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SCM230

Supply Network Planning (SNP)
mySAP Supply Chain Management

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Participant Handbook
Course Version: 2006 Q2
Course Duration: 5 Day(s)
Material Number: 50079236

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

Copyright
Copyright © 2006 SAP AG. All rights reserved.
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g200711253240

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

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2006/Q2

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iii

About This Handbook

SCM230

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© 2006 SAP AG. All rights reserved.

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

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

Unit 2: Master Data and Transaction Data in SNP................ 47
Working with Master Data ........................................... 49
SCM Product Master ................................................. 65
SCM Resource Master ............................................... 80
Scheduling in Supply Network Planning ........................... 91
The Production Data Structure ....................................105
Source Determination in SNP ...................................... 116
Transaction Data in Supply Network Planning ...................124

Unit 3: SNP Configuration ............................................ 137
Planning Areas .......................................................138
Planning Books.......................................................154
Macros and Alerts....................................................166
Navigation in the Planning Table...................................184

Unit 4: The Supply Network Planning Heuristic ................. 199
SNP Heuristic Run ...................................................200
Capacity Check and Leveling ......................................221
Planning Supplier Constraints using the SNP Heuristic ........246
SNP Heuristic Scheduling ..........................................253
Aggregated Planning ................................................256

Unit 5: SNP Run Using Capable to Match ......................... 277
Capable-to-Match Process .........................................278
Descriptive Characteristics in CTM ................................309
Alternative Resources in CTM .....................................313
Finite Supplier Planning in CTM ...................................323
CTM integration with GATP.........................................329

Unit 6: Optimization in Supply Network Planning............... 335
Supply Network Planning with the Optimizer.....................337

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Contents

SCM230

Optimizer Costs ......................................................345
Profiles Used by the Optimizer .....................................356
Parameters of the Optimization Run ..............................370
Comparing SNP Planning Methods ...............................387

Unit 7: Interchangeability ............................................. 393
Product Interchangeability ..........................................394

Unit 8: Safety Stock Planning ........................................ 417
Safety Stock Planning in SNP......................................418

Unit 9: Deployment and the Transport Load Builder ........... 445
Basics of Deployment ...............................................446
Transport Load Builder ..............................................478

Unit 10: Summarizing SNP ........................................... 495
SNP: Unit Summary .................................................496

Appendix 1: Appendix

.............................................. 513

Index ....................................................................... 519

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

Target Audience
This course is intended for the following audiences:

Project team members responsible for creating and optimizing central supply,
distribution resource, and production plans in the medium to long-term
horizon.

Course Prerequisites
Required Knowledge

SAPSCM Supply Chain Management or
SCM200 Supply Chain Planning Overview

Recommended Knowledge


SCM210 Master Data Integration
SCM212 Integrated Supply Chain Modeling
SCM220 Demand Planning

Course Goals
This course will prepare you to:


Understand the concepts of supply chain network
Identify and resolve problems in the supply chain
Set-up and configure a supply chain network model

Course Objectives
After completing this course, you will be able to:


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Create a model that represents your supply chain network and all relevant
locations, resources, and relationships
Develop queries and collect information about the supply chain
Detect and resolve problems in the supply chain using the Alert Monitor

© 2006 SAP AG. All rights reserved.

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Course Overview




SCM230

Set-up SNP master data and configure SNP
Perform SNP runs using SNP Heuristics , the SNP Optimizer, and Capable
to Match
Execute a Deployment run to determine the distribution of available supply
Use the Transport Load Builder to create multi-product loads

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

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© 2006 SAP AG. All rights reserved.

2006/Q2

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

Unit Objectives
After completing this unit, you will be able to:









Discuss the advantages of Supply Network Planning
Explain the tasks of models and versions of the supply chain
Describe the needed master data objects
Discuss the various tools for maintenance and analysis
Identify the Planning Horizons in SNP
Define the SNP process flow
Identify the SNP Planning Strategies
Discuss the role of deployment and the TLB
Define the process of planning and integrating SCM and SAP ECC
Explain the SCM Application Architecture

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

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Unit 1: Overview of Supply Network Planning

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Lesson: Supply Chain Modeling
Lesson Overview
This lesson will help you get an overview of Supply Network Planning (SNP).
You will learn about the benefits of planning with SNP and the necessary master
data objects in the supply chain to do so. You will also become familiar with the
roles of models and versions.

Lesson Objectives
After completing this lesson, you will be able to:


Discuss the advantages of Supply Network Planning
Explain the tasks of models and versions of the supply chain
Describe the needed master data objects

Business Example
Precision Pump Company manufactures a large variety of high-tech standard
pumps. The company wants to plan the material flow such that it does not create
backorders or excess inventory. As the planning manager, you need ensure that
the production and procurement of finished products can be executed on time,
the distribution to distribution centers is optimal, and customers are supplied
according to their requirements.

Benefits of Supply Network Planning with SAP SCM
The benefits of Supply Network Planning with SAP SCM are as follows:








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Cross-location medium-term rough-cut planning
Simultaneous planning of procurement, production, and distribution
Planning of critical components and bottleneck resources
Simultaneous material planning and finite capacity scheduling of production,
storage, and transportation resources
Cross-location optimization of resource utilization
Prioritization of demands and receipts
Collaborative supply planning over the Internet
Detailed distribution planning (deployment): Generation of feasible stock
transfers
Grouping of deployment stock transfers for means of transport in the
Transport Load Builder (TLB)

© 2006 SAP AG. All rights reserved.

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Lesson: Supply Chain Modeling

Information Flow

Figure 1: The Supply Chain: From Supplier to Consumer

Supply chain planning manages the flow of material and information through a
network of suppliers, manufacturers, distributors, and customers. For effective
Supply Chain Management (SCM), this flow must be well-coordinated and
integrated within a company and across company boundaries, on a local and
global scale.
You can use SAP SCM to link several execution systems to one SCM planning
server for cross-system planning of procurement, distribution, and production.
This integrated planning enables you to:



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Reduce the costs for sourcing products and raw materials
Improve customer service
Dramatically reduce on-hand stocks
Make better use of company resources

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Figure 2: Beyond Traditional Planning

Supply Network Planning (SNP) integrates purchasing, manufacturing,
distribution, and transportation so that comprehensive tactical planning and
sourcing decisions can be simulated and implemented on the basis of one global
and consistent model.
SNP provides an overview of the inventory levels and previously planned receipts
for finished products and components of all the connected OLTP systems.
Various planning methods can be used to create feasible cross-location
plans for the flow of material along the supply chain, taking into account
constraints and penalty costs. The result is optimal purchasing, production and
distribution decisions, reduced stock levels, and improved customer service for
vendor-managed inventory (VMI) customers.
Possible constraints are material availability and availability of work center,
storage, transportation and handling capacities. You determine how production
is carried out in which plant by using the production data structure (PDS) or
production process models (PPM) .

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Lesson: Supply Chain Modeling

Master Data Objects

Figure 3: Master Data Objects in the Supply Chain

Even when using an SCM system for supply chain planning, master data is created
in the connected execution systems (for example, SAP ECC), modified, and then
transferred to SAP SCM. The execution systems, therefore, are the dominant
systems for the master data. Only master data that exists only in SAP SCM and
that does not exist in SAP ECC is created in the SAP SCM system.
The master data objects for the supply chain created in SAP ECC are plants,
distribution centers (DCs), vendors, and VMI customers. Supply chain planning
involves materials that are defined as material masters. For plants that produce
and plan, you need to create work centers, bills of material (BOMs), and routings
in addition to the materials for planning.
In SAP SCM, you define transportation lanes between the individual supply
chain locations, such as plants and suppliers, which, among other things, define
the means of transport and the shipment duration in the supply chain. In ECC,
material-specific procurement relationships can be defined using a special
procurement key and transferred to the SAP SCM transportation lane. Quota
arrangements cannot be transferred to SCM.
The supply relationship between a vendor and a plant is stored in SAP ECC in the
form of a purchasing info record, scheduling agreement, or contract. When you
transfer these external procurement relationships to SCM, they are displayed as
external procurement relationships for the transportation lane. The source list can
also be used as source determination in SAP SCM. It should be decided whether
the purchaser is working in SAP SCM or still in SAP ECC.

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Figure 4: Master Data Objects of the APO Core Interface

Data transfer between the ECC and SCM systems is defined and controlled using
the Core Interface (CIF). CIF is the central interface that connects SAP SCM to
the existing SAP ECC system environment and is imported to the ECC system by
a plug-in. In the Core Interface, you select the objects that should be transferred to
SAP SCM via the integration models. Only the planning-relevant parameters from
the complex dataset of SAP ECC are transferred to SAP SCM.
The Core interface is used for both initial data transfer (initial transfer) and transfer
of data changes (transfer of data changes).
The SCM master data objects are not identical to those of ECC. During master
data transfer, the relevant ECC master data is mapped to corresponding SCM
planning master data.

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Lesson: Supply Chain Modeling

Figure 5: Master Data Integration

The master data transferred from ECC is assigned automatically to the active
model 000 in SCM. This means that the active model also represents the supply
chain in SAP SCM. You must also maintain in SAP SCM the means of transport,
transportation lanes, and quota arrangements, as this information cannot be
transferred from SAP ECC. If you also want to plan production in SNP, you need
to generate SNP production data structures or production process models that
summarize the information regarding the planned components and resources from
the ECC bills of materials, work centers, and routings. If, in addition, you want to
select suppliers in SNP, you must have product master records for the suppliers.

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Figure 6: Models and Planning Versions

The model represents the master data of the supply chain and consists of individual
nodes (locations) and links. The transaction data for the master data of the model
is stored in versions of the model. In SCM, you can create and manage different
versions of a model for simulation purposes. However, for the active model (000)
there exists only one active version (00) which exchanges transaction data with
the connected execution systems. Inactive models are only used for strategic
planning to, for example, examine the effects of new locations or modified
transportation lanes.
The model is the basis for all SCM planning functions and covers the entire supply
chain network. The supply chain model contains all master data such as locations,
resources, products, transportation lanes, etc. You can view and maintain the
model using the Supply Chain Engineer.
Master data the was transferred from the OLTP Systems, such as locations,
products, resources, production data structures (PDS) or production process
models (PPM), is automatically assigned to model 000. You must explicitly assign
any master data that you create in SCM to the model.
Versions contain the version-specific master data of the model and transaction
data. For simulation purposes, you can change the master data of the model in
different versions. For example, you can define that a resource is available for 8
hours in version 00 but for 16 hours in version 001. Versions are uniquely assigned
to one model within the entire system.
Models and versions can be copied. From SCM 4.0, transaction data can be
copied from an inactive version to the active version; the integration with the ECC
systems(CIF) must be canceled first. Transaction data in versions of different
models cannot be copied.

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© 2006 SAP AG. All rights reserved.

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Lesson: Supply Chain Modeling

Additional Tools for Master Data and Transaction Data

Figure 7: SCM Maintenance Tools and Reporting Tools

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

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Figure 8: Supply Chain Engineer (SCE)

The SCE affords you an integrated display of the master data for which an SNP
planner is responsible. The master data of the supply chain can be queried here.
For example, you can request a list of all the products assigned to a specific
location in your model. At the same time, you can add products to this location or
make changes in the location master.

Figure 9: Work Areas

Since your supply chain normally includes thousands of products, bills of
materials, and routings, you need a filter for the SCE so that you can restrict the
model display to just those objects for which an SNP planner is responsible.
This filter is called the work area. The work area is used exclusively as a filter

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Lesson: Supply Chain Modeling

to display objects in the SCC and SCE. After the work area is defined, it forms
the basis for the queries that you submit to the SCM system to gain information
about all aspects of your supply chain. The transportation lanes in your work area
are derived from the selected locations.
You can select the following in the work area of the supply chain:



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Locations (for example, plant, DC, supplier, customer)
Products
Resources (for example, production, storage, handling, and transportation)
Production Process Models (PPMs)

© 2006 SAP AG. All rights reserved.

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SCM230

Lesson: Supply Chain Modeling

Exercise 1: Modeling
Exercise Objectives
After completing this exercise, you will be able to:

Analyze the given model in the Supply Chain Engineer

Navigate in the Supply Chain Engineer

Create work areas and submit queries

Business Example
You are the Planning Manager at Precision Pump Company. In the Supply Chain
Engineer, you want to create a work area with those entries for which you are
responsible so that you can analyze the objects of your supply chain.

Task 1:
1.

Create a work area WA-## for the Supply Chain Engineer for the prepared
model SNP-##, which contains your frequently used objects. Use the data in
the table below and save your selection variant with the name SEL-## for
future use.
Selection Objects

Characteristic
value from

Characteristic
value to

Location → Location number

1000

2500

Resource → Resource number

W1906*

Production process model → SNP
Planner

P00

Location Product → Supply
Network Planner

P00

Task 2:
Navigate in the Supply Chain Engineer and use the basic features and functionality.

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1.

Go to the logical view PUMP in order to better judge the structure of your
supply chain.

2.

Query the transportation lanes permitted for product P-102. In which
locations is the product maintained and where can it be transferred to?

3.

Display the master data for location product P-102 at distribution center
2400 in the Supply Chain Engineer.

4.

In the Supply Chain Engineer, display the inbound quota arrangement for all
products at distribution center 2500.

© 2006 SAP AG. All rights reserved.

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Solution 1: Modeling
Task 1:
1.

Create a work area WA-## for the Supply Chain Engineer for the prepared
model SNP-##, which contains your frequently used objects. Use the data in
the table below and save your selection variant with the name SEL-## for
future use.
Selection Objects

Characteristic
value from

Characteristic
value to

Location → Location number

1000

2500

Resource → Resource number

W1906*

Production process model → SNP
Planner

P00

Location Product → Supply
Network Planner

P00

a)

Choose Advanced Planning and Optimization → Master Data →
Supply Chain Engineer → Maintain Model.

b)

Enter the data in the table below.
Model/Work Area
Model

SNP-##

Work Area

WA-##

c)

Select the

Display button.

d)

A dialog box warning you that this is a new work area will appear.
Confirm this dialog box.

e)

Work Area icon and choose Add Objects
Click the
from the drop down menu.

f)

The first selection object at the top Location Number is marked with a
red arrow. Enter the location numbers in the lines Char. Value From
and Char. Value To in the right hand part of the dialogue box.

g)

Next, under the Resource entry, double-click on the selection object
Resource Number. A red arrow appears in front of it. In the right part
of the dialog box enter W1906*.

Continued on next page

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SCM230

Lesson: Supply Chain Modeling

h)

Then, under the Production Process Model heading, double-click SNP
Planner so the red arrow appears there. Enter P00 in the left column.

i)

Finally, under the Location Product heading, double-click SNP Planner
and enter P00 again.

j)

Click the

Save Selection icon to save your selection.

Name your selection SEL-## and select
k)

Save as.

Copy your selection to the Supply Chain Engineer by clicking the
Adopt icon.

l)

If you want to view a specific geographical area on the map, you can
hold down the left mouse button to specify the zoom area.

Task 2:
Navigate in the Supply Chain Engineer and use the basic features and functionality.
1.

2.

Go to the logical view PUMP in order to better judge the structure of your
supply chain.
a)

Choose Settings → Logical View.

b)

Select the PUMP logical view from the drop down list and click

c)

You can use the same Settings menu to change back to the geographical
view.

OK.

Query the transportation lanes permitted for product P-102. In which
locations is the product maintained and where can it be transferred to?
a)

Select product P-102 on the Location Products tab page.
Right mouse-click on a location product from the Product P-102 and
use the right mouse-button to choose Queries → Transport Net (map)
or Location and Transportation Lane List. Execute query.
The permitted transportation lanes are shown in red in the graphic
display.
Product P-102 is produced in plants 1000 and 2300 and is sold and
distributed by distribution centers 2400 and 2500. DC 2400 only
receives supplies from plant 1000, DC 2500 is supplied from both
plants.

Continued on next page

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Unit 1: Overview of Supply Network Planning

3.

SCM230

Display the master data for location product P-102 at distribution center
2400 in the Supply Chain Engineer.
a)

Choose the Location Products tab page.
Right-click on location product P-102 in distribution center 2400 in
order to select it and display the master data for this product: Display
→ Location Product. In the next window, choose Execute query.

4.

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In the Supply Chain Engineer, display the inbound quota arrangement for all
products at distribution center 2500.
a)

Choose the Locations tab page.

b)

Right-click on distribution center 2500 and from the context
menu choose: Quota Arrangements → Display Incoming Quota
Arrangements.

c)

You can also access this information by right-clicking on DC 2500
on the map.

d)

Double-click on the “All products” row to display the “Quota
arrangement items” for all products.

© 2006 SAP AG. All rights reserved.

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Lesson: Supply Chain Modeling

Lesson Summary
You should now be able to:

Discuss the advantages of Supply Network Planning

Explain the tasks of models and versions of the supply chain

Describe the needed master data objects

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© 2006 SAP AG. All rights reserved.

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Unit 1: Overview of Supply Network Planning

SCM230

Lesson: Supply Chain Planning
Lesson Overview
This lesson will help get an overview of the various tools available for Supply
Chain Planning. First, you will learn about the Planning Horizons in SCP and
Supply Network Planning. Next, you will learn about the SNP process and
identify SNP planning strategies. You will also understand the role of deployment
and the Transport Load Builder (TLB) in SNP. Finally, you will learn about the
process of planning and integrating SCM with SAP ECC and about the SCM
application architecture.

Lesson Objectives
After completing this lesson, you will be able to:






Discuss the various tools for maintenance and analysis
Identify the Planning Horizons in SNP
Define the SNP process flow
Identify the SNP Planning Strategies
Discuss the role of deployment and the TLB
Define the process of planning and integrating SCM and SAP ECC
Explain the SCM Application Architecture

Business Example
As planning manager at Precision Pump Company, you need to finalize a model
for the supply chain network that will identify the direction that the final products
will take. You need to ensure that you have designed the supply model in such a
way that you can easily find out the products assigned for a specific location at
a given point of time.

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Lesson: Supply Chain Planning

Network Planning

Figure 10: Supply Chain Planning at a Glance

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

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

Figure 11: Planning Horizons in mySAP SCM

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

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Figure 12: Supply Network Planning

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

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Figure 13: Goals of Supply Network Planning

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

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Transaction Data

Figure 14: Transaction Data Objects in the Supply Chain

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

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Figure 15: Transaction Data Integration

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

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The Supply Network Planning Process Flow

Figure 16: The Supply Network Planning Process Flow

When the demand plan is released, planned independent requirements are created
for SNP or PP/DS.
Performing the SNP run using the SNP heuristic, SNP optimization, or
Capable-to-Match results in a medium-term production and distribution plan.
After the SNP run, you check the exception messages or alerts and solve any
problems that may occur.
The final SNP plan consists of feasible purchase requisitions, SNP stock transfers,
and SNP planned orders. You can convert SNP planned orders into PP/DS planned
orders in the production horizon using the PP/DS planning run. The planned
independent requirements and SNP stock transfers are covered by PP/DS planned
orders. In addition, detailed constraints and bottlenecks, such as sequences and
setup times, are taken into account, and a feasible production plan is created.
The final SNP or PP/DS plan can be released to DP again to compare the
unconstrained demand plan with the feasible procurement plan. If the two plans
do not match, you can use a macro to trigger alerts so that the demand planner
can plan the forecasts again.
After production planning is complete, the deployment run confirms the SNP
stock transfers based on current receipts and demands.
The TLB run groups the deployment stock transfers into TLB shipments.

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You can manually create stock transport orders for deployment stock transfers that
could not be taken into account during the TLB run. One reason that transfers
might not be taken into account during the TLB run is because threshold values
were specified.

Figure 17: Supply Network Planning Options

Supply Network Planning in SAP SCM can be executed as finite or infinite
planning.
Neither capacities nor material availabilities are checked in infinite production
planning. Planned orders, stock transfers, and purchase requisitions are created for
the requested date, even if there is no free capacity. Even if components cannot be
procured on time, planned orders are created. Capacity requirements planning is
then done interactively in a second step.
During finite planning, availability of capacities and components required for
production is checked when receipts are created. The planned order can only be
created when sufficient capacity is available. If there is no available capacity for
the requested time, the planned order is created earlier or later, depending on
when there is available capacity. This delay is indicated by an alert. CTM and the
optimizer create feasible medium-term supply, production, and distribution plans.
Deployment distributes the stock and available receipts at the plants to the
distribution centers and Vendor-Managed Inventory (VMI) customers. The stock
transfers are adjusted to the current situation.
The Transport Load Builder (TLB) groups together the deployment stock transfers
confirmed by deployment, taking transportation capacities into account.

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In Customizing, you set whether or not you want the deployment stock transfers
or TLB shipments to be converted to stock transport orders when transferred to
SAP ECC.

SNP Planning Strategies

Figure 18: Heuristic Scenario

The heuristic performs the following functions:


Plan supply to meet demand without taking into account constraints such as
available capacities and materials (infinite planning).
Plan receipts for purchasing, production, and distribution within the supply
network on a cross-location, period-oriented basis.
Synchronize activities and plan the flow of material throughout the supply
chain.

The above graphic provides an example for the heuristic:
1. There is demand at the distribution center. The net requirements calculation
finds no stock. The product is procured externally. The system determines
the possible transportation lanes. Demand is distributed according to quota
arrangement and transferred to the plants through stock transfers.
2. There is no stock at the plants. As a result, the SNP plans (PPMs) are exploded,
planned orders are created for the finished product, and dependent requirements
are created for the components. The planned order in the plant with the higher
quota arrangement is not feasible due to limited capacity. As a result, an alert is
generated and the supply chain planner has to intervene.

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3. Components are then procured through the possible transportation lanes
according to quota arrangements or priorities. The supplier with the highest
priority cannot deliver enough. An alert is generated and the supply chain planner
has to intervene.
The heuristic can be used for rapid cross-location distribution and supply planning,
if constraints are not usually relevant.

Figure 19: Capable-to-Match (CTM) Scenario

Capable-to-Match (CTM) is a rules-based, cross-location planning method that
takes into account constraints such as available capacity and materials during the
planning run (finite planning).
The feasibility of receipts is checked successively against priorities or quota
arrangements and the first feasible solution is scheduled.
CTM is an order-based planning method that uses pegging to track orders back to
the individual demand. As a result, CTM is not a true form of Supply Network
Planning because SNP provides quantity-based and not order-based planning.
But CTM is a part of this course because it is a form of cross-location planning.
After the optimization or heuristic run, planned production orders or purchase
requisitions can no longer be uniquely assigned back to the original sales order.
The above illustration provides an example of CTM:
1. There is demand at the distribution center. The net requirements calculation
finds no stock. The product is procured externally. The system determines the
possible transportation lanes. CTM checks whether or not the finished product and
components can be procured from the plant with the higher quota arrangement.
The entire quantity cannot be procured. As a result, procurement is distributed
according to feasibility and transferred to the plants using stock transfers.

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2. There is no stock at the plants. As a result, the SNP plans (PPMs) are exploded,
planned orders are created for the finished product, and dependent requirements
are created for the components. The plants have sufficient capacity to deliver the
planned orders. The supply chain planner does not need to intervene.
3. Components are procured through the possible transportation lanes according to
quota arrangements or priorities. The suppliers can supply enough. The supply
chain planner does not need to intervene.

Figure 20: Optimizer Scenario

The SNP optimizer is a cost-based, cross-location planning method that takes into
account constraints such as available capacity and materials during the planning
run (finite planning).
The feasibility of receipts is checked globally and the solution that is the most
feasible and cost-effective is scheduled. Priorities are set using control costs that
you maintain in SCM, excluding procurement costs. Quota arrangements are
ignored by the optimizer although the quota arrangements can be optimized and
created during the planning run.
The optimization run, similar to the heuristic run, is a quantity-based planning
method without pegging. You cannot uniquely assign planned production orders
or purchase requisitions to the original sales order.
The above illustration provides an example of the optimizer:
1. There is demand at the distribution center. The net requirements calculation
finds no stock. The product is procured externally. The system analyzes the
possible transportation lanes. The optimizer makes global checks to find the most
cost-effective way of procuring the finished product and its components. The

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entire quantity cannot be procured from the most cost-effective plant. As a result,
procurement is distributed according to feasibility and costs, and distributed to
the plants using stock transfers.
2. There is no stock at the plants. As a result, the SNP plans (PPMs) are exploded,
planned orders are created for the finished product, and dependent requirements
are created for the components. The plants have sufficient capacity to deliver the
planned orders. The supply chain planner does not need to intervene.
3. Components are then procured through the possible transportation lanes
according to cost. The suppliers can supply enough. The supply chain planner
does not need to intervene.

Figure 21: Transition from Medium- to Short-Term Planning

If you decide to use both SNP and PP/DS for planning, the PP/DS and SNP
horizons are used to separate the areas of responsibility for these two planning
functions. So, for example, the SNP planning run can only create planned orders
outside of the SNP production horizon, and PP/DS can only create planned orders
inside of the PP/DS horizon. If requirements within the SNP production horizon
cannot be covered by PP/DS, then SNP plans the receipt outside of the SNP
production horizon (this corresponds to the logic of the PP/DS planning time
fence in short-term planning). If the PP/DS horizon in the product master is set to
a greater length than the SNP production horizon, this gives rise to an overlapping
area in which both SNP and PP/DS receipts can be created.
Supply Network Planning is used for medium- to long-term planning across the
entire supply chain, especially if there are several plants and distribution centers.
Demands are aggregated for a defined bucket, for example, a day. In this instance,
it is irrelevant whether a demand is in an early shift or late shift. This is because

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the demands are only planned roughly – exact breaks are not taken into account.
In addition to performing aggregated planning in SNP, you can also perform
structural aggregated planning. You can define specific bucket resources to be
used for SNP, which can represent the available capacity of an entire warehouse,
for example. Because you create specific PPMs for SNP, which are usually copied
from PP/DS PPMs, you can describe production at these bucket resources. Order
sequences with their exact times do not play a role in Supply Network Planning.
PP/DS is used for short-term planning when orders need to be scheduled to the
minute and when order sequences, that is sequence planning and optimization,
need to be considered.
Pegging is the link between receipts and issues along the supply chain. The
planning run determines which demand is covered by which receipt element; this
information is stored in liveCache. When an order is moved to an earlier or later
time, all dependent orders can be adjusted automatically due to this pegging.
This function is only available in Detailed Scheduling and CTM. SNP is based
purely on quantities and buckets.

Figure 22: Production Planning and Detailed Scheduling in SCM

Production Planning and Detailed Scheduling is mainly used for short-term,
to-the-minute planning in the production plant, both for in-house production and
external procurement.
PP/DS meets requirements by generating planned orders to plan in-house
production, in addition to purchase requisitions or schedule lines to plan external
procurement.
The following factors can be used to integrate and distribute tasks between SNP
and PP/DS:

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SNP and PP/DS are responsible for different planning stages: You use SNP
for medium-term planning and PP/DS for short-term planning. Planning does not
overlap, which means that the PP/DS horizon and SNP production horizon have
the same length. As soon as SNP orders are within the PP/DS horizon, they are
converted into PP/DS orders.
SNP and PP/DS are responsible for different locations: You use SNP to plan
receipts (stock transfers) at the distribution centers and PP/DS to plan production
plants. PP/DS provides detailed production planning based upon SNP stock
transfer requirements. This includes complete bills of material and the optimized
setup for order sequences. This level of detail is not required when planning
distribution centers.
SNP and PP/DS share a planning horizon if the SNP production horizon is
shorter than the PP/DS horizon. SNP has control over the planning of specific
finished products and their critical components. This means that SNP can plan
receipts and determine the most cost-effective sources and lot sizes. You only use
PP/DS to plan the receipts generated by SNP to complete the bills of material and
for sequencing, for example, optimization of setup times.

Deployment in SCM

Figure 23: Deployment

The deployment function in SNP plans the short-term distribution of the produced
or procured products to the distribution centers. It determines when, and in what
quantity, inventory and planned receipts can be deployed to distribution centers
and vendor-managed inventory (VMI) accounts. If the ATD (available-to-deploy)
quantity is insufficient to cover all demands, the fair share rules define the DC
prioritization. These generate feasible, or even optimized, distribution plans with

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constraints (e.g. transportation capacities) and business rules (e.g. minimum
cost approach or replenishment strategies), which can be transferred to ECC in
the form of executable stock transport orders. Deployment generates optimized
replenishment plans that take into account short-term changes on the supply or
demand side as well as constraints, such as transportation and storage capacities.
There are several deployment strategies that can be used, such as fair share, push
deployment, and pull-push deployment.

Figure 24: Transport Load Builder

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

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Figure 25: Vendor-Managed Inventory (VMI)

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

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Figure 26: Integration between SCM and SAP ECC

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

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Figure 27: Collaborative Planning in SCM

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

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Lesson: Supply Chain Planning

SNP: Configuration

Figure 28: Configuration of Supply Network Planning (SNP)

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

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Figure 29: The Application Architecture of SAP SCM

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

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Exercise 2: SNP Heuristic and ECC
Integration
Exercise Objectives
After completing this exercise, you will be able to:

Identify planning horizons in SCP and SNP

Define the SNP process flow

Identify SNP planning strategies

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

Task 1:
1.

In SAP ECC, create a planned independent requirement for product
(material) T-F2## at plant 2400. In version 00, schedule a planned
requirement quantity of 400 pieces for two months from today’s date, and
save the planned independent requirement.

Task 2:
1.

Open interactive Supply Network Planning in SCM. Open the selection
window and, next to “Show,” select “APO - Location product.” Version 00 is
displayed automatically. In the row below this, enter APO PRODUCT again,
and enter your product T-F2## to the right of that. Load the data for the
product at location 2400 into the planning table.

Task 3:
1.

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

Continued on next page

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Task 4:
1.

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

Task 5:
1.

Go to the PP/DS product view for product T-F2##, location 1000, and
version 00. Double-click on the SNP planned order. Note down the start
date and finish date.
Start Date:
Finish Date:
Convert the SNP planned order into a PP/DS order. Compare the new start
date, finish date, and requirements with those you noted down previously.
Set the conversion indicator and save the order.

Task 6:
1.

40

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

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Lesson: Supply Chain Planning

Solution 2: SNP Heuristic and ECC
Integration
Task 1:
1.

In SAP ECC, create a planned independent requirement for product
(material) T-F2## at plant 2400. In version 00, schedule a planned
requirement quantity of 400 pieces for two months from today’s date, and
save the planned independent requirement.
a)

SAP menu: Logistics → Production → Production Planning →
Demand Management → Planned Independent Requirements → Create
to access the planning
Enter the material and plant. Choose “Enter”
table. In the “Sched. lines” tab page, enter the requirement date that is
exactly two months from today in day format (you must change the date
parameters in the first column from “M” to “D”) as the requirements
date, and a planned quantity of 400.

Task 2:
1.

Open interactive Supply Network Planning in SCM. Open the selection
window and, next to “Show,” select “APO - Location product.” Version 00 is
displayed automatically. In the row below this, enter APO PRODUCT again,
and enter your product T-F2## to the right of that. Load the data for the
product at location 2400 into the planning table.
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Interactive Supply Network Planning
Selection window icon.
Open the selection window using the
Next to “Show,” select “APO - Location product.” Version 00 is
displayed as a condition. In the next row, enter APO Product again,
and enter your product T-F2## to the right of that. Choose
Copy.
Your selection will now be adopted and shown in the selection window.
Double-click on your product T-F2## for distribution center 2400. The
data for this selection is now displayed in the planning table.

Continued on next page

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Task 3:
1.

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

You find your planned independent requirement approximately eight
weeks in the future, in the “Total demand” key figure.
Double-click on the “Total demand” row. The planned independent
requirement is displayed in the “Forecast” key figure. All key figures
(forecast, sales order, dependent demand, distribution demand)
contribute to the total demand.
Double-click on your product T-F2## for plant 1000. There are still
no production quantities or distribution demand displayed because the
planning run has not been started yet.

Task 4:
1.

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

Continued on next page

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Also check that planned orders were created in plants 1000 and 2300.
a)

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

.

Task 5:
1.

Go to the PP/DS product view for product T-F2##, location 1000, and
version 00. Double-click on the SNP planned order. Note down the start
date and finish date.
Start Date:
Finish Date:

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SCM230

Convert the SNP planned order into a PP/DS order. Compare the new start
date, finish date, and requirements with those you noted down previously.
Set the conversion indicator and save the order.
a)

Advanced Planning and Optimization → Production Planning →
Interactive Production Planning → Product View
Enter your version 00, product T-F2##, location 1000 and select
continue (enter)

; confirm any messages that appear.

Double ckick on the SNP planned order to view the dates. Select the
Back icon

to return to the product view.

Switch to “Change” mode by selecting the

icon.

To convert; select the appropriate “SNP planned order” and press the
“Convert SNP Orders” button. The PP/DS planned order is now
created with the PP/DS bill of material (BOM) and routing.
Double click on the new planned order to view the detailed dates.
to return to the product view.

Select the Back icon

To convert the PP/DS planned order to a production order; set the
“Conversion Ind.”indicator for the appropriate planned order.
Save your changes

.

Task 6:
1.

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

SAP ECC standard menu: Logistics → Production → MRP →
Evaluations → Stock/Requirements List
.A
Enter your material number as well as plant and select Enter
production order was already created in plant 1000, because you used
the conversion indicator to convert the PP/DS planned order in SCM
into a production order.

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2006/Q2

SCM230

Lesson: Supply Chain Planning

Lesson Summary
You should now be able to:

Discuss the various tools for maintenance and analysis

Identify the Planning Horizons in SNP

Define the SNP process flow

Identify the SNP Planning Strategies

Discuss the role of deployment and the TLB

Define the process of planning and integrating SCM and SAP ECC

Explain the SCM Application Architecture

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Unit Summary

SCM230

Unit Summary
You should now be able to:

Discuss the advantages of Supply Network Planning

Explain the tasks of models and versions of the supply chain

Describe the needed master data objects

Discuss the various tools for maintenance and analysis

Identify the Planning Horizons in SNP

Define the SNP process flow

Identify the SNP Planning Strategies

Discuss the role of deployment and the TLB

Define the process of planning and integrating SCM and SAP ECC

Explain the SCM Application Architecture

46

© 2006 SAP AG. All rights reserved.

2006/Q2

Unit 2
Master Data and Transaction Data in
SNP
Unit Overview
In this unit you will learn how to identify the master data objects for a supply
chain. The task of creating transportation lanes is dealt with. Next, you will
identify which settings in the product master and in the resource master data
are important for SNP planning. You will also identify the components of the
production data structure (PDS) and of the production process model (PPM)
and be able to differentiate between them. You will then compare the tasks of
PP/DS and SNP. Finally your will learn about transaction data objects such as
independent requirements, sales orders, planned orders, purchase requisitions and
stock transfers in the SNP environment and will understand the integration of
these data objects with the execution systems.

Unit Objectives
After completing this unit, you will be able to:













2006/Q2

Identify the Master Data objects for a supply chain
Create transportation lanes
Identify the product and material master data needed for SNP planning.
Identify the resource master data in SNP
Define the various types and categories of resources
Explain scheduling in SNP
Compare and contrast ways of generating bills of materials and routings
for SNP via PDS and PPM
Generate SNP plans (PPMs) from PP/DS plans (PPMs)
Create an SNP production data structure from SAP ECC
Display the SNP production data structure in SAP SCM
Plan with the SNP production data structure
Navigate in the Quota Arrangement
Describe the various planning methods
Identify the transaction data used in SNP

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Unit 2: Master Data and Transaction Data in SNP

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Describe the process of integrating transaction data

Unit Contents
Lesson: Working with Master Data ............................................ 49
Exercise 3: Transportation Lanes ......................................... 61
Lesson: SCM Product Master .................................................. 65
Exercise 4: Product Master Data .......................................... 75
Lesson: SCM Resource Master................................................ 80
Exercise 5: Resource Master Data........................................ 87
Lesson: Scheduling in Supply Network Planning............................ 91
Exercise 6: Planning (PPM) Master Data ................................ 99
Lesson: The Production Data Structure .....................................105
Exercise 7: Creating a Production Data Structure ..................... 111
Lesson: Source Determination in SNP....................................... 116
Exercise 8: Quota Arrangements ........................................121
Lesson: Transaction Data in Supply Network Planning....................124

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SCM230

Lesson: Working with Master Data

Lesson: Working with Master Data
Lesson Overview
This lesson will give you an overview of the master data objects for a supply
chain. You will also learn how to create transportation lanes in Supply Network
Planning (SNP).

Lesson Objectives
After completing this lesson, you will be able to:

Identify the Master Data objects for a supply chain
Create transportation lanes

Business Example
The manufacturing plants, distribution centers, vendors, and customers of
Precision Pump Company are spread across different cities in U.S. and Europe. As
the Planning Manager at Precision Pump Company, you need to control the overall
planning of the supply chain. To do this, you need to define all the data objects that
would complete the supply chain. You also need to ensure that the products reach
the customer from the manufacturing plant on time and in a cost-effective manner.

Master Data Objects

Figure 30: Master Data Objects in the Supply Chain

The master data objects for the supply chain are usually created in SAP ECC.
Master data objects include plants, distribution centers (DCs), vendors, and
customers. Supply chain planning uses materials that are defined as material
masters. In addition to creating the materials for planning, you need to create

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Unit 2: Master Data and Transaction Data in SNP

SCM230

resources, Bills of Material (BOMs), and routings for plants that produce and plan.
In SAP SCM, you define transportation lanes between the individual supply chain
locations, such as plants and suppliers. These transportation lanes determine the
flow of material through the supply chain.
Even when you use an SAP SCM system for supply chain planning, you create
master data in the running ECC systems and then transfer this data to SAP SCM.
Only master data that exists in SAP SCM and not in SAP ECC is created in the
ECC system.
In SAP SCM, transportation lanes connect locations so that stock transfers can
be planned between these locations. In SAP ECC, corresponding lanes can
be maintained, for example, in the form of special procurement keys that are
transferred to the transportation lane as a product-specific entry.
The supply relationship between a vendor and a plant is created in SAP ECC in
the form of a purchasing info record or outline agreement. When you transfer
these external procurement relationships to SAP SCM, they are displayed as
external procurement relationships that are created as a product-specific entry
in the appropriate transportation lane.

Figure 31: Master Data Maintenance in SCM

As the management of master data in SCM is different for every master data object
with regard to models and versions, the slide provides an overview of the ways of
maintaining the different master data:
Locations are normally transferred from SAP ECC and assigned automatically to
model 000. They are not model-specific and can be maintained version-specific
with the exception of a few TP/VS fields.

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SCM230

Lesson: Working with Master Data

Products are normally transferred from SAP ECC and assigned automatically
to model 000. Location product master records can be created and changed in
relation to a specific version (option Choose Planning Version).
Resources are normally transferred from SAP ECC, assigned automatically to
model 000, and created for all versions of model 000. For this purpose, in ECC
define whether the resource is to be transferred as a single, mixed, or bucket
resource.
Caution: If you do not change a resource for the version, the resource is
only changed globally and not for each version.
Plans (production process models - PPMs) are normally transferred from SAP
ECC and assigned automatically to the model 000. They cannot be maintained per
model or per version. SNP plans (PPMs) can be generated from PP/DS plans and
are automatically assigned to Model 000.
PP/DS and SNP production data structures (PDS) are transferred directly from
SAP ECC and can only be changed in the source system.
Transportation lanes are created in the SCM system for a specific model. External
procurement relationships and special procurement keys are normally transferred
from SAP ECC and automatically assigned to the transport lane of the active
model. Certain product-specific fields can be changed respective to their version.
Quota arrangements are created in the SCM system for a model or a version.
A quota arrangement specifies which proportion of the required quantity of a
product is to be procured from a source of supply (incoming quota arrangement)
or supplied to a location (outgoing quota arrangement). Quota arrangements can
be maintained for the model or the version.

Figure 32: Locations in the Supply Network

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You would normally decide first which location types are to be transferred from
ECC. In any case, you would transfer the plants and distribution centers that you
want to plan in SCM. If you want to plan according to storage location, you need
to define storage location MRP areas in ECC and transfer such as an individual
location with location type 1007. You only transfer vendors for whom you want to
run a source determination in SCM. Customer locations are only transferred when
VMI customers are involved, i.e. customers for whom SCM is to automatically
create sales orders in ECC. Subcontractor locations are only transferred when
subcontracting is to be planned in SCM. If needs be, you can use transportation
zones in SNP for grouping in the TLB. None of the other location types have
a part to play in SNP.
Hint: In SNP you can plan every location, regardless of the location
type. The concept is also more general than in ECC, where you can only
plan plants and MRP areas.
Caution: Please note that the location type is not part of the location
key. Because of this, you cannot transfer customer 0000001000 and
supplier 0000001000: in this case you must add prefixes, for example
C for customer and S for supplier.
Production, shipping, and warehouse calendars can be defined for each location.
You can assign handling or storage resources to locations to display aggregated
handling or storage capacities.
The geographic data is used to position the location on the geographic map of
the Supply Chain Engineer and to calculate the transport duration of the means
of transport in the transport lane. If you enter this data during location data
maintenance, you can specify where you want the location to be positioned on
the map. If you leave these fields blank, they are filled automatically when you
place the location on the map.
The VMI Cust, tab page only applies to location type '1010 Customer.' Here,
you store the sales data for creating the sales orders in ECC. In addition, there
are also application-specific settings and enhancements in Customizing for the
VMI scenario.
The TDL tab page is only activated when you select location type 1020 (carrier)
and is only required for transportation planning (TP/VS) in SCM. There are some
input fields activated for location type, 1007 MRP area, which are not available to
the other location types.

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SCM230

Lesson: Working with Master Data

Figure 33: Plants and Distribution Centers

A plant is an organizational unit that subdivides an enterprise according to
production, procurement, stockholding, or material planning. A plant can
produce materials or provide goods and services. The address, language, country
assignment, and factory calendar (if defined in SCM) from SAP ECC are
transferred to SCM for the plant.
A distribution center (DC) is also a plant in ECC that mainly sells products and
distributes goods. There is no functional difference in SNP between plants
and DCs. Different icons are only used in the supply chain to distinguish
between plants and DCs. If you want to transfer ECC plants into DCs, create an
appropriate entry in SAP-ECC-Customizing IMG → Production Distribution
Resource Planning (DRP) → Basic Settings → Maintain Assignment of Node
Type - Maintain Plant. This means that plants also have the entire sales and
distribution function of DCs. Analogously, DCs in SNP also have production
capabilities. However, certain functions, such as packaging in DCs in PP/DS,
can lead to problems.
In SAP ECC, one or more storage locations can be defined within a plant. A
storage location specifies where a material is stored and enables material stocks to
be differentiated within a plant. If you want to plan according to storage location,
you need to define storage location MRP areas in ECC and transfer such as an
individual location with location type 1007.

