Valid from date (base unit of time) Capacity measured in trucks Minimum resource consumption Penalty per unitary volume dropping minimum BCurr/Truck capacity BTime BTime Truck/BTime ET_FLEETUC A possible extension of the transportation resource’s available capacity is listed here.

RESID* PROID* Resource GUID Production process model GUID . where finished products have a plus sign and input products a minus sign. as defined in the production process model master data in Mode → Bucket consumption. PROID* RESID* OFSTO* BCKTO* VCONS FCONS Production process model GUID Resource GUID Consumption time offset Valid to date of bucket interval Variable consumption of the resource Fixed consumption of the resource BRes BRes BTime ET_PROMAT The product flow for the PPM.PMAXQ MAXFL DURAT DISCR PCOST RNDPR RESID GRFRO PLREL Maximum production lot size Flag: PMAXQ active Duration: 0 = one day. is listed here. as defined in the Products section of production process model master data. PROID* MATID* OFSTO* LOCID* BCKTO* OUTIN FCONS Production process model GUID Product GUID Input/output time offset Location GUID Valid to date of bucket interval Output(+) or input(-) quantity Fixed input(-) quantity BProd BProd BTime ET_RESINI This table contains the initial setup statuses of the resources for cross-period lot size planning (set up or not set up). 1 = two days Flag for using discrete production Variable cost of PPM Bucket offset Resource GUID for calendar Setup group of this PPM/PDS X if PPM/PDS relevant for planning ProMod BTime BCurr/ProMod ET_PRORES Consumption of production resources for the PPM is listed here. It represents the bill of materials (BOM) structure.

The values are taken from the product master (the SNP 1 tab). and 3 for demand forecasts. or for not delivering them are also defined. and receipts for the products are defined in this table. meaning that BCKTO is the same as the planning end date. This fixing is done both manually and when orders are transferred to the PP/DS application. fixed demands (FPROD with minus sign).EDATE* BDATE* QUANT APPLI SETUP SEQID End date Start date Output quantity for master product Application: P->PP/DS S->SNP Flag: Order with setup Sequence ID BTime BTime BProd ET_LOCPROD The required safety stock (target stock levels). The values are not defined as time-dependent in SAP APO. 2 for corrected demand forecasts. The latter entries result from planned orders and stock transfers that had been fixed before the optimizer was run. The values are taken from the product master (the SNP 1 tab). includes intransit quantities Safety days’ supply Aggregated distribution quantity Aggregated substitution quantity BProd BProd BCurr/BProd BCurr/BProd BProd ET_DEMCLTIM The maximum delay that is to be allowed for finished products is defined here. DEMCL* LOCID* MATID* Demand class (highest priority = 1) Location GUID Product GUID . Receipts and issues are also fixed when the optimizer has been run incrementally (for a subset of products from the model). There are currently only three categories: 1 for customer demands. LOCID* MATID* BUCKE* SAFTY MAXST SAPEN STPEN FPROD SVTTY FDIST FSUBST Location GUID Product GUID Date bucket of safety stock and FPROD Safety stock (not a demand!) Maximum stock level of the product Penalty for not covering safety stock Penalty for violating the maximum stock level Confirmed production. Costs for delivering the finished products late.

LOCID* MATID* DEMCL* BUCKE* DEMAN Location GUID Product GUID Demand class (highest priority = 1) Demand date given in bucket Quantity of demand BProd ET_PROCBND Target procurement corridor.BCKTO* LAPEN MAXLA NDPEN Valid to bucket Penalty for lateness Maximum lateness Penalty for not delivering BCurr/(BTime*BProd) BTime BCurr/BProd ET_DEMAND This table contains all the customer demands and forecast demands that have been read for the model from liveCache. PROID* BUCKE* LOWBN UPPBN INITV BNDFL Production process model GUID Bucket Lower bound Upper bound Initial value (result of previous run) Flag: Upper bounds are active ProMod ProMod ProMod ET_TRANBND Target stock transfer corridor. ARCID* Arc GUID . LOCID* MATID* BUCKE* LOWBN UPPBN INITV BNDFL Location GUID Product GUID Bucket Lower bound Upper bound Initial value (result of previous run) Flag: Upper bounds are active BProd BProd BProd ET_PRODBND Target production corridor.

