Realignment and life cycle planing process-apo dp

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prasad chowdary
Feb 21, 2013 10:34 AM

Dear APO experts, I want know the simple detail explanation about these two process in APO DP.Please explain with examples.....it would be understand easily. And what is the difference of these two plannings?under which scenario are using? Please don't take embarrass to explain. Expecting healthy need information.

Thanks&Regards Chowdary

Correct Answer by emani raghavendra on Feb 21, 2013 1:06 PM Dear Chowdary Life Cycle planning is used for forecasting new products. Realignment is used to transfer the demand of an existing SKU to another existing SKU. Scenario's : > When a company lauches new product in the market , then that product doesn't have any history . For Forecasting any product we need history data . The company needs to calculate the demad of this new product in order to meet the requirements. For this kind of scenario , Life cycle planning is used. In Life cycle planning , they take some reference Product which is a bit similiar to the newly lauched product and copy the history on percentage basis of the existing product to the new product and then they calculate the demand for the new product. This gives them a rough idea about the newq product which was lauched recently. here we should remeber that the newly lauched product will not capture the market on immediate effect. it has a slow growth in the market with different phases, like launch phase, growth phase, et.c. So we copy the history of the existing product on percentage basis. > Realignment is used when there is some change in the structure of a product / customer area and also when we want o transfer the demand from one product / customer to other product / customer. Suppose, currently a product " Milk " is under a product group " Liquid " . Now, the businees want to change to change the product group from " Liquid " to " LIQUID10LIT " , then we should realign the product group of the product " MILK ". That means, all the history and the demand of product " MILK " will now be transfeered from product group " LIQUID " to " LIQUID10LIT ". Also, if some Product has become defunct and i want to transfer its demand to another product which is existing in the market , then also we can use Realignment In simple terms >> >>>> Life Cycle Planning , is a techinique to calculate the forecast of newly Created Products. >>>> Realignment is just transfer of estimates from one product to another product. here forecats is not getting calculated . only transfer happens. For any further queries , pls revert.
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emani raghavendra Feb 21, 2013 1:06 PM (in response to prasad chowdary) Dear Chowdary Life Cycle planning is used for forecasting new products. Realignment is used to transfer the demand of an existing SKU to another existing SKU.

Scenario's : > When a company lauches new product in the market , then that product doesn't have any history . For Forecasting any product we need history data . The company needs to calculate the demad of this new product in order to meet the requirements. For this kind of scenario , Life cycle planning is used. In Life cycle planning , they take some reference Product which is a bit similiar to the newly lauched product and copy the history on percentage basis of the existing product to the new product and then they calculate the demand for the new product. This gives them a rough idea about the newq product which was lauched recently. here we should remeber that the newly lauched product will not capture the market on immediate effect. it has a slow growth in the market with different phases, like launch phase, growth phase, et.c. So we copy the history of the existing product on percentage basis. > Realignment is used when there is some change in the structure of a product / customer area and also when we want o transfer the demand from one product / customer to other product / customer. Suppose, currently a product " Milk " is under a product group " Liquid " . Now, the businees want to change to change the product group from " Liquid " to " LIQUID10LIT " , then we should realign the product group of the product " MILK ". That means, all the history and the demand of product " MILK " will now be transfeered from product group " LIQUID " to " LIQUID10LIT ". Also, if some Product has become defunct and i want to transfer its demand to another product which is existing in the market , then also we can use Realignment In simple terms >> >>>> Life Cycle Planning , is a techinique to calculate the forecast of newly Created Products. >>>> Realignment is just transfer of estimates from one product to another product. here forecats is not getting calculated . only transfer happens. For any further queries , pls revert.

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Anurag Tiwari Feb 21, 2013 1:54 PM (in response to prasad chowdary) Hello , In simple words when you only want to use the the history or sales data of an old item to plan for a new or a similar item you will use Re-alignment.The new item need not substiture the old one. But when you want to substitute an old item via a new item you will you will use Life cycle planning. In this New item slowly captures the market and old item slowly phases out from the market. Hope this gives you a hint. Regards, Anurag

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prasad chowdary Feb 22, 2013 8:59 AM (in response to Anurag Tiwari) Dear all, I am very thankful to these persons such a quick response and especially raghavendra explanation. Thank you for spending time... Regards Chowdary

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Anurag Tiwari Feb 22, 2013 9:31 AM (in response to prasad chowdary) Hello Chowdary,

Good to know that it helped you. Could you please also mark the thread accordingly. Regards, Anurag