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Figure 34: Customers and Suppliers

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

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SCM230

Lesson: Working with Master Data

Using Calendars for Scheduling

Figure 35: Using Multiple Calendars for Planning

The above graphic shows the calendars that are used to determine the duration
of stock transfers. Calendars can be assigned to locations, transportation lanes,
and resources. You can maintain production, shipping, and warehouse calendars
for locations.
The shipping calendar is used to schedule the goods receipt (GR) and goods issue
(GI) processing time and when releasing from Demand Planning for the creation
of planned independent requirements.
The transportation time and the calendar in the transportation lane are used to
schedule the duration time of the shipment.
If a calendar has been defined for a resource, run times are determined from this,
taking workdays into account.

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Transportation Lanes

Figure 36: Transportation Lanes

A transportation lane in SCM represents a business relationship between the
locations that you can use to transport goods. The lanes and locations represent
the supply chain network. Material flow is defined by the direction of the
transportation lane between the start and end location. Transportation lanes are
divided into three parts:


Product-specific entries
Parameters for means of transport
Product-specific entries for means of transport

You can make the following settings in the charts:

56

In the product-specific entries you define parameters such as lot size area,
unit costs, priorities, subcontracting, and consignment. You normally
transfer these entries using external procurement relationships and special
procurement keys from SAP ECC.
You set transportation costs, distances, and shipment durations in the
parameters for means of transport (e.g. truck, ship, airplane). These settings
are implemented in SCM. Here, you can also assign carriers to the means of
transport for Transportation Planning/Vehicle Scheduling (TP/VS).
In the product-specific entries for means of transport, you can store
more detailed lot sizes and costs for a combination of product, external
procurement relationship, and means of transport.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Working with Master Data

Figure 37: External Procurement Relationship

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

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Figure 38: External Procurement Relationship

You can transfer SAP ECC purchasing info records to SAP SCM as external
procurement relationships. Note that for data transfer to be successful, SCM
must be able to recognize the source location corresponding to the vendor in the
purchasing info record. Therefore, the vendor must be transferred beforehand.

Figure 39: Means of Transport

Means of transport refers to the type of vehicle that delivers products between
locations.

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2006/Q2

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Lesson: Working with Master Data

Stock transfer between two locations is determined by transportation lanes that are
assigned to a means of transport, as well as by transportation-relevant attributes
that had to be defined, such as shipment duration and transportation costs. A
means of transport could be a truck, ship, or airplane.
Establish the means of transport in SCM Customizing under APO → Master
Data → Maintain Means of Transport.
The system can calculate the shipment duration of a means of transport based on
the geographical coordinates of the locations. For this purpose, you need to define
an average speed and an average distance factor for the means of transport. The
distance factor indicates by how much the actual route exceeds the geographical
distance between the locations. The shipment duration can be calculated from
this. See the formula above.
The SNP optimizer can use shipment duration, transportation costs, and penalty
costs for delays to decide which means of transport to select.

Figure 40: Creating a Transportation Lane

To use this means of transport when procuring all products, select All Products. If
this indicator is not set, the means of transport only applies to the products that
were explicitly assigned to it.
To enable the means of transport to be used by Supply Network Planning and
PP/DS, choose aggregated planning. For TP/VS transportation planning, choose
detailed planning. In this way you can also, for example, define transportation
lanes for the return journeys of empty trucks.

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Mass maintenance simplifies the creation of multiple transportation lanes.
This function is useful if you need to maintain lanes between several start and
destination locations; for example, between selected plants and customers. The
following activities are performed in mass maintenance:


Generating multiple lanes simultaneously
Assigning several products to a lane
Calculating shipment durations

Figure 41: Transport Lot Size Profile

You can only maintain transport lot size profiles in product-dependent means of
transport. For example, you can use transport lot size profiles to define that only
full palettes are to be transported.
The rounding value specifies whether or not lot sizes are rounded to a whole
number or to a multiple of a number; for example, 8 or 12 per layer on a pallet
or 96 for a full pallet quantity.

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2006/Q2

SCM230

Lesson: Working with Master Data

Exercise 3: Transportation Lanes
Exercise Objectives
After completing this exercise, you will be able to:

Identify the Master Data objects for a supply chain

Describe the process for creating transportation lanes

Business Example
Master data is used to control planning for the Precision Pump Company. It is
usually transferred from the OLTP system. In SCM you maintain SCM-specific
fields, transportation lanes for stock transfers, and quota arrangements. As
planning manager at Precision Pump Company, you need to identify the
production horizon and the stock transfer horizon. You must also check the
procurement type of the products.

Task:
The transportation lanes control procurement and stock transfer in SCM. Plant
1000 in Hamburg delivers products to distribution center 2400 in Milan. Display
these transportation lanes for your model SNP-##.

2006/Q2

1.

Which means of transport travels between the locations? What is the duration
time of the shipment and which products can be transported?

2.

In your model SNP-##, select Mass creation of transportation lanes to
create a new transportation lane from plant 2300 to DC 2400 by copying the
transportation lane 1000 → 2400.

3.

Check the transportation lane you just created. Which means of transport
travels between the locations? What is the duration time of the shipment and
which products can be transported?

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Solution 3: Transportation Lanes
Task:
The transportation lanes control procurement and stock transfer in SCM. Plant
1000 in Hamburg delivers products to distribution center 2400 in Milan. Display
these transportation lanes for your model SNP-##.
1.

Which means of transport travels between the locations? What is the duration
time of the shipment and which products can be transported?
a)

Choose Advanced Planning and Optimization → Master Data →
Transportation Lane → Transportation Lane.

b)

Enter the data from the table below and click the

Displayicon.

Transportation Lane
Model Name

SNP-##

Start Location

1000

Dest. Location

2400

c)

The maintained means of transport is Truck.

d)

The duration can be, for example, 19 hours and 41 minutes.

e)

All products can be transported.

Continued on next page

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Lesson: Working with Master Data

2.

In your model SNP-##, select Mass creation of transportation lanes to
create a new transportation lane from plant 2300 to DC 2400 by copying the
transportation lane 1000 → 2400.
a)

Choose Advanced Planning and Optimization → Master Data →
Transportation Lane → Mass Creation of Transportation Lanes.

b)

Enter the data from the following table. Existing transportation lanes
will not be overwritten and Calculate transportation duration and
distance is set automatically.
Click

Execute.

Copy From
Model Name

SNP-##

Start Location

1000

Destination Location

2400

Creation of Transportation
Lanes Between Locations

c)
3.

2006/Q2

Model Name

SNP-##

Start Location

2300

Destination Location

2400

A dialog box should appear telling you 1 transportation lane will be
created. Respond by clicking YES.

Check the transportation lane you just created. Which means of transport
travels between the locations? What is the duration time of the shipment and
which products can be transported?
a)

Choose Advanced Planning and Optimization → Master Data →
Transportation Lane → Transportation Lane.

b)

Enter the data from the table below and click the
Field

Value

Model Name

SNP-##

Start Location

2300

Dest. Location

2400

Display icon.

c)

The maintained means of transport is Truck.

d)

The duration can be, for example, 15 hours and 42 minutes.

e)

All products can be transported.

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Lesson Summary
You should now be able to:

Identify the Master Data objects for a supply chain

Create transportation lanes

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SCM230

Lesson: SCM Product Master

Lesson: SCM Product Master
Lesson Overview
This lesson will provide you with an explanation of the settings for product and
material master data in Supply Network Planning (SNP).

Lesson Objectives
After completing this lesson, you will be able to:

Identify the product and material master data needed for SNP planning.

Business Example
As SNP planner at Precision Pump Company, you need to ensure that in SCM the
relevant master data exists for all the materials to be planned. You also need to
identify location-specific settings for each location. You must therefore know
which data is contained in the SCM product master and what source it stems from.

Product Master

Figure 42: Product Master Data

You plan material flow along the supply chain at the material level. Materials
are defined in corresponding material masters. ECC material masters can be
transferred to SCM as product masters.

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A material master contains basic data that is valid for all plants. The basic data
includes material information such as weight and volume, which is identical for
all locations. The plant-specific data contains the detailed settings for which
individual plants are saved, like the procurement type.

Figure 43: SAP ECC Material Master Data

The fundamental settings for supply chain planning can be found in material
planning views 1 to 4 of the ECC material master.
The MRP type specifies how a material is to be planned (MRP, consumption-based
planning, or no planning).
The lot-sizing procedure determines the lot size of each of the procurement
proposals. The procurement type controls how a material is to be procured,
in-house production or external procurement. The in-house production time or
planned delivery time specifies how long procurement will last.
You can set a safety stock.
The behavior of planned independent requirements is controlled by the strategy
group. Moreover, control of the ATP check takes place on the basis of the
availability check group.
A production procedure can be defined by a production version. In particular, you
can select routing and BOM in a production version.

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SCM230

Lesson: SCM Product Master

Figure 44: Product Master: Location Data Views

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

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Figure 45: Lot Size Profile

Lot-sizing procedures:



The exact lot size (lot-for-lot) generates receipts for precisely the amount
that is required.
The fixed lot size covers requirements by always generating receipts with
the lot size that is set.
Periodic: Receipts are grouped together periodically.
Reorder point: Consumption-based procedure.

The target days' supply in workdays ensures that receipts are planned suitably
earlier in order to create the target stock level with the relevant days' supply. The
target stock level method allows you to choose whether the target days' supply
should be determined using the product master, time-dependent SNP key figures,
or a maximum stock level.
Rounding profile indicates the profile used when the rounding value varies,
depending on the transportation or production quantities.
The percentage assembly scrap relates to the total quantity that completes an
order, i.e. the required yield plus the scrap quantity. The system calculates the
total quantity as follows from the required yield and the assembly scrap: Total
quantity = Yield x 100% / (100% - Scrap in %). Additional components must
be created accordingly.

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Lesson: SCM Product Master

Requirement Strategies

Figure 46: Requirement Strategies for Make-to-Stock Production

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

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Figure 47: Total Demand Calculation

As shown in the previous graphic, forecasts of 10 planned independent
requirements were originally planned in every bucket. With strategy 20 (Planning
with Final Assembly), a sales order of 5 in the first bucket is offset against the
planned independent requirement of 10, with the result that only a planned
independent requirement of 5 is shown.
Within the forecast horizon, SNP takes into account sales orders and ignores
planned independent requirements. Outside this horizon, SNP uses the planned
independent requirements and sales orders to calculate the total demand according
to the requirements strategy.
You configure the forecast horizon in the SNP demand profile of the product
master.
You assign the key figures to ATP categories in the SNP planning area. You can
thereby determine which transaction data is managed in which key figure:




70

For example, the Forecast key figure displays planned independent
requirements from the OLTP systems or Demand Planning.
Sales orders from the OLTP systems are grouped together in the Sales order
key figure.
Dependent demand is shown if this product is also an input product of a
Bill of Material.
The planned distribution demand represents releases for planned stock
transfers.
The confirmed distribution demand shows the result of the deployment run.

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2006/Q2

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Lesson: SCM Product Master

Figure 48: The Production and Stock Transfer Horizons

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

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The horizons are configured in the SNP supply profile of the product master.
You also find the "Firm production" and "Fix transports" settings here. If these
indicators are not set, SNP planned orders are deleted within the production
horizon, or external procurement is deleted within the stock transfer horizon.
The total receipt is the sum of all the following receipt key figures:



Production (planned): SNP planned orders
Production (confirmed): PP/DS planned orders, can be converted from SNP
planned orders
Distribution receipt: Planned stock transfers
In transit: Intransit quantity that will reach the specified destination first

Figure 49: SNP-PP/DS - Overlapping Planning Horizons

Lot sizes of PP/DS orders:When converting orders for in-house production, the
system must determine the lot sizes of the PP/DS orders. In previous releases
you had the following options:

The system converts an SNP/CTM order to a PP/DS order with the same
quantity
The system creates PP/DS orders according to the lot size settings in the
location product master

SAP APO 3.1 offers a further option by which the system determines the lot sizes
from the lot size range of the PP/DS plan (PPM, iPPE plan, or production data
structure) or transportation lane: You define the lot size range by specifying a

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Lesson: SCM Product Master

minimum and maximum lot size. Which lot sizes the system uses to create PP/DS
orders depends on the receipt quantity of the SNP/CTM order. The following
applies:
1.

2.

3.

The receipt quantity of the SNP/CTM order is smaller than the minimum
lot size. The system rounds the receipt quantity up to the minimum lot size
and creates a PP/DS order with this quantity.
The receipt quantity of the SNP/CTM order lies between the minimum and
maximum lot sizes. The system creates a PP/DS order with exactly the
same quantity as the SNP/CTM order.
The receipt quantity of the SNP/CTM order exceeds the maximum lot
size. The system splits the receipt quantity of the SNP/CTM order into
subquantities of the maximum lot size and creates PP/DS orders for these
subquantities. For the remaining quantity the system determines a lot size
according to rules 1 and 2, and creates a PP/DS order with this lot size.

You define which lot sizing option the system uses in the new field Lot Size which
replaces the old indicator Lot Sizing.
Mode Selection: As of APO 3.1, SNP can define the mode selection as well as the
PPM for PP/DS. The prerequisite is that you have generated SNP PPMs from a
PP/DS PPM that allows different mode combinations.

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SCM230

Lesson: SCM Product Master

Exercise 4: Product Master Data
Exercise Objectives
After completing this exercise, you will be able to:

Navigate in the Product Master

Identify the horizons for SNP planning and describe their functions.

Business Example
As the Planning Manager at Precision Pump Company you need to ensure that the
Product Master data is set correctly, especially the horizons and procurement types.

Task:
1.

Check the settings in the product master for P-102 at location 2300 to be able
to answer the following questions.

2.

How long are the SNP production horizon, stock transfer horizon, and PP/DS
Horizon, and which procurement type is configured for product P-102 at
location 2300?

3.

Field

Value

SNP Production Horizon

14 Days

Stock Transfer Horizon

0 Days

PP/DS Horizon

50 Days

Procurement Type

E (In-house production)

What is the role of the SNP production horizon, the PP/DS horizon and
the stock transfer horizon?
SNP Production Horizon

The SNP planning run only creates planned
orders outside of the SNP production horizon.

PP/DS Horizon

PP/DS can only create planned orders from the
current day up to the PP/DS horizon.

Stock Transfer Horizon

Controls when stock transfers can be created.
SNP will not create any stock transfers inside
the stock transfer horizon.

Continued on next page

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Unit 2: Master Data and Transaction Data in SNP

4.

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Which procurement type is configured for product P-102 at location 2400
and why?

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2006/Q2

SCM230

Lesson: SCM Product Master

Solution 4: Product Master Data
Task:
1.

2.

3.

Check the settings in the product master for P-102 at location 2300 to be able
to answer the following questions.
a)

Select Advanced Planning and Optimization → Master Data →
Product → Product.

b)

Enter the following data:
Field

Value

Product

P-102

Location

2300

c)

Click the

Display icon.

d)

Click on the SNP2 tab to locate the SNP Production Horizon and Stock
Transfer Horizon.

e)

Click on the PP/DS tab to locate the PP/DS Horizon.

f)

Click on the Procurement tab to locate the Procurement Type.

g)

Repeat these steps for location 2400.

How long are the SNP production horizon, stock transfer horizon, and PP/DS
Horizon, and which procurement type is configured for product P-102 at
location 2300?
Field

Value

SNP Production Horizon

14 Days

Stock Transfer Horizon

0 Days

PP/DS Horizon

50 Days

Procurement Type

E (In-house production)

What is the role of the SNP production horizon, the PP/DS horizon and
the stock transfer horizon?

Continued on next page

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SNP Production Horizon

The SNP planning run only creates planned
orders outside of the SNP production horizon.

PP/DS Horizon

PP/DS can only create planned orders from the
current day up to the PP/DS horizon.

Stock Transfer Horizon

Controls when stock transfers can be created.
SNP will not create any stock transfers inside
the stock transfer horizon.

If the SNP Production horizon is 14 days, this means that SNP creates no
planned orders in the first 14 calendar days.
The SNP production horizon and the PP/DS horizon have been set to 14 and
50 days respectively. This means that there is a 36 day overlap between
SNP and PP/DS planning.
The SNP stock transfer horizon has been set to 0 days. This means that SNP
can create purchase requisitions and stock transfers in the entire planning
horizon.
4.

Which procurement type is configured for product P-102 at location 2400
and why?
Answer: Procurement type F (external procurement) is on the Procurement
tab page. This means that product P-102 can only be procured from location
2400 and not produced there. The procurement type at location 2300 for
P-102 is E (internal procurement) which means it is produced at location
2300.

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Lesson: SCM Product Master

Lesson Summary
You should now be able to:

Identify the product and material master data needed for SNP planning.

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Lesson: SCM Resource Master
Lesson Overview
This lesson will help you understand the need for resource master data in SNP. You
will also learn about various types and categories of resources considered for SNP.

Lesson Objectives
After completing this lesson, you will be able to:

Identify the resource master data in SNP
Define the various types and categories of resources

Business Example
As head of the planning department at Precision Pump Company, you need to
ensure the master data for all the resources that may be required for a production
plan exists in SCM. You must therefore know which data is contained in the APO
resource master and what source it stems from. In addition, you may need to
define resources.

Defining the SCM Resource Master

Figure 50: ECC Work Centers

A work center is the place where an operation or activity is carried out in a plant,
for example a certain machine or a department of a plant. The work center
therefore specifies where production actually takes place. Work centers are used

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Lesson: SCM Resource Master

in routings or networks, inspection plans (Quality Management), and maintenance
task lists. The capacities of ECC work centers can be transferred to SCM as
resources.
Work center data is arranged into several views according to a topic. In particular,
the available capacity of the work center and the data required to calculate the cost
of work completed is stored in the work center. Data to be adopted by the routing's
operation or to be used as a reference is stored as default values in the work center.

Figure 51: SCM Resource Types

Resources can be defined as single activity resources, multiactivity resources, or
bucket resources. Single activity or multiactivity resources can be used in PP/DS
to plan for continuous and detailed times. Bucket resources are used for medium
to long-term planning in SNP. The available bucket capacity is defined in days.
Mixed resources combine the properties of single, multi-, and bucket resources,
and can therefore be used by both PP/DS and SNP and transferred from the SAP
ECC system. On this basis, you should transfer at least the SNP-relevant resources
as mixed resources.
SNP uses bucket resources and mixed resources. In addition to the above, CTM
can use single and multiactivity resources.
The transportation resource is a bucket resource where you can define the size
(e.g. volume) of a single transportation resource. The entire bucket capacity is
then calculated from this (bucket capacity divided by dimensions). Transportation
resources can also be used in PP/DS for setting limited delivery capacity from
suppliers.

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Vehicle resources are used to define individual transportation types, such as a
truck with a load of 40 tons.

Figure 52: SCM Resource Master Data

Capacities that you transfer from OLTP systems are assigned automatically
to model 000. If you have created several versions for the model, the system
creates a planning version-specific copy for each resource that you assign to the
model. You can edit both the original resource and the copy of the resource to the
model, for example, change planning data and available capacity. If you change
the original resource or the copy of the resource, this affects only the original
resource or the copy, respectively. You must explicitly assign any resource that
you create in SCM to a model.
As of Release SCM 4.0, with the appropriate plug-in you can set the resource type,
resource category, planning parameters, and standard capacity for the transfer in
the work center capacity maintenance in SAP ECC. In the CFC9 customizing
transaction you can set the transfer of master data. You can also refer to the
external capacity from SAP ECC to determine the continuous capacity in SCM.
You can derive the bucket capacity from the continuous capacity.

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Lesson: SCM Resource Master

Figure 53: Resource Categories

SCM resources can define capacities for production, storage, handling, and
transportation capacities. For production resources, the capacity unit of measure
must be time or rate. For transportation or storage resources, the capacity unit can
be volume or weight.
You can define the capacity of a bucket resource as:

Quantity (without time base) - Defines, for example, the storage capacity
of a warehouse.
Rate (quantity with time) - Defines the consumption or production capacity
of a resource; in other words, the quantity that is consumed or produced at
the resource on a workday.

You can use transport bucket resources to model the capacity of transport fleets in
order to avoid overloading them.
You can use storage bucket resources to model the capacity of storage locations in
order to avoid overloading them.
You can use handling bucket resources to model the capacity of forklifts, conveyor
belts, or pipelines and to avoid overloading them.

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Figure 54: Capacity Variants


Different capacities can be defined for each resource. The standard capacity
is the simplest available capacity of a resource.
You also define planning parameters here to control activities for the
resource.

Variants control the validity period and the available capacity. You define which
variant is transferred to liveCache as the active variant. The system uses the active
variant as the default variant for capacity leveling in the planning table. Checks
can also be made using other variants.
For the SNP optimizer, in the current settings define which variant should be used
as the minimum capacity, normal capacity, and maximum capacity. The variants
do not have to be active.
In the quantities/rates profile, the user defines the available time, the volume, or
the weight and any costs for the optimizer. For example, if a resource has an
available capacity of 12 hours, you can define the costs for loading this resource
per hour. These costs are always defined as costs per unit.
To define the capacity per day, you must specify Day as the period type and 1 as
the number of periods. For a storage resource, you should use period type 1.

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Lesson: SCM Resource Master

Figure 55: Relevant Resource Capacity Variants

You can use the following to define the working times and capacities in a resource:

Standard capacity: Allows you to use up to 99 capacity variants, one of
which you can specify as the active variant.
Reference resource: Allows you to create and change the available capacities
of resources easily. You can use the reference resource to define the regular
available capacity of the resources in a plant or plant area. You can then
use this resource as a reference for individual resources and transfer the
available capacity to them.

This means that more than one capacity or working time can be defined for a
resource at any given point of time, for example, standard capacity, active capacity
variant, or capacity of the reference resource. The diagram above shows the
conditions under which the individual working times or capacities are valid for the
resource. The system automatically performs the relevant checks.

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The system checks the resource at the current time in the following sequence. If
the check turns out to be negative, the system skips to the next step:


86

1. If downtime is defined for the resource at the current time, no capacity
is available.
2. If it is indicated in the resource that the capacity will be determined in
an external system, and (A) an active variant for which a capacity profile
with different data exists is to be specified for the resource, the system uses
the data defined in this capacity profile. If (B) different data exists for the
external capacity in a capacity profile for the current time, the system uses
this difference. If (C) no active variant is specified and no capacity profile
is defined, the system uses the external capacity.
3. If an active capacity variant is specified in the resource and different data
is defined for this in a capacity profile for the current date, the system uses
the capacity determined in the capacity profile.
4. If an active capacity variant is specified in the resource but no
corresponding capacity profile exists, and (A) an interval with a capacity
that is valid at the current time is defined in this variant, the system uses
this capacity. If (B) no interval with a capacity that is valid at the current
time is found, the system checks whether a reference resource is assigned to
the resource and uses the capacity of the capacity variant of the reference
resource. If there is also no valid interval for the reference resource in the
same capacity variant, the system uses the standard capacity of the reference
resource.
5. If you created a capacity profile in addition to the standard available
capacity, the system uses the capacity defined in the capacity profile.
6. If a reference resource is specified for the resource, the system uses
the standard available capacity of the reference resource. Any existing
profile of the reference resource is not taken into account. However, if
another reference resource is specified for the reference resource, the system
determines the capacity as described here.
7. The system will only use the standard available capacity if none of the
preceding checks enabled it to determine a valid resource capacity for the
current time.
8. If, in addition, no standard available capacity is defined for the resource,
the resource has no capacity.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: SCM Resource Master

Exercise 5: Resource Master Data
Exercise Objectives
After completing this exercise, you will be able to:

Navigate in the resource master and explain the main settings for production

Create a resource directly in the SAP SCM system and assign it to your model

Business Example
As the planning manager at Precision Pump Company, you need to ensure that
the master data for resources is correctly defined. In location 2300, an alternative
resource is provided for pump production and this must be modeled directly in the
SAP SCM system for planning in this course.

Task 1:
1.

What differences do you notice between the continuous available capacities
and the bucket capacities available from resource W1906_2300_001? What
is the advantage of transferring the resource as a mixed resource from SAP
ECC?

Task 2:
1.

2006/Q2

Model an alternative resource, WORK##, for location 2300 by creating a
bucket resource using the data in the table below. Assign this resource to
your SNP-## model.
Field

Value

Resource

WORK##

Resource category

P

Location

2300

Dim. Dimension

Time

Factory calendar

ES

Bucket capacity

7

Unit

H

Number of periods

1

Period type

Day

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Solution 5: Resource Master Data
Task 1:
1.

What differences do you notice between the continuous available capacities
and the bucket capacities available from resource W1906_2300_001? What
is the advantage of transferring the resource as a mixed resource from SAP
ECC?
a)

Choose Advanced Planning and Optimization → Master Data →
Resource → Resource.

b)

Enter the data from the table below and click
Resources.

Display

Field

Value

Resource

W1906_2300_001

Location

2300

c)

On the Time-Continuous Capacity tab page, you will find a productive
time of 7 hours, which runs from 7:00 until 3:00 p.m. with a one hour
break. On the SNP Bucket Capacity tab page, you will find a bucket
capacity of 7 hours per workday by pressing Bucket Capacity. This
information is sufficient because SNP is planned only to the day.

d)

Resources transferred as mixed resources from ECC can be used for
planning both by PP/DS and SNP.

Task 2:
1.

Model an alternative resource, WORK##, for location 2300 by creating a
bucket resource using the data in the table below. Assign this resource to
your SNP-## model.
Field

Value

Resource

WORK##

Resource category

P

Location

2300

Dim. Dimension

Time

Factory calendar

ES

Bucket capacity

7

Continued on next page

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Lesson: SCM Resource Master

Unit

H

Number of periods

1

Period type

Day

a)

Choose Advanced Planning and Optimization → Master Data →
Resource → Resource.

b)

Click
.

c)

, enter the data from the table in the first row, and
Click
click Enter to allow the system to accept the data.

d)

Select your resource and click

e)

Select your model SNP-## and click
Model. A green check mark

2006/Q2

.
Assign Resources to the

is displayed in front of your model.

at the bottom of the dialog box to continue.

f)

Click

g)

Save your resource

.

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Lesson Summary
You should now be able to:

Identify the resource master data in SNP

Define the various types and categories of resources

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Lesson: Scheduling in Supply Network Planning

Lesson: Scheduling in Supply Network Planning
Lesson Overview
This lesson explains how to schedule in SNP. To do so, we will introduce and
explain the fixed duration parameter in PDS/PPM. We will also discuss and
practice ways of determining fixed duration by converting a PP/DS PPM to an
SNP PPM.

Lesson Objectives
After completing this lesson, you will be able to:


Explain scheduling in SNP
Compare and contrast ways of generating bills of materials and routings
for SNP via PDS and PPM
Generate SNP plans (PPMs) from PP/DS plans (PPMs)

Business Example
You use SNP to plan the flow of material along your supply chain on an aggregated
basis. You must define which products and resources should be planned in SNP
and with which temporal granularity planning results should beavailable.

Scheduling in SNP

Figure 56: Scheduling and viewing quantities in SNP

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SNP calculates the total order quantity per period. A period lasts at least 1
day. SNP aggregates all requirements for a period and generates receipts for all
requirements in this period. SNP uses the fixed duration of an activity to schedule
each activity. Scheduling is based only on the fixed duration of an activity, not
on order quantity or capacity load. If a plan contains three activities each with a
fixed duration of one day, SNP schedules an SNP planned order with a duration
of three days.
Thus it is often not useful to transfer all ECC routing activities to SNP routing.
This is especially true for setup times. The goal is to condense detailed ECC
routings in the daily buckets profile, keeping in mind that the SNP plan should
only contain bottleneck activities and resources (similar to a rough-cut planning
profile).

Comparison Between Scheduling in PP/DS and SNP

Figure 57: Comparison Between Scheduling in PP/DS and SNP

In PP/DS, the duration of an activity is determined using the resource load that
generates the order quantity. The larger the quantity to be produced, the longer the
duration of the activity.
In SNP, the schedule is not determined by quantities. Instead, the schedule in SNP
is determined using the fixed duration in days (0, 1, 2,...) of the activity in the
plan; for example, an activity can have a duration of one day and a resource load
of one hour. The capacity load is determined down to the second.

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Lesson: Scheduling in Supply Network Planning

Scheduling also depends on the planning procedure: The heuristic schedules
according to the fixed duration and then calculates the resource load of all orders
in the bucket. Alerts then show you the buckets that have insufficient load or
overload. The optimizer does not allow an overload where finite planning is in
use. It only generates the amount of orders needed to reach the maximum load
for each bucket.
If, for example, you are using weekly bucket profiles and you generate SNP
planned orders with a duration of one day, at first it is unclear whether the planned
order will be scheduled at the beginning or end of the week. This scheduling is
controlled using the period factor or bucket offset in the SNP plan. You can find
more precise information about this in the units on the heuristic and the optimizer.

Figure 58: Filter parameters for SNP relevance of products and resources

When generating SNP routings you can use the filter parameters for SNP relevance
of products (in the APO product master record) and resources (in ECC capacity
maintenance) to specify which products and resources should be take into account
for SNP planning.

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If you generate SNP PDSs from SAP ECC, remember the following:

The standard system does not take into account SNP relevance for products
and resources. However, you can influence ECC BOM data by using the
CUSLNTRTO_ADDIN (ERP) or /SAPAPO/CURTO_SNP business add-ins.
Another alternative is to map SNP relevance using your own SNP production
version in SAP ECC.
The standard system does not summarize activities using fixed lot sizes.
Fixed consumption is rounded off to the nearest day and determines the
fixed duration of an activity. You can, however, influence the generation
using the /SAPAPO/CURTO_SNP business add-ins (BAdIs): Using the
CALC_BUCKET_CONSUMPTION method of this BAdI you can calculate
the bucket consumption of a resource. This method, which performs
a standard calculation of bucket consumption, is automatically active.
However, you can change the calculation, too.
Information about the production version is contained in the SNP PDS,
but the mode (resource) is not taken into account when the SNP PDS is
converted to the PPDS PDS.
If you want to perform optimization-based SNP planning, you can use the
/SAPAPO/CULLRTOSNP business add-in and the FILL_COST_FIELDS
method to fill in the cost fields of the SNP PDS.
The SNP PDS is automatically assigned to the active model during transfer.
Assignment to alternative models is not permitted.

Figure 59: Comparison of PDS and Plan (PPM)

The SNP PDS and the SNP PPM are used in SNP as a basis for planning. Source
determination in SNP and CTM always takes into account all sources present,
regardless of whether an SNP PPM or SNP PDS is concerned.

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Lesson: Scheduling in Supply Network Planning

Engineering Change Management for BOMs and routings (ECM) and
configurability of products generally cannot be used in SNP, neither using the
SNP Plan (PPM) nor SNP PDS.

Figure 60: Plan and PPM Structure



Activity type: P. The system always considers operations as production
operations.
Consumption mode: S. The system always considers consumption at start
of activity.
Resources:


The unit of measure must be the same unit as that in the resource itself.
Fixed duration of one day means that the activity has a duration of
one day.
Variable resource consumption: This includes the time taken to produce
a base quantity of the product.

If you generate SNP plans (PPMs) from PP/DS plans (PPMs), remember
the following:
This process uses the existing PP/DS PPM to determine all SNP-relevant product
and resource consumption for a predetermined, fixed lot size and groups them into
SNP operations and activities.

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Use transaction /SAPAPO/PPM_CONV - SNP PPM Generation without Lot Size
Margin or /SAPAPO/PPM_CONV_310 - SNP PPM Generation with Lot Size
Margin , or start conversion directly from the plan.
Note: Take note of the following information before carrying out
generation and using the transaction:


You must have an active PP/DS plan (PPM).
The SNP plan is generated exclusively for the predetermined, fixed lot size.
Only resources and components that are relevant for SNP are included in
the generation. You set up the SDP relevance indicator for products in the
global APO product master. You can find the Not relevant for SNP indicator
for resources in the planning parameters for capacity, located in the SAP
ECC work center.
Operations and activities in the SNP plan do not correspond to those in
the PP/DS plan from which they were generated. The reason for this is
that activities and operations with a short duration are grouped together
to form one activity.

Figure 61: Plan conversion process

Plans are converted as follows: In line with PP/DS scheduling logic, an order is
scheduled indefinitely along with the PP/DS plan entered and the lot size, without
taking into account any existing resource schedules. This order is limited to the
daily buckets profile, in order to determine the consumption of SNP-relevant
resources and components per SNP bucket. Consecutive consumptions of the same
type are grouped together into one activity, where fixed durations are added up.

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Lesson: Scheduling in Supply Network Planning

If a component or resource changes in one bucket in the PP/DS order, a new
activity is generated in the SNP plan. If the primary resource is switched, a new
operation is generated. If there are several PP/DS activities with different primary
resources within an SNP bucket, the activity with the longest duration in the
bucket provides the primary resource for the SNP mode.

Figure 62: Mass processing for plan conversion

As of APO 3.1 it is possible to do a mass conversion of SNP plans. The first step is
to select the plans to be converted on the basis of PP/DS plans, location products,
or SNP plans. You can have the system propose names for the SNP plans. These
plans are flagged for conversion at a predefined date.
The transaction for flagging PP/DS plans is called /SAPAPO/OO_PPM_CONV
- SNP PPM generation: Define mode combinationssince one SNP plan must be
generated for each mode combination of the PP/DS plan, because alternative
work centers in SNP are modeled as alternative plans. Since the number of mode
combinations and as a result of SNP plans can be very large (depending on the
number of activities and alternative modes in the PP/DS plan (PPM)), you can use
mode priority to limit the number of SNP plans that get generated.
In the second step you use the /SAPAPO/PPM_CONV_310 - SNP PPM Generation
with Lot Size Margin transaction to generate SNP plans for a fixed lot size. The
lot size range for the validity of the SNP plan is removed from the PP/DS plan
in the process. The generated temporary PP/DS order, on the basis of which the
SNP plan is generated, is scheduled with the typical order lot size. The start date
for the creation of the order is set automatically by the system to the start of the
next period. As far as possible, choose a start date such that the horizon for plan
generation corresponds to a horizon that is typical of your working patterns (with
regards to vacation times, public holidays, and so on).

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Using bucket size you control the time-based granularity of the SNP plan. If you
carry out Supply Net work Planning in weeks choose the bucket size week.

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Lesson: Scheduling in Supply Network Planning

Exercise 6: Planning (PPM) Master Data
Exercise Objectives
After completing this exercise, you will be able to:

Navigate in the Production Process Model

Convert a PP/DS plan to an SNP plan

Business Example
As the planning manager at the Precision Pump Company, you need to be able to
navigate in the production process model and understand the fields and settings it
contains. You need to ensure that the master data is accurate and a true reflection
of actual processes on the shop floor. In addition, you have an alternative resource
at location 2300 for producing pumps. You need to create an SNP PPM that uses
this alternative resource.

Task 1:
1.

How long does production in SNP last for pump P-102 on resource
W1906_2300_001 in location 2300 with plan N50000204010001_SNP?
Roughly how many pumps can be produced per day at location 2300?

Task 2:
Convert a PP/DS plan into an SNP plan.

2006/Q2

1.

Choose the PP/DS plan N50000204010001P-102 2300 for product P-102
at location 2300 and convert it into SNP plan P-102_SNP_2300_ALT_##
using the program SNP-PPM Generation Without Lot Sizes. In the selection
parameters, enter a lot size of one piece and tomorrow's date as the selection
date.

2.

Change the new SNP plan and enter P-102_SNP_2300_ALT_## as the
description. Maintain single-level and multilevel variable costs of 200 and
fixed costs of 1. Remove resource W1906_2300_001 from the plan, enter
your WORK## resource, maintain a fixed duration of one day, and a capacity
consumption of 0.3 hours. Select the PPM, enter P-102_SNP_2300_ALT_##
as the name, P-102_SNP_2300_ALT_## as the description, and a lot-size
range from 1 to 100000. Assign the P-102_SNP_2300_ALT_## PPM to your
SNP-## model and delete the assignment to model 000. Activate the plan.

3.

(Optional) In the Supply Chain Engineer, check whether your model
SNP-## contains your resource and the PPM. To do this, include the resource
and PPM in your WA-## work area.

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Solution 6: Planning (PPM) Master Data
Task 1:
1.

How long does production in SNP last for pump P-102 on resource
W1906_2300_001 in location 2300 with plan N50000204010001_SNP?
Roughly how many pumps can be produced per day at location 2300?
a)

Choose Advanced Planning and Optimization → Master Data →
Production Process Model →Production Process Model.

b)

Enter the data from the table below and click
Field

Value

Choose plan via PPM

Select

Product

P-102

Location

2300

Use of a Plan

S

Display.

c)

In the dialog box that appears, choose plan N50000204010001_SNP.

d)

Go to the graphical display of the plan, and choose Adjust to suit
objects in order to see all objects in the plan. Double-click resource
W1906_2300_001. The variable bucket consumption of 0.583 hours
per pump (approx. 35 minutes) appears on the right.

e)

In an earlier exercise, we saw that resource W1906_2300_001 is
available for seven hours per day. That means approximately 12 pumps
can be produced per day.

Continued on next page

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Lesson: Scheduling in Supply Network Planning

Task 2:
Convert a PP/DS plan into an SNP plan.
1.

Choose the PP/DS plan N50000204010001P-102 2300 for product P-102
at location 2300 and convert it into SNP plan P-102_SNP_2300_ALT_##
using the program SNP-PPM Generation Without Lot Sizes. In the selection
parameters, enter a lot size of one piece and tomorrow's date as the selection
date.
a)

Choose Advanced Planning and Optimization → Master Data →
Production Process Model →Production Process Model.

b)

Enter the data from the table below and click
Value

Choose plan via PPM

Select

Product

P-102

Location

2300

Use of a Plan

P

c)

In the dialog box that appears, select plan N50000204010001P-102
2300.

d)

Copy the plan number to temporary storage using Ctrl C.

e)

From within the PPM,choose Goto → SNP PPM Generation Without
Lot Sizes.

f)

Insert the plan number N50000204010001P-102 2300 from temporary
storage into the field using Ctrl V.

g)

Make the following entries and click

h)
2.

Field

.

:

Field

Value

PP/DS PPM

N50000204010001P-102 2300

SNP PPM

P-102_SNP_2300_ALT_##

Lot size

1

PP/DS PPM selection time

Tomorrow's date

Click

to return to the main menu.

Change the new SNP plan and enter P-102_SNP_2300_ALT_## as the
description. Maintain single-level and multilevel variable costs of 200 and
fixed costs of 1. Remove resource W1906_2300_001 from the plan, enter
Continued on next page

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your WORK## resource, maintain a fixed duration of one day, and a capacity
consumption of 0.3 hours. Select the PPM, enter P-102_SNP_2300_ALT_##
as the name, P-102_SNP_2300_ALT_## as the description, and a lot-size
range from 1 to 100000. Assign the P-102_SNP_2300_ALT_## PPM to your
SNP-## model and delete the assignment to model 000. Activate the plan.
a)

Use the menu path Advanced Planning and Optimization → Master
Data → Production Process Model → Production Process Model.

b)

Enter the data from the table below and click
Field

Value

Choose plan via PPM

Select

Product

P-102

Location

2300

Use of a Plan

S

.

c)

In the dialog box that appears, choose your new SNP plan
P-102_SNP_2300_ALT_##.

d)

Enter description P-102_SNP_2300_ALT_##, single-level and
multilevel variable costs of 200, and fixed costs of 1.
Hint: The SNP optimizer takes into account the single-level
variable costs in the plan, CTM takes into account the
multilevel fixed costs, and the SNP heuristic takes into account
the multilevel variable costs.

e)

Double click on operation 0010, choose activity 1 (by double-clicking
. Overwrite the existing primary
on it) and click on
resource with your resource WORK##.

f)

Now double click on your WORK## resource, and enter a variable
bucket consumption of 0.3 and units of H.

g)

In the Object type/name screen, expand PPM and double-click on the
generated PPM.

h)

Enter P-102_SNP_2300_ALT_## as the PPM name by
overwriting the internally generated PPM name, and enter
P-102_SNP_2300_ALT_## as the description and a lot-size range
from 1 to 100000.

Continued on next page

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Lesson: Scheduling in Supply Network Planning

3.

i)

In the Production Process Model area, choose
Model Assignment.
Undo your assignment to Model 000 using the Delete object from
model button, and assign the PPM your model SNP-## using the Assign
object to the model button.

j)

Activate the plan
. Activation simultaneously saves the plan. If an
error message with the model assignment from the resource WORK##
appears, confirm the message and activate again.

(Optional) In the Supply Chain Engineer, check whether your model
SNP-## contains your resource and the PPM. To do this, include the resource
and PPM in your WA-## work area.
a)

From within the PPM, use the menu path APO → Master Data → SC
Engineer → Maintain Model. Enter the Model SNP-## and the work
area WA-##, and choose .

b)

Click

.

c)

Right-click
context menu.

and choose Add objects to work area from the

d)

Enter P-102_SNP_2300_ALT_## in the dialog box and click
Copy.

2006/Q2

e)

and check whether the model contains your
Now, click
resource. If your resource is not there, repeat the above procedure for
the resource beginning with the right mouse click.

f)

Save

the work area and return to the main menu using

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.

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Lesson Summary
You should now be able to:

Explain scheduling in SNP

Compare and contrast ways of generating bills of materials and routings
for SNP via PDS and PPM

Generate SNP plans (PPMs) from PP/DS plans (PPMs)

Related Information

104

Use a URL or a cross-reference tag to refer to additional information that
could be useful to participants. Web sites or white papers are some examples.
Delete this if it does not apply.

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Lesson: The Production Data Structure

Lesson: The Production Data Structure
Lesson Overview
The production data structure (PDS) in SAP SCM corresponds to the production
version from SAP ECC. The production version groups together information from
the BOM and routing. In SAP SCM, there is a distinction between a PDS for
production planning and detailed scheduling (PP/DS) and a PDS for SNP, both
of which can be created directly from SAP ECC. The PDS replaces the older
production process model (PPM) master data object.
In this lesson you learn about the advantages SNP PDSs have over SNP PPMs.
We will also compare scheduling in PP/DS with scheduling in SNP.