ARCID* ORIGN* FIXCO Arc GUID Smallest value Fixed cost TraUn1 BCurr . LOCID* MATID* DEMCL* DELAY* BUCKE* LOWBN UPPBN INITV BNDFL Location GUID Product GUID Demand class (highest priority = 1) Lateness measured in buckets Bucket Lower bound Upper bound Initial value (result of previous run) Flag: Upper bounds are active BProd BProd BProd ET_TRANCOS Stock transfer cost functions are defined here. These functions are analyzed on the basis of this formula: Cost = FIXCO + VARCO* (X – ORIGN). LOCID* MATID* BUCKE* LOWBN UPPBN INITV BNDFL Location GUID Product GUID Bucket Lower bound Upper bound Initial value (result of previous run) Flag: Upper bounds are active BProd BProd BProd ET_DELIBND Target demand fulfillment corridor.MATID* BUCKE* LOWBN UPPBN INITV BNDFL Product GUID Bucket Lower bound Upper bound Initial value (result of previous run) Flag: Upper bounds are active BProd BProd BProd ET_STCKBND Target stock level corridor. The cost function is assigned to the product-dependent transportation lane in the Supply Chain Engineer.

These functions are analyzed on the basis of this formula: Cost = FIXCO + VARCO* (X – ORIGN). The cost function is assigned to the plan in master data maintenance for the production process model. ‘I’ = full ) USEUP Use-up date ET_FFF This table contains the master data for form-fit-function classes (FFF classes. These functions are analyzed on the basis of this formula: Cost = FIXCO + VARCO* (X – ORIGN). product interchangeability). GROUPID LOCID PRODOLD PRODNEW Interchangeability group identification Location ID Old product ID New product ID VALIDFROM Validation date from DIRECTION Direction of interchangeability (‘F’ = forward. This cost function is assigned to the product in the location product master.VARCO Variable cost BCurr/TraUn1 ET_PRODCOS Production cost functions are defined here. GROUPID LOCID Interchangeability group identification Location ID . LOCID* MATID* ORIGN* FIXCO VARCO Location GUID Product GUID Smallest value Fixed cost Variable cost BProd BCurr BCurr/BProd ET_CHAIN This table contains the master data for the supersession chains (product interchangeability). PROID* ORIGN* FIXCO VARCO Production process model GUID Smallest value Fixed cost Variable cost ProMod BCurr BCurr/ProMod ET_PROCCOS Procurement cost functions are defined here.

The optimizer profile used for optimization run. The total storage costs for this plan based on the capacity consumption of products stored at the storage resource. Field User Current date Time version Optimizer profile Cost profile Bound profile Total costs Information displayed The planner's name. displayed in total values for all objects throughout the supply chain. displayed in total values for all objects throughout the supply chain. The cost categories are displayed in total values for all objects throughout the supply chain. The date the Optimization run was executed. The cost profile used for optimization run.PRODID Product ID LEADPRODFLAG Flag for leading product (‘X’ = leading product. see Application Logs for Optimizers. It contains detailed information about the costs of the solution determined by the optimizer. Production costs Procurement costs Storage costs Storage expansion Penalty costs for safety stock deficit . The time when the Optimization run was executed. Use The log is part of the application log that you can access by selecting Advanced Planning and Optimization → Supply Network Planning → Reporting → Optimizer Log Data from the SAP Easy Access screen. The total penalty costs incurred because the safety stock level falls below the specified requirement for safety stock for this plan displayed in total values for all objects throughout the supply chain. The SNP optimization bound profile used for optimization run. The total costs are made up of all the cost categories displayed in this log. For more information.. The planning version used for the optimization run. The total costs incurred as a result of a requirement to expand storage capacity for this plan displayed in total values for all objects throughout the supply chain. The total production costs for this plan based on the pieces produced using the production process models PPMs with the associated cost data. space = non-leading product) Resulting Costs of Optimization Definition Log generated during an optimization run in Supply Network Planning (SNP). The total procurement costs for this plan. The total costs associated with the solution proposed by the system. Structure The individual fields of the log are detailed below.