Lesson Objectives
After completing this lesson, you will be able to:


Create an SNP production data structure from SAP ECC
Display the SNP production data structure in SAP SCM
Plan with the SNP production data structure

Business Example
As SNP Planning Manager for the Precision Pump company, you plan only those
resources and components that represent potential bottlenecks for the manufacture
of the finished product. When creating SNP PDSs, the point is to set only those
resources and components that are relevant for SNP for planning and detailed
scheduling.

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PDS Components

Figure 63: Bills of materials in SAP ECC

A bill of material (BOM) contains all the assemblies or components required
to manufacture a product. You can transfer SAP ECC BOMs to SAP SCM in
the form of PDSs.
A BOM consists of a BOM header and BOM items. The base quantity in the
header specifies the quantity of the finished product on which the item quantities
are based.
BOMs are used in material requirements planning, manufacturing, procurement,
and product costing.
BOMs are single-level. An item within a BOM can also have subcomponents.
This leads to multilevel production where you have the single-level BOM of the
finished product and the BOM of its assemblies and, if applicable, the assemblies'
assemblies.
In addition to the stock items required for the finished product, a BOM can contain
documents or text items.

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Lesson: The Production Data Structure

Figure 64: Routings in SAP ECC

Routings contain the sequence of operations that is necessary for production and
the work centers in which these operations are to be executed. You can transfer
SAP ECC routings to SAP SCM in the form of PDSs.
An SAP ECC routing can be defined using the group and counter. The routing
refers to the material whose production the routing describes. A routing can
contain parallel or alternative sequences in addition to the standard sequence.
In addition to the standard values, the routing contains the time elements that are
relevant for scheduling operations. Note that each operation in the routing can
have its own base quantity to which these time elements refer.
The discrete manufacturing master data is used when production orders are used
to model production control. A production order in SAP ECC uses routings, work
centers and BOMs. SAP SCM groups together a BOM and a routing to form a
production data structure. The PP/DS planned order can then be converted to a
production order in SAP SCM or SAP ECC.
You require other master data if production is to be modeled using process
manufacturing (PP PI). A master recipe (instead of the routing) and resources
(instead of work centers) are used for the process order. In this case, transfer the
master recipe to SAP SCM as a PDS. All the previously portrayed relationships
also remain valid in PP PI. For example, material requirements planning is
identical in both PP and PP PI.

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Figure 65: In-house production planning in SAP SCM

The SNP production data structure only contains resources and components
relevant for SNP. Also note that SNP plans in days, not in seconds. For this
reason, activities in SNP planning are not as detailed as in PP/DS. Use SNP PDS
to create SNP planned orders. If SNP planned orders fall within the production
horizon, the orders can be automatically converted into PP/DS planned orders.
Use PP/DS PDS to create PP/DS planned orders. These orders can be transferred
to SAP ECC as production orders.

Working with Plans

Figure 66: Production data structure

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Lesson: The Production Data Structure

The production data structurecontains the detailed information that is required
to manufacture a product. The PDS groups the routing and BOM in one master
data object. Each plan contains one or more operations. One or more activities
can be assigned to each operation, and the materials, relationships and resources
are, in turn, maintained for these activities. The defined costs control which
alternative plans get selected. The SNP optimizer takes into account single-level
variable costs, CTM takes into account multilevel variable and fixed costs, and the
SNP heuristic takes into account multilevel fixed costs.
Input and output components model the flow of material during the production
process.

Input components can include raw materials or semi-finished products.
Output components can include one or more finished or semi-finished
products.

Figure 67: Structure of the production data structure

Production data structure validity defines the source product, location, lot size area
and period for which the plan is valid. A consistency check can be performed
manually but this check always occurs automatically when you save the PDS. If
there are inconsistencies, the PDS cannot be activated.
The SNP production data structure (SNP PDS) has been available as an alternative
to the production process model since the release of SAP SCM 4.1. Some business
processes are better modeled using the production process model, others using the
production data structure. A major advantage of the SNP production data structure
is that it can be transferred directly from SAP ECC. You can generate an SNP PDS

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in SAP ECC directly from the data in a routing, BOM or production version. To
do so, you need to choose CIF integration type SNP DPS or SNP subcontracting.
The relevant SAP ECC data are then transferred to the SAP SCM system, and
an SNP PDS is created automatically in the SAP SCM system. Choosing SNP
subcontracting automatically creates product master data in the subcontractor
location (for components, too). This also automatically creates a transportation
lane between plant and subcontractor (not possible when using an SNP PPM).
Production data structures cannot be changed in SAP SCM. You must make and
transfer changes in SAP ECC using the PDS_MAINT - Change production data
structure (PDS) transaction.

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Lesson: The Production Data Structure

Exercise 7: Creating a Production Data
Structure
Exercise Objectives
After completing this exercise, you will be able to:

The goal of this exercise is to transfer an SNP production data structure
to SAP SCM and create an SNP planned order using the same production
data structure.

Business Example
As planning manager for the Precision Pump Company you are creating SNP
production data structures (PDS) in SAP ECC from existing BOMs and routings.
SNP uses the production data structure to determine which components and
resources need to be planned.

Task:
In the following exercise, use SAP ECC to create an integration model for an
SNP production data structure, and activate the integration model to transfer the
production data structure to SAP SCM.

2006/Q2

1.

In SAP ECC, create integration model GR## for logical system
APOCLNT800 and APO application PDS. Select material T-F2## and plant
1000, then select SNP production data structure with production version
0001, and generate the integration model.

2.

Activate integration model GR## for logical system APOCLNT800 and
APO application PDS.

3.

Check the transferred SNP production data structure for product T-F2##
and location 1000 in SAP SCM. Which components and operations were
transferred?

4.

Using the new production data structure, create in interactive supply network
planning a planned order of 10 pieces outside the production horizon for
product T-F2## in location 1000 and version 00. What is the duration of the
planned order and what are the dependent requirements?

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Solution 7: Creating a Production Data
Structure
Task:
In the following exercise, use SAP ECC to create an integration model for an
SNP production data structure, and activate the integration model to transfer the
production data structure to SAP SCM.
1.

2.

In SAP ECC, create integration model GR## for logical system
APOCLNT800 and APO application PDS. Select material T-F2## and plant
1000, then select SNP production data structure with production version
0001, and generate the integration model.
a)

Choose SAP Menu → Logistics → Central Functions → Supply Chain
Planning Interface → Core Interface Advanced Planner and Optimizer
→ Integration Model → Create

b)

For Model Name enter GR##, for Logical System enter APOCLNT800,
and for APO Application enter PDS. Under General Selection Options
for Materials enter T-F2## for Material and 1000 for Plant.

c)

Set the PDS (ERP) indicator and choose the Further Restrictions
button. For PDS Type select SNP. For Prod. Version enter 0001.

d)

Execute the creation of the integration model using
and
save the integration model.

Execute (F8)

Activate integration model GR## for logical system APOCLNT800 and
APO application PDS.
a)

Choose SAP Menu → Logistics → Central Functions → Supply Chain
Planning Interface → Core Interface Advanced Planner and Optimizer
→ Integration Model → Activate

b)

For Model Name enter GR##, for Logical System enter APOCLNT800,
Execute
and for APO Application enter PDS, then choose the
(F8) button. Double-click integration model PDS. Select your
integration model on the right side and choose the Active/Inactive
button. Then choose the Start Activation button. This executes
the transfer of the production data structure. A dialog box appears
that says, Branch to application log?. Choose No. A dialog box
appears that says, Activation or deactivation of the selected models is
complete . Both statuses are now green, and the transfer has been
completed successfully.

Continued on next page

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Lesson: The Production Data Structure

3.

Check the transferred SNP production data structure for product T-F2##
and location 1000 in SAP SCM. Which components and operations were
transferred?
a)

Choose Advanced Planning and Optimization → Master Data →
Production Data Structure → Display Production Data Structures
SAPAPO/CURTO_SIMU.

b)

In the dialog box, enter T-F2## for Product, 1000 for Location, 00 for
Execute (F8) button.
Version, SNP for Usage, and choose the

c)

This displays the SNP production data structure. In addition to the
final product T-F2##, you can see components T-B1## (casing) and
T-B3## (hollow shaft). In the Activities tab you can find the SNP
critical activity "paint".

Continued on next page

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4.

SCM230

Using the new production data structure, create in interactive supply network
planning a planned order of 10 pieces outside the production horizon for
product T-F2## in location 1000 and version 00. What is the duration of the
planned order and what are the dependent requirements?
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Interactive Supply Network Planning
Selection Window icon.
Open the selection window using the
Under Show choose the APO Location Product entry. Version 00 is
displayed as a condition. In the next row, enter APO Product again,
and enter your product T-F2## to the right of that. Choose
This copies your selection to the selection window.

Copy.

Double-click your Product T-F2## for Location1000. The data for this
selection is now displayed in the planning table.
b)

Change. Double-click the
Go to the change mode by choosing
Total Receipts row. This makes the key figure Production (planned)
appear. The turquoise-colored area shows the production horizon.
In this key figure's first white cell, enter a quantity of 10 and choose
ENTER. In the next dialog box, choose Source of Supply with Supply
Type PDS, and choose

114

Copy.

c)

To find out the duration of the planned order, right-click the cell with
the quantity of 10, and choose Display Details. In the order details you
can find the start date and finish date on the far right side. The order
is exactly one day long.

d)

To find out the order's dependent requirements, go to the Select Objects
window in the upper left of the screen, right-click your selected
location product and choose Show Product View. Double-clicking the
planned order with the quantity of 10 in the product view displays the
planned order. Here you can see both of the dependent requirements,
T-B1## (casing) and T-B3## (hollow shaft), which were created by
your production data structure.

© 2006 SAP AG. All rights reserved.

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Lesson: The Production Data Structure

Lesson Summary
You should now be able to:

Create an SNP production data structure from SAP ECC

Display the SNP production data structure in SAP SCM

Plan with the SNP production data structure

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Lesson: Source Determination in SNP
Lesson Overview
This lesson will help you to get an overview of Quota Arrangements. In addition,
you will learn about various planning methods used in SNP and source selections.

Lesson Objectives
After completing this lesson, you will be able to:

Navigate in the Quota Arrangement
Describe the various planning methods

Business Example
As the Planning Manager at Precision Pump Company, you need to plan material
that is procured from multiple sources. These sources may be internal, external,
manufactured or combination of the above.

Source Determination in SNP

Figure 68: Automatic Source Determination

The figure shows the general logic of source determination in SAP SCM. The
planning run first checks whether quota arrangements exist. You can split demand
by percentage using quota arrangements. If no quota arrangements are available,
the system checks for priorities and then for costs. Then the procurement type that

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Lesson: Source Determination in SNP

determines whether a product is to be produced in-house or procured is evaluated.
You can also admit both options. Finally, the validity of the source of supply (such
as PDS or transportation lane) is defined.
In the heuristic, the system selects sources of supply based on the following
criteria:
1. Quota arrangement.
2. Priority (highest priority = 0). If there are more than one source of supply, the
system chooses the one with the highest priority.
3. Costs. If more than one source of supply has the same priority, the system
chooses the most cost-effective alternative.
Caution: Priority for sourcing, is, however, different for every SNP
planning procedure, and is also handled differently for each SNP planning
procedure in this course. In this way, feasibility influences source
determination in CTM, whilst the optimizer only selects feasible sources
of supply by costs.
Priorities and costs for in-house production are maintained in the PDS or in PPM.
Single-level costs are only relevant for SNP optimization, whereas multilevel
costs are relevant for CTM, heuristic and PP/DS. For external procurement and
stock transfer, you maintain priorities and costs for the transportation lanes. For
anonymous procurement, you maintain the costs in the product master.

Figure 69: Quota arrangement

Quota arrangement determines what percentage of a certain product will be
shipped to a specific location. In medium- to long-term SNP planning, only
those inbound quota arrangements that determine what percentage should be

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procured from a location are taken into account. Outbound quota arrangements
are only used in deployment and control short-term distribution of the procured or
produced quantities to the distribution centers.
Inbound quota arrangements are defined for the destination location. A quota
arrangement specifies which proportion of the demand should be transported
from which source. Inbound quota arrangements are used in medium-term SNP
planning.
Inbound quota arrangements are maintained for the source location. For each
product, a quota arrangement specifies which proportion of the quantity should
be transferred to which destination location. Outbound quota arrangements are
only used in deployment.
For each product, a quota arrangement specifies percentages for external
procurement, stock transfera or in-house production. The quota arrangements
represent proportions without dimensions that are used as a basis for splitting a
quantity. If a total of 100% is not maintained, an internal conversion to 100%
is performed. In the heuristic, every demand is split, and quota arrangement
quantities cannot be determined using maximum or minimum quantities.

Figure 70: Automatic Source Determination (2)

If you have maintained several PPM or PDSs, the system initially determines
whether quota arrangements exist. If there are no quota arrangements, the system
determines the PPM or PDS with the highest priority. If several PPMs have the
same priority, the system chooses the plan with the most favorable costs.
With external procurement, the system first checks whether quota arrangements
exist. If there are no quota arrangements, the system determines the source
of supply using the data in the transportation lanes and external procurement

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Lesson: Source Determination in SNP

relationships. If the system does not find a transportation lane or external
procurement relationship, it generates a purchase requisition without specifying a
supplier and uses the costs and planned delivery time from the product master.
If both in-house production and external procurement are permitted, the system
first checks whether quota arrangements exist. If there are no quota arrangements,
the system determines the source of supply with the highest priority. If several
procurement options have the same priority, the most cost-effective option is used.
To find this cost-effective option, the system directly compares the costs in the
transportation lane or external procurement relationship with those in the plan.

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Lesson: Source Determination in SNP

Exercise 8: Quota Arrangements
Exercise Objectives
After completing this exercise, you will be able to:

Create an Inbound Quota Arrangement

Business Example
As the Planning Manager at Precision Pump Company, you need to plan materials
that may be procured from multiple locations. Quota arrangements will be used to
assist in the selection of these locations.

Task:
1.

2006/Q2

Create an inbound quota arrangement for your SNP-## model so that, for all
products, distribution center 2400 in Milan receives 20 % of its supply from
plant 1000 and 80 % from 2300 over the next year.

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Solution 8: Quota Arrangements
Task:
1.

Create an inbound quota arrangement for your SNP-## model so that, for all
products, distribution center 2400 in Milan receives 20 % of its supply from
plant 1000 and 80 % from 2300 over the next year.
a)

Choose Advanced Planning and Optimization → Master Data →
Quota Arrangement → Quota Arrangement.

b)

Enter the data from the table below and click

.

Field

Value

Model

SNP-##

Location

2400

Version-Independent

Selected

Inbound Quota Arrangements

Selected

c)

In the Quota Arrangement Header area, click on the symbol
Creation of a new entry.

d)

Select under Quota Arrangement Header right All Products and enter
as End date One year from today.

e)

Click

f)

Now select your quota arrangement header in the top half of the screen
and, in the Quota Arrangement Items section in the lower portion of the

to copy the data and close the window.

screen, click on
g)

Creation of a New Entry.

In the Quota Arrangement Item section to the right, select Quota
Arrangement for Location and Copy all Existing Locations. Then click
on . Two rows should appear in the Quota Arrangement Items
section, one for location 2300 and one for location 1000.

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h)

Enter 20 in the Quota arrangement field for location 1000, and 80
for location 2300.

i)

Save

the quota arrangement.

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Lesson: Source Determination in SNP

Lesson Summary
You should now be able to:

Navigate in the Quota Arrangement

Describe the various planning methods

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Lesson: Transaction Data in Supply Network Planning
Lesson Overview
This lesson will help you get an overview of the transaction data used in Supply
Network planning. You will also learn about integrating transaction data.

Lesson Objectives
After completing this lesson, you will be able to:

Identify the transaction data used in SNP
Describe the process of integrating transaction data

Business Example
Customers of the Precision Pump Company place their orders for products at the
distribution centers in Rotterdam, Milan, and Denver. The demand is transferred
from the DCs to the production plants in Hamburg, Barcelona, and New York.
After the production plant receives the requirements, you, as the Planning
Manager, need to ensure that the components required to produce the product are
available in the SAP-SCM system. If sufficient stock is not available, you need to
create plans to ensure that the stock is made available either through stock transfer
from another plant, in-house production, or external procurement.

Transaction Data

Figure 71: Transaction data objects in the supply chain

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Lesson: Transaction Data in Supply Network Planning

Supply Chain Planning is performed on the basis of master data, for example
work centers. The result of this planning is transaction data, which is used to
plan for procurement.
The planning process starts with independent requirements that are created as
planned independent requirements or sales orders. These planned independent
requirements determine the demands in a distribution center or a sales center.
Independent requirements can also be created directly for an individual production
plant. You use the network to plan how to meet these independent requirements.
These requirements are met either by stock transfer, in-house production, or
external procurement.
In Supply Network Planning, goods movements are mapped as stock transfers,
in-house production as planned orders or production orders, and external
procurement as purchase requisitions and orders or by means of scheduling
releases. Starting from a demand plan, SNP determines a mid- to long-term plan
to deliver the planned demand quantities. This plan includes both the quantities
that must be transported between locations, (for example, distribution center to
customer or production plant to distribution center), and the quantities to be
produced and procured, taking available capacity into consideration.
Supply Network Planning (SNP) planning creates planned orders, purchase
requisitions, and stock transfer requisitions that you can transfer directly to the
connected OLTP systems.
An SAP-SCM- stock transfer can create a purchase requisition in one OLTP system
and a sales order in another OLTP system.

Figure 72: Demand Program

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ECC Demand Management is used to manage independent requirements. The
behavior of independent requirements in MRP is determined by their requirements
type or planning strategy.
Planned independent requirements are stock requirements that can be derived
from a forecast of future demand. In make-to-stock production, procurement
of the required materials is initiated without having to wait for concrete sales
orders. This procedure allows you to shorten delivery times and also could help
load your own production resources as evenly as possible. This can be done by
foresighted planning.
Sales orders or customer independent requirements are created by sales and
distribution. Customer requirements can be received directly in Material
Requirements Planning, depending on their defined requirement type. This is
useful if planning is to be done on a customer-specific level.
Sales orders can be used either as exclusive requirement sources, for which
procurement is then specifically triggered (make-to-order production) or sales
orders can be grouped with planned independent requirements to create the total
requirements. Sales orders can also consume planned independent requirements.

Figure 73: Sales Orders and Planned Independent Requirements

Sales orders are created in sales and distribution (ECC SD: Sales and Distribution).
Sales orders represent orders placed by a customer, where a certain quantity of
a product is required on a specified date. Sales orders represent a requirement
in the supplying plant.

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Lesson: Transaction Data in Supply Network Planning

Planned independent requirements are used for make-to-stock planning in a DC
or production plant, which means that planned stock consumption is forecast and
products are procured as a result of this forecasting. When concrete requirements
exist at a later date, for example, as sales orders or dependent requirements, these
requirements can then, in the best-case scenario, be met by the warehouse.

Figure 74: Stock Transfers

You can transfer stock from other locations in the location network to meet
demands. In this case, the location that needs the stock creates a purchase
requisition for procurement from the supplying plant. The supplying plant, in
turn, receives a demand as a purchase requisition release. At the same time it is
important to remember that demand at the plant and the goods received at the DC
belong to the same order. A postponement of receipt date automatically entails
a postponement of demand. Only receipt at the DC can be changed. The plant r
equirement date is determined by transport duration and goods receipt and goods
issue times before the receipt date in the DC.

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Planned Order

Figure 75: Planned Orders and Production Orders

SNP planned orders are used to plan the in-house production of a material. Planned
orders already contain the basic dates within which production should take place.
They also contain dependent requirements, which are the component requirements
needed for production. Capacity can be planned based on planned orders.
For final production execution, the planned order is converted into a manufacturing
order, that is, a production order (PP) or a process order (PP-PI). The conversion
of and SNP planned order into a production order is not possible in SAP SCM, and
can only be carried out in SAP ECC.
When a demand falls within the production horizon, it is no longer planned in
the SNP planning run but planned in the production planning run in PP/DS.
In Production Planning and Detailed Scheduling, PP/DS planned orders can
be created or changed manually across the entire time axis, regardless of the
production horizon. During automatic planning in PP/DS (production planning
run), only orders within the production horizon are created. In Supply Network
Planning, orders cannot be created or changed within the production horizon.
Orders within the production horizon that can be planned by Production Planning
and Detailed Scheduling are still displayed in Supply Network Planning as
aggregated receipts in the defined bucket. The conversion of a PP/DS planned
order into a production order in SAP SCM, is possible and sensible.

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Lesson: Transaction Data in Supply Network Planning

Figure 76: Production Planning Run Overview: PPM Explosion

From the point of view of a bill of material (BOM), the production planning run
performs the following activities:


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The production planning run first determines the independent requirements
for the finished product, which can include sales orders and planned
independent requirements. If sufficient stock or receipt quantity is not
available, the production planning run generates a planned order.
The PPM/PDS of the planned order for the finished product is exploded
and dependent requirements are generated for the assemblies. Dependent
requirements are requirements that are derived from the BOM structure.
At the next BOM level, the dependent requirement represents demand for
each assembly. If sufficient stock or receipt quantity is not available to meet
this requirement, the production planning run generates a planned order.
The BOM of the planned order for each assembly is exploded and dependent
requirements are generated for the raw materials.
At the lowest BOM level, the production planning run determines the
requirements again. If sufficient stock or receipt quantity is not available,
the production planning run generates a purchase requisition for external
procurement of raw materials.
If planning is single level, only the receipts and dependent requirements are
produced for the selected product. Given multi-level planning, the complete
BOM structure is exploded.

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Figure 77: Integration of SNP and PP/DS Orders

The PP/DS horizon and SNP production horizon are defined in calendar days,
starting from today's date. The PP/DS horizon can be defined globally in the
definition of the planning version. You can define both horizons for each product
in the location-specific product master on the PP/DS tab page. The settings in the
product master override the global settings. The two horizons may overlap to
define an area where SNP can be used alongside PP/DS for planning.
SNP planned orders can only be created or changed in SNP, while PP/DS planned
orders can only be created or changed in PP/DS. The SNP planning run only
creates SNP planned orders with an end date outside the SNP horizon. Automatic
PP/DS planning only includes requirements that are within the PP/DS horizon.
The production planning run deletes all non-fixed SNP planned orders that have
an end date within the PP/DS horizon and creates PP/DS planned orders for
requirements that are within the PP/DS horizon, such as planned independent
requirements, sales orders, or releases for stock transfers.
The product master also includes the Firm production and Fix transports settings.
If these indicators are not set, PP/DS deletes SNP planned orders within the
production horizon and external procurement within the stock transfer horizon.
If SNP planned orders include requirements outside the PP/DS horizon for
example, these requirements are deleted during the PP/DS planning run and no
PP/DS planned orders are created. To prevent this, you have to convert the SNP
planned orders into fixed PP/DS orders before the PP/DS planning run. You can
trigger this conversion interactively from the product view or schedule a periodic
background conversion in PP/DS. During this conversion, you can set whether or
not you want unfirmed or firmed orders to be created with or without a conversion

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Lesson: Transaction Data in Supply Network Planning

indicator. You can also choose the lot sizing procedure that you want to use to
create the orders and whether or not you want the SNP sources of supply to be
adopted. The end date of the SNP planned order is used for scheduling. To
select the conversion function, go to Production Planning → Environment →
Conversion of Supply Network Planning → Production Planning in Background.

Figure 78: Converting Planned Orders in SAP SCM

Planned orders are used to plan the in-house production of a material. SNP
planned orders contain only the basic dates within which production is to take
place, and no specific operation dates. Alternatively, PP/DS planned orders
already contain all production dates and times.
Both SNP and PP/DS planned orders can be transferred to the SAP-ECC system.
The relevant ECC planned orders contain only the basic dates, in which production
is to take place, and no specific operation dates. These planned orders also contain
the dependent requirements for both SAP-SCM and non-SAP-SCM components.
The procurement of these components can be planned in ECC based on these
dependent requirements.
If production planning takes place in SAP SCM-PP/DS, the planned orders have to
be converted from SAP SCM into production orders. The only difference between
an SAP-SCMproduction order and an SAP SCM planned order is the conversion
indicator. If you set the conversion indicator in SAP SCM, a corresponding ECC
production order is created in ECC. This order assumes the production dates that
have been determined in SAP SCM. Similar to every ECC manufacturing order, it
also contains all the functions, such as printing order documents and displaying
confirmation messages, which are needed to execute production.
SNP planned orders cannot be converted fromSAP SCM to ECC production orders.

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External procurement

Figure 79: Purchase Requisitions and Purchase Orders

To plan procurement for externally procured materials, you can use purchase
requisitions or scheduling agreement releases.
If there are no valid transportation lanes, a purchase requisition is created without
a source of supply. If there are valid transportation lanes, a purchase requisition is
created with a source of supply.
Purchase requisitions are converted into purchase orders in Purchasing. A source
of supply, such as the supplier, should be assigned to the purchase orders in this
step. Demand Planning can be executed in SAP ECCor in SAP SCM. Where the
purchaser makes the conversion depends on in which system source determination
takes place.

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Lesson: Transaction Data in Supply Network Planning

Integration of transaction data from ECC and SAP SCM

Figure 80: Integration of transaction data from ECC and SAP SCM

There are several options for creating planned independent requirements in SAP
SCM:


You can create planned independent requirements in ECC demand
management and transfer these requirements to the SAP SCM system.
You plan the demand quantities in CO/PA in Flexible Planning or in Sales
& Operations Planning, transfer them to demand management and then to
the SAP SCM system.
You can plan the demand quantities in SAP SCM Demand Planning and
release them to SAP SCM Production Planning.
SAP ECC sales orders can be consumed in both systems, depending on the
strategy configured.

SAP SCM Production Planning generates planned receipts, such as planned orders,
purchase requisitions, and stock transport requisitions.
You can transfer these planned receipts to execution systems directly, periodically,
or not at all. You can transfer SNP planned orders to ECC and convert them into
production orders.
You can send PP/DS planned orders directly to ECC as production orders.
You can convert purchase requisitions into purchase orders by purchasing inSAP
SCM or by ECC.

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ECC stock transport requisitions can be converted into stock transport orders by
deploying SAP SCM or using the TLB (Transport Load Builder).
Deliveries and transfer orders are created and transferred from TP/VS
(Transportation Planning and Vehicle Scheduling).

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Lesson: Transaction Data in Supply Network Planning

Lesson Summary
You should now be able to:

Identify the transaction data used in SNP

Describe the process of integrating transaction data

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Unit Summary

SCM230

Unit Summary
You should now be able to:

Identify the Master Data objects for a supply chain

Create transportation lanes

Identify the product and material master data needed for SNP planning.

Identify the resource master data in SNP

Define the various types and categories of resources

Explain scheduling in SNP

Compare and contrast ways of generating bills of materials and routings
for SNP via PDS and PPM

Generate SNP plans (PPMs) from PP/DS plans (PPMs)

Create an SNP production data structure from SAP ECC

Display the SNP production data structure in SAP SCM

Plan with the SNP production data structure

Navigate in the Quota Arrangement

Describe the various planning methods

Identify the transaction data used in SNP

Describe the process of integrating transaction data

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Unit 3
SNP Configuration
Unit Overview
In this unit you will learn to define the configuration for SNP planning including
creating planning object structures, planning areas, and versions. You will create
planning books and user-specific data views. Next you will create and copy
macros and finally learn to navigate in the planning table.

Unit Objectives
After completing this unit, you will be able to:




Define the configuration settings for SNP Planning
Define the configuration settings for SNP planning books and data views
Explain the task of macros for SNP planning
Create and copy macros
Navigate in the planning table

Unit Contents
Lesson: Planning Areas........................................................138
Exercise 9: Creating Planning Versions .................................151
Lesson: Planning Books .......................................................154
Exercise 10: Creating Planning Books ..................................159
Lesson: Macros and Alerts ....................................................166
Exercise 11: Create Macros...............................................173
Lesson: Navigation in the Planning Table ...................................184
Exercise 12: Selections and Interactive Planning ......................191

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Unit 3: SNP Configuration

SCM230

Lesson: Planning Areas
Lesson Overview
This lesson will give you an overview of the planning area configuration for
Supply Network Planning. You will learn the parameters that are assigned to the
planning area and how to recognize the difference between orders and time series
in liveCache. These settings are made by the project team and are not accessible to
the users of the system.

Lesson Objectives
After completing this lesson, you will be able to:

Define the configuration settings for SNP Planning

Business Example
As a member of the project team at Precision Pump Company, you must configure
your company’s SNP planning. You will need to understand the configuration and
be able to explain the data relationships.

Definition and Parameters

Figure 81: Data Structures for SNP Configuration

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Lesson: Planning Areas

The above graphic shows the data model for SNP configuration:

The SCM master data is assigned to models. Master data from OLTP systems
is transferred automatically to the model 000. You must explicitly assign
master data that you create in SAP SCM to a model.
Versions can be created for each model. The versions contain version-specific
master data and transaction data. Order data is saved in the version. Time
series are saved in the planning area version.
The use of key figures in planning is configured in the planning area. You
configure which order data is represented in which key figure and which
order categories are planned by SNP. You can also define time series key
figures so that you can save information relevant for planning, such as
planned stock, dynamic safety stock, and days' supply or constraints.
You use the planning books and data views to configure interactive planning
for various user groups. Here, you define characteristics, key figures, time
bucket profiles, planning horizons, and macros for the planners.

Figure 82: Definition of a Planning Area

A planning area is the central data structure of Demand Planning and Supply
Network Planning. A planning area groups together the parameters that define the
scope of the planning activities. In addition, it determines whether the planning
results are saved in time series objects or order objects.
The planning area contains the planning characteristics and key figures and must
be initialized for each planning version. The most important tool for the SNP
planner is the planning book. This is based on the information or a subset of
information of a planning area. The planner does not maintain the planning area.

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Figure 83: Definition of a Planning Area - Characteristics

Characteristics are used for selecting and navigating in planning. Typical
characteristics are: Product, Location, Resource, and PPM. The characteristics for
SNP are predefined and cannot be modified.
Demand Planning or Supply Network Planning master data includes the permitted
values of the characteristics. The permitted values or specific features of
the characteristics are known as the characteristic values. For example, the
characteristic, location, could have three values: London, Delhi, and New York.
As Demand Planning is performed at other levels, such as brand or region, you
need to have separate planning areas for SNP and DP. A planning area that is used
for SNP can only contain the standard SNP characteristics.

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Lesson: Planning Areas

Figure 84: Assigning Characteristics to the Planning Area

A master planning object structure contains characteristics that can be planned
for one or more planning areas. In Demand Planning, you can see standard
characteristics and characteristics that you create in the Administrator Workbench.
Characteristics determine the levels on which you can plan and save data. You
need specific characteristics for Supply Network Planning, characteristics-based
forecasting, and the BOM explosion in Demand Planning.
An APO aggregate contains a subset of the characteristics contained in the
master planning object structure. The default master planning object structure
9ASNPBAS for planning contains different aggregates.

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Assigning Key Figures

Figure 85: Basic Parameters of the Planning Area

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

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Lesson: Planning Areas

Figure 86: Assigning Key Figures to the Planning Area

Supply Network Planning gives you two options for storing data: You specify the
storage method for each key figure separately in the planning area:

In liveCache time series objects, the data is stored in time buckets without
reference to orders. A key figure is then saved in time series if semantic 001
is entered in the detail view of the key figures in the planning area. Time
series are saved for the planning area and the version.
In liveCache order objects, the data is stored as orders. Key figure data is
then saved as orders if semantic 000 is entered in the detail view of the key
figures in the planning area. Orders with no reference to the planning area
are only stored in the version. As a result, you do not (for example) provide a
planning area during the release from Demand Planning.

Standard planning areas:




9ASNP01 Propagation (not used live)
9ASNP02 Standard planning area without time series
9ASNP03 Planning with scheduling agreements
9ASNP04 Optimization with variable constraints in time series
9ASNP05 Planning area with time series for extended safety stock planning

If you want to store your own time series key figures in SNP, copy the standard
planning area, 9ASNP02, and add your time series key figures to it.

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Figure 87: liveCache Orders

All transaction data from the OLTP systems, PP/DS, and standard SNP is saved
in liveCache as orders with different ATP categories. In this way, for example,
sales orders have category BM, SNP planned orders have category EE, and
purchase requisitions have category AG. The ATP categories correspond to the
MRP elements in SAP ECC.

Figure 88: Assigning Orders to SNP Key Figures

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You can group ATP categories together into ATP category groups. In this way you
can, for example, define that sales orders, quotations, and requests for quotation
will be shown summed up in the sales order key figure. You enter the ATP
category groups in the key figure of the planning area. The system then reads all
orders of the ATP category groups for each bucket and writes the sum total of the
orders to the key figure time bucket profile.
You can also use ATP category groups to configure which orders in the
requirement strategies consume independent demands.
Every order in liveCache has three semantically different quantity fields:


Confirmed quantity
Requirement quantity
Original quantity

In APO 3.1 and earlier releases you defined the semantics of a planning area
per category group. In SCM 4.0, you can define the semantics separately for
each category in a category group; you can also distinguish between firmed and
unfirmed orders.

Standard Order Planning Structure

Figure 89: Defining Key Figures in the Planning Area

The above graphic shows the detailed view of the key figure tab page in the
planning area.
Use the semantics to define whether key figures are to be created as InfoCube key
figures (002), order key figures (000), or time series key figures (001). If you enter
an InfoCube in the InfoCube column, the key figure is read from the InfoCube
after selection and cannot be planned. You cannot write into an InfoCube directly
from interactive planning. The remaining semantics are not used (propagation).

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The key figure function controls the function of the key figure for planning, e.g.
capacity consumption.
Under Aggregation you define the use of the key figure in hierarchical planning:
Should the key figure be aggregated and, if so, should the value at the detailed
level be deleted or retained?
The Persistency Indicator determines the level on which time series are stored.
Category: Categories describe the different types of stock, receipts, demands, and
forecasts in the SCM system. The system comes with a set of standard categories
that represent the SAP ECC elements. Additional categories can be created for
non-SAP systems.
You use category groups to present totals of transaction data from various
categories in summarized form. PP/DS planned orders and production orders are,
for instance, displayed in the Production (confirmed) key figure.
If you set the UOM indicator, products are displayed in their base unit of measure
in interactive planning, which is not the unit of measure of the planning area.
This indicator is set by default.

Figure 90: The Standard Order Planning Structure

Planning area 9ASNP02 is the standard planning area for purely order-based SNP
planning. To modify this planning area, copy the area and insert time series key
figures, such as calculations or delete existing key figures that are not required.

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Lesson: Planning Areas

Figure 91: Defining a Planning Area

The planning area must be initialized for each version, for both order and time
series key figures.
If you initialize planning areas consisting of only one order key figure,
SNP-specific master data tables are written. You only need to initialize the
planning ares once for each version and all master data changes are transferred
automatically.
If you initialize planning areas with time series key figures, the system writes
SNP-specific master data tables and defines memory space for time series in
liveCache. In this instance, you need to define the initialization horizon.

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Version Management

Figure 92: Initializing the Planning Area for the Version

For planning areas with time series key figures, you enter the planning version,
start date, and end date. You can reinitialize the planning area periodically on a
rolling basis. This deletes “obsolete” time buckets and adds new buckets for the
future. As of SAP SCM 4.0, you can also define the horizon according to specific
key figures.
You initialize the planning area by right-clicking on the planning area
and choosing Create time series objects or by executing the report,
/SAPAPO/TS_PAREA_INITIALIZE.

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Lesson: Planning Areas

Figure 93: Version Merge

First, SNP planners separate the master data and transaction data of the active
version and copy it separately into inactive versions.
The SNP planners then revise these copies within their individual versions. Each
SNP planner has his or her own range of planning data (product and location).
Caution: Make sure the data of the different SNP planners does not
overlap because, when individual planning versions are copied back into
the active version, the version that is copied back last overwrites the data
from all the previously copied versions.
Next, the revised planning versions are copied back into the active version. Use
the function for merging planning versions to copy selected SNP key figures from
a planning version back into the active version. You can limit your selection to
location products and SNP planners. PP/DS order data cannot be copied. There
are four SNP key figures that you can copy from an active planning version back
into the active version. The SNP key figures are as follows:



Planned Production
SNP Distribution Receipt
Deployment Distribution Receipt
Safety Stock

You choose the SNP key figures that you want to copy back into the active version
in transaction /SAPAPO/VERMER.

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

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Lesson: Planning Areas

Exercise 9: Creating Planning Versions
Exercise Objectives
After completing this exercise, you will be able to:

Create a liveCache version

Create a Time Series version

Business Example
As the Planning Manager at the Precision Pump Company, you need to create
versions for your planners to use. Versions will allow your planners to work in
simulation mode without affecting the active plan. You will need to know how
to create a liveCache version and also how to create the Time Series version
associated with it.

Task:

2006/Q2

1.

Create a planning version SNP-## with the name GR## SNP Planning
for your model SNP-## with active SNP change planning and the local
time zone.

2.

Initialize your version for planning area 9ASNP02.

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Solution 9: Creating Planning Versions
Task:
1.

2.

152

Create a planning version SNP-## with the name GR## SNP Planning
for your model SNP-## with active SNP change planning and the local
time zone.
a)

Choose Advanced Planning and Optimization → Master Data →
Planning Version Management → Model and Version Management.

b)

Select Your Model SNP-##, choose the Create Model/Planning
Version icon, and choose Planning Version from the menu.

c)

Enter SNP-## as the name of the version and GR## SNP Planning
as the description.

d)

In the SNP section select: Change Planning Active indicator and the
Local Time Zone indicator.

e)

Create and Save in the lower part of
Click
your screen to create and save your planning version.

f)

Click

to return to the main menu.

Initialize your version for planning area 9ASNP02.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Administration of
Demand Planning and Supply Network Planning.

b)

Right-click on planning area 9ASNP02, choose Initialize planning
version from the context menu.

c)

Enter planning version SNP-## and choose

© 2006 SAP AG. All rights reserved.

Execute (F8).

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Lesson: Planning Areas

Lesson Summary
You should now be able to:

Define the configuration settings for SNP Planning

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Lesson: Planning Books
Lesson Overview
This lesson will give you an overview of the planning books and data views that
you can use to configure Supply Network Planning interactive planning. You will
become familiar with the settings for creating planning books and data views. The
data view is the most important tool for the SNP planner.

Lesson Objectives
After completing this lesson, you will be able to:

Define the configuration settings for SNP planning books and data views

Business Example
As a member of the project team at Precision Pump Company, you must configure
planning books and data views for groups of SNP planners. To do this, you need
to know the characteristics and key figures that the SNP planners require to be
able to perform their daily planning tasks.

Planning Books and Views

Figure 94: Planning Books and Data Views

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Lesson: Planning Books

The above example shows a delivered, standard planning book with two data
views for SNP planning. The planning book is always based on a unique planning
area that specifies characteristics and key figures. The planning book defines a
preselection of characteristics and key figures of the planning area that can be used
in the data views. Only the characteristics of the planning book can be used for
selection. Only the key figures of the data view are interactively displayed as a
planning table. Planning books control interactive planning for mass processing in
the background and cooperative planning.
A planning book contains one or more data views. Data views control the layout
of the planning table and are the SNP planner's most important tool for analyzing,
changing, and creating planning data. Data views predefined by SAP for the
standard planning areas are provided as a template. You can find these planning
books by right-clicking on the planning area under Detail.

Figure 95: Creating a User-Specific Planning View

To create a planning book, choose Define Planning Book from the current settings
or from Customizing. A wizard will guide you through the necessary steps. After
you have made your entries on one tab page, choose Continue to go to the next.
You can save the planning book once you have completed all of the tab pages.
Select Complete to do this. The system saves the planning book and adds the
standard key figures to execute the selected functions.
When you create planning books and data views with the assistant, you must enter
specifications on the following tab pages:

2006/Q2

Enter the description for the planning book, planning area on which the
planning book is based, the SNP functions to be included in your planning
book (such a, Supply Network Planning, Capacity Planning) on the Planning
Book tab page.

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You can specify which key figures you want to use in this planning book on
the first tab page, Key Figures. To add all the key figures from the planning
area to the planning book, select the icon below the Add All Key Figures
planning area window.
You can specify which key figures you want to use in this planning book
on the Characteristics tab page. You can either add selected individual
characteristics or all characteristics to your planning book.
You can define the attributes of certain rows in the planning book on the
Key Figure Attributes tab page. The tab page becomes available only
after you have made changes in the planning book. On this tab page, you
can create auxiliary key figures that are not saved in the database but can
be displayed in interactive planning. You can use auxiliary key figures in
connection with macros, for example.
You can also specify that a key figure refers to a specific planning version.
In this way, you can work with different versions of a key figure in the
same planning book. If you perform SNP planning with different planning
versions, you can compare the results in interactive SNP Planning. If you
determine that the key figure refers to a variable planning version, you can
choose the planning version for the key figure in interactive SNP planning.

You can create one or more data views for the planning book on the Data
View tab page. You need at least one data view to use a planning book. You
have the option of creating several data views for several users within one
planning book. You specify the planning horizon in the data view.
Remember to enter a description of the table (that will then appear in the
upper right of the planning table), as well as a description of the data view.
As the status, enter Private (1), Protected (2), or Changeable (3). Private
means that only the author can use the view. Protected means that the view
cannot be changed by other users, but it can be personalized and copied.
Changeable data views can be modified by all users who have Customizing
authorization.
To use two tables in one data view, select the indicator next to the second
table title; enter a text for this table as well. An additional tab page is
displayed in the planning book maintenance wizard, where you can define
the key figures for the second table. For an example of this double table
concept, see SNP94(2) data view in planning book 9ASNP94. This indicator
cannot be removed after the fact.
You define the planning horizon and periodicity by entering time buckets
profiles. If you are working with time series, the time buckets profiles can
only contain buckets from the storage buckets profile on which the planning
area is based.
The default start of the planning horizon is the current day. You can move
the start by entering a fixed date or by shifting.

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Lesson: Planning Books

You can specify which planning book key figures can be used by the users
of this data view on the second Key Figures(Data View) tab page. If you
work with two tables, an additional tab page for the additional key figures
will appear.

Figure 96: Time Buckets Profile for DP and SNP

The time buckets profile defines:


The time buckets are used for planning
The number of buckets of each bucket (period) type are used
The sequence in which the buckets appear in the planning table

The example shown above represents a time horizon in months. Of these three
months, the first two are displayed in weeks. The display for the first week is
in days.
The first row defines the entire length of the time horizon. The following rows
define the different sections of the horizon. You make entries in the Number and
Display periodicity columns. The content of the other columns is displayed
automatically when you press Enter. To see exactly which time buckets will be
displayed, choose Period list.
For time series key figures, you can only use periodicities that are also defined in
the storage buckets profile on which the planning area is based.

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Lesson: Planning Books

Exercise 10: Creating Planning Books
Exercise Objectives
After completing this exercise, you will be able to:

Create Planning Book

Create user specific planning views

Business Example
At the Precision Pump Company, you, as the Planning Manager, need to define the
scope of the planning activities. You will use the planning books and data views to
define the planning horizon, key figures, and macros available to planners.

Task 1:
1.

Which standard planning books are assigned to planning area 9ASNP02?

Task 2:
1.

Look at the structure of planning book 9ASNP94. Which data views are
defined for this planning book. Which time buckets profile is assigned to
the data views?

2.

Where do you configure the time buckets profile for planning?

Task 3:
In order to collaboratively plan with your suppliers, you should create a planning
book for them to access over the Internet.
1.

In Planning area 9ASNP02 create your own planning book called SUP## for
planning suppliers. Enter SUPPLIER as the text for the planning book and
include the Supply Network Planning standard functions.
Ensure that the DistrDemand (Planned) and DistrReceipts (Planned) key
figures and the APO Product and APO - Location characteristics from the
planning area are included in the planning book.
Then create a SUPPLIER data view and enter PLANNING OF DELIVERY
QUANTITIES as the description. Assign the 9ASNP time buckets profile
to the future TB profile ID and maintain an initial column as the left outer

Continued on next page

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column. Include the chosen DistrDemand (Planned) and DistrReceipts
(Planned) key figures from the planning book in the data view. Complete the
planning book.

Task 4:
1.

Now change the planning book by creating an auxiliary key figure called
INVENTORY, which you also assign to the data view.
Note: Auxiliary key figures are only used for displaying in the
planning table. The data in this key figure is not saved.

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Lesson: Planning Books

Solution 10: Creating Planning Books
Task 1:
1.

Which standard planning books are assigned to planning area 9ASNP02?
a)

Use the menu path Advanced Planning and Optimization →
Supply Network Planning → Environment → Current Settings →
Administration of Demand Planning and Supply Network Planning.

b)

Right-click on planning area 9ASNP02 and select Detail from the
context menu.
The following planning books, among others, are located in the Linked
planning books folder:




9ASNP94, interactive planning
9ASNPHIER, product group planning
9ADRP, distribution resource planning
9AVMI, Vendor Managed Inventory
9ACTM02, SNP interactive planning for CTM

Task 2:
1.

Look at the structure of planning book 9ASNP94. Which data views are
defined for this planning book. Which time buckets profile is assigned to
the data views?
a)

Select Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Define Planning Book.

b)

Enter planning book 9ASNP94 and click Edit

c)

On the Data view tab page, you find data view SNP94(1) SNP PLAN
and (using F4 in the data view field) SNP94(2) CAPACITY CHECK.

d)

Time buckets profile 9ASNP is assigned to both of the planning book
data views.

.

Continued on next page

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2.

SCM230

Where do you configure the time buckets profile for planning?
a)

You will find a definition of the time buckets profile under:
Advanced Planning and Optimization → Supply Network Planning →
Environment → Current Settings → Maintain Time Buckets Profile for
Demand Plng and Supply Network Plng.

b)

In contrast to the standard time buckets profile, this one is set to 15
weeks.

Task 3:
In order to collaboratively plan with your suppliers, you should create a planning
book for them to access over the Internet.
1.

In Planning area 9ASNP02 create your own planning book called SUP## for
planning suppliers. Enter SUPPLIER as the text for the planning book and
include the Supply Network Planning standard functions.
Ensure that the DistrDemand (Planned) and DistrReceipts (Planned) key
figures and the APO Product and APO - Location characteristics from the
planning area are included in the planning book.
Then create a SUPPLIER data view and enter PLANNING OF DELIVERY
QUANTITIES as the description. Assign the 9ASNP time buckets profile
to the future TB profile ID and maintain an initial column as the left outer

Continued on next page

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Lesson: Planning Books

column. Include the chosen DistrDemand (Planned) and DistrReceipts
(Planned) key figures from the planning book in the data view. Complete the
planning book.
a)

Select Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Define Planning Book.

b)

Enter SUP## as your planning book and click

c)

Enter SUPPLIER as the planning book text and 9ASNP02 as your
Planning area. Press the ENTER key and select Supply Network
Planning as the standard function to be included.

d)

Choose

e)

Drag and drop the Distribution Demand (Planned) and Distribution
Receipt (Planned) key figures from the planning area to the planning
book.

f)

Choose

g)

Drag and drop the APO Product and APO - Location characteristics
from the planning area to the planning book.

h)

Choose

i)

Changes can only be made on the Key fig. attributes tab page once the
planning book is complete. It is therefore skipped in the creation phase.

j)

On the Data View tab page, enter SUPPLIER as the view and
PLANNING OF DELIVERY QUANTITIES as the description and in
the title of the first table.

k)

Specify 9ASNP as the future Time buckets profile ID and L as the
initial column.

l)

Choose

m)

Click

n)

Click
to save the planning book and data view, and confirm the
dialog box. Confirm all the information messages you receive.

.

to go to the next tab page.

to go to the next tab page.

to go to the next tab page.

to go to the next tab page.
to Add all key figures from the planning area to the data view.

Continued on next page

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Task 4:
1.

Now change the planning book by creating an auxiliary key figure called
INVENTORY, which you also assign to the data view.
Note: Auxiliary key figures are only used for displaying in the
planning table. The data in this key figure is not saved.

164

a)

Select Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Define Planning Book.

b)

Enter your planning book SUP## and click Edit

c)

Click on the “Key fig. attributes” tab page.

d)

In the key figure field, enter INVENTORY by overwriting the existing
key figure.

e)

Hit ENTER and click

f)

Click on the “Key figures” tab page on the far right of the screen.

g)

Drag the INVENTORY key figure from the right-hand to the left-hand
side of the book.

h)

to save the planning book and data view, and confirm the
Click
dialog box.

© 2006 SAP AG. All rights reserved.

.

.

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Lesson: Planning Books

Lesson Summary
You should now be able to:

Define the configuration settings for SNP planning books and data views

2006/Q2

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Lesson: Macros and Alerts
Lesson Overview
This lesson describes the functions of macros (formulas) in SNP. Macros control
the calculation of total receipts, total demand, the day's supply, and the planned
warehouse stock, for example. You will learn how to create macros and copy them
from standard data views. You will then create and run a macro for calculating the
stock balance and creating alerts. You will then define an alert profile for filtering
alerts so that they can be evaluated in the Alert Monitor.

Lesson Objectives
After completing this lesson, you will be able to:

Explain the task of macros for SNP planning
Create and copy macros

Business Example
As a member of the project team, you must ensure that the calculations for planned
stocks and receipts are adjusted to your requirements using macros. The planners
must also be informed of exceptional situations. These exceptional situations
must be localized and made available to the planners in Alert Monitor with the
help of macros.

Working with Macros

Figure 97: Macro Functions

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Lesson: Macros and Alerts

Many calculations and functions are executed using macros (formulas). The stock
balance, total receipts, and total demand are calculated, for example. You can
customize macros to run your own cross-bucket calculations and thereby influence
planning. The horizon for which a macro is executed can be restricted to one or
more time buckets. A Macro can temporarily store the results of a step in a row,
column, cell, or variable and use these results exclusively in subsequent iterations,
macro steps, or macros.
Macros can also trigger alerts in the Alert Monitor to inform planners about
certain business situations.

Figure 98: Defining Macros

Macros are created in the MacroBuilder in the Customizing or design mode of
interactive planning. Macros are defined for an entire planning book or for a
certain data view in macro books. For performance reasons, SAP recommends
that you only create for the data view. You also have the option of copying macros
between macro books.
MacroBuilder has an element window from which you can drag elements into
your work area by drag-and-drop. You can store completed macros in the depot.
You can execute macros interactively, configure macros for automatic execution,
or schedule macros for execution by mass processing.
Enter transaction =ADVA to access the generated ABAP code. If you cannot
compile the macro, enter transaction SE38 to open the initial screen of the ABAP
Editor. You will also find these functions in the Macro Workbench context menu.

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Figure 99: Macro Levels

Macros are maintained on four levels:


Level 1: Contains different macros.
Level 2: Enables you to subdivide the calculation operations within a macro
into several steps. This corresponds to compounding in mathematical
formulae
Level 3: Contains the interim results and final results.
Level 4: Enables you to define the operands and calculation operations.

SNP standard macros for the SNP94(1) data view
A number of standard macros are available in the SNP interactive planning table.
These are a mixture of Alert macros, Default macros, and Start macros.
The Alert macros include: Supply shortage, Stock below safety stock, Stock above
target stock, Stock below target stock.
The included Default macros are used to calculate the stock balance, safety stock
level/reorder point/target stock level, and days' supply.
The Start macro determines the number of workdays.
SAP has built these macros using the new functions and operators in the
MacroBuilder. You can also use these functions and operators to create your own
macros in other planning books and views. The following standard macros are
available in the standard planning book 9ASNP94, view SNP94(1).
Hint: You will find examples of macros in several SAP Example and
Template Macros macro books, for example:

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Lesson: Macros and Alerts

Stock balance calculation

STOCK_CALC (total demand, total receipts, stock level of previous
period). In SCM 4.1, the optimizer has a new stock balance macro function
STOCK_BALANCE_OPT which stops calculating shortages once the
maximum delay has been reached.

Calculating initial stock for the selected location product

INITIAL_STOCK (version)

Determining the version for which a key figure's data is to be displayed
KEYFS_VERSION (key figure)

KEYFS_VERSION (key figure)

Calculating the safety stock, based on product master parameters (the lot
size tab page)

SAFTY_CALC (product, location, version, safety days' supply, safety stock,
total demand in the period, number of workdays in the period)

Calculating the reorder point based on product master

REORDER_CALC (product, location, version, reorder days' supply, reorder
point, offset, total demand in the period, number of workdays in the period)

Calculating the target stock based on product master parameters (the lot
size tab page)

TARGET_CALC (product, location, version, target days' supply, target
stock, offset, total demand in the period, number of workdays in the period)

Calculating day's supply

2006/Q2

COVER_CALC (stock, total demand in the period, number of workdays in
the period)

© 2006 SAP AG. All rights reserved.

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Alert Monitors

Figure 100: Using Macros to Generate Alerts

The Alert Monitor informs you about exception situations that occur in your plan.
All alerts for SNP planning are generated using macros.
Dynamic alerts reflect the current planning situation. Dynamic alerts are not
saved to the database; instead, they are deleted when the planning transaction is
complete. This alert type is best suited to interactive planning but is not suitable
while generating large numbers of alerts because this hinders performance.
Database alerts show the planning situation as it was when the macro was
executed. As a result, to analyze extensive amounts of planning data according
to exceptions, run the macros to generate database alerts in the background
using mass processing. The exceptions are then saved in the database, and can

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Lesson: Macros and Alerts

be displayed in the Alert Monitor or in interactive planning. In DP and SNP
interactive planning, you can compare dynamic and database alerts to each other.
You can also create your own dynamic or database alert types.


To do this, create new alert types or change existing ones using Environment
→ Change Database Alert Types for DP/SNP or Change Dynamic Alert
Types for DP/SNP.
Choose the alert types relevant for you and define threshold values if
necessary.
Select the planning book and the data views for database or dynamic alert
data views respectively, for which the system should generate alerts. If you
want to select all the database alerts for a planning book, insert an empty row
into the selection area for data views.
If required, assign the SDP alert profile to your overall alert profile, your
SCC user profile, or your user in the area menu of Demand Planning or
Supply Network Planning by choosing Environment → Current Settings →
Assign Planners to Alert Profiles. If you call the Alert Monitor directly,
define the planning version to be evaluated and the time period for the alert
selection in the overall alert profile.

The Alert Monitor Profile


Assignment of the alert profile to the SCC user profile
Selection of the alert types
Object selection variants


By object type
Priority variants

Error, warning, information, ignore
Prioritization according to key figures

During planning, you can monitor whether your plan can be executed without
problems in the Alert Monitor. To do this, use alert profiles to define the
situations in which the system reports a problem (generates an alert) for the
applications you use. You can monitor all alerts that have occurred in the Alert
Monitor window and navigate directly from it to the respective application
function to resolve the problem. Maintain an SDP alert profile to track alerts from
demand and supply planning. You can manage a user-specific selection of the
alerts relevant for you in this profile.

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Figure 101: Alert Monitor Integration

You can define your own alerts and send them by e-mail. As a result, you can
control your supply chain network. As a planner or manager, you need to be
prepared to solve any problems that occur. You will always be informed on time
to take the necessary precautions.
You can access the Alert Monitor from the Supply Chain Cockpit, from the menu,
or directly from interactive planning. You can move directly to the problem
solving screen by right-clicking the alert.

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Lesson: Macros and Alerts

Exercise 11: Create Macros
Exercise Objectives
After completing this exercise, you will be able to:

Describe the functionality of macros

Explain the various levels and standards used for macros

Create a macro for calculation

Create a macro to generate alerts

Business Example
The Precision Pump Company wants to make a number of calculations in the
background. You will need to create a macro to control the calculations.

Task 1:
1.

Which macros are defined in data view SNP94(1) and what are their roles?
Are they executed automatically? Filter for SAP Macro Books.

Task 2:
In your planning book SUP##, the INVENTORY key figure is an auxiliary key
figure. Which means the data cannot be saved so this key figure must be populated
with a macro.
1.

Create a STOCK BALANCE macro for your SUP## planning book in the
SUPPLIER data view. This macro should calculate the stock balance for the
supplier in all periods, based on the following formula: Inventory =
Inventory (initial) + Distribution Receipts (planned) "first week"Distribution Demand (Planned) "First week". Configure the stock balance
macro so that it runs automatically every time a change is made in the
planning table. Filter for edited macro books.

2.

Create a second macro to generate database alerts when there is a supply
shortage (insufficient supply to meet demand) at the supplier. Import the
Supply Shortage (DB alerts) macro from the SNP94(1) standard data view,
delete the first two steps, and adjust the macro for your data view.

Continued on next page

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Task 3:
In the next exercise, you will check to see if your macros function properly. To do
this, you will generate a requirement for the supplier, check the stock balance, and
generate alerts. You will then check the alerts in the Alert Monitor.
1.

Test your macros by entering an order. In the PP/DS product view, create a
purchase requisition of 10 pieces for one month from today for your SNP-##
version and product 102-110 at location 1000.

Task 4:
To ensure that your supplier can readily access the planning data you need to
create a selection ID in your new SUP## planning book.
1.

Create a selection ID for product 102-110 at your supplier planning location
0000001003 called SUP##.

2.

Check whether the INVENTORY quantity is calculated automatically and
accurately (it should be negative in this case). Then execute the alert macro
so that in the next exercise you will be able to find the alerts for the negative
stocks in the Alert Monitor.

Task 5:
In order to view alerts in the Alert Monitor, you will first need to create an alert
profile for SDP alerts, assign it to an overall profile, and set it as your default
profile in the Alert Monitor.
1.

In the Alert Monitor, check to see if alerts have been generated. In the
Alert Monitor, create an overall profile with an SDP alert profile called
SUP##, and choose alert type Requirement undercoverage (DB alert) (supply
shortage), your SUP## planning book, the SUPPLIER data view, and the
SUP## characteristic selection. Save the SDP alert profile. In the overall
profile, store your SNP-## version and a relative time interval of two months.
Refresh the alerts and the supply shortage is displayed.

Task 6:
Since this was only to test the macros to make sure they were working properly,
you will want to delete the order that you created for testing.
1.

174

Delete the purchase requisition for product 102-110 at location 1000 and
version SNP-## in the product view.

© 2006 SAP AG. All rights reserved.

2006/Q2

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Lesson: Macros and Alerts

Solution 11: Create Macros
Task 1:
1.

Which macros are defined in data view SNP94(1) and what are their roles?
Are they executed automatically? Filter for SAP Macro Books.
a)

Advanced Planning and Optimization → Supply Network Planning →
Environment → Current Settings → Macro Workbench.

b)

First, set a filter (Filter Macro Books, SAP Macro Books). Choose
Save.

c)

Right-click SNP94(1) and opt to display macros. The macros contained
in the book will now be displayed on the lower part of the screen.

d)

The SNP94(1) data view contains the following standard macros
among others:
Default macros for automatic execution after each change in the
planning table:

Calculation of Stock balance, Days’ supply, and Safety stock
level/reorder point/target stock level

Start macros for automatic execution after reading the data:

Determine workdays and layout attributes
Directly executable macros (for calculating alerts)

Task 2:
In your planning book SUP##, the INVENTORY key figure is an auxiliary key
figure. Which means the data cannot be saved so this key figure must be populated
with a macro.
1.

Create a STOCK BALANCE macro for your SUP## planning book in the
SUPPLIER data view. This macro should calculate the stock balance for the
supplier in all periods, based on the following formula: Inventory =
Inventory (initial) + Distribution Receipts (planned) "first week" Distribution Demand (Planned) "First week". Configure the stock balance
macro so that it runs automatically every time a change is made in the
planning table. Filter for edited macro books.
a)

Advanced Planning and Optimization → Supply Network Planning →
Environment → Current Settings → Macro Workbench.
Reset the filter by opting to filter macro books, deselect SAP Macro
Books, and then choosing Processed Macro Books. Choose

Save.

Continued on next page

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b)

Right-mouse click the macro book SUP##, data view SUPPLIER and
choose Start MacroBuilder from the context menu.

c)

Drag the
icon from the Elements area in the upper left of the
MacroBuilder directly to the same icon in the work area.

d)

Enter STOCKBALANCE as the descriptive text and click
Continue.

e)

Drag the
icon from the Elements area in the upper left
directly to your STOCKBALANCE macro in the work area. Choose
Continue.

f)

planning table row from the Elements area in the upper left
Drag a
directly to your step in the work area.

g)

Choose the INVENTORY row from the list, define the current period
for calculation begin by column, and choose

Adopt.

h)

planning table row from the Elements area in the
Drag a second
upper left directly to your INVENTORY row in the work area, and
choose Create in next level.

i)

Choose INVENTORY for the row from the list again, and then click
Continue.

j)

Drag an operator / function row
from the Elements
area in the upper left directly to the last STOCK row, and choose
Append.

k)

Choose “+” as operator / function and click

l)

Drag another planning table row
from the Elements area in the
upper left directly to your OPERATOR / FUNCTION row in the work
area, and choose Append.

m)

Select the DISTRIBUTION RECEIPTS (PLANNED) row from the list
and set the Column calculation start to be the current period. Choose

Continue.

Continue.
n)

Drag an operator / function row
from the Elements
area in the upper left directly to the last "DistrReceipt (Planned)" row,
and choose Append. Choose “-” as operator / function and click
Continue.

o)

Drag another planning table row from the Elements area in the upper
left directly to your OPERATOR / FUNCTION row in the work area,
and choose Append.
Continued on next page

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Lesson: Macros and Alerts

p)

Select the DISTRIBUTION DEMAND (PLANNED) row from the list
and set the Column calculation start to be the current period. Choose
Continue.

q)

Select your macro, and click
light should now be green.

r)

Drag the Stock Balance macro and drop it directly on the Default
element in the Events window in the upper right of the screen. Click

to generate the macro. The traffic

Save.
s)

2.

You can also drag and drop your STOCK BALANCE macro to the
“Depot” to make room to work on the next macro. Remain in the
MacroBuilder.

Create a second macro to generate database alerts when there is a supply
shortage (insufficient supply to meet demand) at the supplier. Import the
Supply Shortage (DB alerts) macro from the SNP94(1) standard data view,
delete the first two steps, and adjust the macro for your data view.
a)

, choose the following elements from the drop-down

Click

lists, and then click

b)

.

Field

Value

Book

SNP94(1)

Macro

Supply Shortage (DB
alert)

Expand the supply shortage macro (DB Alert) by one level, and delete
the first two steps by clicking the step and then clicking

.

c)

Expand the last step, double click
DistrDemand (Planned) and
change the entry to INVENTORY using the drop-down list. Change the
Column Calculation Start to the current date and click continue. The
condition should now read: INVENTORY < 0.

d)

Select your macro, and click
light should now be green.

e)

Save and exit.

to generate the macro. The traffic

Continued on next page

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Unit 3: SNP Configuration

SCM230

Task 3:
In the next exercise, you will check to see if your macros function properly. To do
this, you will generate a requirement for the supplier, check the stock balance, and
generate alerts. You will then check the alerts in the Alert Monitor.
1.

Test your macros by entering an order. In the PP/DS product view, create a
purchase requisition of 10 pieces for one month from today for your SNP-##
version and product 102-110 at location 1000.
a)

Advanced Planning and Optimization → Production Planning →
Interactive Production Planning → Product View

b)

Enter your version SNP-##, product 102-110, and location 1000.

c)

Click

to switch to the product view.

d)

Click

to switch to the change mode.

e)

Create a new order and enter a Rec./Reqmts Qty of 10, delete the start
date, and enter an Avail/Reqmt Date one month from today.

f)

Click

to create the order and

to save the changes.

Continued on next page

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Lesson: Macros and Alerts

Task 4:
To ensure that your supplier can readily access the planning data you need to
create a selection ID in your new SUP## planning book.
1.

Create a selection ID for product 102-110 at your supplier planning location
0000001003 called SUP##.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning (all
Books).

b)

Locate your SUP## planning book in the list and double click on your
SUPPLIER data view.

c)

to create a selection ID for a supplier to open the selection
Click
window, and choose the APO - Location Product option under Show.
In the lower part of the window you can now define the conditions for
the location products. Enter the data in the table below.
Field

Value

Show

APO Location Product

APO Planning Version

SNP-##

APO Product

102-110

APO - Location

0000001003

d)

Click

e)

Enter SUP## as the selection description. Click
click

f)

to save your selection.
Save and then

Copy.

To enable quick access to this selection, assign the selections to the
selection profile by clicking the

Selection Profile bar.

g)

A dialog box appears in which you can drag your SUP## selection
on the right side into your folder.

h)

Click

Save and then

Copy.

Continued on next page

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Unit 3: SNP Configuration

2.

SCM230

Check whether the INVENTORY quantity is calculated automatically and
accurately (it should be negative in this case). Then execute the alert macro
so that in the next exercise you will be able to find the alerts for the negative
stocks in the Alert Monitor.
a)

Double-click on your SUP## selection to see the location product in the
selection window.

b)

Double-click again on the location product to load the data. You see a
distribution demand of 10 pieces in one month. Your macro calculates
a negative stock quantity of –10 pieces.

c)

Switch to the change mode.

d)

Locate the Supply shortage (DB alert) macro in the macro window
(lower left of the screen) under Directly Execut. Macros and
double-click on it to directly execute it.

e)

Save the changes and exit interactive planning.

Task 5:
In order to view alerts in the Alert Monitor, you will first need to create an alert
profile for SDP alerts, assign it to an overall profile, and set it as your default
profile in the Alert Monitor.
1.

In the Alert Monitor, check to see if alerts have been generated. In the
Alert Monitor, create an overall profile with an SDP alert profile called
SUP##, and choose alert type Requirement undercoverage (DB alert) (supply
shortage), your SUP## planning book, the SUPPLIER data view, and the

Continued on next page

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Lesson: Macros and Alerts

SUP## characteristic selection. Save the SDP alert profile. In the overall
profile, store your SNP-## version and a relative time interval of two months.
Refresh the alerts and the supply shortage is displayed.
a)

Choose Advanced Planning and Optimization → Supply Chain
Monitoring → Alert Monitor → Alert Monitor.

b)

Choose

c)

In the lower section of the screen, select the SDP tab (by clicking on it)
. Enter the data from the table below.

Overall Profile to define the settings for the Alert Monitor.

Field

Value

Planning Version

SNP-##

SDP Alert Prof.

SUP##

SDP - Database Macro Alerts →
Supply Shortage

Select

Planning Book

SUP##

d)

Click
in the Database Alerts area to add a row in the table below,
and choose your SUPPLIER planning view in this row.

e)

Click
alert profile.

f)

Now enter SUP-## as the name for the overall profile in the upper part
of the screen, and 2 Months as the Relative Time Interval. Also define
your version SNP-## in the overall profile.

g)

Save your overall profile
the Alert Monitor.

h)

Choose the selection option next to Supply and Demand Planning.
Your alerts will now be displayed in the table below.

to save your SDP

, and click

to display the alerts in

Continued on next page

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Unit 3: SNP Configuration

SCM230

Task 6:
Since this was only to test the macros to make sure they were working properly,
you will want to delete the order that you created for testing.
1.

182

Delete the purchase requisition for product 102-110 at location 1000 and
version SNP-## in the product view.
a)

Advanced Planning and Optimization → Production Planning →
Interactive Production Planning → Product View

b)

Enter your version SNP-##, product 102-110, and location 1000.

c)

Click

d)

Select the PurRqs, and click

e)

Do not forget to

to switch to the change mode.
to delete using the planning table.

save before you return to the main menu.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Macros and Alerts

Lesson Summary
You should now be able to:

Explain the task of macros for SNP planning

Create and copy macros

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Unit 3: SNP Configuration

SCM230

Lesson: Navigation in the Planning Table
Lesson Overview
This lesson will help you understand the selection area and work area in the SNP
interactive planning table. You will be able to navigate in the planning table and
use the functionality for planning.

Lesson Objectives
After completing this lesson, you will be able to:

Navigate in the planning table

Business Example
As a member of the implementation team at Precision Pump Company, you need
to be sure the navigation and functionality of the SNP interactive planning table
will meet the needs of planners. You will need to identify the functionality that
is important to the planners and know how to use it.

The Standard SNP Planning Table

Figure 102: The Standard SNP Planning Table

The example above is based on an initial stock of 10 units on hand and a target
duration of 3 days.

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Lesson: Navigation in the Planning Table

The total demand row is calculated from several key figures, such as forecast,
sales orders, distribution demand, and dependent demand. The planning area
category groups, the requirements strategy, and the forecast horizon from the SNP
demand profile are taken into account when the total demand is calculated.
The total receipts row consists of various key figures, such as planned production,
confirmed production, distribution receipts, and in-transit quantities. The category
groups assigned to the planning area are also taken into account here.
If the calculated stock is negative, the stock is displayed in the backlog row.
The safety stock is defined in the product master or submitted to a time-dependent
calculation, and it is added to the target stock level.
The target stock level is the stock level that is to be generated by the planning
run. If you define a target days' supply (in workdays) in the product master, the
target stock level is calculated from the sum total of demands within the target
days' supply plus safety stock. The illustration is based on a target days' supply of
3 workdays.
The system calculates the target days' supply. It indicates the number of
workdays that the planned stock on hand would suffice without additional receipts.

Figure 103: The Planning Table Selection Area

You can select your planning books and data views in the Planning book/data
view area. If the planner can see all the planning books that are available, the
planner has access to planning books used for both Supply Network Planning and
Demand Planning. In transaction /SAPAPO/SNP94 - Interactive Supply Network
Planning, the planner can only access the planning book which is assigned to
him or her in Customizing /SAPAPO/SDPPLBK - Assign User to Planning

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Unit 3: SNP Configuration

SCM230

Book. In transaction /SAPAPO/SDP94 - Interactive Supply Network Planning
(all Books), the planning books can be changed. This is the same as transaction
/SAPAPO/SDP94 - Interactive Demand Planning.
The Macro or component area displays macros that are can be run actively and
interactively for this planning book and for this data view.

Data Selection and Navigation

Figure 104: Data Selection

The selection window (shuffler) is the window in which you choose the
InfoObjects to be planned and create or modify selections for them. You choose
objects that meet certain conditions from the dropdown boxes in the object
selection dialog box (Show....., that meet the following conditions...).
The selection profile shows the selection IDs being used by the current planner.
The supply chain planner can use this selection profile to quickly access frequently
used selections. Click Selection Profile
profile.

186

to add selection IDs to the selection

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Navigation in the Planning Table

Figure 105: The Planning Table Work Area

The work area is the main display and planning area, which consists of a table and
a graphic. By default, only the table is displayed in the work area.
To display the data of selected objects in the work area, choose the selected
object by double-clicking the object. If you have selected more than one object,
choose Load data.
You use the magnifying glass icon to choose which planning view key figures
are to be displayed in the work area.
If the system is connected to a mail server, you can send the plans by e-mail
to recipients within the organization or outside the organization. The system
automatically creates a Microsoft Excel attachment that contains the plan.

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Unit 3: SNP Configuration

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Navigation in the Work Area

Figure 106: Navigation in the Work Area

To set header information, choose the Settings → Header Information option
in the planning table.
You need to use the arrows in the header information to display the characteristic
values. The total displays the sum total of your data in the work area. If you select
Details (all), you can see all the members in the work area.
You can use Switch columns/rows to arrange the periods vertically. You can
synchronize the table and the graphic to arrange the same periods one below the
other.
Pivot sorting allows you to configure the sequence of key figures and
characteristics in the all details view.

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Lesson: Navigation in the Planning Table

Figure 107: User Settings

With this function, you can maintain your own settings for interactive planning
from SCM 4.1 onwards. For example, when you open a planning book you can
automatically load a selection or drill down directly to a certain level. In addition,
an administrator can make settings for several users or selections.
You can assign user settings on different levels. The most detailed level is the
planning book and data view, user, and selection. If, however, there are no settings
on this level, the system tries to find settings on a higher level, e.g. planning
book/data view and user. In this case, a yellow traffic light is shown on the
relevant tab page, instead of a green traffic light.
Hint: Unlike in demand planning, the drill-down path cannot be
maintained directly in the user settings. It is defined by right-clicking on
the title of the planning table and then saved in the user settings.
From interactive planning, users can create or modify their settings for the current
planning book and data view. Administrators can make settings centrally using
transaction /SAPAPO/SDPUSET. On the next screen, you can set a filter for the
selection screen, for example you can restrict the display to a particular planning
book or user. A list of existing user settings is then displayed. At this point, you
can copy the user settings of one user for another user. Select a row and click
Create or Change to edit the settings. If you do not select any existing settings,
you can create a new entry.

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Unit 3: SNP Configuration

SCM230

Figure 108: Notes Management

You use notes for yourself or another SNP planner to explain the reasons why a
production quantity or stock in a certain period at a certain level is especially
low or high.
Notes always refer to a specific planning area. If you create a note in a planning
area for a key figure and period, this means that you can see this note in all
planning books of this planning area if the same key figures and periods are in
the planning book. You can view notes at lower levels by using note navigation.
If you have selected all location products for a product, you can then display
notes on individual location products.

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Lesson: Navigation in the Planning Table

Exercise 12: Selections and Interactive
Planning
Exercise Objectives
After completing this exercise, you will be able to:

Navigate in the planning table

Create Selection ID's and assign them to your logon ID

Load planning data for Location Products

Load capacity data for resources

Business Example
As a member of the implementation team at Precision Pump Company, you need
to be sure the navigation and functionality of the SNP interactive planning table
will meet the needs of planners. You will need to create selection ID's so planners
can easily access their important information

Task 1:
1.

In the PP/DS product view, create a planned independent requirement of 400
pieces due in two months for your version SNP-## and the product P-102
at location 2400, by planning a negative quantity. In practice, the planned
independent requirements come from SAP ECC or SAP DP.

Task 2:
For easy access to planning data you need to create selection ID's in the SNP
interactive planning table.
1.

Access interactive Supply Network Planning (planning book 9ASNP94) and
create a selection called PROD## for the location products of SNP Planner
P00 in version SNP-##.
Create another selection called RES## that includes resources W1906* and
WORK## for version SNP-##.
Assign the selections to your selection profile.

Task 3:
1.

Load the data for product P-102 at location 2400 into the planning table
and search for the planned independent requirement of 400 pieces that you
created.

Continued on next page

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Unit 3: SNP Configuration

SCM230

Task 4:
1.

What is the available capacity for resource WORK## and why is this so?
Are any capacities loaded?

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2006/Q2

SCM230

Lesson: Navigation in the Planning Table

Solution 12: Selections and Interactive
Planning
Task 1:
1.

In the PP/DS product view, create a planned independent requirement of 400
pieces due in two months for your version SNP-## and the product P-102
at location 2400, by planning a negative quantity. In practice, the planned
independent requirements come from SAP ECC or SAP DP.
a)

Advanced Planning and Optimization → Production Planning →
Interactive Production Planning → Product View

b)

Enter the data in the following table and click
Order.

c)

Field

Value

Plng Version

SNP-##

Product

P-102

Location

2400

Create

Enter the data in the following table, make sure that you enter a
negative quantity, delete the start date, and click
Field

Value

Rec./Reqmts Qty

-400

Create Order.

Start Date
Avail/Reqmt Date

Two months from today

d)

If the Propagation Range dialog box is displayed, click

.

e)

If the Selection of PPT Initial View dialog box appears, select SAP001
the Order View, which should be the default.

f)

Click

to save your order.

Continued on next page

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Unit 3: SNP Configuration

SCM230

Task 2:
For easy access to planning data you need to create selection ID's in the SNP
interactive planning table.
1.

Access interactive Supply Network Planning (planning book 9ASNP94) and
create a selection called PROD## for the location products of SNP Planner
P00 in version SNP-##.
Create another selection called RES## that includes resources W1906* and
WORK## for version SNP-##.
Assign the selections to your selection profile.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning.

b)

to open the selection window and choose the APO Location
Click
Product entry under Show. In the lower part of the window you can
now define the conditions for the location products. Change the version
00 to SNP-##, in the next row select APO SNP Planner and on the
right, enter P00.
Field

Value

Show

APO Location Product

APO Planning Version

SNP-##

APO SNP Planner

P00

c)

Click

d)

Enter PROD## as the selection description. Click
click

e)

to save your selection.
Save and then

Copy.

Click
to open the selection window and choose the APO Resource entry under Show. In the lower part of the window you can
now define the conditions for the location products. Enter the data from
the table below for this.

Continued on next page

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SCM230

Lesson: Navigation in the Planning Table

Field

Value

Show

APO - Resource

APO Planning Version

SNP-##

APO - Resource
W1906*
WORK##
Click the

Multiple Selection icon next to APO - Resource, enter
.

each input on a row on the Single Values tab page, and click Copy
to save your selection.

f)

Click

g)

Enter RES## as the selection description. Click Save
click Copy

h)

and then

.

To enable quick access to this selection, assign the selections to the
selection profile by clicking the Selection Profile

bar.

i)

A dialog box appears in which you can drag your PROD## and RES##
selections from the right-hand side and drop them directly on your
folder.

j)

Click Save

and then click Copy

.

Task 3:
1.

Load the data for product P-102 at location 2400 into the planning table
and search for the planned independent requirement of 400 pieces that you
created.
a)

In the selection profile screen section, double-click on your “PROD##”
selection to display a list of location products in the selection window.

b)

Double-click again on product P-102 at location 2400 to load the data
for that Location Product combination.

c)

Scroll to the right in the table to look for the total demand of 400 pieces
two months in the future.

d)

To find out how the total demand is made up, double-click the total
demand. The planned independent requirement is displayed in the
Forecast key figure.

Continued on next page

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Unit 3: SNP Configuration

SCM230

Task 4:
1.

What is the available capacity for resource WORK## and why is this so?
Are any capacities loaded?

196

a)

In the selection window for the planning books and data views,
double-click on the data view SNP94(2) CAPACITY CHECK.

b)

Double-click on your selection RES## to see the resources in the
selection window.

c)

Double-click again on the resource WORK## to display the capacity
situation in the planning table.

d)

The available resource capacity is 35 hours (unless there is a public
holiday during the working week). This is calculated from 7 hours
per day on 5 workdays.

e)

No resource capacities are loaded because no receipts have been
planned yet.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Navigation in the Planning Table

Lesson Summary
You should now be able to:

Navigate in the planning table

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197

Unit Summary

SCM230

Unit Summary
You should now be able to:

Define the configuration settings for SNP Planning

Define the configuration settings for SNP planning books and data views

Explain the task of macros for SNP planning

Create and copy macros

Navigate in the planning table

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2006/Q2

Unit 4
The Supply Network Planning
Heuristic
Unit Overview
In this unit we will identify the steps in the SNP planning process as well as the
steps in the heuristic process flow. You will identify the master data objects
and parameters that are used in the heuristic run and influence the results. You
will execute each heuristic planning method and analyze the results of each. In
addition, you will identify the scheduling parameters that influence the scheduling
of individual objects. And then you will check and level capacity on individual
resources to ensure a feasible production plan.

Unit Objectives
After completing this unit, you will be able to:







Discuss the process flow for the SNP Heuristics run
Identify the tasks involved in planning and scheduling Heuristics
Discuss the process of checking and leveling capacity
Discuss the process of planning supplier constraints.
Discuss the scheduling process for the SNP Heuristics run
Create the master data for aggregated planning
Name the reasons for using aggregated planning
Describe the steps involved in the aggregated planning process

Unit Contents
Lesson: SNP Heuristic Run ...................................................200
Exercise 13: The SNP Heuristic Run ....................................213
Lesson: Capacity Check and Leveling ......................................221
Exercise 14: Capacity Leveling...........................................231
Lesson: Planning Supplier Constraints using the SNP Heuristic ........246
Exercise 15: Planning Supplier Constraints ............................249
Lesson: SNP Heuristic Scheduling ...........................................253
Lesson: Aggregated Planning.................................................256
Exercise 16: Aggregated Planning .......................................267

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Unit 4: The Supply Network Planning Heuristic

SCM230

Lesson: SNP Heuristic Run
Lesson Overview
This lesson will help you understand the process flow for the SNP Heuristics run.
You will also learn about tasks involved in planning and scheduling Heuristics .

Lesson Objectives
After completing this lesson, you will be able to:

Discuss the process flow for the SNP Heuristics run
Identify the tasks involved in planning and scheduling Heuristics

Business Example
A constant flow of material through the entire supply chain requires cross-location
planning. As planning manager at Precision Pump Company, you need to create
plans so that the supply at the plants meets customer demand. You need to design
a model that synchronizes the activities of purchase, production, and distribution
departments. In addition, you need to ensure timely delivery of products to the
customers.

Planning Parameters for Heuristic Run

Figure 109: The Supply Network Planning Process Flow

200

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Lesson: SNP Heuristic Run

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

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Unit 4: The Supply Network Planning Heuristic

SCM230

Figure 110: Cross-Location Planning

The Heuristic performs the following functions:



Execute cross-location planning of receipts to cover demands
Integrate purchasing, production, and distribution in one consistent plan
Model the entire supply network
Synchronize activities and plan the flow of material through the entire
supply chain

The above graphic shows an example for the heuristic:


202

The system determines the sequence of the locations to be planned and starts
with the location that only has inbound transportation lanes.
There is a demand at the customer location. The net requirements calculation
does not find any receipt elements to cover the demand at this location.
The product is procured externally. The system analyzes the possible
transportation lanes and arrives at the distribution center.
As there are no receipt elements at the distribution center either, the heuristic
runs a check using the possible transportation lanes and arrives at the plant.
There are also no receipt elements available at the plant, and the product was
produced in-house, so the SNP plan (PPM) or the SNP PDS is exploded and
a planned order is created for the finished product with dependent demands
created for the components.
The components are then procured using the possible transportation lanes
and quota arrangements or priorities.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: SNP Heuristic Run

Figure 111: The SNP Heuristic Scenario

In this illustration, the forecast that is released from Demand Planning (DP)
generates planned independent requirements for the distribution centers.
Alternatively, planned independent requirements are transferred from the OLTP
systems. Sales orders can only be transferred from the OLTP systems and consume
the planned independent requirements in line with the requirements strategies.

Figure 112: Source Determination in the Heuristic Planning Run

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The source determination in the SNP heuristic run takes account of inbound
quota arrangements, priorities, costs, and the validity of the source in this
sequence. Priorities are examined if no quota arrangements are maintained. If no
priorities are maintained, costs are examined. You can only split demands by
percentage if quota arrangements exist.
The Supply Network Planning (SNP) run creates cross-location purchase
requisitions and stock transport requisitions for distribution resource planning and
creates SNP planned orders for production planning.
An inbound quota arrangement determines what percentage of a certain product
(SNP PPM or PDS and location) will be shipped from a specific source. This
procedure is called multi-sourcing. You can make quota arrangements for
external procurement and in-house production. Inbound quota arrangements are
master data of the supply chain model and are defined in the SAP SCM system.
They can also be maintained for all products, per product, per version and, as
of SCM 4.1, per means of transport.
You can define quota arrangements for in-house production (PPMs/PDS) by
specifying a PPM/PDS. For example, you can define that you want to cover 30%
of the demand from location A, 30% from location B, and 40% from PPM/PDS Y.
Source determination by procurement priority: You can define priorities for
certain sources by specifying a procurement priority in the transportation lane or
PPM/PDS. For the SNP heuristic to be able to take this priority into consideration,
the following prerequisites need to be met:
1.
2.
3.
4.

The transportation lane or PPM/PDS must be valid.
The order must lie within the lot size parameters defined in the transportation
lane or PPM/PDS (from/to lot size).
The Agg. Planning indicator must be activated for the means of transport.
A transportation cycle cannot be defined, i.e. the transportation lane can only
run in one direction, and not back to the source location.

If the system detects such a transportation cycle, the procurement priority does
not take it into account and accesses the defined quota arrangements instead. If
several means of transport were defined for one transportation lane, the system
chooses the most cost-efficient one. If, in turn, all sources incur the same costs,
the general source determination guidelines apply.
How to proceed if there is no source of supply: If there is no valid transportation
lane (procurement type F: external procurement) or no valid PPM/PDS
(procurement type E: in-house production), the system creates an SNP stock
transfer or an SNP planned order without reference to a source of supply. The
same applies when there is no product available at the source location of the
transportation lane.