Penalty costs for exceeding maximum stock on hand Penalty costs for falling short of minimum resource utilization Result Indicators Definition Indicators that show the quality of an optimization solution. The total costs incurred as a result of a requirement to expand the production resource capacity for this plan displayed in total values for all objects throughout the supply chain. . The total penalty costs incurred as a result of all deliveries of all products that are less than the quantity ordered displayed in total values for all objects throughout the supply chain.Field Transportation costs Handling capacity expansion Transportation capacity expansion Production resource expansion Delay penalty Shortfall penalty Information displayed The total transportation costs for this plan displayed in total values for all objects throughout the supply chain. The total penalty costs incurred as a result of all deliveries that are late displayed in total values for all objects throughout the supply chain. The total penalty costs incurred for exceeding maximum stock on hand. The total costs incurred as a result of a requirement to expand the handling capacity of one or more resources for this plan displayed in total values for all objects throughout the supply chain. Use If you have successfully executed an optimization run and have created a log for this run. They show the quality of the optimization solution with reference to the following factors: • • • Demand Fulfillment Stock Level Resource Utilization From the SAP Easy Access screen. you choose Advanced Planning and Optimization →Supply Network Planning → Reporting →Optimizer Log Data. The tree structure of the logs contains the entry Result Indicatorswith the two aggregation levels Model-Dependent Indicators and Location Product-Dependent Indicators. the log contains a series of result indicators. The total costs incurred as a result of a requirement to expand the transportation resource capacity for this plan displayed in total values for all objects throughout the supply chain. The total penalty costs incurred for falling short of the minimum resource utilization defined in the resource master data. You then select an optimization run with a double-click.

• • • •  Production resources Storage resources Transportation resources Handling resources    You can also display the resource utilization for each period in the capacity view of interactive SNP planning. the data calculated by the explanation tool is available for as long as the output log of the optimization run is available. . However. That means that the system may allow shortages for which it calculates penalty costs).Structure The system calculates the following indicators for the quality of an optimization solution: • Demand Fulfillment • • •  Service level (in percent) Delayed demand fulfillment (in percent) Average delay (in days)   The system also calculates these indicators separately for the following priority classes: • • • •  Customer requirement Demand forecast Corrected demand forecast   “Pseudo-hard” demand (if you have made the setting in the optimizer profile that the system considers the dependent demand and/or distribution demand of fixed orders as a pseudo-hard constraint.  • Stock Level • • •  Fulfillment of safety stock demand in percent Average stock level  Resource Utilization The system calculates the resource consumption for the following resource types. The capacity view always shows the current resource utilization based on the data saved in liveCache.

see the documentation for component SAP NetWeaver under BI Content → Supply Chain Management → Planning. the results of the optimization run are not always easy to understand. You can also simulate a simple aggregation with the SAP List Viewer (ALV). It therefore frequently finds a better solution than is possible with other planning methods. and displays this data directly in the optimization run log or under the Result Indicators entry. The . You can use the explanation tool to have the system explain two significant exceptional situations of an optimization run: • • Non-delivery Shortfall of safety stock This function shows you the possible causes for the exceptional situations in the optimization run log. The following table shows the aggregation levels at which the result indicators are displayed in the optimization log: Servic e Level Delay in Percen t Averag e Delay Service Level per Deman d Class Delay in Percent per Deman d Class Averag e Delay per Deman d Class Averag e Stock Level Safety Stock Shortfal l x Utilizatio n per Resource x Model Location Product Resourc e x x x x x x x x x x x x x x x Explanation of the Optimization Results Use Optimization-based planning in Supply Network Planning (SNP) pursues a global solution approach by considering all restrictions and costs simultaneously and across the entire model.The system calculates the result indicators at the level of the model and each location product or resource. However. The indicators for the utilization of the individual resources are displayed in the result log. you can transfer the data to the SAP NetWeaver Usage Type Business Intelligence (BI) using the DataSource 0APO_SNP_INDICATOR. You can use the causes shown to check whether you can solve the problem by increasing capacities or extending horizons. To aggregate the data of each location product at different levels (such as location level or product level). for example. For more information.