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Lesson: SNP Heuristic Run

Two business add-ins exist for source determination: /SAPAPO/SNP_PERIO_LS
for user-defined periodic lot sizes and /SAPAPO/SNP_SOURCES for user-defined
source determination, for example means of transport.
Direct delivery from the production plant to the customer
If you deliver larger quantities of a finished product to a certain customer (for
promotions, for example), it can be useful to deliver these quantities directly from
the production plant to the customer. You can save transport and warehouse costs
because there is no detour to a distribution center. As of release SCM 5.0, you
can specify a direct delivery preference for certain products for heuristic-based
planning in SNP. The system then checks which quantity of the product can be
delivered directly with the Transport Load Builder (TLB). The system covers
possible remaining quantities with normal source determination. In most cases,
only a small percentage of the product to be planned is considered for direct
delivery (approx. 2 - 3%; promotion products, for example). For reasons of
performance, we recommend that you do not choose a large number of products
for direct delivery. Direct delivery is not bound to a location type like production
or customer location, for example.
Direct delivery settings:


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You set the Direct Delivery indicator for the product in the product-specific
section of the transport lane.
You created a TLB profile and assigned the transportation lane that you
marked for direct delivery to it.
In SNP Customizing at Maintain Global SNP Settings in the Heu: Direct
Delivery field, you specified that the SNP heuristic should take direct
delivery into account using transportation lanes.
You determined the SNP low-level codes before executing the SNP heuristic
for the first time or for changes in the master data. We recommend that you
choose the location heuristic. Since the network heuristic does not take
cross-location low-level codes into account, it usually takes considerably
longer. The SNP heuristic first tries to cover the requirement quantities of
the customer location using transportation lanes that you marked for direct
delivery. The TLB checks which product quantities can be delivered with
which means of transport using the indicated transportation lanes.

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Figure 113: Quota Arrangement

The SNP heuristic first determines the target stock level per period at product and
location level and then makes a net requirements calculation using stock on hand
and the available receipt elements. The net requirements are then transferred,
depending on sources of supply for the products, quota arrangements, lead times,
calendars, and lot sizes.

Figure 114: Net Requirements Calculation in SNP

This process is repeated for each location and BOM level in the network until
all demand is met. This multilevel planning process generates receipts for raw
materials, semi-finished products, and finished products.

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Lesson: SNP Heuristic Run

Heuristics Planning and Scheduling

Figure 115: Heuristics Processing

The requirements strategy and forecast horizon control how the total demand is
determined. The requirements strategy from the product master controls how sales
orders and forecasts are consumed. Within the forecast horizon, forecasts are not
taken into account for the total demand.
The planned stock on hand is calculated from the stock of the previous period plus
total receipts minus total demand for each period using the stock balance macro.
The target stock level is calculated from the sum total of the demands in the target
days' supply plus safety stock. The planned stock on hand is compared to the
target stock level. The difference equals the net demand.
Lot sizing rules are then applied to the net requirement.
The procurement type is then checked. You define procurement type in the
product master on the Procurement tab.



F: The product is to be procured.
E: The product is to be produced in-house.
X: The product is to be produced or procured based on the source of supply
chosen by quota arrangement, priority, or cost.
P: No planning (planning in an external system).

Net requirements for products to be manufactured trigger a PPM/PDS search. All
valid PPMs and PDSs are selected. If more than one PPM is valid, the system
chooses the PPM with the highest priority or the lowest fixed costs.

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Figure 116: Settings for the Heuristic Run

The following three procedures for heuristic planning are available to you
interactively:
The location heuristic

You select a location-specific product.
The heuristic is only run from the selected product in the location on one
level. This means that receipts are only planned for this location product.

The network heuristic

You select a location-specific product.
All locations for the product are planned with this heuristic procedure.
Which location you selected in not important because the system determines
the sequence of the locations internally.

The multilevel heuristic

You select a location-specific product.
The sequence in which the locations are planned is automatically determined
for the product. In addition, all components of the chosen product are planned
in all locations. This corresponds to a multilevel cross-location MRP run.

You cannot interactively plan unselected locations on more than one level.
However, in Supply Network Planning in the background this is possible:
You can specify whether the system should take all BOM components of the
chosen products into account for the location and network heuristics. Set the Take
into account found components in planning run indicator for this. The system
then plans the dependent demands for the product too. In the case of the location

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Lesson: SNP Heuristic Run

heuristic, the system executes multi-level planning only for components of the
given locations. Because of this, the option of multi-level heuristic does not apply
to background planning.
Caution: For the heuristic with the Take into account found components in
planning run indicator, you must first determine the SNP low-level codes
for your version with the help of the /SAPAPO/SNPLLC transaction.
The SNP low-level code shows the number of stock transfers and the BOM level
of a location product. The low-level codes for Supply Network Planning are
determined via transportation lanes and manufacturing levels. Thus, the finished
product has low-level code 0 in the distribution center, low-level code 1 in the
plant after a stock transfer, and the component of the finished product in the plant
has low-level code 2.

Figure 117: Planning Parts of the Supply Chain

If you do not want to plan all BOM lists with the SNP heuristic, then execute
SNP in the background (/SAPAPO/SNP01 transaction) and choose the location
heuristic for the locations of the Supply Chain Planner and the Take into account
found components in planning run indicator. Using low-level codes you can limit
the scope of the SNP run to certain transportation lanes and manufacturing levels.

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Subcontracting

Figure 118: Subcontracting in the SNP Process

The subcontracting process with source location is a form of external procurement:
The manufacturer provides the subcontractor with components (so-called
subcontracting components), and the subcontractor finishes these parts and
returns them to the manufacturer. Example: A screw manufacturer makes screws
in-house. The screws are packed by an external service provider – a subcontractor.
The screws and packaging are supplied to this subcontractor, who then packs the
screws and sends the packaged screws back to the screw manufacturer.
In the case of the subcontracting process with third-party provision of materials
or components, components of a product that is to be manufactured by a
subcontractor can be provided by an external supplier instead of in-house by the
subcontractor. For example, a company handheld devices in the USA. It does not
produce them itself: The goods are produced in Asia by a subcontractor. The
components of the phone, for example casing, are procured from an external
supplier that is also located in Asia. Normally with subcontracting, the supplier in
Asia would deliver the components to the plant in the USA, which would then ship
the components back to Asia to the subcontractor. This roundabout route can be
bypassed by having the supplier ship the components directly to the subcontractor.

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Lesson: SNP Heuristic Run

Process Steps
1.

2.
3.

In the case of planning with source location, an SNP planned order is
generated on the supplier's side (source location), who acts as subcontractor.
While the screws are being manufactured, the packaging subcontracting
component is added legally and in terms of cost to the manufacturer's
warehouse stock. Upon receipt of the goods from the purchase order for
the packaged screws, the consumption of the subcontracting component is
posted to the screw manufacturer. It makes sense to use this scenario if you
need to liaise with more than one subcontractor or if you allow both in-house
production and procurement via subcontractor for a product. The SNP
heuristic determines the subcontractor as the source of supply for the finished
product, and a subcontracting purchase requisition is generated to transfer the
product from the subcontractor (source location) to the plant (target location).
The SNP plan (PPM) is exploded at the subcontractor's location and an
SNP planned order is created here.
Purchase requisitions are generated for the dependent requirements
(materials provided to the subcontractor) of the SNP planned order and
transferred to SAP ECC.

Features




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Lot sizes and rounding are not taken into account.
It is not possible to manually create or change SNP subcontracting orders.
A new planning book 9ASNPSBC with two data views is available for
subcontracting.
The Subcontracting indicator in the transportation lane is set via the Core
Interface (CIF).
You must manually create the transportation lane from the plant to the
subcontractor for the components.

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Lesson: SNP Heuristic Run

Exercise 13: The SNP Heuristic Run
Exercise Objectives
After completing this exercise, you will be able to:

Describe the SNP process flow

Identify the tasks involved in planning and scheduling Heuristics

Execute a Location Heuristic from the interactive planning table

Execute a Network Heuristic from the interactive planning table

Execute a Multi-Level Heuristic from the interactive planning table

Analyze the results of the Heuristic planning runs

Business Example
As a Supply Chain Planner, you must be very familiar with interactive SNP
Planning to be able to execute various heuristic planning runs interactively. You
must also be able to explain and check the orders generated.

Task 1:
1.

Record additional planned independent requirements for the following
products. (You have already recorded the planned independent requirements
for product P-102 in location 2400.) Create the first requirement for the same
date as the requirement already entered.
Location Product

Date

Quantity

P-103, location 2400

In 2 months

-200

P-102, location 2500

In 7 weeks

-200

Task 2:
1.

Execute a location heuristic for product P-102 in location 2400 in the
interactive SNP planning table. Use your PROD## selection and check
the generated stock transfers.
Where do the distribution receipts at location 2400 come from?
Why is only one distribution demand of 80 pieces created at location 1000?
Where are the remaining 320 pieces generated from? Have receipts been
created for this?
Continued on next page

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Task 3:
1.

Run a Network Heuristic for product P-102 and check the created planned
orders and stock transfers (distribution demand) in plants 1000 and 2300.
Where does the additional demand in the two plants come from? Save the
planning results.

2.

Use the header information to display the cross-location planning situation.
Load all the location products with product P-102 into the planning table.
Configure the header information for a drilldown according to APO location. Choose the "Production (Planned)" and "DistrReceipt (Planned)"
key figures, and execute the drill down.

3.

Check how component 102-100 in plant 1000 has been planned.

Task 4:
Execute a mulitlevel Heuristic planning run.
1.

214

Execute a multilevel heuristic for product P-102 and then for P-103.
Be sure to save your production plan. Check the created planned orders,
stock transfers, and purchase requisitions (distribution demand). Check
the situation for components 102-100 and 102-110 in the location 1000
in particular.

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SCM230

Lesson: SNP Heuristic Run

Solution 13: The SNP Heuristic Run
Task 1:
1.

Record additional planned independent requirements for the following
products. (You have already recorded the planned independent requirements
for product P-102 in location 2400.) Create the first requirement for the same
date as the requirement already entered.
Location Product

Date

Quantity

P-103, location 2400

In 2 months

-200

P-102, location 2500

In 7 weeks

-200

a)

Advanced Planning and Optimization → Production Planning →
Interactive Production Planning → Product View

b)

Enter your version SNP-##, product P-103 and location 2400.

c)

Choose Create Order and enter a receipt/requirements quantity of –200
for an availability/requirements date in two months' time.

d)

After you have created the order, save it.

e)

Repeat the above steps for the second location product with a
requirements date in seven months.

Task 2:
1.

Execute a location heuristic for product P-102 in location 2400 in the
interactive SNP planning table. Use your PROD## selection and check
the generated stock transfers.
Where do the distribution receipts at location 2400 come from?

Continued on next page

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Why is only one distribution demand of 80 pieces created at location 1000?
Where are the remaining 320 pieces generated from? Have receipts been
created for this?
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Interactive Supply Network Planning

b)

Load the data for P-102 at Location 2400 into the planning table
by making sure you are using the SNP94(1) data view by double
clicking on it. Then double-click your PROD## selection ID to see a
list of location products. Choose product P-102 in location 2400 by
double-clicking. A total demand of 400 pieces in two months should be
displayed in the planning table.

c)

To find out how the total demand is made up, you can double-click the
total demand. You will find the planned independent requirements in
the "Forecast" key figure.

d)

Switch by clicking

e)

Execute a planning run via location heuristic by clicking
the planning table.

f)

You will now see a receipt in the planning table. Display all key figures
that contribute to the total receipts by double-clicking the "Total
Receipts" key figure.

g)

Now right-click on the cell in the "DistrReceipts (Planned)" key figure
where a quantity is displayed, and select Display Detail in the menu
displayed.

h)

In the detail view, you see that 80% is transferred from plant 2300
and 20% from plant 1000, in accordance with the inbound quota
arrangement.

i)

Choose product P-102 in location 1000 by double-clicking. Since the
location heuristic only plans one product in one location, no receipts
have been planned yet.

to change mode.
above

Continued on next page

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Lesson: SNP Heuristic Run

Task 3:
1.

Run a Network Heuristic for product P-102 and check the created planned
orders and stock transfers (distribution demand) in plants 1000 and 2300.
Where does the additional demand in the two plants come from? Save the
planning results.
a)

You are still in the selection screen for product P-102 at location 1000
to execute a
(the location is not significant) in change mode. Click
network heuristic from the interactive planning table.

b)

A receipt is displayed in the "Production (Planned)" key figure for
P-102 in location 1000.

c)

The additional distribution demand in the two plants comes from the
planned independent requirement for P-102 in distribution center 2500.

Continued on next page

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2.

SCM230

Use the header information to display the cross-location planning situation.
Load all the location products with product P-102 into the planning table.
Configure the header information for a drilldown according to APO location. Choose the "Production (Planned)" and "DistrReceipt (Planned)"
key figures, and execute the drill down.
a)

Select all location products for product P-102 in the selection window
by clicking the Select All icon. As in Microsoft Excel, you can also
make your selection by holding down the SHIFT key or CTRL key
and clicking the products.

b)

Load the data for these location products into the planning table by
clicking on

above the table.

c)

Click

to show the header information.

d)

Click

, choose the APO - Location characteristic in the first row,

and click

Adopt.

e)

above the planning table, and choose Multiple Key
Now click
Figures in the displayed menu.

f)

Click

Deselect All, choose only the "Production (Planned)" and

"DistrReceipt (Planned)" key figures, and click
g)

to continue.

In the header, click Total on the APO - Location button and choose
Details (all) from the menu.

h)

You can use
to hide the shuffler and reveal more of the planning
table. Use the same icon to toggle back to the shuffler.

i)

When finished, switch the display back to total by clicking
Details (all) on the APO - Location button and choosing
click

3.

Total from the menu. Also
, and choose All Key Figures in the displayed menu.

Check how component 102-100 in plant 1000 has been planned.
a)

Double click on 102-100 at location 1000 to load the data.

b)

Scroll to the right to locate the data. A dependent demand was created
for the component but no receipt has been created because the network
Heuristic plans one level at a time (single-level planning method).

Continued on next page

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Lesson: SNP Heuristic Run

Task 4:
Execute a mulitlevel Heuristic planning run.
1.

Execute a multilevel heuristic for product P-102 and then for P-103.
Be sure to save your production plan. Check the created planned orders,
stock transfers, and purchase requisitions (distribution demand). Check
the situation for components 102-100 and 102-110 in the location 1000
in particular.
a)

Double-click product P-102 at location 1000 (the location is not
significant) to load the data.

b)

Click

c)

Now double-click product P-103 at any location to load the data, and

to execute the multilevel heuristic and save.

then click
d)

2006/Q2

to execute the multilevel heuristic for P-103.

Since the multilevel heuristic also plans the receipt elements for the
components, a dependent requirement and planned order are created
for product 102-100, and a distribution receipt for product 102-110 in
location 1000.

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Lesson Summary
You should now be able to:

Discuss the process flow for the SNP Heuristics run

Identify the tasks involved in planning and scheduling Heuristics

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Lesson: Capacity Check and Leveling

Lesson: Capacity Check and Leveling
Lesson Overview
This lesson will help you understand the process of conducting production
capacity checks in Supply Network Planning (SNP). You will also learn how
to level production capacity in SNP.

Lesson Objectives
After completing this lesson, you will be able to:

Discuss the process of checking and leveling capacity

Business Example
After creating plans to ensure timely delivery of goods or products to the
customers, you, as the planning manager at Precision Pump Company, need to
study the impact of the plan on the resources and determine whether or not the
plan is feasible. If capacity planning is not feasible, you can level capacity loads.

Capacity Check

Figure 119: Data Selection

You can evaluate capacity loads in the SNP94(2) standard view. To do this, choose
the Resource characteristic for Show. You can restrict the resources that should be
included in the display in the lower part.

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If you load several resources and want to display information on individual
resources or display the orders for individual products of the resource, choose
Show Dependent Objects above the planning table.

Figure 120: Capacity Check

SNP Heuristic planning is based on the assumption that resources have an infinite
capacity. When the SNP heuristic run is completed, the planner can execute a
capacity check to see which effects the planned orders will have on the resources.
He can quickly determine whether or not the plan is feasible.
The capacity check provides the planner with the necessary information about
when resources will be overloaded and the tools needed to level the loads and to
plan future resource utilization. The planner can decide how production quantities
should be rescheduled so that planned orders do not exceed the available capacity.
If there is a capacity overload, an alert is displayed. The planner can automatically
have excess capacity distributed to neighboring periods or alternative resources.
After fixing the changed orders and replanning, the planner can check the impact
the changes have had on components, to ensure that the changes have not created
an overload on another resource.
The available capacity shows the available resource capacity of the active variant.
You can also show the other variants by choosing the Available capacity key figure.
The capacity consumption shows the capacity being consumed by PP/DS and SNP
orders. In addition, the SNP proportion is shown in the lower area.
The capacity load shows the relationship between available capacity and
consumption.
Capacity leveling

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Lesson: Capacity Check and Leveling

Interactive or background leveling for a resource for a specified time horizon.
Capacity leveling may result in overloads on other resources or undercoverages.
These problems must be resolved manually through the use of alerts. Capacity
leveling can be performed using the heuristic or the optimizer.

Capacity leveling supports the following resource categories:


Production resources

Transportation resources
Capacity leveling supports the following resource types:


Bucket resources

Single-mixed resources

Multi-mixed resources

Transportation resources
Plans (PPMs):


Output must be maintained in the last activity.

Fixed resource consumptions are not guaranteed.

There is no continuous output.
Parameters:

Target days' supplies are not supported.
Local time zones for transportation resources are not supported (this
is the same for SNP in general).
Hint: This solution to capacity leveling has been available since SCM 4.0,
and is available as a downgrade for APO 3.0 (SP22) and APO 3.1 (SP14)
(also refer to OSS Note 564702). Alternative resources can be included
in capacity leveling for SCM 5.0.

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Capacity Leveling

Figure 121: Capacity Leveling

In general, the planner can use the following procedure for adjusting the plan:



Backward scheduling capacity utilization to cover demand without exceeding
due dates. But this rescheduling does not create any orders in the production
horizon.
Forward scheduling of the capacity load, including exceeding due dates.
A combination of forward and backward scheduling of the capacity load.
Rescheduling to alternative resources

Figure 122: Capacity Leveling Profile

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Lesson: Capacity Check and Leveling

The main settings in the capacity leveling profile are Scheduling Direction,
Prioritization, and Method. Scheduling Direction controls whether Forward,
Backward or Combined forward/backward scheduling is used. Prioritization for
the heuristic run defines how leveling determines the sequence of orders. The two
possible choices for prioritization are by order size or by product priority. These
can then be sorted in ascending or descending order. The three Method choices are
Heuristic, Optimizer or BAdi. These methods are described in further detail below.
Heuristics-based Capacity Leveling

2006/Q2

Heuristic-based capacity leveling compares, period by period, the capacity
load on the resource with the requested load, either from the beginning or
from the end of the planning horizon – depending on which scheduling
direction you chose (forward or backward scheduling). If the system finds
that the resource is overloaded, it first selects all the activities or orders that
cause the overload in this period. It then sorts these orders according to the
priority that you defined, and shifts, one by one, orders or partial quantities
of orders into subsequent or previous periods until the required maximum
resource utilization is reached. With forward scheduling, the system moves
the orders so far that the first activity using the resource to be leveled only
begins after the overloaded period. With backward scheduling, the system
moves the orders so far that the last activity using the resource to be leveled
actually ends before the overloaded period. The system takes the lot sizes
and rounding values defined in the master data into account when moving
the orders.
Only orders that cause overloads are changed. Only orders that were moved
are changed (liveCache, R/3). This proves advantageous when a lot of orders
exist but only some of them overload the resource.
Prioritization by product or by product quantity

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For heuristic-based capacity leveling, you can choose different priority rules for
the selection of planned orders to be rescheduled:

226

If you do not select a priority rule, the priority is determined by the system
and is completely random.
If you choose Time-Based Capacity Leveling by decreasing order quantity,
the system levels the largest order of the overloaded period first, then the
second largest, and so on. If you choose Time-Based Capacity Leveling by
increasing order quantity, the system levels the smallest order first, then the
second smallest, and so on.
If you choose Time-Based Capacity Leveling by decreasing storage (days'
supply), the system levels the order with the largest days' supply first, then
the one with the second largest supply, and so on.
If you choose Time-based capacity leveling by decreasing product priority,
the system levels the order with the highest priority first, then the one with
the second highest priority, and so on. If you choose Time-based capacity
leveling by increasing product priority, the system levels the order with the
lowest priority first, then the one with the second lowest, and so on. The
product priority is maintained in the product location master record on the
SNP2 tab page.

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Lesson: Capacity Check and Leveling

Capacity Leveling with the Optimizer


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

Taking alternative resources into account (SCM 5.0)

2006/Q2

Moving orders into upstream or downstream periods is not the only
option for leveling the capacity load with capacity leveling. You can also
transfer the orders to alternative resources. The system moves the orders to
production process models (PPMs) or production data structures (PDS) that
were defined for the same location product but use other resources. The
system only uses the free capacity of the alternative resources and does not
generate any new capacity overload. It does not execute capacity leveling for
the alternative resources, and does not change any existing orders for these
resources. The sequence in which the system uses the PPMs or PDS with

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alternative resources is based on the procurement priority of the PPMs or
PDS. The system only takes alternative production resources into account
and does not include transportation resources.
If the system determines that a resource to be leveled is overloaded during
heuristic-based capacity leveling, it first partially or fully shifts the orders
leading to the overload to alternative PPMs or PDS in the same period. If the
free capacity of the alternative resources is exhausted and there is still an
overload, the system moves the orders for the remaining quantities back to
the original PPM / PDS. It then moves the orders to a prior or later period,
according to the scheduling direction selected. If overload emerges again,
the system determines the alternative PPMs / PDS in this period again. The
system moves remaining quantities that still exist after all the periods of
the planning horizon have been processed to the first or last period of the
planning horizon. There they lead to an overload of the original resources.
The scheduling direction selected determines whether the remaining
quantities are moved to the first or last period.
The system takes the alternative resources into account based on the
procurement priority of the PPMs or PDS in optimization-based capacity
leveling. The system automatically converts this priority into costs, so that
PPMs or PDS with higher priorities are taken into account first. The system
defines the costs of the original resource as being lower that those of the
alternative resource, so that this resource always has the highest priority for
the optimizer and is fully utilized first.
If you use a resource hierarchy, you can set the level of this hierarchy
at which the system takes alternative resources into account. You can
define that, for example, the system only takes header resources or only
subresources into account as follows:

228

SCM230

Lower level: You execute capacity leveling for subresources, for
example, and enter a header resource for the alternative resources
selection. The system then chooses only the subresources of this header
resource as alternative resources. In this way, you can restrict the
alternative resources that are taken into account to a certain group of
resources.
Header level: You execute capacity leveling for header resources, for
example, and enter subresources for the alternative resources selection.
The system then chooses only the header resources corresponding to
the subresource as alternative resources.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Capacity Check and Leveling

Figure 123: More Capacity Leveling Methods

You can also adjust the capacity of over- or underloaded resources by changing
the resource master data (for example, the active variant).
If your resource is overloaded, you can manually move production quantities to
an alternative resource. To do this, execute a drill-down by PPM / PDS in the
resource view. Then either copy and paste or right-click to move the order to the
clipboard and then assign it to the new resource.
You can also modify production or stock transfer quantities to affect the capacity
load on a given resource.

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SCM230

Lesson: Capacity Check and Leveling

Exercise 14: Capacity Leveling
Exercise Objectives
After completing this exercise, you will be able to:

Discuss the process of checking and leveling capacity

Business Example
After creating plans to ensure timely delivery of goods or products to customers,
you, as the team member of the team implementing SAP at the Precision Pump
Company, need to study the impact of the plan on the resources and determine
whether or not the plan is feasible. If the plan is not feasible, you need change
the plan.

Task 1:
1.

Check the capacity load of resource W1906_1000_001. What is the capacity
load, and which products create this load?

2.

Execute heuristic capacity leveling for resource W1906_1000_001 with
backward scheduling. Enter a maximum capacity load of 100% and do
not firm the orders, since they are to be revised later using the CTM and
optimizer planning strategies. Make sure that first large and then small
orders are leveled.
Fill in the following table to be able to use the results for a later comparison,
and reproduce the initial situation.
Week
% Load
P-102
P-103

3.

Now use the heuristic method with prioritization by ascending order size.
Enter the results in the table below and compare with the previous results.
What difference do you notice?
Week
% Load
P-102
P-103
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4.

SCM230

Finally, use the Optimizer method. In this case, the configured priorities are
ignored. A table is provided for you to record your results.
Week
% Load
P-102
P-103

5.

Is component 102-100 in plant 1000 also rescheduled?

Task 2:
You created WORK## as an alternative resource and an alternative plan with PPM
for product P-102 on resource WORK## in the exercise on master data. Product
P-102 in location 2300 can thus be planned on resource W1906_2300_001 and
resource WORK##.
1.

Analyze the capacity load on the resources W1906_2300_001 and WORK##.
Why was product P-102 planned on the WORK## resource and product
P-103 planned on the W1906_2300_001 resource?

2.

Now generate a feasible plan for location 2300. First execute heuristic
capacity leveling for the W1906_2300_001 resource with backward
scheduling and descending order size. Then execute another heuristic
capacity leveling for resource WORK## and all relevant alternative
resources. Are there orders for product P-102 on the W1906_2300_001
resource now?

Task 3:
Since both the WORK## and W1906_2300_001 resources can be used to
manufacture pump P-102, you should use source determination of the heuristic
to plan both resources directly. You will need to create an in-house quota
arrangement to allow this.
1.

Create an in-house quota arrangement for P-102 at location 2300 for your
SNP-## model. Maintain a share of 40% for PPM P-102_2300 and a share of
60% for PPM P-102_SNP_2300_ALT_##.

2.

Use mass processing to run a network heuristic for product P-102. Create a
variant called HEU## for it.
Field

Value

Planning book

9ASNP94

Data view

SNP94(1)
Continued on next page

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Lesson: Capacity Check and Leveling

Entire Planing Horizon

Select

Selection profile

Select

Selection profile

PROD##

Network (Heuristic)

Select

Take into account found components Select
in planning run
Net Change Planning

Do not select

Detailed Results

Select

3.

Is resource W1906_2300_001 also loaded with orders for product P-102?
Did the loading of resource WORK## change?

4.

To examine the scheduling in SNP, extend the fixed duration of activity
1 of your plan P-102_SNP_2300_ALT_## to 10 days. This makes the
planned orders on resource WORK## 10 days long, and the capacity load
is distributed over 10 days.

5.

Use mass processing to run a network Heuristic for product P-102 using
your variant called HEU##.

6.

Why is there an overload at resource W1906_2300_001 and no overload at
resource WORK##?

7.

In the PP/DS product view, check the planned orders for product P-102
in location 2300 and with version SNP-##. Enter the start and end date
and times in the table to compare.
PPM

P-102_2300_SNP

Start Date
End date
PPM

P-102_SNP_2300_ALT_##

Start Date
End date
8.

2006/Q2

Delete the quota arrangement for location 2300.

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SCM230

Solution 14: Capacity Leveling
Task 1:
1.

2.

Check the capacity load of resource W1906_1000_001. What is the capacity
load, and which products create this load?
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning.

b)

Double-click the SNP94(2) Capacity check data view.

c)

Double-click your selection ID RES## to see the resources in the
selection window.

d)

Double-click resource W1906_1000_001 to load the data and display
the capacity situation in the planning table.

e)

The available resource capacity is 35 hours. This is calculated on the
basis of 7 hours in a workday on 5 workdays. You may need to scroll to
the right to see any existing resource loads.

f)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

Execute heuristic capacity leveling for resource W1906_1000_001 with
backward scheduling. Enter a maximum capacity load of 100% and do
not firm the orders, since they are to be revised later using the CTM and
optimizer planning strategies. Make sure that first large and then small
orders are leveled.
Fill in the following table to be able to use the results for a later comparison,
and reproduce the initial situation.

Continued on next page

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2006/Q2

SCM230

Lesson: Capacity Check and Leveling

Week
% Load
P-102
P-103
a)

You are still in the Capacity check table. Click
to switch to change
mode. Click Capacity leveling to level the capacity load.

b)

Enter the data in the table below and click

c)

3.

Execute.

Field

Value

Scheduling direction

Backward Scheduling

Maximum Usage

100

Order Prioritization

Order Size

Sort Sequence

Descending

Capacity Leveling Method

Heuristic Method

When you use this method, the part of the largest order that is causing
the overload is moved backward until the load is leveled. The
second-largest order follows. The small order for 40 pieces of product
P-103 is not moved. Enter the data for later comparison in the table,
Refresh. Do not save, but do not
reproduce the initial situation with
leave the planning table either.

Now use the heuristic method with prioritization by ascending order size.
Enter the results in the table below and compare with the previous results.
What difference do you notice?

Continued on next page

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Unit 4: The Supply Network Planning Heuristic

SCM230

Week
% Load
P-102
P-103

4.

a)

Click
above the planning table and select Products from the
menu to see the production quantities of individual products again.

b)

Click

c)

Enter the data in the table below and click

Capacity leveling to level the capacity load.
Execute.

Field

Value

Scheduling direction

Backward Scheduling

Maximum Usage

100

Order Prioritization

Order Size

Sort Sequence

Ascending

Capacity Leveling Method

Heuristic Method

d)

When you use this method, the smallest order is moved first to level
the capacity.

e)

Enter the data in the table and compare it with leveling by descending
order size.

Finally, use the Optimizer method. In this case, the configured priorities are
ignored. A table is provided for you to record your results.
Week
% Load
P-102
P-103
a)

Repeat the procedure described using the optimization procedure. The
optimization method results in all orders being deleted and recreated
with minimum delay and warehouse costs without overload. In
this example, the result is not different from heuristic leveling with
ascending order size.

Continued on next page

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SCM230

Lesson: Capacity Check and Leveling

5.

Is component 102-100 in plant 1000 also rescheduled?
a)

Double-click the SNP94(1) SNP Plan data view and answer Yes to
saving the data.

b)

You obtain a list of the location products in the selection window by
double-clicking your "PROD##" selection ID.

c)

If you double-click product P-102 at location 1000, you will see the
rescheduled orders.

d)

If you double-click on product 102-100 at location 1000 you will see
the unchanged receipt for component 102-100.

e)

Component 102-100 is not rescheduled. To reschedule the component,
you could run a location heuristic.

Task 2:
You created WORK## as an alternative resource and an alternative plan with PPM
for product P-102 on resource WORK## in the exercise on master data. Product
P-102 in location 2300 can thus be planned on resource W1906_2300_001 and
resource WORK##.
1.

2.

Analyze the capacity load on the resources W1906_2300_001 and WORK##.
Why was product P-102 planned on the WORK## resource and product
P-103 planned on the W1906_2300_001 resource?
a)

Double-click the WORK## resource to load the data and display the
capacity situation in the planning table.

b)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

c)

Product P-102 is scheduled on your WORK## alternative resource
because the fixed costs in your plan (PPM) are lower than those in
the standard plan.

d)

Double-click the W1906_2300_001 resource to load the data and
display the capacity situation in the planning table.

e)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

f)

There is no alternative plan for P-103. Because of this, the order is
scheduled on the W1906_2300_001 resource.

Now generate a feasible plan for location 2300. First execute heuristic
capacity leveling for the W1906_2300_001 resource with backward
scheduling and descending order size. Then execute another heuristic
Continued on next page

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Unit 4: The Supply Network Planning Heuristic

SCM230

capacity leveling for resource WORK## and all relevant alternative
resources. Are there orders for product P-102 on the W1906_2300_001
resource now?
a)

Double-click the W1906_2300_001 resource to load the data and
display the capacity situation in the planning table.

b)

Click

c)

Enter the data in the table below and click

Capacity leveling to level the capacity load.
Execute.

Field

Value

Scheduling direction

Backward Scheduling

Maximum Usage

100

Order Prioritization

Order Size

Sort Sequence

Descending

Capacity Leveling Method

Heuristic Method

d)

Double-click the WORK## resource to load the data and display the
capacity situation in the planning table.

e)

Click

f)

Enter the data in the table below and click

Capacity leveling to level the capacity load.
Execute.

Field

Value

Scheduling direction

Backward Scheduling

Maximum Usage

100

Order Prioritization

Order Size

Sort Sequence

Descending

Capacity Leveling Method

Heuristic Method

Take alternative resources into
account

Choose

All relevant resources

Choose

The overload is now distributed to the WORK## and W1906_2300_001
resources by period.

Continued on next page

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2006/Q2

SCM230

Lesson: Capacity Check and Leveling

Task 3:
Since both the WORK## and W1906_2300_001 resources can be used to
manufacture pump P-102, you should use source determination of the heuristic
to plan both resources directly. You will need to create an in-house quota
arrangement to allow this.
1.

Create an in-house quota arrangement for P-102 at location 2300 for your
SNP-## model. Maintain a share of 40% for PPM P-102_2300 and a share of
60% for PPM P-102_SNP_2300_ALT_##.
a)

Choose Advanced Planning and Optimization → Master Data →
Quota Arrangement → Quota Arrangement.

b)

Enter the data from the table below and click

Change.

Field

Value

Model

SNP-##

Location

2300

Version-Independent

Selected

Inbound Quota Arrangements

Selected

c)

Click the

Creation of a New Entry icon.

d)

In the Quota Arrangement Header section at the right, enter the
following data.
Field

Value

Product

P-102

End Date

One year from today

e)

Click

to copy the data and close the window.

f)

Now select your quota arrangement header in the upper half of
in the Quota
the window, and click Creation of a New Entry
Arrangement Items section in the lower half of the window.

g)

Choose Quota Arrangement for In-House Production and Copy
Existing In-House Production in the Quota Arrangement Items
. Now a row is displayed for each
sections on the right. Then click
valid PPM in the Quota Arrangement Items for P-102 section.

h)

Enter 40 in the Quota Arrangement field for PPM P-102_2300_SNP,
and 60 for PPM P-102_SNP_2300_ALT_##.
Continued on next page

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Unit 4: The Supply Network Planning Heuristic

i)
2.

Save the quota arrangement

SCM230

.

Use mass processing to run a network heuristic for product P-102. Create a
variant called HEU## for it.
Field

Value

Planning book

9ASNP94

Data view

SNP94(1)

Entire Planing Horizon

Select

Selection profile

Select

Selection profile

PROD##

Network (Heuristic)

Select

Take into account found components Select
in planning run
Net Change Planning

Do not select

Detailed Results

Select

a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Planning in the Background.

b)

Enter the data from the table.

c)

Click

d)

Enter HEU## as the name of the variant and GR## as the description.

e)

to save your entry as a variant.

Click

.

Click

to execute the planning run.

Continued on next page

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2006/Q2

SCM230

Lesson: Capacity Check and Leveling

3.

Is resource W1906_2300_001 also loaded with orders for product P-102?
Did the loading of resource WORK## change?
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning.

b)

Double-click the SNP94(2) Capacity check data view.

c)

Double-click your selection ID RES## to see the resources in the
selection window.

d)

Double-click resource W1906_1000_001 to load the data and display
the capacity situation in the planning table.

e)

Scroll to the right to see any existing resource loads.

f)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

g)

Double-click the WORK## resource to load the data and display the
capacity situation in the planning table.

h)

Scroll to the right to see any resource load that exists.

i)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

j)

Both WORK## and W1906_2300_001 are used in production of P-102
because of the quota arrangement.

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Unit 4: The Supply Network Planning Heuristic

4.

5.

SCM230

To examine the scheduling in SNP, extend the fixed duration of activity
1 of your plan P-102_SNP_2300_ALT_## to 10 days. This makes the
planned orders on resource WORK## 10 days long, and the capacity load
is distributed over 10 days.
a)

Choose Advanced Planning and Optimization → Master Data →
Production Process Model →Production Process Model.

b)

Enter the data from the table below and click
Field

Value

Choose plan through PPM

Choose

Product

P-102

Location

2300

Use of a Plan

S

Change.

c)

In the dialog box that appears, choose your new SNP plan
P-102_SNP_2300_ALT_##.

d)

Double click operation 0010, choose activity 1 (by double-clicking it),
and select the modes tab index.

e)

In the row for your WORK## resource and enter a fix. dur. of 10.

f)

Activate the plan

.

Use mass processing to run a network Heuristic for product P-102 using
your variant called HEU##.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Planning in the Background.

b)

Click

c)

Execute the next dialog box to get your variant.

d)

Double click variant HEU## to load the settings.

e)

Click

to call your variant.

to execute the planning run.

Continued on next page

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2006/Q2

SCM230

Lesson: Capacity Check and Leveling

6.

7.

Why is there an overload at resource W1906_2300_001 and no overload at
resource WORK##?
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning.

b)

Double-click the SNP94(2) "Capacity Check" data view.

c)

Double-click your selection ID RES## to see the resources in the
selection window.

d)

Double-click resource W1906_1000_001 to load the data and display
the capacity situation in the planning table.

e)

Scroll to the right to see any existing resource loads.

f)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

g)

Double-click the WORK## resource to load the data and display the
capacity situation in the planning table.

h)

Scroll to the right to see any resource load that exists.

i)

above the planning table and select Products from the
Click
menu to see the production quantities of individual products.

j)

W1906_2300_001 has a resource overload since the results of capacity
were not fixed. WORK## does not have a resource overload because
the duration of the activity was changed to 10 days.

In the PP/DS product view, check the planned orders for product P-102
in location 2300 and with version SNP-##. Enter the start and end date
and times in the table to compare.
PPM

P-102_2300_SNP

Start Date
End date

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Unit 4: The Supply Network Planning Heuristic

PPM

SCM230

P-102_SNP_2300_ALT_##

Start Date
End date
a)

Choose Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning→Product View.

b)

Enter your version SNP-##, product P-102 and location 2300 and
click

c)
8.

Double-click the planned orders for each PPM to see the duration times
and sources of supply.

Delete the quota arrangement for location 2300.
a)

Choose Advanced Planning and Optimization → Master Data →
Quota Arrangement → Quota Arrangement.

b)

Enter the data from the table below and click

c)

244

.

Change.

Field

Value

Model

SNP-##

Location

2300

Version-Independent

Selected

Inbound Quota Arrangements

Selected

Select the quota arrangement and click
arrangement.

© 2006 SAP AG. All rights reserved.

to delete your quota

2006/Q2

SCM230

Lesson: Capacity Check and Leveling

Lesson Summary
You should now be able to:

Discuss the process of checking and leveling capacity

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Unit 4: The Supply Network Planning Heuristic

SCM230

Lesson: Planning Supplier Constraints using the SNP
Heuristic
Lesson Overview
This lesson will help you understand the process of using the SNP Heuristics to
plan for supplier constraints.

Lesson Objectives
After completing this lesson, you will be able to:

Discuss the process of planning supplier constraints.

Business Example
Your supplier for part number 102-110, supplier 0000001003 can only provide a
limited amount of the component material. No other sources are available. This
should be taken into account during the planning run.

Scheduling Agreements in SNP

Figure 124: Heuristic Scenario Using Scheduling Agreements

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2006/Q2

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Lesson: Planning Supplier Constraints using the SNP Heuristic

When planning SNP scheduling agreement schedule lines, you can choose one of
the following options:

You can use OLTP scheduling agreements. In this case, SNP creates
stock transfers (purchase requisitions) for suppliers that are converted to
scheduling agreement scheduling lines in SAP ECC.
You can use APO scheduling agreements. In SAP APO 3.1, a new planning
area called 9ASNP03 is available. This planning area has three planning
books: 9ASA for interactive planning, 9ASAS for collaborative planning
with suppliers, and 9ASA_BATCH for background processing. The
Heuristic was enhanced for this planning area to include finite planning
on the basis of supplier capacities.
The scenario can be described as follows: The heuristic plans APO
scheduling agreement schedule lines for the suppliers. A supplier reviews
this plan on the Internet and confirms the quantity allocated for the company
or if this entire quantity cannot be supplied, the supplier enters the maximum
quantity that can be supplied. In the subsequent Heuristic run, the system
takes into account the supplier's capacities, adjusts the schedule lines, if
required, and reschedules by adjusting the quota arrangements or priorities
according to the new constraint so that missing quantities are supplied by
other suppliers.

Figure 125: APO Scheduling Agreements in SNP

An APO scheduling agreement is created in the SAP ECC system. When
maintaining scheduling agreements in SAP ECC, you specify on the Additional
Data tab page that the execution system is an external (APO) system. As a result,

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

248

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2006/Q2

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Lesson: Planning Supplier Constraints using the SNP Heuristic

Exercise 15: Planning Supplier
Constraints
Exercise Objectives
After completing this exercise, you will be able to:

Identify the tasks involved in planning for supplier constraints

Business Example
Your supplier 0000001003 can only provide a limited amount of the component
material 102-110. Since location 1000 has no other sources for this component,
this restriction must be taken into account during the planning run. This exercise
will not employ the finite heuristic with scheduling agreements, rather it will
generally prevent procurement on the supplier's side. In the heuristic, alerts will
only be generated if procurement exceeds the supplier's feasible quantities. This
exercise will form the bases for finite scenarios for CTM and the optimizer.

Task:

2006/Q2

1.

In the product view, delete the receipts for product 102-110 at supplier
location 0000001003.

2.

Create a version-specific location product master record for product 102-110
at supplier location 0000001003 and maintain a planned delivery time of
999 days.

3.

Run a multilevel Heuristic in mass processing for product P-102.

4.

In Interactive Supply Network Planning (all Books), use your planning book
to analyze the planning situation for the supplier. In change mode, run the
macro for generating supply shortage (requirement undercoverage) alerts.
You receive exception messages (alerts) in the Alert Monitor, the same as
before in the exercise on configuration. As a result, the Heuristic also plans
material availability on an infinite basis.

5.

Check the Alert Monitor to see whether alerts were generated.

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Solution 15: Planning Supplier Constraints
Task:
1.

2.

3.

In the product view, delete the receipts for product 102-110 at supplier
location 0000001003.
a)

Select Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning → Product View.

b)

Enter your version SNP-##, product 102-110, and location 0000001003.

c)

Click

d)

Select all PurRqs and click

e)

Make sure to save before you go back to the main menu.

to switch to change mode.
above the planning table to delete.

Create a version-specific location product master record for product 102-110
at supplier location 0000001003 and maintain a planned delivery time of
999 days.
a)

Select Advanced Planning and Optimization → Master Data →
Product → Product.

b)

Enter product 102-110 and location 0000001003.

c)

Click Planning Version and enter your version SNP-## to create
version-specific data.

d)

Click

e)

Click on the Procurement tab page and enter a planned delivery time of
999 days.

f)

Be sure to save before you return to the main menu.

to create the version-specific product master record.

Run a multilevel Heuristic in mass processing for product P-102.
a)

Select Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Planning in the Background.

b)

Click

c)

Execute the next dialog box to get your variant.

d)

Double click variant HEU## to load the settings.

e)

Now click

to get your variant.

to execute the planning run.
Continued on next page

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Lesson: Planning Supplier Constraints using the SNP Heuristic

4.

5.

2006/Q2

In Interactive Supply Network Planning (all Books), use your planning book
to analyze the planning situation for the supplier. In change mode, run the
macro for generating supply shortage (requirement undercoverage) alerts.
You receive exception messages (alerts) in the Alert Monitor, the same as
before in the exercise on configuration. As a result, the Heuristic also plans
material availability on an infinite basis.
a)

Use the menu pathAdvanced Planning and Optimization → Supply
Network Planning → Planning → Interactive Supply Network Planning
(all Books).

b)

Double-click your SUP## selection ID to see the location product
in the selection window.

c)

Double-click the location product. The heuristic has generated
distribution demand but could not create distribution receipts due to the
planned delivery time of 999 days. Your macro calculates a negative
stock quantity.

d)

Switch to change mode.

e)

Locate the Supply shortage (DB alert) macro in the macro window
(lower left of the screen) and double-click on it to directly execute it.

f)

Save the changes and exit interactive planning.

Check the Alert Monitor to see whether alerts were generated.
a)

Use the menu path Advanced Planning and Optimization → Supply
Chain Monitoring → Alert Monitor.

b)

Make sure your Overall alert profile SUP## is in the Favorites field and
to see the alerts in the Alert Monitor.
click

c)

Select the Supply & Demand Planning alert in the top portion of the
screen. The specific alerts should now be visible in the table.

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Lesson Summary
You should now be able to:

Discuss the process of planning supplier constraints.

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Lesson: SNP Heuristic Scheduling

Lesson: SNP Heuristic Scheduling
Lesson Overview
This lesson will help you understand the scheduling process for the SNP Heuristics
run.

Lesson Objectives
After completing this lesson, you will be able to:

Discuss the scheduling process for the SNP Heuristics run

Business Example
As the Planning Manager at Precision Pump Company, you need to create plans
so that the supply from the plants meets the demand of the customers. You need
to design a model that synchronizes the activities of purchase, production, and
distribution departments. If you are working with time buckets profiles of weeks
or months, the SNP heuristic generates the receipt elements mid-bucket. The
period factor allows you to define whether the receipt should be generated at
the start or end of the bucket.

Heuristics Scheduling

Figure 126: Heuristics Scheduling

If you are working with time buckets profiles of weeks or months, the SNP
heuristic generates the receipt elements mid-bucket. The period factor allows you
to define whether the receipt should be generated at the start or end of the bucket.

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If the period factor is 1, the receipt is planned for the end of the week; if the period
factor is 0, the receipt is planned for the beginning of the week. By default, a
period factor of 0 is interpreted as 0.5, so, by default, the receipts lie mid-bucket.
The period factor does not come into play for a time buckets profile in days. SNP
optimizer scheduling is controlled via the bucket offset.
The week's demands in the Distribution Center (DC) are grouped together and
planned as the total demand.
A planned stock transfer is created for the total demand. The stock transfer ends at
12:00 in the middle of the week if a period factor of 0.5 is set in the transportation
lane and the local time zone is set. Backward scheduling, shipment times, plus
Goods Receipt (GR), and Goods Issue (GI) processing times determine the
delivery time at the plant. Note: Stock transfers in SAP ECC are scheduled using
the planned delivery time.
The system uses the period factor from the corresponding PPM to determine the
end date of the planned orders for finished products and components in the plant.
The planned order duration is governed by the fixed duration in the plan (PPM)
and the GR and GI processing times.
The period factor on the Lot Size tab page of the location product master record
governs scheduling of purchase requisitions.

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Lesson: SNP Heuristic Scheduling

Lesson Summary
You should now be able to:

Discuss the scheduling process for the SNP Heuristics run

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Lesson: Aggregated Planning
Lesson Overview
In this lesson you will use aggregated planning to plan at location product group
level and disaggregate the results to the location products. This function allows
the SNP planner to compare planning data for product groups and to pass on
the changes to the individual products.

Lesson Objectives
After completing this lesson, you will be able to:


Create the master data for aggregated planning
Name the reasons for using aggregated planning
Describe the steps involved in the aggregated planning process

Business Example
This function allows the SNP planner to compare planning data for product groups
and to pass on the changes to the individual products. Aggregated planning allows
the planner to simplify the complexity of the supply chain and to take restrictions
on product group level into account. Aggregated planning with SNP supports
planning scenarios in which you execute heuristic, CTM, or optimization-based
planning at the header location product level of a location product hierarchy.
You then disaggregate the planning results to the individual subproducts of this
two-level hierarchy. Reasons for this type of planning could be:


Performance improvement
Simplification of the planning process
Simplification of the supply chain model to be planned (option of planning
larger models)

Making planning decisions on an aggregated level (such as the choice of
supply sources, taking capacity into account or specifying lot sizes)

If, for example, you are planning the product delivered for the customer in
different internal product numbers, you can group these internal product numbers
into one product group and employ aggregated planning. This corresponds to
the form-fit-function (FFF) class concept, where you combine products with the
same technical properties.
After the SNP planning run and SNP disaggregation, you can display and change
the data in interactive SNP planning. You can also display the interactive planning
of resource consumption on the header and subproduct levels, and execute
capacity leveling for the resources of the subproducts.

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Master Data

Figure 127: The Master Data of Aggregated Planning

You can summarize similar products (same SNP BOM, same resources) for
aggregated planning using a product hierarchy. In the same way, you summarize
the locations to be planned using a location hierarchy. You have already created
product and location master records for the product groups and location groups.
You can then generate a location product hierarchy from the product and location
hierarchy.
Hint: These hierarchies cannot be transferred from the source system in
the standard system. They must be created in SAP SCM. An integration
is only delivered for the AFS industry-specific solution (apparel). SNP
can only work with two-level hierarchies (a header level, a sublevel).
Planning with multilevel hierarchies is not possible.
You can create your own hierarchy in addition to using the delivered SNP
hierarchy structures SNP_PROD_HIER for products and SNP_LOC_HIER for
locations. You can also use your own hierarchy structures. Then let the system
generate a location product hierarchy for the SNP_LOCPROD_HIER structure
using the product and location hierarchy. The location product representing the
location product group is at the top of this location product hierarchy.
If you use the 9ASNP02 standard planning area, hierarchy structures delivered
by SAP are already assigned to it. If you use your own hierarchy structures for
location products, resources and production process models (PPMs) or production
data structures (PDS), assign them to your planning area (Aggregated Planning
tab page).

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You can create the location product hierarchy as the location group for a product
or as the product group for a location, for example. In the first case, you have to
adjust the hierarchy structure and then create a location hierarchy with a header
location (the location group) and several sublocations, and a product hierarchy
with a header product (product group) and only one subproduct. In the latter
instance (to create a product group for a product), you have to do the opposite.
The procurement type should be identical at the product group and product levels.
You must define the same SNP production horizon, extended SNP production
horizon, and SNP stock transfer horizon for all the products in the product group,
including the header product and product group.
Because SNP disaggregation uses the sourcing decisions from product group
level, the same transportation lanes must exist for both the product group and
the individual products.
SNP disaggregation takes into account the rounding values and lot size parameters
defined for the individual products and product groups. If you want to ensure that
during SNP disaggregation there are no remainders at product group level, the
rounding values defined at product level must be the same within a group. The
rounding value of the product group must be a multiple of the value at product
level. In addition, the minimum lot size at group level should be larger than or
equal to the minimum lot size defined at product level.
To ensure that the resource consumption of fixed orders at product level is
correctly taken into account during planning, note the following restrictions for
creating resources:

You should use the same resources at product level and product group level.
The resource consumption of the PPMs and transportation lanes at product
level and product group level should be similar.

The total of the resource capacities defined at product level should form the
resource capacity at product group level. If you use several PDS / PPM at the
product level, the total resource consumption of the individual PDS / PPM at
the product level should form the resource consumption of the PDS / PPM at
the product group level.
You cannot automatically create PDS / PPM at the product group level from
the PDS / PPM at the product level. You have to create the PDS / PPM for the
product groups individually.

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Lesson: Aggregated Planning

The Aggregated Planning Process

Figure 128: Aggregated Planning

If you want to plan multiple locations of your network, the same product groups
must be defined in all locations. You can execute aggregated planning with the
heuristic, CTM, or the optimizer. Cycles are not allowed in your network if you
use the heuristic.

Figure 129: Process Steps in Aggregated Planning

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A sample process for aggregated planning is described in the following. It is
assumed that you execute planning interactively in this process.
1.
2.

3.

4.

5.
6.

260

You can execute safety stock planning at the aggregated level (optional).
Execute a single-level assignment of distribution receipts and demand at
the subproduct level. To prevent the receipt for a red t-shirt from covering
the demand for a blue t-shirt, you can execute the single-level assignment
of receipts and demand at the subproduct level before the aggregation. The
system then checks the transportation lanes directly assigned to the location
product for existing receipts. It then creates fixed SNP stock transfers that
are taken into account in the aggregated SNP planning run and cannot be
deleted. Because the assignment is single-level, it can fail if the receipts are
not available in the external procurement source of supply directly assigned
to the location product.
Aggregation of the demand data: You interactively choose the header
location product for which you want to execute planning. You then receive
the aggregated demand values for the header location product in demand key
figures such as Forecast or Customer Requirement. In these key figures, the
demand values of the subproducts are automatically aggregated to a total
value for the header product (depending on the aggregation key figure, refer
to the prerequisites for aggregated planning). The values at the subproduct
level remain constant, meaning that if you choose a subproduct, the value for
this product is shown in the key figure. In addition, in the Stock-on-hand
key figure, the initial stock for the header location product is automatically
aggregated via a macro and displayed in the initial column. If the unit of
measure of the subproducts is different to that of the header product, the
system converts the product unit of measure to the unit of measure of the
header product during aggregation.
Execute a SNP heuristic or optimization run for the header location product.
The planning result for the header location product is displayed in the
Distribution Receipt (Planned), Distribution Demand (Planned), Production
(Planned), and Dependent Requirements key figures. Before the system
creates new orders during the planning run, it first deletes all orders at the
header product level and the subproduct level (depending on the settings in
SNP Customizing) that have not been firmed.
Analysis of the aggregated data and, where applicable, capacity leveling
for the resources
You disaggregate the planning result for the header location product on the
subproducts. After disaggregation, the aggregated values are transferred to
the Aggregated Distribution Receipt or - Demand (Planned) and Aggregated
Production (Planned) or Aggregated Dependent Requirements key figures
by the system. You can display and change the individual orders for the
subproducts of the header product in the detail view for the aggregated
values.

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Lesson: Aggregated Planning

The SNP disaggregation run disaggregates the results of heuristic, CTM, or
optimization-based planning that you executed at the level of the header location
product of a location product hierarchy at the level of the individual subproducts.
You can run disaggregation both interactively and as a background job. In
Interactive Supply Network Planning this function is available in planning book
9ASNPHRPL, data view SNPHRPL, via the pushbuttons Location Disaggregation
and Network Disaggregation. Disag. Netw. buttons. To call the function for
executing in the background, choose Supply Network Planning → Planning →
Supply Network Planning in the Background → SNP Disaggregation.
You can choose between two disaggregation methods, and also combine them:

2006/Q2

Disaggregation according to demand from the header product level to the
level of the subproducts occurs according to the fair share or push distribution
principles also used by deployment. In fair share distribution, when
demand exceeds supply, the system distributes the supply to the individual
subproducts equally, according to their requirements. The procedure is
similar in push distribution, but this is for the case when supply exceeds
demand. SNP disaggregation determines the disaggregation demand, the
demand of the subproducts, on the basis of the NETDM auxiliary key figure
or a user-defined auxiliary key figure. The system calculates the net demand
at the sub product level saved in the NETDM key figure with the Net
Demand (disaggregation) macro, taking any changes in warehouse stock into
account. Demand from earlier periods (supply shortage key figure) is not
taken into account; only the demand as of the period in which the value to
be disaggregated exists is included. If you require a different calculation of
product requirements for SNP disaggregation, you can also create your own
demand values as auxiliary key figures for the planning book, and define the
calculation using a macro. Assign key figure function 9010 (Aggr. Planning:
Disaggregation demand) to this key figure.
Disaggregation according to quota arrangement from the header product
level to the level of the sub products occurs according to the quota
arrangements that you defined for the subproducts. This method is useful if
you know the total requirements for the product group but not the detailed
requirements. You define these quota arrangements either in the master data
of the product or location product hierarchy (not dependent on time) or in a
time series key figure dependent on time. Enter the time series key figure
in the disaggregation settings. You can either use an existing, unused key
figure from your planning area, or create a new key figure and assign it to
your planning area and planning book.
You can also combine the two methods by choosing disaggregation
according to quota arrangement and entering a horizon. The system
disaggregates according to demand for orders within the horizon; for orders
outside the horizon, it disaggregates according to quota arrangement. This is
useful if you have more detailed demand information for a more immediate
period of time than for a later one.

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You can define how the system processes orders within a period (bucket) during
disaggregation. The following disaggregation modes are available:

Period- (bucket-)oriented disaggregation totals all the order quantities
of orders at the header product level within a period that have the same
source, and disaggregates this total quantity to the subproducts. To do this,
the system applies the minimum lot sizes and rounding values to the total
quantity of a period.
Order-oriented disaggregation disaggregates all of the orders existing at the
header product level to the subproducts individually. It applies the minimum
lot sizes and rounding values to the order quantity of each individual order.
The order-oriented disaggregation mode creates a unique relationship to the
original order at the header product level when it creates the orders at the sub
product level. This relationship is represented by the order group number.
You can track the connection between the orders using this number, which is
displayed in the detail view of interactive planning for the orders. To do this,
you must already have specified in SNP Customizing that the system uses
the order group (refer to the prerequisites for aggregated planning). You can
also change the order group number for an order, thus assigning the order to
a different order group. Data such as the firming indicator and availability
date are then automatically adjusted to the data of the order group.

SAP delivers the 9ASNPAGGR standard planning book with the SNPAGGR(1)
and SNPAGGR(2) data views on the basis of the 9ASNP02 standard planning area
for aggregated planning and planning with aggregated resources. The planning
area and planning book contain the key figures and assignment of key figure
attributes, such as the Aggregation indicator and key figure functions 9001 to
9026, necessary for aggregated planning. The Aggregation indicator defines if the
aggregated or normal value is calculated at the header location product level in a
key figure. The indicator also controls whether the value at the subproduct level is
retained or deleted after aggregation.

Planning with Aggregated Resources
In this planning process within Supply Network Planning (SNP), you will execute
heuristic or optimization-based planning at the aggregated resources level,
meaning the header resources of a resource hierarchy. You will then disaggregate
the result to the subresources. By doing this, you can achieve an equal capacity
utilization of resources and improvements in performance. The following variants
can be used for this process:

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Lesson: Aggregated Planning

Figure 130: Planning with Aggregated Resources

Execute an SNP heuristic run with source determination at the lower level
of a hierarchy for production process models (PPMs) or production data
structures (PDS). Then level the capacity, aggregating the orders of the
subresource to the header resource of a resource hierarchy and leveling the
header resource with the system. Once you have executed heuristic-based
capacity leveling, you have the following options:

2006/Q2

The system aggregates all orders of subresources to the header level.
To do this, set the indicator for Manual Parameter Selection and Move
Orders to the Header Level in the initial screen for executing capacity
leveling in the background.

The system only aggregates orders that need to be moved to the header
level to resolve overloads. Do not set the Move Orders to the Header
Level indicator.
Execute an SNP heuristic or optimization run with source determination
at the header level of a PPM or PDS hierarchy. The subsequent capacity
leveling, which is only required after heuristic-based planning, levels the
header resources.
You will then disaggregate the result to the subresources again. The system
disaggregates the existing planned orders that cause resource consumption of
the header resource into new orders that utilize the subresources. You can
execute this function interactively and in the background for one header
resource respectively. If you select several header resources, the system
processes them one after the other. To avoid overloading subresources, the
capacity of the header resource should be equal to or lower than the sum of
the capacity of the subresources. The resource consumption of the header
PPMs or PDS should also be equal to or greater than that of the sub-PPMs
or -PDS.

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The goal of resource disaggregation is to keep the resource consumption of the
subresources as low as possible. The system proceeds as follows:
1.
2.

For each header order, the system determines the associated sub-PPMs or
-PDS of the PPM / PDS hierarchy used.
The system sorts the PPMs or PDS according to their priority. The default
priorities are based on the PPM or PDS that can produce the greatest
amount without overloading the resource (dynamic priority). Using BAdI
/SAPAPO/SDP_DISAGRES, you can define the following alternative
prioritization logic:

3.

SET_PRIO_TYPE method: You can specify that the priority is based
on the lowest resource consumption (static priority).

PRIORITIZE_PPM method: You can define your own prioritization
logic.
The system determines the subresources for the sub-PPM / PDS with the
highest priority. Based on the available capacity of the subresource and the
capacity consumption of the order quantity to be disaggregated, the system
calculates the maximum order quantity that will not overload the resource. It
then creates the orders as follows:

4.

If the maximum order quantity is greater than or equal to the quantity to
be disaggregated, the system creates an order with this PPM or PDS
and the quantity to be disaggregated.

If the maximum order quantity is less than the quantity to be
disaggregated, the system creates an order with this PPM or PDS and
the maximum order quantity. Then the system continues successively
with the PPMs or PDS with the next-highest priority, and disaggregates
the remaining order quantity.
When all of the subresources are fully utilized and there is still remaining
quantity, the system begins with the first PPM or PDS again. This leads
to overloading the associated subresource. You can minimize the risk of
overloading by fulfilling the prerequisites for this function (refer to the
Prerequisites section). Because the system does not take firmed resource
consumption into consideration, resources can still be overloaded.

The system ensures that the orders are distributed to all subresources corresponding
to their capacity utilization by taking available capacity into account during source
determination. This means that a resource with lower load is preferred. An order
is only split if the total order quantity overloads the resource selected or the
maximum lot size of the selected PPMs / PDS is smaller than the order quantity.
You require a PPM or PDS hierarchy that is consistent with your resource
hierarchy to plan with aggregated resources. You assigned the hierarchies to
the supply chain model you use. The header and sub-PPMs of the PPM / PDS

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Lesson: Aggregated Planning

hierarchy should be defined for the same product. If not, the product may be
switched during resource disaggregation. You can also use the resource hierarchy
to determine alternative resources for overloaded resources in capacity leveling.
Caution: The product location hierarchy is also checked for planning
with aggregated resources. If there are any inconsistencies, capacity
leveling cannot be executed.
The order group is used in the aggregated planning of SNP aggregation and
disaggregation to aggregate orders to a header order or to disaggregate to
suborders. The new orders the system creates at the subresources level receive
the same order group number as the associated header order. In this way, you can
recognize the connection between the orders in the detail view of interactive SNP
planning. As a prerequisite for displaying the order group number, you must
have specified that the use of order groups be maintained in SNP Customizing at
Basic Settings → Global SNP Settings.

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Lesson: Aggregated Planning

Exercise 16: Aggregated Planning
Exercise Objectives
After completing this exercise, you will be able to:

Carry out aggregated planning in Supply Network Planning

Carry out capacity leveling for the aggregated plan

Disaggregate the aggregated planning result

Business Example
Task 1:
Check the master data setup needed for aggregated planning in SNP.
1.

Check the following hierarchies:
SNP product hierarchy

PG_PUMPS

SNP location hierarchy

PUMP

SNP location product
hierarchy

PG_PUMPS 1000, 2300, 2400, 2500

SNP PPM Hierarchy

PG-PUMPS_1000_SNP
PG-PUMPS_2300_SNP

2.

Check the two plans (PPMs) PG-PUMPS_1000_SNP and
PG-PUMPS_2300_SNP for the product group.

3.

Open Interactive Supply Network Planning (all books), and choose the
9ASNPAGGR planning book with the SNPAGGR(1) data view.
Create a selection PG## for the location products of product PG_PUMPS.
Load the product group for location 2400. Is your total demand for the three
products P-102, P-103, and P-104 displayed?

4.

Execute a network heuristic. Are receipts generated for the product group in
locations 2400 and 1000?

5.

Execute capacity leveling with a heuristic and backward scheduling for the
WORK1000 resource in the SNPAGGR(2) data view.

6.

Return to the SNPAGGR(1) data view and make the following
(dis-)aggregation settings:

Continued on next page

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7.

SCM230

Field

Value

Start date

One month from now

Disaggregation horizon

100 days

Disaggregation method

Disaggregation according
to demand

Disaggregation mode

Period- (Bucket-)
oriented

Orders on the aggregated level

Delete

Now execute the network disaggregation and check the planning situation of
products P-102, P-103 and P-104 in location 2400.
Caution: Make sure that there are no more orders for location
products for the PG-PUMPS product after this exercise, since
these orders are firmed receipts and retirements for the CTM and
optimizer exercises.

Task 2:
To monitor a resource group, create a resource hierarchy so that capacity
requirements can be aggregated automatically.

268

1.

Create resource hierarchy GR## with Resource Group 20 as its
description for the SNP_RESOURCE hierarchy structure. Define the
WORK2300 resource as a header resource and the WORK## and
W1906_2300_001 resources as subresources. Assign the resource hierarchy
to your model SNP-##.

2.

To monitor the WORK2300 resource group, call the 9ASNPAGGR planning
book with the SNPAGGR(2) data view again and select the WORK2300
resource. The capacity requirements are automatically displayed as
aggregates. Analyze the orders for the individual products.

© 2006 SAP AG. All rights reserved.

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Lesson: Aggregated Planning

Solution 16: Aggregated Planning
Task 1:
Check the master data setup needed for aggregated planning in SNP.
1.

Check the following hierarchies:
SNP product hierarchy

PG_PUMPS

SNP location hierarchy

PUMP

SNP location product
hierarchy

PG_PUMPS 1000, 2300, 2400, 2500

SNP PPM Hierarchy

PG-PUMPS_1000_SNP
PG-PUMPS_2300_SNP

a)

Advanced Planning and Optimization → Master Data → Hierarchy →
Maintain Hierarchy

b)

In the Hierarchy field, Choose SNP_PROD_HIER.

c)

Click

d)

Locate the PG_PUMPS hierarchy and expand it by clicking the small
triangle in front of it. You should see that products P-102, P-103, and
P-104 are members of that hierarchy.

e)

Choose Hierarchy Objects → Other Hierarchy and delete the contents
of all fields in the Hierarchy Structure section to switch to the location
hierarchy.

f)

Choose SNP_LOC_HIER in the Hierarchy field and click
the data listed in the table above.

g)

Repeat this for each of the following hierarchies.

2.

. View

SNP_LOCPROD_HIER
SNP_PPM_HIER

Check the two plans (PPMs) PG-PUMPS_1000_SNP and
PG-PUMPS_2300_SNP for the product group.
a)

3.

.

In the PPM hierarchy maintenance screen you can display a plan
(PPM) by clicking on it with the right mouse button and choosing
Display Object.

Open Interactive Supply Network Planning (all books), and choose the
9ASNPAGGR planning book with the SNPAGGR(1) data view.

Continued on next page

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Create a selection PG## for the location products of product PG_PUMPS.
Load the product group for location 2400. Is your total demand for the three
products P-102, P-103, and P-104 displayed?
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Interactive Supply Network Planning (All Books)
Choose the 9ASNPAGGR planning book with the SNPAGGR(1)
data view.

4.

b)

Open the selection window and, next to Show, choose APO Location
Product. In the lower part of the window you define the conditions for
the locations products: Change the version from 000 to SNP-##, in
the next row choose APO Product, and to the right of this field enter
PG-PUMPS. Save the selection under the name PG## and assign it
to your selection profile.

c)

Select location 2400 by double-clicking PG-PUMPS. The total demand
for the three products P-102, P-103, and P-104 is displayed to the right.

Execute a network heuristic. Are receipts generated for the product group in
locations 2400 and 1000?
a)

5.

After you have run the network heuristic, you see receipts in the
locations 2400 and 1000.

Execute capacity leveling with a heuristic and backward scheduling for the
WORK1000 resource in the SNPAGGR(2) data view.
a)

Double-click on the SNPAGGR(2) view. Open the selection window
and, next to Show, choose APO - Resource. In the lower part of the
window you define the conditions for the resources: Change the
version from 000 to SNP-##, in the next row choose APO Resource,
and to the right of this field enter WORK1000. Now adopt these
selection conditions by clicking on the green checkmark. The resource
is displayed in the selection window.

b)

If you double-click on the resource, the capacity situation is shown in
the planning table.

c)

Switch to change mode and choose

. In the field Name of Parameter

Profile Choose PUMP. Load the profile by clicking
,
change the scheduling direction to backward scheduling and execute
capacity leveling for the resource. Save the result.
6.

Return to the SNPAGGR(1) data view and make the following
(dis-)aggregation settings:

Continued on next page

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Lesson: Aggregated Planning

7.

Field

Value

Start date

One month from now

Disaggregation horizon

100 days

Disaggregation method

Disaggregation according
to demand

Disaggregation mode

Period- (Bucket-)
oriented

Orders on the aggregated level

Delete

a)

Double-click the SNPAGGR(1) data view, your PG## selection, and a
location product for PG_PUMPS to load the data in location 1000.

b)

Click
to define the settings for (dis-) aggregation (you will find
the icon above the planning table when you scroll to the far right of the
toolbar), and make the settings in the table.

Now execute the network disaggregation and check the planning situation of
products P-102, P-103 and P-104 in location 2400.
Caution: Make sure that there are no more orders for location
products for the PG-PUMPS product after this exercise, since
these orders are firmed receipts and retirements for the CTM and
optimizer exercises.
a)

Execute network disaggregation by clicking Hierarchical Network
Disaggregation. Check the planning situation of products P-102,
P-103, and P-104 in location 2400 by choosing PG-PUMPS in location
2400 and then choosing the location products using
Display
Dependent Objects and APO - Location Prod. (Member).

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Task 2:
To monitor a resource group, create a resource hierarchy so that capacity
requirements can be aggregated automatically.
1.

Create resource hierarchy GR## with Resource Group 20 as its
description for the SNP_RESOURCE hierarchy structure. Define the
WORK2300 resource as a header resource and the WORK## and
W1906_2300_001 resources as subresources. Assign the resource hierarchy
to your model SNP-##.
a)

Advanced Planning and Optimization → Master Data → Hierarchy →
Maintain Hierarchy

b)

Choose SNP_RESOURCE in the Hierarchy Structure field and enter
GR## in the Hierarchy field.

c)

Click

Create. Enter Resource Group ## as the Hierarchy

Description on the following screen.
choose Change.
d)

Right-click your hierarchy node on the lower screen and choose
in the
Add Objects. Enter WORK2300 as the Resource Number
following dialog box. Now double-click your new object and enter the
WORK## and W1906_2300_001 resources on the upper right in
Hierarchy Fast Entry. Now click on the Transfer button with the green
lightning, and

e)

Save the hierarchy and then

save your hierarchy.

Assign your hierarchy to your SNP-## model by clicking

Model

Assignment. Select your SNP-## model and then choose

Assign

Resources to Model. A green check mark
your model. Click

is displayed in front of

on the lower edge of the dialog box to continue.

Continued on next page

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2.

To monitor the WORK2300 resource group, call the 9ASNPAGGR planning
book with the SNPAGGR(2) data view again and select the WORK2300
resource. The capacity requirements are automatically displayed as
aggregates. Analyze the orders for the individual products.
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Interactive Supply Network Planning (All Books)
You should have already chosen the 9ASNPAGGR planning book
with the SNPAGGR(2) data view.

b)

Open the selection window and choose the APO - Resource entry
under Show. In the lower part of the window, define the conditions for
the resources: Change the version from 000 to SNP-##, choose APO
- Resource in the next row, and enter WORK2300 at the right of the
field. Copy these selection conditions by clicking the green check
mark. The resource is then displayed in the selection window.

c)

If you choose the resource by double-clicking, the capacity situation
of the subresources is automatically displayed as aggregates in the
planning table. View the individual orders of the subresources by
clicking

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Show Dependent Objects and choosing Products.

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Lesson Summary
You should now be able to:

Create the master data for aggregated planning

Name the reasons for using aggregated planning

Describe the steps involved in the aggregated planning process

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Unit Summary

Unit Summary
You should now be able to:

Discuss the process flow for the SNP Heuristics run

Identify the tasks involved in planning and scheduling Heuristics

Discuss the process of checking and leveling capacity

Discuss the process of planning supplier constraints.

Discuss the scheduling process for the SNP Heuristics run

Create the master data for aggregated planning

Name the reasons for using aggregated planning

Describe the steps involved in the aggregated planning process

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Unit Summary

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Unit 5
SNP Run Using Capable to Match
Unit Overview
In this unit you will be able to identify the various settings for CTM planning and
the various CTM planning methods. You will also be able to identify the various
alternative methods for CTM planning.

Unit Objectives
After completing this unit, you will be able to:










Describe the CTM planning process
Identify the settings and master data used by the CTM planning run
Create a CTM profile
Execute a CTM planning run and analyze the results
Describe the use of Descriptive Characteristics
Identify the appropriate settings and master data.
Explain the process of prioritizing several production data structures or
production process models
List source determination for the selection of available resources
Identify a method for finitely planning in CTM based on supplier material
constraints.
Discuss the integration between GATP and the CTM planning methods
Discuss the Downbinning process

Unit Contents
Lesson: Capable-to-Match Process ..........................................278
Exercise 17: CTM Process and Profile ..................................297
Lesson: Descriptive Characteristics in CTM ................................309
Lesson: Alternative Resources in CTM ......................................313
Exercise 18: Alternative Resources in CTM ............................317
Lesson: Finite Supplier Planning in CTM ....................................323
Exercise 19: Finite Supplier Planning in CTM ..........................325
Lesson: CTM integration with GATP .........................................329

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Lesson: Capable-to-Match Process
Lesson Overview
This lesson will help you get an overview of the Capable-to-Match (CTM)
planning run. You will describe the process, identify the master data and settings
needed, and execute the planning run. You can imagine Capable-to-Match as
an availability check or feasibility check for individual requirements. It is a
cross-location finite scheduling of individual requirements and has nothing to do
with Supply Network Planning.

Lesson Objectives
After completing this lesson, you will be able to:



Describe the CTM planning process
Identify the settings and master data used by the CTM planning run
Create a CTM profile
Execute a CTM planning run and analyze the results

Business Example
As planning manager at Precision Pump Company, you use the CTM planning
run to define customer-specific demand priorities for particularly critical products
and to obtain feasible production plans. And, because supplier capacities for raw
materials are restricted, CTM should take note of this restriction.

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Overview of CTM Process

Figure 131: Overview of the CTM Process

With Capable To Match (CTM) planning, you can execute multi-level, finite
planning for the requirements of your supply chain. Unlike the optimizer of
Supply Network Planning (SNP), which determines the most cost-efficient
solution for satisfying all of the requirements selected, CTM planning uses a
heuristic procedure. This means that CTM doe not optimize according to costs.
Instead, you can influence the sequence of the requirements and the choice of
procurement alternatives using priorities. CTM planning does not consider the
individual production and distribution levels one after the other, as in the classical
MRP run. It handles them simultaneously. This ensures that CTM planning
generates a timely, feasible plan.
Since CTM planning is order-oriented, you can determine and track the associated
receipts and stocks on hand of every requirement across the entire supply chain
using pegging relationships after your CTM planning run. This also applies if you
execute bucket-oriented planning with CTM. Unlike Production and Detailed
Planning (PP / DS), which cover short term planning, CTM planning is targeted
to mid- to long-term planning. Because of this, CTM planning does not support
detailed scheduling strategies such as sequence-dependent set-up activities or
synchronizing multi-activity resources.
The CTM planning run compares prioritized requirements to available stocks and
feasible receipts. First, the CTM application model is generated on the basis of the
user-defined master data selection (location products, PPMs and transportation
lanes). The demands are then fulfilled across all plants with reference to
production capacities, component availability and transportation resources.

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As in the SNP environment, the CTM planning run produces a medium-term
production, distribution, and procurement plan. CTM complements the
cross-location supply chain planning strategies of SNP. You use CTM to perform a
quick check of production capacities and subcontracting component availability
based on a set of categorized supplies and prioritized demands.

Figure 132: The CTM Scenario

The above graphic illustrates the determination of feasible receipts, in order to
fulfill requirements in line with your priority. CTM checks for feasible receipts
successively. You can use rules to define the sequence of the checks. CTM
accepts the first feasible solution.








Individual prioritized demands
Pegging of demands to receipts
Availability of production, handling, or transportation capacity
Storage capacity is not taken into consideration
Planning of alternative resources
Planning of supplier capacities
Component availability
Product interchangeability and FFF classes
Aggregated planning

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

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Figure 133: Determining the First Feasible Solution

CTM searches for the first feasible solution. In the above example, CTM searches
for receipts of a sales order.


Taking capacity into account, final assembly at the plant can be completed
on time.
Manufacturing components is not possible within the time specified. As a
result, you cannot manufacture the components.
The components are available at another location and a stock transfer can be
made during the specified time. Orders are created according to this solution.

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

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Settings for CTM Planning

Figure 134: CTM Master Data

CTM planning can be performed with SNP or PP/DS PPMs/PDSs and resources.
In practice, however, the PP/DS master data is often too detailed for cross-location
planning. In the CTM profile, you set which master data should be used.
Lot size information and priorities of the products are maintained in the product
master record. Product priority is set on the SNP2 tab page of the product master.
Lot sizes for stock transfers can be maintained in the transportation lane or in the
product master record of the source or target location. You set which settings
should be used in the CTM profile.






282

You define which master data should be used in the planning run using the
master data selection.
The master data selection is assigned to the CTM profile.
The dynamic master data selections are exploded again before each planning
run.
The master data selection contains:
Location products
External procurement sources
In-house production procurement sources

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Lesson: Capable-to-Match Process

Since CTM planning is always based on a supply chain model, but you do not
always want to plan with all of the master data of the model, you can exclude
master data from the plan with this function. You can also use the master data
selection to restrict CTM planning to a certain BOM level of your product, or to
prevent in-house production from searching for stocks, for example.
CTM uses it own master data selections, since SNP selections are not used. The
master data selection defines the choice of master data (location products, PDS /
PPMs, and transportation lanes), and thus the CTM application model. CTM
master data selections can be either static (new objects were not automatically
included in planning) or dynamic. Different CTM profiles can use the same
master data selections, because it often happens that several profiles for different
planning tasks, such as deleting data, distributing stock, planning production, and
aggregating orders, are executed one after the other.
Hint: The system selects the dependent master data only at the point in
time that it is required (for example, during a CTM planning run or order
selection) when the Automatic Selection of Dependent Data indicator is
set.
You can execute a master data check in the master data selection independent of
the CTM profile. If you want the system to execute a master data check with the
settings of a CTM profile, specify a test profile or execute the master data check in
the corresponding CTM profile.

Figure 135: Definition of the CTM Profile for the CTM Run

You control what and how you plan using the CTM profile. You can create several
CTM profiles to simulate various planning situations or to divide the total planning
process into several planning runs. Enter the planning version on which the CTM

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plan is based in the CTM profile. CTM determines the associated supply chain
model from the planning version. You can restrict the master and movement data
that CTM should take into account using the master data and order selections. You
can specify the planning period for CTM planning with the CTM time stream You
also configure the scheduling direction, deletion mode, demand prioritization, and
supply categorization here. In the profile settings, you specify whether or not you
want to use CTM in the SNP environment or PP/DS environment.
After the CTM profile is configured, you can start the planning run. The planning
results are saved in liveCache and can be analyzed in either the PP/DS product
view, interactive SNP planning, or the supply chain viewer.

Figure 136: CTM Planning Method

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

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

Figure 137: Prioritizing Demands

With demand prioritization, you define the criteria that CTM planning uses to
sort and cover requirements. You must define the sorting sequence so that the
system can execute requirement prioritization. You enter the criteria that CTM
planning uses to sort the requirements in a certain sequence. CTM planning first
sorts requirements according to the first criterium. Only requirements that were
sorted according to the first criterium and have the same value are sorted next
according to the second criterium, etc.
The sequence of the priority criteria is decisive since the CTM run first covers
the requirement with the highest priority and then the requirement with the
second-highest priority, etc. Thus, the lower the priority of the requirement, the
more unlikely it is that it can be covered with limited components and resources.
When no priorities have been defined, prioritization occurs on a “first come,
first served” basis in the sequence. You can simulate demand prioritization and
check the results.
The following criteria can be used for prioritization: Maximum number of partial
deliveries allowed per item; Category of stock/receipts/requirements/forecast;
Confirmed quantity; Confirmation share for ATP Backorder Processing (BOP);
CTM quantity; Order number; MRP element number; Order item; MRP element
item; Date when the record was added; Delivery group (items are delivered

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together); Location; Delivery date for ATP BOP; Delivery priority; Customer;
Location product priority; Product priority; Material staging date; Item type sales
document; User exit priority for ATP BOP; Sales document type; Requested
quantity. You can also use the user exit to define your priority criteria.
You can sort in descending or ascending order within a prioritization criterion
or define the sorting yourself.
With special sorting, you can freely assign priorities for the various values of a
criterium in table form. Special sorting is possible for: the Stock / Receipts /
Demand / Forecast categories, delivery groups (items are delivered together),
customers, locations, product numbers, position type of the sales document and
sales document category.
You can define demand priorities in the CTM profile on the Demand tab page
or using Multi-Level Supply & Demand Matching → Environment → Current
Settings → Demand Prioritization → Sorting Profile.

Figure 138: Supply Categorization

CTM categorizes all of the receipts and stocks available for CTM planning before
each planning run. You can group the receipts and stocks according to various
criteria and assign them to their own supply categories. If you do not define a
supply category or do not enter a categorization profile, the system assigns all
receipts and stocks to the 00 supply category. Supply categorization sorts existing
receipts like stocks, production orders or purchase orders. For this you define the
sequence in which the supply categories will be searched in the planning run.
You can also define whether you want to create safety stock during planning
and whether you want to use the target days' supply and supply limits. You can
simulate supply categorization and check the results.

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Lesson: Capable-to-Match Process

At the start of the planning run, the stock is grouped into supply categories such as
normal stock or surplus stock, and the search strategy specifies the sequence to be
used to search through the stock categories.
There are two options for supply categorization:

Categorization with ATP categories: You assign existing ATP categories or
category groups to CTM planning supply categories. You enter the sequence
in which the system should consume the receipts and stocks of the various
supply categories in the search strategy. For example, the system should
consume all fixed orders (Category 1) before the planned orders (Category 2).
Categorization with supply limits: You define various intervals for the
stocks and receipts quantities of a location product with the help of supply
limits. You can define several intervals and assign a different supply category
to each interval. You can exclude a supply category from the search strategy,
for example. This means the system is not permitted to consume the amount
defined for the supply category.

Figure 139: Search Strategy to meet Demand

The system always executes the search strategy locally for a location product. At
first, the receipts and stocks for other location products are not important for
covering a requirement for a certain location product. The system also executes
the search strategy locally for the corresponding location product when covering a
secondary requirement. To do this, the system first searches for the receipts and
stocks with the pre-defined standard category 00. During supply categorization,
the system assigned all receipts and stocks that you had not assigned to a standard
category to standard category 00. If there is no receipt for the (original) location
product with standard category 00, the system evaluates existing rules. The system

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can only replace receipts with standard category 00 here too. If the system does
not find any receipts with standard category 00 or the receipt found cannot be used
to cover the requirement on time, CTM executes supply source determination
based on the procurement type of the location product.
You configure the search strategy in the current settings for CTM and assign
the search strategy to the CTM profile.

Figure 140: Supply Source Determination in the CTM Planning Run

If you have specified a search strategy in the CTM profile, CTM evaluates this
strategy first. The system looks for existing receipts and stocks with the specified
supply category. If the system cannot cover the requirement using the existing
receipts and stocks, or you have planned to use supply source determination at
first in the search strategy, the system determines the corresponding supply source
as follows:
1.

2.

3.

4.

288

CTM planning always tries to fulfill the requirement on time. This applies
even if the system cannot take the defined quota arrangement or procurement
priority into account because of this.
If all supply sources of the requirement can be covered on time, the system
either takes the defined quota arrangement or the values for the procurement
priority into account.
If the values for the quota arrangement, procurement priority and costs are
the same, the system take the validity of the supply source into account. If
CTM planning is using backward scheduling, the system chooses the supply
sources whose validity is as close to the requirements date as possible. In the
case of forward scheduling, the system chooses the supply source with the
earliest validity date.
If additional differentiation is required, the system takes the lot size
information for in-house production supply sources into account.

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Lesson: Capable-to-Match Process

If you only want to use priorities, enter Ignore Quota Arrangements in the settings
for master data in the CTM profile.
Priorities and quota arrangements are soft constraints for CTM. They are only
maintained if procurement from the supply source is possible.
The priorities of the locations are defined using the product-specific procurement
priorities or procurement costs of the transportation lane. You define priorities and
costs for in-house production in PDS / PPM.
There are two settings for incoming quota arrangements of the destination location:

If you set the Requirement Split indicator in quota arrangement maintenance,
CTM splits the receipt for the supply source according to percentage if
procurement is possible (new for release SCM 5.0). CTM does not take
any other entries for requirement splitting (minimum quantity for splitting,
for example) into account.
If you have not set the Requirement Split indicator, CTM tries to procure
individual requirements completely from one supply source. The total
amounts in the planning run should equal the percentage of the quota
arrangement.
If, for example, you specified a quota arrangement of 20% for plant 1000
and 80% for plant 2300, and there are five requirements for 10 pieces in
DC 2400, CTM proceeds as follows: the first requirement goes to plant
2300, due to the higher percentage rate. The second requirement also goes
to plant 2300, because the distribution of 0 pieces to 20 pieces is closer to
20%/80% than 10 pieces to 10 pieces. The third requirement goes to plant
1000, because the distribution of 10 pieces to 20 pieces is closer to 20%/80%
than 0 pieces to 30 pieces. The fourth and fifth requirement again goes to
plant 2300, thereby fulfilling the quota arrangement of 20%/80%.