you have defined that the optimizer is to consider certain capacity constraints. . The system shows you the following data of the capacity problem: • • • Resource with the capacity problem. and how detailed it should be. Between the optimization run and explanation run. A possible cause for non-deliveries is that the system cannot fulfill the demand with the available resource capacity. If your planning buckets profile also includes daily periods. Prerequisites • You have executed an optimization run and created a log for this run (that is. the system cannot suggest capacity could be made up by working on a holiday. The explanation tool does not support fair share or push distribution. • • Features Non-deliveries and lack of safety stock can have the following five causes: • • • • • Capacity Constraints Time-Based Constraints and Maximum Lot Sizes Product Availability Lead Time Costs The explanation tool displays these causes. but does not explain why the optimizer fulfills the demand of one product but not of another when there is a lack of capacity. Number of the period (bucket) where the capacity problem occurs. you can specify the location products for which you want the explanation. The optimizer considers the resource capacity defined in the resource master data. For example. In the case of a deployment optimization run. Among other things. you have set the Write All Log Data indicator in the SNP or deployment optimizer profile). Capacity Constraints In the SNP or deployment optimizer profile. you have chosen an optimal cost allocation. You have also not changed the optimizationrelevant settings in planning version management.system also suggests additional orders that you could use to remedy the missing quantities. The explanation tool refers to the result of the optimization run as you see it in the log. you have not changed the SNP or deployment optimizer profile you used for the optimization run. the system cannot determine any capacity problems caused by calendar problems within the time frame covered by daily periods. Missing capacity of the resource.

for example. An execution of the PPM or PDS corresponds to the output quantity you specified in the PPM/PDS. Number of the period where the capacity problem occurs. It also does not check the validity of time-dependent parameters of PPMs/PDS (such as material consumption). In the SNP or deployment optimizer profile. Procurement type of the location product (in-house production. Product Availability A possible cause for non-delivery can be that products are not available because a source of supply does not exist (for example. you have defined time-based constraints (upper limits) for the capacity of specific sources of supply (such as for production or transportation).Time-Based Constraints and Maximum Lot Sizes In interactive SNP planning. external procurement. see Definition of Time-Based Constraints in Interactive Planning. or the planned delivery time. the system does not show the quantity but rather the number of executions of the production model (PPM) or production data structure (PDS). The system shows you the following data of the product availability: • • • Name of the product and location Number of the period in which the product quantity is missing Missing quantity of the product The system does not check the validity of PPMs/PDSs or transportation lanes. the system does not determine any availability problems in the first half of the planning horizon. The system shows you the following data of the lead time: • • Name of the product and location Name of the source of supply . The lead time can even stretch back into the past (before the planning period). and so on). The system therefore frequently cannot fulfill demands because the lead time stretches into the production or stock transfer horizon. The system displays the following data: • • • • • Name of the source of supply for which you have set the upper limit or maximum lot size. the lead time it takes for a product to be available in a specific period can stretch over several periods. Lead Time Due to a long duration of shipment and production. you have also or alternatively defined that the optimizer is to consider maximum lot sizes. In the case of the production upper limit. because the bill of material has not been completely defined). Name of the product for which you have set the upper limit or maximum lot size. Quantity by which you must raise the upper limit to solve the problem. If you have defined a PPM/PDS that is not valid until the middle of the planning horizon. For more information.