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Loosening Constraints to Find a Solution

Figure 141: Planning Requirements According to their Priority

Requirements are sorted according to prioritization criteria and planned one after
the other. CTM first takes the requirement with the highest priority and tries
to cover it. If CTM finds an option for covering the requirement, this solution
is saved. Then the next requirement is planned. If the requirement cannot be
covered by the due date, CTM tries to cover it later if this is permitted. If CTM
is not permitted to cover the requirement at a later date, it checks whether the
requirement can be partially covered and saves the solution that partially covers
the requirement.

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Lesson: Capable-to-Match Process

Figure 142: Constraints on Requirements

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You can define the constraints centrally in global CTM Customizing. Choose
Advanced Planning and Optimization → Multi-Level Supply & Demand Matching
→ Environment → Current Settings → Capable-to-Match (CTM) Global Settings
→ Demand-Dependent Constraints+++ or define the constraints in detail using
ATP rules.

292

With late demand fulfillment, you define in which time horizon, measured
in days, the receipt may be created after the due date. The default value is
0 days.
With time period until order creation, you define the time period before
the requirements date (in days) in which Capable to Match (CTM) planning
can create orders for covering a requirement. The start date of all the
orders created by CTM planning must be within the specified time period
(requirements date minus the number of calendar days). Note that the system
also counts non-working days as days. The time period applies to all orders
that are created for a requirement, independent of the BOM level. Receipts or
stocks that already exist do not have to be within this time period. Receipts
that CTM planning creates because of co-products or lot size informaiton
and does not consume immediately are also included.
Maximum earliness of planned orders defines the time period before the
requirements date (in days) in which the system can schedule planned orders
at the first BOM level. The system must schedule all planned orders at the
first BOM level within the specified time period before the requirements
date. This means that no planned orders at the first BOM level may be
planned before the specified time period "Maximum earliness" refers to the
availability date of the planned order; not to its start date. Planned orders at
lower BOM levels can also be scheduled before this time period.
In the SNP2 view of the product master record, you can define the time
period of order creation and the maximum earliness of planned orders
globally and specifically for a location product.
With permit shortages, you define whether or not partially covering the
requirement is permitted. Default value: No partial coverage allowed.

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Lesson: Capable-to-Match Process

Figure 143: Late Demand Fulfillment

There are two settings for late demand fulfillment:

The domino strategy assigns a requirement that cannot be covered by the
due date to the next receipt with the least degree of lateness. With this
strategy, subsequent requirements may also be covered late.
The airline strategy moves requirements that cannot be covered on time to
the end of the priority list. With this strategy, subsequent requirements may
be covered on time. Fulfillment of demand with late coverage then occurs
with an even greater degree of lateness or, in the worst case, not at all.

Figure 144: Detailed Selection of Demand and Receipts

On the SNP2 tab of the location product master record, you can limit the CTM
selection horizon for demands for individual location products. Thus, if you plan
products with different lead times, you can define the selection horizon for the

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demands of one product differently than the selection horizon of another product.
The start date of all the orders created by CTM must lie within the specified
horizon (requirement date minus the number of calendar days).
The order creation horizon defines the number of days at the earliest a receipt may
be created before the requirements date. You can set the order creation horizon
to product-specific or global. You can set the use of existing receipts or stocks
using Maximum Earliness of a Receipt in the Demand / Pegging tab page of the
location product master record.

Additional Settings for CTM

Figure 145: Additional Settings for CTM

You can either plan all resources infinitely or finitely in general, or use the
Finite Planning setting from the resource master record to define the bottleneck
resources dynamically.
You can plan the simple discontinuation of a product in CTM planning. In simple
discontinuation, a product is valid only up to a certain date – the discontinuation
date. The successor product is valid after the discontinuation date. To cover
product requirements scheduled after the discontinuation date, CTM has to procure
the successor product. If the use-up strategy permits, CTM is also permitted
to use excess stocks and receipts of the product to cover product requirements
after the discontinuation date. CTM is not permitted to use excess product to
cover requirements for the successor product. Using Form-Fit-Function (FFF)
classes, you can enable CTM to cover a requirement that cannot be covered using
receipts and stocks of the specified product by default using receipts and stocks
of exchangeable products. If CTM cannot even cover the requirement using an
exchangeable product, it generates a requirement for the exchangeable product
that is defined as the leading product.
You can also execute aggregated planning that takes hierarchy structures into
account with CTM. For example, you can execute an aggregated CTM planning
run for capacity planning and supply source determination at the level of the
header location product of a location product hierarchy. Then you can disaggregate
the planning result to the individual sub products using SNP disaggregation. You
can achieve an improvement in performance with this type of planning.

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Scheduling of stock transfers takes into account goods issue times (shipping
calendar of the delivery location), goods receipt times (shipping calendar of the
target location), and transportation duration (calendar of the transportation lane).
Non-workdays mean the stock transfer takes longer.
From SCM 4.0, you can use consumption strategy 30 (ECC 50) Planning
without Final Assembly with CTM in the PP/DS environment, i.e. you can use
a make-to-order production strategy for cross-location planning. Prerequisite:
Production only, no external procurement for a product with strategy 30, CTM
settings set to continuous and PP/DS PPMs. This strategy can be used to convert
planned orders to production orders if sales orders exist. Non-convertible SNP
planned orders cannot be transferred to ECC. Secondary requirements are created
in either group sections (make-to-stock production) or in individual customer
sections (make-to-order production). This depends on how the product master is
set up. Convertible planned orders can be displayed in SNP after implementation
of a BAdI.

Figure 146: Technical Settings

In the technical settings of the CTM profile, you can select bucket-oriented or
continuous planning, thereby deciding whether you want to use CTM in the SNP
or PP/DS environment.
Select bucket-oriented planning if you want planning to be performed on the basis
of buckets with SNP in-house production source types. CTM planning loads
bucket resources or the available bucket capacity in the case of mixed resources.
If you select the Time-continuous button, planning takes place down to the
second with PP/DS in-house production source types. CTM planning uses
single-activity resources, multiactivity resources, and mixed resources. In the case
of mixed resources, CTM planning loads both the continuous capacity and the
available bucket capacity of the resource. The bucketed part of the mixed resource
is only used to update consumption.

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Since CTM does not know the settings from planning areas or data views, it
defines time streams, planning horizons, and categories for the creation of orders
in the CTM profile. You can also copy the settings for the ATP categories and
time-dependent safety stocks from SMP planning areas. When choosing the SNP
order type, consider the CTM planning of all orders of type PP / DS to be fixed.
Do not delete them.
You decide whether SNP or PP/DS sources should be used in the CTM planning
run. However, continuous planning with SNP PPM or PDS does not make sense.
The CTM explanation tool gives you notes on which requirements can be covered
on time, late, or not at all. You receive at list of the CTM decisions for the
requirements that cannot be covered on time so you can understand the result.
You can restrict the search steps, and the information and warning messages for
location products using the explanation profile.

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Lesson: Capable-to-Match Process

Exercise 17: CTM Process and Profile
Exercise Objectives
After completing this exercise, you will be able to:

Identify various processes and settings for CTM planning

Business Example
As planning manager at Precision Pump Company, you use the CTM planning
run to define detailed demand priorities for particularly critical products and to
obtain feasible production plans. To do this, you set the planning parameters in
the CTM profile and analyze the planning result both in the supply chain viewer
and in interactive SNP planning. Analyze which products can be delivered to the
distribution centers and where they are to be produced.

Task 1:
In the following tasks, first check the product priorities set, then create a master
data selection and define a CTM profile. You will execute various planning runs
with this CTM profile.
1.

Check the priorities set for products P-102 and P-103 in locations 2400 and
2500 in the product master records. Enter the priorities in the following table.
Location product

Product-Location Priority

P-102, location 2400
P-102, location 2500
P-103, location 2400

Task 2:
Set up your master data selection.
1.

Create master data selection MD## with description “Master Data Group ##”
for your model SNP-##. Create a CTMPROD## selection for the location
products of SNP planner P00. Make sure that this selection is dynamically
used for master data selection and select the dependent data automatically.
Master data selection

MD##

Description

Master data group ##

Model

SNP-##

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Task 3:
Now create your CTM profile.
1.

Copy the CTM profile PUMP to your profile CTM-##. Assign this profile
to your version and check the following settings (the tab pages are listed
in parentheses):
CTM profile

CTM-##

Name

Profile for group ##

Version (planning scope)

SNP-##

Master data selection (planning scope)

MD##

Time stream (planning scope)

CTM_PUMP

Planning mode (strategies)

Replan all orders

Delete mode (strategies)

Delete all unfirmed orders

Scheduling direction (strategies)

Backward scheduling

Planning type (settings)

Bucket-oriented

Order type (settings)

SNP order

Supply source in-house production
(settings)

SNP

Also check whether the Demand Fulfillment and Use Planning Explanation
indicators have been set in Technical Settings.
2.

Configure demand prioritization so that you sort in ascending order by
materials staging date and then by product priority. Save your CTM profile.

3.

Simulate a demand sorting and enter the results in the following table.
Compare the results with the product priority that you determined in Task 1.
Why does the demand for product P-102 at location 2500 have the highest
demand priority?
Location Product

Product Priority

Demand Priority

P-102, location 2500
P-102, location 2400
P-103, location 2400

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Task 4:
Run CTM with infinite capacity planning.
1.

Define the resource planning as infinite and execute CTM planning. Check
the quantitative results of the CTM planning run in the evaluations. Could all
demands be fulfilled on time?
In the supply chain viewer, analyze the results for the three demands of your
location products in the sequence of the demand priorities. Why are all
three demands fulfilled by plant 2300?

2.

Why are the demands for product P-102 in location 2500 covered on resource
WORK## in location 2300?

3.

Why is the demand for product P-103 in location 2400 fulfilled using
resource W1906_2300_001?

4.

Check the capacity load on resources WORK## and W1906_2300_001. Has
the resource load of 100% been exceeded? Why is the WORK## resource
loaded longer than resource W1906_2300_001?

Task 5:
Now execute CTM planning with finite capacity planning.

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1.

Define the resource planning as finite and execute CTM planning again.
Check the quantitative results of the CTM planning run in the evaluations.
Could all demands be fulfilled on time? Which demand could only be
fulfilled later? Also check the Explanations for the planning run. Why was
it impossible to procure from plant 1000? Why was the demand fulfilled late?

2.

In the supply chain viewer, analyze the planning results for the three demands
of your location products in the sequence of the demand priorities. Why are
some of the receipts to cover demand for product P-102 in location 2400
scheduled before the receipts for other demands, and the rest afterwards?

3.

Check the capacity load on resources WORK## and W1906_2300_001. Has
the resource load of 100% been exceeded?

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Solution 17: CTM Process and Profile
Task 1:
In the following tasks, first check the product priorities set, then create a master
data selection and define a CTM profile. You will execute various planning runs
with this CTM profile.
1.

Check the priorities set for products P-102 and P-103 in locations 2400 and
2500 in the product master records. Enter the priorities in the following table.
Location product

Product-Location Priority

P-102, location 2400
P-102, location 2500
P-103, location 2400
a)

SAP SCM → Advanced Planning and Optimization → Master Data →
Product → Product

b)

Enter the product and location, choose the location view, and choose
Display.

c)

The priority is displayed on the ”SNP2” tab page.

Task 2:
Set up your master data selection.
1.

Create master data selection MD## with description “Master Data Group ##”
for your model SNP-##. Create a CTMPROD## selection for the location
products of SNP planner P00. Make sure that this selection is dynamically
used for master data selection and select the dependent data automatically.

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Master data selection

MD##

Description

Master data group ##

Model

SNP-##

a)

SAP SCM → Advanced Planning and Optimization → Multilevel
Supply & Demand Matching → Environment → Master Data Selection

b)

Enter MD## as the value in the Master Data Selection field and choose
Create Master Data Selection.

c)

Enter SNP-## as the model name and choose

d)

Enter the appropriate description from the table above.

e)

Choose the
Selection Window icon and then Location Products
(next to Show). In the lower part of the window, define the selection
conditions for the location products: Choose SNP Planner, enter
P00 to the right of this field, and
CTMPROD## as the name.

f)

Enter.

save the selection using

Enter the CTMPROD## selection in Selection Type for Location
Products - Dynamic, set the Select Dependent Data Automatically
indicator and then save your master data selection

.

Task 3:
Now create your CTM profile.
1.

Copy the CTM profile PUMP to your profile CTM-##. Assign this profile
to your version and check the following settings (the tab pages are listed
in parentheses):
CTM profile

CTM-##

Name

Profile for group ##

Version (planning scope)

SNP-##

Master data selection (planning scope)

MD##

Time stream (planning scope)

CTM_PUMP

Planning mode (strategies)

Replan all orders

Delete mode (strategies)

Delete all unfirmed orders

Scheduling direction (strategies)

Backward scheduling

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Planning type (settings)

Bucket-oriented

Order type (settings)

SNP order

Supply source in-house production
(settings)

SNP

Also check whether the Demand Fulfillment and Use Planning Explanation
indicators have been set in Technical Settings.

2.

a)

SAP SCM → Advanced Planning and Optimization → Multilvel
Supply & Demand Matching → Planning → Capable-to-Match (CTM)
Planning

b)

Enter PUMP as the profile name and choose

c)

Enter CTM-## as the new planning profile and choose
Profile. Enter the description “Profile for group ##” .

d)

Go to the “Planning Scope” tab page. Enter your (SNP ##) version and
the master data selection MD##.

e)

Go to the “Strategies” tab page and check that the “Replan all Orders”
and “Backward Scheduling” options are selected..

f)

Switch to the Settings tab page and make sure that only SNP type
supply sources are used.

Copy

Configure demand prioritization so that you sort in ascending order by
materials staging date and then by product priority. Save your CTM profile.
a)

b)
3.

Copy Profile.

Go to the “Demands” tab page and set demand prioritization as follows:
MBDAT

Ascending

MATPRIO

Ascending

Save the profile.

Simulate a demand sorting and enter the results in the following table.
Compare the results with the product priority that you determined in Task 1.
Why does the demand for product P-102 at location 2500 have the highest
demand priority?

Continued on next page

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Location Product

Product Priority

Demand Priority

P-102, location 2500
P-102, location 2400
P-103, location 2400
a)

On the Requirements tab page, click

Simulation.

b)

You can see a new button:
Requirements. Click this button to
display the list of selected demands.

c)

The earliest demand has highest priority because you entered the
material staging date (MBDAT) in first position for sorting. The
difference between the last two demands is the product priority.
Location Product

Product Priority

Demand Priority

P-102, location 2500

6

1

P-103, location 2400

1

2

P-102, location 2400

5

3

Task 4:
Run CTM with infinite capacity planning.
1.

Define the resource planning as infinite and execute CTM planning. Check
the quantitative results of the CTM planning run in the evaluations. Could all
demands be fulfilled on time?

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In the supply chain viewer, analyze the results for the three demands of your
location products in the sequence of the demand priorities. Why are all
three demands fulfilled by plant 2300?
a)

Choose the Strategies and Special Strategies tab pages. Choose
the Plan All Resources Infinitely option in Capacity
Planning.

Save the CTM profile.

b)

Choose
Start Planning on the Planning Run tab page to execute
CTM planning. Choose Evaluations directly next to it. Expand CTM
Planning Run and double-click Quantitative Results. Because infinite
planning was used, all demands could be fulfilled on time.

c)

Check the planning results by selecting the
Supply Chain Viewer button, and analyze the material flow and
resource load.
All demands are fulfilled by plant 2300, because you defined a
planned delivery time of 999 days for vendor 0000001003. Because
components 102-110 in plant 1000 cannot be procured from the vendor
on time, the finished products cannot be produced. (Later on you will
plan finite receipts from the supplier.)

2.

Why are the demands for product P-102 in location 2500 covered on resource
WORK## in location 2300?
a)

3.

CTM supply source determination chose the plan (PPM) that has the
lowest costs but still allows production on time.

Why is the demand for product P-103 in location 2400 fulfilled using
resource W1906_2300_001?
a)

Product P-103 has just one plan. This contains resource
W1906_2300_001.

Continued on next page

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4.

Check the capacity load on resources WORK## and W1906_2300_001. Has
the resource load of 100% been exceeded? Why is the WORK## resource
loaded longer than resource W1906_2300_001?
a)

Select SNP Planning Table to switch from the CTM planning profile to
the SNP Planning Board.

b)

Double-click the SNP94(2) data view of the 9ASNP94 planning book.

c)

Double-click on selection RES## to load it into the selection window.

d)

To see the capacity situation in the planning table, double-click again
on resource WORK##.
The resource load of 100% is exceeded because you are working with
infinite capacity planning. The load of resource WORK## is longer
because you set a fixed duration of 10 days.

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Task 5:
Now execute CTM planning with finite capacity planning.
1.

Define the resource planning as finite and execute CTM planning again.
Check the quantitative results of the CTM planning run in the evaluations.
Could all demands be fulfilled on time? Which demand could only be
fulfilled later? Also check the Explanations for the planning run. Why was
it impossible to procure from plant 1000? Why was the demand fulfilled late?
a)

In the CTM planning profile go to the tab page Strategies and Special
Strategies and in the Capacity Planning field choose Plan All
Resources Finitely.

b)

Choose

c)

On the Planning Run tab, choose

d)

Choose the Evaluations button directly next to it. Expand CTM
Planning Run and double-click Quantitative Results. Two demands
could be completely fulfilled on time, but one could only be completely
covered later because finite planning was used.

to save the profile.
Start Planning to run CTM.

magnifying glass next to
Double-click Explanations and choose the
Results indicators for the CTM planning run. You recognize that the
requirements for product P-102 in location 2300 could only be covered
later by double-clicking Demand Fulfillment .
Choose the
magnifying glass next to Explanations for CTM
Planning Run. Double-click on the late demand to display the search
steps of the CTM planning run. Stock withdrawal is generally not
possible since purchase requisition do not exist in your version. A
double-click on the first icon
2300/0005 shows that a stock transfer
is possible. Double-click on your alternative plan (PPM) to show that
the WORK## resource is allocated up to the requirements date. A
2300/0005 shows that a later stock
double-click on the second icon
transfer for the demand for product P-102 in location 2400 is possible.
The search for
1000/0005 is unsuccessful because the vendor
cannot deliver the components (double-click on Anonymous External
Procurement 102-110 0000001003).

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2.

3.

In the supply chain viewer, analyze the planning results for the three demands
of your location products in the sequence of the demand priorities. Why are
some of the receipts to cover demand for product P-102 in location 2400
scheduled before the receipts for other demands, and the rest afterwards?
a)

Check the planning results by selecting
Supply
Chain Viewer, and analyze the material flow and resource load.

b)

Both resources are partially allocated using higher-priority
requirements, and the available capacity according to the production
horizon is not sufficient to cover the total demand on time. That is
the reason why part of the third demand is fulfilled too early and the
rest later.

Check the capacity load on resources WORK## and W1906_2300_001. Has
the resource load of 100% been exceeded?
a)

Select SNP Planning Table to switch from the CTM planning profile to
the SNP Planning Board.

b)

Double-click on the RES## selection to load the resources in the
selection window.

c)

To see the capacity situation in the planning table, double-click again
on resource WORK##.
The resource load of 100% has not been exceeded because finite
capacity planning was used.

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Lesson Summary
You should now be able to:

Describe the CTM planning process

Identify the settings and master data used by the CTM planning run

Create a CTM profile

Execute a CTM planning run and analyze the results

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Lesson: Descriptive Characteristics in CTM

Lesson: Descriptive Characteristics in CTM
Lesson Overview
This lesson will help you get an overview of using descriptive characteristics
in the Capable-To-Match (CTM) planning run. You will describe the process,
identify the master data and settings needed.

Lesson Objectives
After completing this lesson, you will be able to:

Describe the use of Descriptive Characteristics
Identify the appropriate settings and master data.

Business Example
As planning manager at Precision Pump Company, you need to create feasible
production plans. These plans need to be based on forecasts that are prioritized by
customer information.

CTM with Descriptive Characteristics

Figure 147: Releasing with Descriptive Characteristics

Planned independent requirements are normally released for product and location
combinations from Demand Planning in SCM DP. For example, if you create your
demand plan at product level, the quantities are disaggregated to location level
and created for all valid locations by releasing planned independent requirements.
For prioritization in CTM or PP/DS, it often helps to generate more detailed
independent requirements. This is not relevant for SNP, as SNP only plans on a
production location level.

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

Figure 148: Planning with Descriptive Characteristics in CTM

Descriptive characteristics provide additional ways of prioritizing planned
independent requirements in a flexible manner. For example, you can use planned
independent requirements to avoid modeling sold-to parties as locations.

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Planned orders are linked (pegged) to the original requirement. Descriptive
characteristics are not assigned to planned orders, because they are assigned to
planned independent requirements; however, this data is still available for the
sales orders with consumption.

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The feasible plans that observe constraints can be transferred back to
Demand Planning on a characteristic-specific basis.
You can use descriptive characteristics to consume planned independent
requirements on a customer-specific basis even for make-to-stock strategies.

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Lesson Summary
You should now be able to:

Describe the use of Descriptive Characteristics

Identify the appropriate settings and master data.

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Lesson: Alternative Resources in CTM

Lesson: Alternative Resources in CTM
Lesson Overview
This lesson will show you how to plan alternative work centers using alternative
production process models (PPMs) or production data structures (PDSs) in
Capable-to-Match (CTM) planning.

Lesson Objectives
After completing this lesson, you will be able to:

Explain the process of prioritizing several production data structures or
production process models
List source determination for the selection of available resources

Business Example
As the Planning Manager at Precision Pump Company, it can happen that you
come across situations where a product can be planned and produced on more
than one resource in SNP. In this case, several production data structures or
production process models (PPMs) exist. You set planning up so that CTM uses
the standard work center first and switches to the alternative resource in the
event of an overload.

Alternative CTM Plans (PPMs) or PDSs

Figure 149: Alternative Plans in CTM

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Alternative resources are mapped using alternative plans (PPMs) or production
data structures (PDS) in SNP and CTM. Only active PPMs/PDSs with a valid
lot-size range and a valid area of validity are selected. The lot size of the PDS /
PPMs is used to select the lot size in the planning product master.
If alternative PDS / PPMs exist, a maximum of five levels are run in CTM. PPMs
are chosen according to the following criteria:
1.
2.
3.
4.

PDS / PPMs that can fulfill demand on time
PDS / PPMs according to quota arrangements, priorities, and costs
(multilevel fixed costs)
PDS / PPMs whose validity period is closest to the requirements date
PDS / PPMs according to lot size areas: PPM with the largest maximum lot
size If there is more than one alternative PPM, the system chooses the PPM
with the smallest minimum lot size. If there is still more than one alternative
PPM, the system selects the PPM at random.

If demand cannot be fulfilled on time, CTM looks for options for producing later.
Steps 2 to 4 are then executed again.

Figure 150: Example of Alternative Plan Selection

Demands are sorted according to priority criteria and then planned in sequence.

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The above graphic explains the following example:



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CTM first takes demand 1 that has the highest priority and meets the demand
on time by creating a planned order on resource R1.
CTM meets the second demand on time by creating planned orders on
both resources.
CTM meets the third demand on time using resource R2 of the alternative
plan.
CTM meets only one portion of the fourth demand on time. CTM creates the
remaining receipts at a later point of time on the highest priority resource.

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Lesson: Alternative Resources in CTM

Exercise 18: Alternative Resources in CTM
Exercise Objectives
After completing this exercise, you will be able to:

Explain the selection of alternative PDS / PPMs in CTM planning

Business Example
As the Planning Manager at Precision Pump Company, you may come across
situations where a product can be produced on more than one resource. In this
case, several PDS / PPMs may exist. Because of this, you have to prioritize the
various PDS / PPMs for selection by CTM.

Task 1:
In the following exercise, you will increase the multilevel fixed costs in your
alternative plan from 1 to 3 so that standard resource W1906_2300_001 is utilized
first. Then you will execute the CTM planning run again so that you understand
source determination in CTM.
1.

Change the multievel fixed costs in your SNP plan
P-102_SNP_2300_ALT_## to 3.
Restart the CTM planning run. Analyze the overall planning results in the
Supply Chain Viewer.
Why is the demand for product P-102 with the highest priority in location
2500 now fulfilled on resource W1906_2300_001? Which demand is
produced on resource WORK##?

Result
The plan with resource W1906_2300_001 now has the lowest fixed costs.
This resource is thus used for production for those demands with higher
priorities. The WORK## resource is only used for production when it can
no longer produce on time.
The demand for product P-102 in location 2400 still cannot be fulfilled on
time since the total available capacity has not changed.

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Task 2:
In order to understand the cross-plant, multilevel pegging network better, look at
the generated receipts for a planned independent requirement in the following
exercise.
1.

Go to the PP/DS product view for the following product. Display the pegging
network for your planned independent requirement. Which receipts were
generated for the planned independent requirement?
Plng Version

SNP-##

Product

P-102

Location

2400

Task 3:
In the following exercise, use the cross-product and -plant display of the planning
result in the interactive SNP planning table.
1.

318

Analyze the planning results for the following location products in the
interactive SNP planning table. Select the appropriate data and load the data
into the planning table. Configure the header information for a drilldown
according to APO - Location and APO - Product. Choose the "Production
(Planned)" and "DistrReceipt (Planned)" key figures, and execute the
drill-down. Analyze which products can be delivered to the distribution
centers and where they are to be produced.
Product

Location

P-102

1000

P-102

2300

P-102

2400

P-102

2500

P-103

1000

P-103

2300

P-103

2400

P-103

2500

© 2006 SAP AG. All rights reserved.

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Lesson: Alternative Resources in CTM

Solution 18: Alternative Resources in CTM
Task 1:
In the following exercise, you will increase the multilevel fixed costs in your
alternative plan from 1 to 3 so that standard resource W1906_2300_001 is utilized
first. Then you will execute the CTM planning run again so that you understand
source determination in CTM.
1.

Change the multievel fixed costs in your SNP plan
P-102_SNP_2300_ALT_## to 3.
Restart the CTM planning run. Analyze the overall planning results in the
Supply Chain Viewer.
Why is the demand for product P-102 with the highest priority in location
2500 now fulfilled on resource W1906_2300_001? Which demand is
produced on resource WORK##?
a)

Advanced Planning and Optimization → Master Data → Production
Process Model → Production Process Model

b)

Enter P-102_SNP_2300_ALT_## as the Plan and the S option for Use
of a Plan, and choose .

c)

Overwrite the multilevel fixed costs with 3.

d)

Save and Activate the plan.

e)

Advanced planning and Optimization → Multilevel Supply and
Demand Planning → Planning → Capable-to-Match (CTM) Planning

f)

Start the CTM run on the Planning Run tab page by selecting
Planning.

g)

Check the results by choosing the pushbutton Supply Chain Viewer

Start

and analyze the material flow and the resource
load.

Result
The plan with resource W1906_2300_001 now has the lowest fixed
costs. This resource is thus used for production for those demands with
higher priorities. The WORK## resource is only used for production
when it can no longer produce on time.
The demand for product P-102 in location 2400 still cannot be fulfilled
on time since the total available capacity has not changed.

Continued on next page

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Task 2:
In order to understand the cross-plant, multilevel pegging network better, look at
the generated receipts for a planned independent requirement in the following
exercise.
1.

Go to the PP/DS product view for the following product. Display the pegging
network for your planned independent requirement. Which receipts were
generated for the planned independent requirement?
Plng Version

SNP-##

Product

P-102

Location

2400

a)

CTM Planning Profile → Product View

b)

Enter your version SNP-##, product P-102, and location 2400.

c)

Select the planned independent requirement in the product view,
Order Context to call the pegging network. Select
and choose
the planned independent requirement FC-Req and choose Expand
Subtree.
The following receipts were created: two stock transfers from plant
2300, several SNP planned orders for the finished product, and
purchase requisitions for the components.

Task 3:
In the following exercise, use the cross-product and -plant display of the planning
result in the interactive SNP planning table.
1.

Analyze the planning results for the following location products in the
interactive SNP planning table. Select the appropriate data and load the data
into the planning table. Configure the header information for a drilldown
according to APO - Location and APO - Product. Choose the "Production
(Planned)" and "DistrReceipt (Planned)" key figures, and execute the
drill-down. Analyze which products can be delivered to the distribution
centers and where they are to be produced.
Product

Location

P-102

1000

P-102

2300

P-102

2400

P-102

2500
Continued on next page

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Lesson: Alternative Resources in CTM

P-103

1000

P-103

2300

P-103

2400

P-103

2500

a)

Choose SNP Planning Board from the CTM profile.

b)

In data view SNP94(1); choose your selection PROD##.

c)

Double click on the selection ID PROD##. Or choose the data
manually in the

selection window.

d)

Select the multiple product locations by pressing the “ctrl” key as you
click on the selected entry.

e)

Load the data into the planning table by clicking

f)

Header On / Off. An additional icon (Header Information
Choose
Settings) is then shown above the planning table.

g)

Click the

Load Data.

Header Information Settings icon and choose the "APO -

Location" and "APO - Product" characteristics. Click
h)

i)

Copy.

Now use the
Key Figure
Selection icon to choose the "Production (Planned)" and "DistrReceipt
(Planned)" key figures above the planning table one after the other.
Now switch the display in the
and
header information from
Total to Details (All).

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Lesson Summary
You should now be able to:

Explain the process of prioritizing several production data structures or
production process models

List source determination for the selection of available resources

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Lesson: Finite Supplier Planning in CTM

Lesson: Finite Supplier Planning in CTM
Lesson Overview
This lesson will show you a way of finitely planning for supplier constraints in
Capable-to-Match (CTM).

Lesson Objectives
After completing this lesson, you will be able to:

Identify a method for finitely planning in CTM based on supplier material
constraints.

Business Example
As the Planning Manager at Precision Pump Company, you may come across
situations where a supplier cannot provide enough component material to meet
your requirements. In this case, you need to find a solution based on the suppliers
constraints.

Supplier Planning in CTM

Figure 151: Supplier Planning in CTM on a Finite Basis

In CTM, in addition to planning production resources on a finite basis, you can
also take into account the delivery capacity of suppliers during the planning run.
You can use resources and plans (PPMs) to model the delivery capacity for
suppliers. But this is time-consuming and not very flexible.

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As an alternative, you could maintain a long planned delivery time in the product
master of the supplier. As a result, the planning run cannot plan receipts for the
supplier. If the supplier enters the quantities, he or she can deliver in a planning
book for collaborative planning, these quantities can be planned as finite receipts
within the planning run.

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Lesson: Finite Supplier Planning in CTM

Exercise 19: Finite Supplier Planning in
CTM
Exercise Objectives
After completing this exercise, you will be able to:

Use a method that finitely plans in CTM based on supplier constraints.

Business Example
As planning manager at Precision Pump Company, you may come across
situations where a supplier cannot meet all your requirements. This constraint can
be included in planning for vendor selection.

Task 1:
Take the role of the vendor in the following exercise, and enter your feasible
quantities using collaborative planning.
1.

Take the role of vendor 0000001003. Call collaborative supply planning and
log on to the SCM system with your SCM user. Choose your planning book
SUP##, the SUPPLIER data view, and selection ID “SUP##.” The vendor
can deliver 200 pieces of component 102-110 in four weeks. Click ENTER
before saving, and leave collaborative planning with Exit.
Note: Alternatively, you can do this exercise in Interactive Supply
Network Planning (all Books)

Task 2:
1.

Start the CTM run again. Check the quantitative results of the CTM planning
run in the evaluations. Could all demands now be fulfilled on schedule?
Which quantity of product 102-110 is procured from vendor 0000001003,
and which demand is fulfilled by it? To do so, use the pegging information in
the product view. Why is this demand fulfilled in plant 1000?
Analyze the procurement for the demand for product P-102 in location 2500
in Supply Chain Viewer. Why is resource W1117_1000_001 also utilized?

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Solution 19: Finite Supplier Planning in
CTM
Task 1:
Take the role of the vendor in the following exercise, and enter your feasible
quantities using collaborative planning.
1.

Take the role of vendor 0000001003. Call collaborative supply planning and
log on to the SCM system with your SCM user. Choose your planning book
SUP##, the SUPPLIER data view, and selection ID “SUP##.” The vendor
can deliver 200 pieces of component 102-110 in four weeks. Click ENTER
before saving, and leave collaborative planning with Exit.
Note: Alternatively, you can do this exercise in Interactive Supply
Network Planning (all Books)
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Collaborative Supply Planning

b)

Log on to the SCM system with your SCM user.
Your SUP## planning book is displayed with the data view SUPPLIER
and the selection “SUP##”.

c)

Click Choose .

d)

Switch to change mode using the pushbutton with the pencil
the far right of the window.

e)

Enter a planned distribution receipt of 200 pieces four weeks from now.

f)

Confirm with ENTER.

g)

Click Save

at

. Leave collaborative planning by selecting Exit.

Task 2:
1.

Start the CTM run again. Check the quantitative results of the CTM planning
run in the evaluations. Could all demands now be fulfilled on schedule?
Which quantity of product 102-110 is procured from vendor 0000001003,
and which demand is fulfilled by it? To do so, use the pegging information in
the product view. Why is this demand fulfilled in plant 1000?

Continued on next page

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Lesson: Finite Supplier Planning in CTM

Analyze the procurement for the demand for product P-102 in location 2500
in Supply Chain Viewer. Why is resource W1117_1000_001 also utilized?
a)

Advanced planning and Optimization → Multilevel Supply and
Demand Planning → Planning → Capable-to-Match (CTM) Planning

b)

to run CTM. Choose
On the Planning Run tab choose Start Planning
the Evaluations button directly next to it. Expand CTM Planning
Run and double-click Quantitative Results. All demands can now be
completely fulfilled on time since the vendor can deliver and thus plant
1000 can also be used for production.

c)

CTM Planning Profile → Product View. Enter your version SNP-##,
product P102, and location 0000001003. The feasible delivery
quantity of 200 pieces was procured entirely from plant 1000.
Select the PurRqs receipt in the product view, and choose
Context of Order to call the pegging network. You can see that the
FC req. planned independent requirement for product P-102 in
location 2500 is the pegged requirement. This demand with the highest
priority is covered in plant 1000 since the quota arrangement should
procure 80% from plant 1000 and 20% from plant 2300.

d)

Check the planning result for the demand for product P-102 in location
2500 using Supply Chain Viewer
the material flow and resource utilization.

, and analyze

Resource W1117_1000_001 is utilized in plant 1000 since components
102-100 and 102-300 may be produced.

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Lesson Summary
You should now be able to:

Identify a method for finitely planning in CTM based on supplier material
constraints.

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Lesson: CTM integration with GATP

Lesson: CTM integration with GATP
Lesson Overview
This lesson will deal with integration between the following two planning
methods: GATP (Global Available-to-Promise) and CTM (Capable-to-Match).
You can use the rules of the rule-based availability check to set detailed constraints
for demands in CTM.

Lesson Objectives
After completing this lesson, you will be able to:

Discuss the integration between GATP and the CTM planning methods
Discuss the Downbinning process

Business Example
As the Planning Manager at Precision Pump Company, you may come across
situations where you cannot meet the demands of your customers. If may be
feasible to use Global Available to Promise (GATP) to better control the CTM
planning solution.

CTM Integration with GATP

Figure 152: Using ATP Rules for Demand Constraints

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Using Available-to-Promise (ATP) rules in CTM planning allows you to use
specific attributes of the demand, such as location and product for forecasts
and dependent demand and location, product, sales organization, and order type
for sales orders, to influence supply and demand matching and to control your
supply chain effectively. The standard condition technology that is also used in
the rules-based availability check enables you to define various conditions that
cause a rule to be applied.
You can use the standard condition technology to define product substitutions,
partial delivery, partial fulfillment, delayed fulfillment, and early fulfillment of
demands.
You can choose between the following ATP rule options:

Do not apply rules: No substitution rules or demand-dependent constraints
are evaluated during a CTM run.
Apply rules: Product and location substitutions and demand-dependent
constraints are evaluated during a CTM run. In each planning interval,
substitution rules for the individual demand and its entire BOM are evaluated
using the independent requirement attributes for the dependent requirements.
Demand-dependent constraints are not evaluated for virtual safety stock
demands.

Figure 153: Down Binning

CTM uses product substitution rules to search through the entire stock of the
requested product and alternative products to fulfill demand before planning
production.

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Lesson: CTM integration with GATP

CTM can support down binning scenarios that are found in high-tech industries,
such as the semiconductor industry. For example, you can define down binning
substitution rules that allow you to use a product of a high quality to meet the
demand for an inferior quality product. During the CTM run, the solver considers
both high-quality stock and the co-products as possible substitute products. When
down binning co-products, the solver reduces the quantity of planned production
orders created according to the quantity relationships of the output components
and down binning options specified.

Figure 154: CTM Results

The CTM planning run is powered by the CTM engine, which matches the
prioritized demands to the stock and receipts available. The CTM planning run
then matches receipts and demands, taking into account production capacities and
shipment capabilities.
The CTM planning run in SNP produces a medium-term production and
distribution plan.
CTM complements the cross-location supply chain planning strategies of SNP.
You use CTM to perform a quick check of production capacities and shipment
capabilities based on a set of categorized supplies and prioritized demands.

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Lesson Summary
You should now be able to:

Discuss the integration between GATP and the CTM planning methods

Discuss the Downbinning process

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Unit Summary

Unit Summary
You should now be able to:

Describe the CTM planning process

Identify the settings and master data used by the CTM planning run

Create a CTM profile

Execute a CTM planning run and analyze the results

Describe the use of Descriptive Characteristics

Identify the appropriate settings and master data.

Explain the process of prioritizing several production data structures or
production process models

List source determination for the selection of available resources

Identify a method for finitely planning in CTM based on supplier material
constraints.

Discuss the integration between GATP and the CTM planning methods

Discuss the Downbinning process

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Unit Summary

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2006/Q2

Unit 6
Optimization in Supply Network
Planning
Unit Overview
In this unit you will overview the planning process of CTM and be able to describe
this planning method. We will identify the settings in the CTM Profile that ensure
a successful CTM planning run. We’ll explore how CTM selects alternative
PPM’s based on resources availability and adjusts the plan based on supplier
deliveries. Last we will look at how a GATP check can be executed from within
the CTM planning run in this integration point.

Unit Objectives
After completing this unit, you will be able to:










Explain the process flow of SNP
Describe how the SNP Optimizer uses costs in the optimization run
Copy a planning version
Explain the costs and their effects on planning
Identify where to maintain the costs used in the Optimization run.
Create Cost and Optimizer profiles
Explain the settings in the optimizer profile
Execute an optimization run
Create a cost function and use it in the optimization run
Explain how the bound profile and the bucket offset affect the results of
the optimization run.
Compare the SNP Planning Methods

Unit Contents
Lesson: Supply Network Planning with the Optimizer .....................337
Exercise 20: Version Management.......................................341
Lesson: Optimizer Costs.......................................................345
Exercise 21: Optimizer Costs .............................................351
Lesson: Profiles Used by the Optimizer .....................................356

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Exercise 22: Optimizer Profiles...........................................367
Lesson: Parameters of the Optimization Run ...............................370
Exercise 23: Optimizer Planning Run....................................375
Lesson: Comparing SNP Planning Methods ................................387

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Lesson: Supply Network Planning with the Optimizer

Lesson: Supply Network Planning with the Optimizer
Lesson Overview
This lesson will help you understand the optimization run options in SNP
Planning. You will learn about the parameters used by the optimizer and how costs
are used to obtain the results.

Lesson Objectives
After completing this lesson, you will be able to:


Explain the process flow of SNP
Describe how the SNP Optimizer uses costs in the optimization run
Copy a planning version

Business Example
As Planning Manager at Precision Pump Company, you need to meet customer
demands and deliver products on time. Certain pumps have a very complex
supply chain and are storage- and transport-critical, so they should be planned
using the optimizer.

Supply Network Planning with the Optimizer

Figure 155: The Supply Network Planning Process Flow

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

Figure 156: How the Optimizer Works

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Lesson: Supply Network Planning with the Optimizer

The SNP optimizer allows you to perform cost-based planning. This means that
it searches through all permissible plans to find the plan that is the most-cost
effective one as regards the total cost evaluation. The total costs are made up as
follows:
Costs for production, procurement, transportation, and storage
Costs for the increase in production, storage, transportation, and handling
capacity
Costs for where stock falls below the safety stock level
Costs for delayed delivery
Stockout costs
The SNP optimizer optimizes the demands from all selected location products in
the data view horizon simultaneously. You can choose which constraints you want
to consider as finite during the planning run. For the optimizer a plan is admissible
if it meets all supply chain model hard constraints that you activated.
Due dates and safety stocks are soft constraints which create costs if violated. The
optimizer only violates constraints if this provides a more cost-effective solution.
The optimizer makes a cost-based decision on what quantities are produced,
transported, procured, stored and delivered and generates feasible receipts, such as
planned orders, stock transfers, and purchase requisitions for the selected location
products. Receipts for unselected location products are not changed and these
receipts form fixed capacity loads.
The optimizer uses linear programming to simultaneously take into account all
conditions relevant to the planning problem in an optimal solution. The more
constraints activated, the more complex the optimization problem becomes. This
in turn means that more time is required to solve this problem. Optimization
should generally be executed as a background job. The optimization problem can
be solved in either a continuous linear or in a discrete fashion.

Figure 157: Network Optimization Using Control Costs

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The optimizer compares alternative solutions using costs that would be incurred. It
determines the most cost-effective solution based on the constraints and objective
function defined in the system.
You use penalty costs to prioritize demands. If a product brings high sales
revenues, you set high penalty costs. If a product has no penalty costs, you cannot
meet the demand for this product.
The selection of procurement alternatives is managed using what are termed
control costs, which are maintained in SAP SCM and cannot be transferred from
SAP ECC.
The optimization run results in an optimal solution for the objective function
(minimum costs or maximum profit), taking into account constraints for
transportation, production, storage, and handling. The result of the optimization
run might be that due dates are violated or that safety stocks are not replenished.
Due dates and safety stocks are considered to be soft constraints. Violation of soft
constraints also incurs costs, which means that the optimizer only determines a
solution that would violate these constraints, if no other cost-effective solution
was available.
In contrast to the heuristic, the optimizer does not use the target days' supply to
create the target stock level but only uses the safety stock. The reason for this is
that the total demand, including distribution demand, is not determined until the
planning run. As a result, to use the optimizer to create a demand-dependent
target stock level, you have to incorporate the target stock level into the safety
stock calculation.
Limitations to the optimization algorithm

340

SNP optimizer source determination does not consider quota arrangement
and procurement priority, but only costs. It can, however, create quota
arrangements for subsequent heuristic-based planning runs. In this way you
can, for example, execute short-term heuristic planning runs after long-term
optimization-based planning (for example, on a monthly basis), where the
quota arrangements created in the optimization planning run are used as a
basis for the heuristic planning runs. Set the Modify quota arrangements
indicator for this if you are running the optimizer in the background.
Since the optimizer does not take any quota arrangements into account,
neither does it support an equal distribution of production to different
locations (with regard to resource utilization or quantity-based quota
arrangement). Single-sourcing (acquisition of a product from one single
preferred source) can only be set by defining transportation lanes or costs.
The optimizer cannot create scheduling agreement schedule lines, etc. in
planning (it only takes into account already existing orders as firmed orders).