However. a new optimization run can however still lead to similar or different problems due to the dependencies. there may be other explanations as well.• Procurement type of the location product If the lead time stretches into the past. the optimizer cannot determine the cause. if you increase the capacity of a resource to remedy the missing quantities of a specific product. For example. Costs The fulfillment of the demand and the safety stock requirement is called a soft constraint for the SNP or deployment optimizer. however. If you use the suggested orders or try to solve the exceptional situations another way depending on the displayed causes. you will. If you have not defined penalty costs for safety stock shortfall. the procurement type is S (initial stock level). the optimizer may decide not to fulfill the demand. due to runtime restrictions). If you have set the penalty costs for non-delivery and safety stock shortfall too low in the location product master data. This may be the case if the total costs are lower when demand is not fulfilled. That means there are penalty costs for not fulfilling the demand. . see a corresponding message. Further Information The explanation tool only generates one possible explanation for each exceptional situation. The system displays this possible cause in a message. another solution might be to increase the capacity of an alternative resource. Order Suggestions The system suggests additional orders that you could use to remedy the missing quantities. If you run a model consistency check. the system can use the additional capacity to cover the missing quantities of another product with higher priority. For example. if the system finds a capacity bottle-neck for a resource and suggests increasing the capacity of this resource. this might be because the optimization solution on which they are based was not optimal (for example. • • • Missing quantity of the product Start and finish time of the order Number of days by which the corresponding horizon (production or stock transfer horizon) or the planned delivery time has been violated. If the results of the explanation tool are incorrect.

You can also execute the explanation tool from the Optimization Run X screen by choosing Explain.Activities To execute the explanation tool. choose Advanced Planning and Optimization ® Supply Network Planning ® Reporting ® Optimizer Log Data. you can specify the priority classes of the demand for which you want the system to determine these causes (demand forecast. Configuration of the Explanation Tool Purpose You can configure the explanation tool for an optimization log in Supply Network Planning (SNP) according to your requirements. Here you make settings such as the target and level of detail of the explanation. customer demand.. This means you can choose which exceptional situations you want explained and how detailed you want the explanation to be. 2. the complexity of the calculation and thus the runtime as well. and choose Execute. for example. for example). The tree structure contains the entry Explanations with the subentries Configuration and Explanation Results. Process . or for the causes for safety stock shortfall only. or both. After you have executed the explanation run. For more information. If you double-click on these entries. If the upper table on the right side of the screen contains several entries. and so on). Then select an optimization run and choose Explain. The Explanations of the SNP Optimization Results screen appears. from the SAP Easy Access screen. see Configuration of the Explanation Tool. This affects. In addition.. 1. you see the Optimization Run X screen that displays the logs for the selected optimization run. you can double-click on an entry in the lower table to see its detailed data. choose Advanced Planning and Optimization ® Supply Network Planning ® Reporting ® Explanation of Optimization Results. you see your entry data and/or the results of the explanation run on tab pages on the right side of the screen. If you want to execute the explanation tool in the background. Target of the Explanation You can specify whether you want an explanation for the causes for non-delivery only. . 4. Selection of the Optimization Run You can select a specific optimization run directly or you can specify which run of a specific user is to be explained (going backward: the fourth to last run is run no.

Level of Detail of the Explanation You can specify how detailed you want the system’s explanations to be. period. If so. A probable cause is that you have not set the penalty costs for non-delivery high enough to prevent nondeliveries. You have defined high penalty costs for non-delivery in the location product master data to ensure that the system covers as many demands as possible.You also have to show the system how your model is structured. the system does not have to check for any other causes (such as lack of capacity). The following table shows the sequence of the analysis depending on the model: Model based on control costs (such as high non-delivery costs with the goal of maximizing the service level) Costs Time-based constraints and maximum lot sizes Capacity restrictions Horizons (such as production horizon) Product availability Planning horizon Model based on business (actual) costs (such as prices as costs for non-delivery) Time-based constraints and maximum lot sizes Capacity restrictions Horizons Costs Product availability Planning horizon Model in the structure phase (master data is in the structure phase and might not yet be complete) Costs Product availability Time-based constraints and maximum lot sizes Capacity restrictions Horizons Planning horizon In the explanation results. you can choose to see the explanations only for the non-deliveries for the most important products and/or customer locations. You can select the location products with a selection you have created in interactive SNP planning or you can enter them directly. Object Selection In many cases. Depending on whether your model is based on control costs or actual costs or whether it is in the structure phase. the system first checks whether or not the penalty costs are the cause for the non-delivery. For example. and priority class. The least detailed explanation level . Since your model is therefore based on control costs. explanations are only useful and necessary for a subgroup of the location products in an optimization run. However. For example. Since the causes are dependent on one another. By doing so. the most detailed explanation would explain the non-delivery for each location product. you set this as the target of the explanation. According to your setting. you are giving the system information about the sequence in which it is to check the possible causes for an exceptional situation. the analysis phase displayed is the one in which the system has determined the cause. the explanation tool ascertains that a demand was not covered. the check sequence of these causes is crucial for the analysis. 4. 3. other causes for the exceptional situation could be possible.

• • Explanation horizon: You can enter a time frame for which you want the system to generate explanations. The options available are:  • • • •     Aggregated explanations for all selected location products Aggregated explanations for all products in a location Aggregated explanations for a product in all locations Explanations for each location product You have defined that you want the system to generate aggregated explanations for all selected location products. You can specify the following parameters: • Level of detail: You specify how detailed you want the explanations to be. or for the entire explanation horizon and not separately according to priority classes. you cannot tell how much production capacity is necessary to remedy the missing quantity of a specific location product.  • Runtime: You can restrict the runtime of the explanation tool.  Optimization Run Termination Use You can use this function to terminate optimization runs in a ‘gentle’ fashion. without interrupting current processes. In this case. we recommend that you restrict the runtime. you must specify that you want the system to generate explanations for each location product. To see this information.would explain the non-delivery for all location products in the entire explanation horizon. If you have defined that the system also considers discrete restrictions (see above).  • Discrete restrictions: You can specify whether or not you want the system to consider the discrete restrictions defined in the SNP optimizer profile or deployment optimizer profile when it runs a cause analysis. It is particularly suited to runs that were . You see the explanation that a total of 8 hours of production capacity are missing for all selected location products.  Explanation for each period/priority class: You can specify whether you want the system to generate the explanation for each period and each priority class.

you might want to use this function in the following circumstances: • • If you discover that you have defined a runtime that is too long and would like to perform a new optimizer run with a shorter runtime. The system makes regular checks to see if the user has terminated the optimization run. Display Optimizer Processes.. Features 1. Finish Optimization Run. Terminating an Optimization Run Abruptly . which means that it saves all the data that has been determined by this point in time and creates a complete log. which means that the log generated might be incomplete.. and generates a complete log. saves the data. Follow this SAP APO Easy Access menu path: APO Administration ® Optimization ® System Monitoring ® Process Overview. the system brings the run to a proper conclusion. Choose with quick info.• If it takes too long to terminate the optimization run with this function. it might take some time before the system receives this information and terminates all the current processes. Select the optimization run you wish to terminate and choose . 1. 1..started interactively but can also be used for background runs. 2. 2. you can also terminate the run immediately. If you do this. However. To terminate runs started by other users. Finish Process. trying to improve on this solution. Follow this SAP APO Easy Access menu path: APO Administration ® Optimization ® System Monitoring ® Terminate Optimization Runs. the system does not save any data from the current run and also terminates log creation immediately. 2. Any solutions found by this time are also saved and recorded in the log. 3. If you start an optimization run interactively. you need system administrator authorization (authorization object S_RZL_ADM that must include authorization field ACTVT – activity).. 3. Prerequisites You can only terminate optimization runs that you have started yourself. If you can conclude from the messages or graphics displayed during the optimization run that the system has already found a solution but the optimizer continues the run. You need system administrator authorization to perform this abrupt optimization run termination (see the Prerequisites).• If you terminate an optimization run. and you want to accept the solution that has already been found and terminate the run. Activities Terminating an Optimization Run Gently . The system completes the data collection period if necessary. It is not possible to ‘gently’ terminate the optimization run during its initial data collection (data reading) period. Select the optimization run you wish to terminate and choose with the quick info.

. The system terminates the optimization run and log generation immediately.4. It does not save any data.