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Supply Network Planning with the Optimizer

Exercise 20: Version Management
Exercise Objectives
After completing this exercise, you will be able to:

Copy a planning version

Copy transaction data

Business Example
As planning manager at Precision Pump Company, you use SAP SCM version
management to compare planning results of different planning procedures.

Task:
1.

Create a new version OPT-## with the name GR##-Optimizer
version, by copying the version SNP-## with planned independent
requirements (transaction data (category FA)).
Initialize planning area 9ASNP02 for this version.

2.

2006/Q2

Access interactive planning. Create new selections called PRODOPT## and
RESOPT## for your version OPT-## by copying your existing selections
PROD## and RES##. Assign the selections to your selection profile.

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Solution 20: Version Management
Task:
1.

Create a new version OPT-## with the name GR##-Optimizer
version, by copying the version SNP-## with planned independent
requirements (transaction data (category FA)).
Initialize planning area 9ASNP02 for this version.
a)

Choose Advanced Planning and Optimization → Master Data →
Planning Version management → Copy Planning Version.

b)

Execute (F8). Confirm
Enter the data from the table below and click
the following dialog box Target version does not yet exist. Should a
target version be created? with Yes.
Field

Value

Source Ver.

SNP-##

Target Ver.

OPT-##

Enter a description next to Target GR## Optimizer Version
Ver.
Copy Master and Transaction
Data

Select

Copy order data and stocks

Select

Category

FA

c)

Choose Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Administration of
Demand Planning and Supply Network Planning.

d)

Right-click on planning area 9ASNP02 and choose Initialize planning
version from the context menu. Enter planning version OPT## and
choose

Execute (F8).

Continued on next page

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Lesson: Supply Network Planning with the Optimizer

2.

2006/Q2

Access interactive planning. Create new selections called PRODOPT## and
RESOPT## for your version OPT-## by copying your existing selections
PROD## and RES##. Assign the selections to your selection profile.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning.

b)

Open the selection window, click
PROD## to load selection.

c)

Change the version to OPT-## and click save.

d)

Select the radio button Create new selection, enter the name
PRODOPT##, and save.

e)

Repeat this procedure to copy your RES## selection ID to create
RESOPT##.

f)

Assign the selections to your selection profile.

and choose your selection ID

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Lesson Summary
You should now be able to:

Explain the process flow of SNP

Describe how the SNP Optimizer uses costs in the optimization run

Copy a planning version

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Lesson: Optimizer Costs

Lesson: Optimizer Costs
Lesson Overview
This lesson will help you identify the costs the optimizer uses and the effect each
of them has on planning. You can only maintain the costs in the SAP SCM system
via the mass maintenance of master data.

Lesson Objectives
After completing this lesson, you will be able to:

Explain the costs and their effects on planning
Identify where to maintain the costs used in the Optimization run.

Business Example
As Planning Manager at Precision Pump Company, you need to meet customer
demands and deliver products on time. You use costs to set the source of
determination of the SNP optimizer and the demand priorities.

SNP - Optimization Factors

Figure 158: Supply Chain Costs

The optimizer compares the costs for the different procurement options and
chooses the most cost-effective, feasible solution.
You use control costs to configure your priorities, such as minimizing delays or
stock on hand. The optimizer considers all the constraints in the supply chain
model that were activated in the optimizer profile. If a large number of constraints
are activated, the optimization problem becomes complex and the time required to
solve this problem increases.

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Figure 159: Optimization Goals

The Optimal service level section of the above figure shows the least complex
optimizer configuration. In this case, you use mass maintenance to define high
costs for not delivering (NC) the finished products and for storing the finished
products. The high costs for not delivering force the optimizer to exhaust all
possible procurement and production capacities to meet the demands. The storage
costs ensure that procurement and production are carried out as late as possible.
The Optimal costs section of the above figure shows the more complex
configuration of the optimizer. In this case, you use realistic costs for procurement,
production, transportation, and storage. You use costs to deliver late and not to
deliver at all to model lost sales and customer dissatisfaction.

Figure 160: Comparison of Storage Costs and Delay Costs

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Lesson: Optimizer Costs

The purpose of optimization is to find the best feasible solution. The challenge
for optimization is to accurately define the relevant costs, for example, the costs
for a late delivery as compared to the costs for storage. How the costs considered
during the optimization run impact on the results of the planning run is described
above using examples.
If you define storage costs, production will be scheduled as late as possible to
avoid having stock on hand.
If a demand cannot be met on time, the late delivery to storage cost ratio
determines whether or not the system will trigger early production. This is done
using production capacities that are available at an earlier point or deliver late,
which is after the required date.
How Costs Influence the Optimizer

All costs depend on each other and must be set in the correct relation.



Higher penalty costs for not delivering result in increased production.
Transportation costs are used to prioritize source locations to increase
the priority of a production location.
Decrease in production costs in the currently preferred location to
increase the priority of a production location
Decrease in transportation costs from the currently preferred location to
increase the priority of a production location

Figure 161: Decisions the Optimizer Makes

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The purpose of optimization is to find the best feasible solution. For example,
would it be more cost-effective to deliver two days late than to produce three
weeks early? The challenge for optimization is to accurately define the relevant
costs, for example, the costs for delivering late.
You can use the cost profile to define the relative weighting of the various costs.
In contrast to the heuristic, the optimizer does not use the target days' supply to
create the target stock level but only uses the safety stock. The reason for this is
that the total demand, including distribution demand, is not determined until the
planning run. As a result, to use the optimizer to create a demand-dependent
target stock level, you have to incorporate the target stock level into the safety
stock calculation.

Costs for Optimization

Figure 162: Product and Location Priorities

If you do costs-based optimization, all demand are prioritized according to their
penalty costs and optimized jointly. You use penalty costs for late delivery
and non-delivery to set priorities for products according to, for example, the
contribution margin. The maximum delay defines the maximum tolerated number
of delay days for product and location. The penalty costs for delivering late are due
each day. If the maximum number of days is exceeded, demand is not covered and
penalty costs must be paid for non-delivery per base unit of measure. The penalty
costs for customer demands and forecasted demands are defined separately.
Hint: In SCM 4.1, there is a new stock balance macro function
STOCK_BALANCE_OPT which stops calculating shortages once the
maximum delay has been reached.

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You can define global penalty costs for late delivery and non-delivery of the
product or you can define costs for each location individually. If you have defined
location-specific costs, these costs override the global costs.
If you configure strict prioritization, the optimizer runs first of all for sales orders
and then for forecasts. If you work with the corrected forecast, the optimizer runs
three times. The system uses all the available cost information within each priority
class to determine the final solution. In the optimizer profile you can set the
priority of safety stock to customer demand, demand forecast or corrected demand
forecast. You cannot use discrete optimization methods for strict prioritization.

Figure 163: Costs to Control the Optimizer

Product priorities are entered as penalty costs for late delivery or non-delivery.
You can set these priorities globally or for specific locations in the SNP 1 tab
page in the product master. If you have set profit maximization, the costs for
non-delivery are interpreted as revenue.
You define production costs for the products and costs for normal usage of the
resource in the header data of the plan PPM/PDS (single-level variable costs).
You use transportation costs in the transportation lane or general procurement costs
in the product master record to model the procurement costs for components or raw
materials. If no general procurement costs have been defined, the optimizer only
plans purchase requisitions with suppliers. If general procurement costs have been
defined, the optimizer creates general purchase requisitions without a supplier.
Transportation costs are defined at the transportation lane. The optimizer ignores
these general transportation costs if transportation costs have been defined for
the individual products.

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

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Lesson: Optimizer Costs

Exercise 21: Optimizer Costs
Exercise Objectives
After completing this exercise, you will be able to:

Explain the costs the optimizer uses and their effects on the results

Identify where costs can be maintained in the optimization run

Business Example
The optimizer makes priority decision based on costs. As Planning Manager at
the Precision Pump Company, you need to ensure that the set costs reflect the
priorities of your business.

Task:
Analyze the optimizer costs that were defined for your version OPT-##.
1.

Which global costs and permitted delays have been set for planned
independent requirements (demand forecast)? Analyze the optimizer costs
that have been defined in the Maintain Costs (directory) for your version
OPT-##.
Product

Delay penalty

Maximum delay
(days)

Penalty for ND.
(Non-delivery)

P-102
P-103
2.

How are the production costs of the following PPMs set?
PPM

Production costs

P-102_1000
P-102_2300_SNP
P-103_1000
P-103_2300
P-102_SNP_2300_ALT_##
3.

What are the set storage costs for the following location products?

Continued on next page

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Location product

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Storage costs

P-102, 1000
P-102, 2300
P-102, 2400
P-102, 2500
P-103, 1000
P-103, 2300
P-103, 2400
P-103, 2500
4.

How are transportation costs for trucks set with regard to the following
transportation lanes?
Transportation lane

Transportation costs

Location 1000 → 2400
Location 1000 → 2500
Location 2300 → 2400
Location 2300 → 2500

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Lesson: Optimizer Costs

Solution 21: Optimizer Costs
Task:
Analyze the optimizer costs that were defined for your version OPT-##.
1.

Which global costs and permitted delays have been set for planned
independent requirements (demand forecast)? Analyze the optimizer costs
that have been defined in the Maintain Costs (directory) for your version
OPT-##.
Product

Delay penalty

Maximum delay
(days)

Penalty for ND.
(Non-delivery)

P-102
P-103

2.

a)

Choose Advanced Planning and Optimization → Master Data →
Application-Specific Master Data → Supply Network Planning →
Maintain Costs (Directory).

b)

Enter your version OPT-##.

c)

Click on the Others tab to find delay costs.

d)

Drill down on Delay/no delivery and double click on the product P-102.

e)

Record the costs in the For demand forecast column. Then double
click on P-103 and record the costs.

How are the production costs of the following PPMs set?
PPM

Production costs

P-102_1000
P-102_2300_SNP
P-103_1000
P-103_2300
P-102_SNP_2300_ALT_##
a)

Click on the Production tab to find the costs for production.
Drill down on PPM, double click on each product, and record the
single level costs.

3.

What are the set storage costs for the following location products?
Continued on next page

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Storage costs

P-102, 1000
P-102, 2300
P-102, 2400
P-102, 2500
P-103, 1000
P-103, 2300
P-103, 2400
P-103, 2500
a)
4.

Click on the tab page Storage, expand Products and products P-102
und P-103 to examine Product Storage Costs by double-clicking.

How are transportation costs for trucks set with regard to the following
transportation lanes?
Transportation lane

Transportation costs

Location 1000 → 2400
Location 1000 → 2500
Location 2300 → 2400
Location 2300 → 2500

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a)

Click on the Transptn tab to find the transportation costs from the
transportation lane.

b)

Drill down on Transportation lanes and again on the specific Location
lanes. Double-click on the truck and record the costs.

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Lesson: Optimizer Costs

Lesson Summary
You should now be able to:

Explain the costs and their effects on planning

Identify where to maintain the costs used in the Optimization run.

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Lesson: Profiles Used by the Optimizer
Lesson Overview
This lesson will help you understand the settings and control of the optimization
run using profiles.

Lesson Objectives
After completing this lesson, you will be able to:

Create Cost and Optimizer profiles
Explain the settings in the optimizer profile

Business Example
As Planning Manager at Precision Pump Company, you need to meet customer
demands and deliver products on time. You use the optimizer profile to customize
the optimization run for the current aims and conditions. If, for example, the order
situation is good, you put a greater weighting on the costs for delivering late or not
delivering at all. If, on the other hand, the order situation is poor, you base your
optimization more on production and procurement costs.

Optimizer Profiles

Figure 164: Cost Profile

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There are a number of decisions that the optimizer must make for the final
solution. These Decision Variables include production quantities, Storage
quantities, shipment quantities, capacity increase and procurement.
You can use the cost profile to globally configure the relative weighting of the
decision variables via the costs for your optimization run.
The cost profile allows you to rapidly simulate various cost situations and their
impact on the planning results. For example, if the current order situation is poor,
you can base your optimization more on production or procurement costs. And
if the order situation is satisfactory, you can place a greater weighting on the
costs for delivering late or not delivering at all, or you can reduce the costs for
capacity increases. The solution chosen by the optimizer is influenced by the
settings you make in the cost profile.
Optimization Parameters
In determining the solution the optimizer can treat all constraints as hard
constraints. The following constraints can be used to influence the results:







Production capacities
Storage capacities
Transportation capacities
Handling capacities
Capacity increase
Material availability
Calendar
Lot sizes
→ Production
→ Transportation


Due dates (soft) (demands)
Safety stock (soft)

The optimizer compares alternative solutions using an objective function with
which you can set your priorities, such as minimizing delays and minimizing
on-hand stock.
If you defined variants for minimum, standard, and maximum resource utilization,
the optimizer calculates penalty costs in the event of a deviation from the standard
resource utilization.
The optimizer can also take account of a maximum product-specific storage
quantity in the individual locations, which you define in the location product
master data (on the Lot size tab page). The product-dependent, maximum transport
lot sizes that were defined in the transportation lanes can also be used.

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The optimizer can consider all types of capacity constraints that are active, such as
transportation, production, handling, and storage constraints. Whether or not a
constraint is active, depends on the setting in the optimizer profile.
The optimizer takes into account the shelf life of products in a location on a
restricted basis. When stock is transferred, information about its shelf life is lost
(see OSS note 574321).
You can also define constraints time-dependently, for example, in order to
model time-dependent delivery quantities of a supplier. For this purpose you
can use standard planinng area 9ASNP04 with planning book 9ATSOPT, view
OPT_TSBD. In this planning area you can define the following constraints
time-dependently in time series:


For location products, upper bounds for procurement and storage
For PPMs, upper bound for production
For transportation lanes, upper bound for transportation

For every upper bound there is a zero indicator time series. Only if an entry is
made here does the system take account of the upper bound.
If you plan with safety stocks, you can also store time-dependent costs for falling
below safety stock levels in planning book 9ATSOPT.
You can switch the time series upper bounds on and off in the optimizer profile.
Hint: Mass maintenance of time series was put in place for SCM 4.1, e.g.
for safety stock level or restrictions for procurement, stock on hand, and
production quantities for the optimizer.

Figure 165: The Optimizer Profile

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In the optimizer profile you define the optimization method (linear or discrete)
to be used during the optimization run and the restrictions to be taken into
consideration. Costs are always considered, even when the constraints are planned
on an infinite basis.
The linear program does not generate integer-based solutions, such as a planned
order for 1.7 pumps. In the optimization profile, however, you can also set
discretization in order to generate integer-based orders using mixed integer linear
programming (MILP). You need to use discretization if you want to take the
following into account:



Lot-sizing procedures for transportation or PPMs
Discrete (integer value) capacities for transportation or production
Minimum lot sizes for transportation or PPMs
Cost functions for transportation, production, or procurement (fixed cost
term or scaled costs)

If you set Strict demand prioritization in the optimizer profile, multiple
optimization runs are performed. The sales orders are optimized first, followed
by the corrected demand forecast, and finally the demand forecast. You can also
set a priority for safety stock. You cannot use strict prioritization in conjunction
with the discrete optimization method.
For fixed orders, you can maintain different priorities for dependent requirements
and distribution demand. If you set hard constraints and the demands cannot be
met, the problem cannot be solved. Pseudo-hard means that very high costs are
set internally. If you select the indicator Do not delete any orders all existing
orders are treated as fixed.
In order to simplify the selections you can also take into account stocks of
non-selected PPM input products and source location products. Stocks are
consumed in this process, but no receipts are created for the products.

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Cost Calculation and Horizons

Cost minimization

The following formula is used to calculate the total costs: unfulfilled
demand * penalty for not delivering + costs
Profit calculation


The following formula is used to calculate the total costs: fulfilled
demand * penalty for not delivering - costs
Only the costs are calculated differently; the planned quantities are the same
SNP horizons

Do you want to take into account the production horizon?
Do you want to take into account the stock transfer horizon?

In cost minimization, the individual costs are added together to calculate the total
costs; unfulfilled demand is multiplied by the costs for not delivering.
If you choose profit maximization, the system interprets the penalty for not
delivering as revenue rather than a cost. Profit is then calculated by subtracting
the costs incurred from the revenue.
You can also define here whether or not you want the system to take into account
the production horizon and stock transfer horizon during the optimization run.
Optimization Methods (1)

Linear programming (LP)


Basic solve
Mixed Integer Linear Programming (MILP)


Discretization

Lot sizes and cost functions
Methods of decomposition



Time decomposition
Product decomposition
Priority decomposition
Resource decomposition

Optimization in Supply Network Planning (SNP) provides several methods to
determine the optimum solution:

360

Basic Solve: The optimizer creates an optimal solution based on all available
data. This is the normal simplex method in which all the variables are
continuous.

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

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hand, you do choose a window size, the optimizer prefers to plan products
with the same priority together in a partial problem (99% = combined
planning in one problem).
Priority decomposition: If you activate cost-based prioritization, the
optimizer takes account of the demand prioritization on the basis of penalty
costs which you can define in the product master (SNP 1 tab page). If you
activate strict prioritization, the optimizer sticks strictly to the demand
prioritization. Demands with priority 1 are taken into account first, followed
by demands with priority 2, and so on. The optimizer fulfills customer
requirements first (priority 1 by default), followed by the adjusted demand
forecast (priority 5 by default), and finally the demand forecast itself (priority
6 by default). You cannot use strict prioritization in conjunction with the
discrete optimization method.
Hint: Note: Decomposition methods speed up the optimization process
but do not necessarily produce the optimal solution.

Optimization Methods (2)

Figure 166: Optimization Methods (2)

There are various processes of linear optimization that have an influence on the
time that the optimizer requires for determining a solution. There is no optimal
method, i.e. you need to experiment in order to determine the method with the
lowest runtime. The solution found, however, is always the same with regard
to the calculated costs.

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If you activate the interior point method in addition to one of the other methods,
the optimizer uses an interior point algorithm. Then, at the end of the solution
process, the optimizer uses the primal or dual simplex algorithm depending on
the selection made. The primal/dual simplex algorithm and interior point method
are methods of linear optimization.
If you choose discrete optimization, the optimizer also takes the active method of
linear optimization into account, which then influences the time that the optimizer
requires to solve the problem.
Discretization and Aggregation

Discretization

Full search
→ MILP, optimal solution (using complete branch methods) if no
run-time limits are set

Aggregated Planning

Product location hierarchy
PPM/PDS hierarchy

To determine integer-based solutions or to use lot sizes and cost profiles, you
select the discretization options in the optimizer profile.
Choose discrete optimization if you want the optimizer to take one of the
restrictions listed on the discrete restrictions tab page into consideration. An
example of this would be integer-based and minimum lot sizes for transportation
or the production process model (PPM). You must also activate this method if you
want the optimizer to take account of cross-period lot sizes in lot size planning. To
determine integer-based solutions or use lot sizes and cost profiles, you need to
choose the discretization options in the optimizer profile. You can make variables
discrete as long as the discretization indicator is set in the master data (PPM).
Utilization of the discrete optimization method allows you to greatly increase
runtime requests. We therefore recommend that you limit the runtime or number
of improvements (see the options on the solution methods tab page). Please note
that Supply Network Planning is a medium-term planning function that should
not focus on solving integer-based problems (i.e. utilization of the discrete
optimization method).

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The Branch and Cut methods perform a full search. To avoid excessively long
run times, you should limit the number of iterations (improvements) or the run
time (in seconds). The system then returns the solution it found up to that point. If
no entry is made, the runtime can be very long. Iteration means that the system
moves from one valid solution to the next best valid solution.

With automatic cost generation, you can generate all relevant control costs
in reasonable proportion using a linear program.
You can influence generated costs in the following ways:

By means of demand priorities and location product priorities

By using PDS/PPM procurement priorities

By using transportation lane procurement priorities
There is an explanation function for explaining non-delivery and safety
stock shortfalls.

To specify to the optimizer the costs of planning, you can enter actual costs, such
as production and transport costs, into the system. You can, however, also define
control costs that correspond to your business goals. The realization of business
goals in control costs is not, however, simple for the planner.
With the automatic cost generation function you can easily let the system
generate all control costs (i.e. the cost model) relevant to the optimizer. The
system creates these costs automatically on the basis of your specified business
goals. The assumed principal goal is the maximization of delivery potential.
The system generates the following data:






Storage costs
Production costs
Product-specific transportation costs
Costs for procuring
Penalty costs for safety stock shortfalls
Penalty costs for non-delivery
Penalty costs for delayed delivery

For the system to be able to calculate costs for delayed delivery, you must specify
a maximum delay in the product master data on the tab page SNP 1. All costs that
you may have specified in the master data will be ignored by the system. They do,

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Lesson: Profiles Used by the Optimizer

however, remain unchanged in the system after the costs generation. The system
does not generate the following costs, since it would require additional information
from the planner or because the costs are only relevant in a complex scenario:


Cost functions (production, transport, procurement)
Costs for means of transport
Costs for the use of available resource capacity (costs for use of normal and
maximal supply or for shortfalls in minimum supply).

The system also does not take into account the cost profile for weighting of costs
which you can specify in optimization-based planning.
Optimization-based SNP planning works according to a global solution method,
which means it takes into account all restrictions and costs simultaneously
across the whole model. This is why it often provides a better solution than
other planning methods can. The results of the optimization run are not always
easily understood. With the explanation function you can have two essentially
exceptional optimization run situations explained to you by the system:

Non-delivery
Safety stock shortfalls

The following five factors may come into question as causes of non-delivery and
safety stock shortfalls:




Capacity restrictions
Time-dependent restrictions and maximum lot sizes
Product availability
Negative lead time
Costs
Hint: The explanation function displays these causes. It does not,
however, deliver any explanation for why the optimizer did cover demand
for a specific product given lacking capacity but did not cover the demand
for another product.

The aggregated planning explained in the section regarding the SNP heuristic
can also be used in the SNP optimizer. It reduces the problem and achieves
considerable runtime improvements.

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Lesson: Profiles Used by the Optimizer

Exercise 22: Optimizer Profiles
Exercise Objectives
After completing this exercise, you will be able to:

Create Cost and Optimizer Profiles

Explain the settings in the optimizer profile

Business Example
The optimizer uses profiles to set the parameters for the optimization run. As
Planning Manager at Precision Pump Company, you need to understand the effect
the settings will have on the results of the optimization run and be able to create
new profiles.

Task:
1.

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Copy the MASTER optimizer profile to your profile GROUP##.

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Solution 22: Optimizer Profiles
Task:
1.

Copy the MASTER optimizer profile to your profile GROUP##.
a)

Select Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Profiles → Define
SNP Optimizer Profile.

b)

Select the MASTER profile.

c)

Click Copy as.. to copy the MASTER profile.

d)

Overwrite the name MASTER with GROUP## with the description
Group 01 to rename the copy.

e)

Click

to adopt the new profile.

f)

Click

to save the profile.

g)

If a Customizing request is required, click
in the description field. Click

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and

. Then enter SCM230
.

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Lesson: Profiles Used by the Optimizer

Lesson Summary
You should now be able to:

Create Cost and Optimizer profiles

Explain the settings in the optimizer profile

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Lesson: Parameters of the Optimization Run
Lesson Overview
This lesson will help you understand how cost functions can be used to model
non-linear costs. How to use a bound profile to constrain the results of the run and
how the bucket offset affects scheduling.

Lesson Objectives
After completing this lesson, you will be able to:


Execute an optimization run
Create a cost function and use it in the optimization run
Explain how the bound profile and the bucket offset affect the results of
the optimization run.

Business Example
As Planning Manager at Precision Pump Company, you need to ensure that the
demands from the customers are met and timely delivery of products is made.
Taking account of the constraints for storage, transportation, and inventory, you
should create an optimal plan that will help you solve the problem.

Optimization Parameters

Figure 167: Optimizer Cost Functions

The optimizer normally considers costs on a linear basis; for example, if it costs
one unit to produce one pump, then it will cost ten units to produce ten pumps.

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You can use cost functions to define a non-linear relationship between costs and
quantities for procurement, production, or transportation from variable and fixed
costs. The optimizer can then calculate the optimal lot sizes from the procurement
and storage costs (optimum lot-sizing procedure).


You define the procurement cost function in the product master.
You define the production cost function in the plan (PPM).
You define the transportation cost function in cost maintenance in the SNP
master data for the transportation lanes.

In the cost function you maintain, for example, the procurement of 0 to 100 pieces
with fixed costs of 100 and variable costs of 7. The procurement of 50 pieces
then costs the fixed cost plus 50 times the variable costs, that is to say 450 in
this interval.
Dependencies

If you use cost functions, the optimizer ignores the general variable costs.
Cost functions are only considered during discrete optimization.

Figure 168: The SNP Optimization Bound Profile

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

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Figure 169: Bucket Offset in the Optimizer

The availability date of receipt elements is determined in the SNP heuristic using
the period factor and in the SNP optimizer using the bucket offset.
Order dates and availability dates are separate in the optimizer.
The bucket offset governs the availability date of an order. The order finish date is
calculated by forward scheduling the fixed duration times of the order from the
start of the bucket. If the finish date is before the bucket offset, the planned order
is scheduled with the calculated dates and times. If the finish date is after the
bucket offset, the order is scheduled in the previous bucket and is available at the
start of the current bucket. Rule of thumb:

Large limit values are optimistic because they imply that the products are
available earlier than specified.
Smaller values are more conservative because the receipt for the products is
planned already in the previous bucket.

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

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Lesson: Parameters of the Optimization Run

Data view - You define the time buckets profile and key figures for planning
Selection - You specify the products and locations that you want to optimize
simultaneously
Add products from supersession chains
Source determination for aggregate planning
Planning start and end dates - You define the planning horizon
The optimizer profile
Cost profile
Limits profile
Key figures for the generation of quota arrangements
The optimizer can create quota arrangements. The optimizer only overwrites
quota arrangements for the given horizon, period type, and inbound or outbound
quota arrangements.

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Lesson: Parameters of the Optimization Run

Exercise 23: Optimizer Planning Run
Exercise Objectives
After completing this exercise, you will be able to:

Define the costs used by the optimizer when creating a plan

Explain the working of the cost profile and the optimizer profile

Explain the various optimization methods

Business Example
The Precision Pump company uses the optimizer to optimize the product flow
of its most important products over the medium-term horizon and to create an
optimal plan. As Supply Chain Manager at the Precision Pump company, you need
to set demand priorities and ensure that products are delivered punctually. Control
costs can be used to prioritize demands and receipts. You need to know the effect
of costs for storage, transportation and production to understand planning results.

Task 1:
In the following exercise you will run the optimizer and successively modify
costs so that an optimal plan is created. Then you will execute automatic cost
generation and incorporate the supplier.
Caution: Planning results are very dependent on your requirement dates
and on the number of public holidays in the planning horizon.
1.

First run the optimizer interactively in the SNP94(1) data view. Load all
location products from your selection PRODOPT## and run the optimizer for
the whole network whilst selecting the GROUP## optimizer and MASTER
cost profiles. Analyze the costs which the optimizer has calculated for this
solution.
Did the optimizer calculate penalties for delay or no delivery? Check the
planned orders for the product P-102 at the location 2300. Why did the
optimizer not create any orders directly after the SNP production horizon?

2.

Which demand is met after a delay? Examine optimizer log files in a second
session and filter them according to their user. Particularly analyze the
location product-dependent result indicators.

3.

Analyze in the first session the situation for production resources
W1906_1000_001, WORK##, and W1906_2300_001. The resources do not
have a load of over 100 %. Why is resource W19_06_1000_001 not fully
loaded? Which products are being produced at resources WORK ## and
W1906_2300_001?
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4.

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Change the storage costs for product P-102 at location 2300 from 30 to 10 in
the Maintain Costs (directory) for your version OPT-##.
Execute the optimization run in the background. Create a variant called
GROUP## for it.
Planning book

9ASNP94

Data view

SNP94(1)

Selection profile

PRODOPT##

Optimizer profile

GROUP##

Cost profile

MASTER

Examine the refreshed optimizer log files for your user in your second
session. Analyze again the location product-dependent result indicators. Has
the delay been eliminated?

Task 2:
1.

Why was product P-103 not planned? Examine the optimizer log data in
your second session. Particularly analyze the non-delivered requirements in
the results log and in the histroy log the requirement class 3.
Now maintain Location penalty costs for the demand forecast of product
P-103 in the Maintain Costs (directory) for your version OPT-##.
Penalty for ND [no delivery]

320

Delay penalty

10

Maximum delay

30

Execute the optimization run in the background with the variant GROUP##.
Examine the refreshed optimizer log files for your user in your second
session. Analyze again the location product-dependent result indicators.
Has the ND been eliminated? Display the non-delivery explanation. Why
was the non-delivery not eliminated?

Task 3:
You feel that the cost maintenance is too time consuming, and for this reason use
automatic cost generation in the following exercise.
1.

Configure automatic cost generation in your optimizer profile. Execute again
the optimization run in the background with the variant GROUP##.
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Lesson: Parameters of the Optimization Run

Examine the refreshed optimizer log data for your user in your second
session. Analyze again the location product-dependent result indicators. Has
the ND been eliminated? Also analyze the generated costs.

Task 4:
1.

Analyze the planning results for the supplier in interactive Supply Network
Planning (all books). Choose your planning book SUP##, the SUPPLIER
data view, and selection “SUP##.” Change the selection version to OPT-##.
The optimizer did not generate any planned distribution demand either, as no
receipts were entered in version OPT-##. Now, enter a distribution receipt
of 200 pieces for four weeks from now. Optimize again in the background
with your variant Group## and check that a planned distribution demand
has been created.

Task 5:
1.

Access the PP/DS product view and analyze the planned orders for the
product P-102 in plant 2300. The optimizer has not calculated integer-based
(whole number) solutions. To receive solutions that are integer-based, set the
discretization indicator in the PPM of your plan P 102_SNP_2300_##. In
the GROUP## optimizer profile, now choose discretization and restart the
optimizer in the background with your variant GROUP##. You will now see
in the PP/DS product view that integer-based solutions have been generated.

Task 6:
1.

Analyze in Product View the purchase requisitions for the procurement of
components 102-100 in plant 2300. You want the optimizer to determine
the optimal lot size for your purchase requisitions. To do so, create in
Maintain Costs (Directory) a cost function SUP## for your version OPT##
for procurement in pieces of components102-100 in plant 2300, and make
the following settings:
From
100

To

Fixed costs

Variable costs

300

1000

50

999.999,999

16000

20

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

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Solution 23: Optimizer Planning Run
Task 1:
In the following exercise you will run the optimizer and successively modify
costs so that an optimal plan is created. Then you will execute automatic cost
generation and incorporate the supplier.
Caution: Planning results are very dependent on your requirement dates
and on the number of public holidays in the planning horizon.
1.

First run the optimizer interactively in the SNP94(1) data view. Load all
location products from your selection PRODOPT## and run the optimizer for
the whole network whilst selecting the GROUP## optimizer and MASTER
cost profiles. Analyze the costs which the optimizer has calculated for this
solution.
Did the optimizer calculate penalties for delay or no delivery? Check the
planned orders for the product P-102 at the location 2300. Why did the
optimizer not create any orders directly after the SNP production horizon?
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning and
check that you are in data view SNP94(1).

b)

Load all the location products to your selection PRODOPT## into the
planning table by double-clicking the selection and with the button
Load Data.

c)

Go to change mode
and choose the
interactive planning table.

d)

Select the GROUP## optimizer profile and the MASTER cost profile.

e)

Start the optimization run . On the Solutions tab page you will find
productions, storage and transport costs and penalties for delays.

f)

. Select product P-102
Return to the planning table and save
in the location 2300 by double-clicking, expand the total receipts and
check the planned orders in the key figure Production (planned). The
optimizer did not create any orders directly after the SNP productions
horizon because storage costs are set too high.

Optimizer button in the

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2.

3.

4.

Which demand is met after a delay? Examine optimizer log files in a second
session and filter them according to their user. Particularly analyze the
location product-dependent result indicators.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Reporting → Optimizer Log Data

b)

your
Filter by user name by using Set Filter and enter under
user as filter criteria. Double-click on the optimization run, expand
the result indicators , then double-click again on location product
dependent indicators IT_MLOINDI. You recognize a delay for
product P-102 at location 2400.

Analyze in the first session the situation for production resources
W1906_1000_001, WORK##, and W1906_2300_001. The resources do not
have a load of over 100 %. Why is resource W19_06_1000_001 not fully
loaded? Which products are being produced at resources WORK ## and
W1906_2300_001?
a)

Double-click in the first session on data view SNP94(2).

b)

Double-click on your selection RESOPT## to see the resources in the
selection window.

c)

Double-click again on the resources to display the capacity situation
in the planning table. The resource W1906_1000_001 is not charged
because the supplier cannot deliver the components. Using the key
Display dependent objects → Products you find out that only
product P-102 was planned.

Change the storage costs for product P-102 at location 2300 from 30 to 10 in
the Maintain Costs (directory) for your version OPT-##.
Execute the optimization run in the background. Create a variant called
GROUP## for it.
Planning book

9ASNP94

Data view

SNP94(1)

Selection profile

PRODOPT##

Optimizer profile

GROUP##

Cost profile

MASTER

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Examine the refreshed optimizer log files for your user in your second
session. Analyze again the location product-dependent result indicators. Has
the delay been eliminated?
a)

Choose Advanced Planning and Optimization → Master Data →
Application-Specific Master Data → Supply Network Planning →
Maintain Costs (Directory). Enter your version OPT-##.
The storage costs are located on the Storage → Products →P-102 –
2300 tab page. Double click on the location and select Change. Enter
the costs and save your entry.

b)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Optimization.
Enter planning book 9ASNP94 and data view SNP94(1). Choose the
“Selection profile” radio button and enter your profile PRODOPT##.
Select the GROUP## optimizer profile and the MASTER cost profile.
Save your entries as variant GROUP##. Execute the optimization run
by choosing

c)

Execute (F8) .

In the second session you are still in Advanced Planning and
Optimization → Supply Network Planning → Reporting → Optimizer
, to the optimization run
Log Data. Return, possibly by choosing
display and refresh the display by choosing Refresh.

d)

Double-click on the last optimization run with your user, expand
the result indicators , then double-click again on location
product-dependent indicators IT_MLOINDI. You recognize that the
delay for product P-102 at location 2400 has been eliminated. Stay
in this transaction.

Task 2:
1.

Why was product P-103 not planned? Examine the optimizer log data in
your second session. Particularly analyze the non-delivered requirements in
the results log and in the histroy log the requirement class 3.
Now maintain Location penalty costs for the demand forecast of product
P-103 in the Maintain Costs (directory) for your version OPT-##.
Penalty for ND [no delivery]

320

Delay penalty

10

Maximum delay

30
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Lesson: Parameters of the Optimization Run

Execute the optimization run in the background with the variant GROUP##.
Examine the refreshed optimizer log files for your user in your second
session. Analyze again the location product-dependent result indicators.
Has the ND been eliminated? Display the non-delivery explanation. Why
was the non-delivery not eliminated?
a)

In the optimization run display of the second session, expand
the Results Log, then double-click again on IT_NOTDELI
non-delivered requirements. Here you recognize, that requirements for
product P-103 in location 2400 were not delivered. Why not?
Expand the Input log and execute a further double-click on
requirement class ET_DEMCLTIM In requirement class 3 (planned
independent requirements) no delays or non-delivery costs are defined.
This is why the optimizer did not plan this product.

b)

Choose Advanced Planning and Optimization → Master Data →
Application-Specific Master Data → Supply Network Planning →
Maintain Costs (Directory). Enter your version OPT-##.
The penalty costs are on the tab page Other → Delay/No-delivery
→P-103 . Double click on the product and select Change. Enter the
costs and save the entry.

c)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Optimization.
Get your variant GROUP## and execute the optimization run by
choosing

d)

Execute (F8) .

You are in the second session in the optimization run display;
refresh the display by choosing Refresh and select the last run by
double-clicking. Expand the result indicators and double-click
again on location-product dependent indicators IT_MLOINDI.
A delay for product P-103 at location 2400 is still apparent. To
receive an explanation, select the Explain button and execute the
explanation with set parameters by choosing Execute (F8). Expand
Explanations and User and double-click Explanation Results.
You see the message: Product P-103 in location 2400: penalty costs
for non-delivery too low.

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Task 3:
You feel that the cost maintenance is too time consuming, and for this reason use
automatic cost generation in the following exercise.
1.

Configure automatic cost generation in your optimizer profile. Execute again
the optimization run in the background with the variant GROUP##.
Examine the refreshed optimizer log data for your user in your second
session. Analyze again the location product-dependent result indicators. Has
the ND been eliminated? Also analyze the generated costs.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Profiles → Define
SNP Optimizer Profiles. For your optimizer profile GROUP##, set
the indicator Automatic Cost Generation in the top right. Now go
back

b)

and

save your profile.

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Optimization.
Get your variant GROUP## and execute the optimization run by
choosing

c)

Execute (F8).

You are in the second session in the optimization run display;
refresh the display by choosing Refresh and select the last run by
double-clicking. Expand the result indicators and double-click on
location-product dependent indicators IT_MLOINDI. You see that all
requirements could be met. Expand Explain and Results Log and
double-click on IT_AMCST, IT_PRCST; IT_LMCST and IT_DCCST
generated costs. .

Task 4:
1.

Analyze the planning results for the supplier in interactive Supply Network
Planning (all books). Choose your planning book SUP##, the SUPPLIER
data view, and selection “SUP##.” Change the selection version to OPT-##.
The optimizer did not generate any planned distribution demand either, as no
receipts were entered in version OPT-##. Now, enter a distribution receipt

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Lesson: Parameters of the Optimization Run

of 200 pieces for four weeks from now. Optimize again in the background
with your variant Group## and check that a planned distribution demand
has been created.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning (All
Books).

b)

Choose your planning book SUP##, the SUPPLIER data view, and
selection SUP## by means of double-clicking. The location product is
displayed in the selection window.

c)

Choose the selection window
Save.

d)

Now, double-click the location product. The planning has created
no distribution demand. Enter a distribution receipt of 200 pieces in
4 weeks and save.

e)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Optimization. Get your variant GROUP## and

and change the version to OPT-##.

execute the optimization run by choosing

Execute (F8).

f)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Interactive Supply Network Planning (All
Books).

g)

Execute the location product in the selection window by
double-clicking your SUP## selection. The optimizer has generated
distribution receipts and made sure that the distribution receipt of 200
pieces you entered has not been exceeded.

Task 5:
1.

Access the PP/DS product view and analyze the planned orders for the
product P-102 in plant 2300. The optimizer has not calculated integer-based
(whole number) solutions. To receive solutions that are integer-based, set the
discretization indicator in the PPM of your plan P 102_SNP_2300_##. In

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the GROUP## optimizer profile, now choose discretization and restart the
optimizer in the background with your variant GROUP##. You will now see
in the PP/DS product view that integer-based solutions have been generated.
a)

Choose Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning → Product View.
Enter your version OPT-##, product P-102, and location 2300. You
find no integer-based SNP planned orders. Stay in the product view.

b)

In the second session, choose Advanced Planning and Optimization
→ Master Data → Production Process Model →Production Process
Model.
Enter product P-102, location 2300 and use of plan S, and choose
Change. Then select your plan P102_SNP_2300_##.
Expand PPM and execute a double-click on PPM
P-102_SNP_2300_ALT_## and set the discretization indicator.
Activate the plan.
Choose Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Profile → Define SNP
Optimizer Profile.
In the GROUP## optimizer profile top right configure the discrete
optimization procedure. Now go back and save your profile.
Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Supply Network Optimization.
Get your variant GROUP##. Execute. Check in the PP/DS product
view in your second session by choosing Refresh whether integer-based
solutions have been generated.

Task 6:
1.

Analyze in Product View the purchase requisitions for the procurement of
components 102-100 in plant 2300. You want the optimizer to determine
the optimal lot size for your purchase requisitions. To do so, create in
Maintain Costs (Directory) a cost function SUP## for your version OPT##
for procurement in pieces of components102-100 in plant 2300, and make
the following settings:

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Lesson: Parameters of the Optimization Run

From
100

To

Fixed costs

Variable costs

300

1000

50

999.999,999

16000

20

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

Choose Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning → Product View.
Enter your version OPT-##, product 102-100, and location 2300. You
find several small purchase requisitions. Stay in the product view.

b)

Choose Advanced Planning and Optimization → Master Data →
Application-Specific Master Data → Supply Network Planning →
Maintain Costs (Directory). Enter your version OPT-##.
You will find procurement costs on the Other→ Procurement
Costs→102-100 – 2300 tab page. Double-click on the location and
select Change. Enter the cost function SUP##. A dialog box appears
asking Do you want to create the cost function?. Choose Yes. Create
the cost function with a the unit of measure "Piece" and the above
data and save.
In the other session, choose Advanced Planning and Optimization →
Supply Network Planning → Planning → Supply Network Planning in
the Background → Supply Network Optimization.
Get your variant GROUP##. Execute the planning.
By choosing Refresh in the PP/DS product view of your second session,
check whether the quantities in the purchase requisitions have changed.

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Lesson Summary
You should now be able to:

Execute an optimization run

Create a cost function and use it in the optimization run

Explain how the bound profile and the bucket offset affect the results of
the optimization run.

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Lesson: Comparing SNP Planning Methods

Lesson: Comparing SNP Planning Methods
Lesson Overview
This lesson will help you compare the SNP planning methods

Lesson Objectives
After completing this lesson, you will be able to:

Compare the SNP Planning Methods

Business Example
As Planning Manager at Precision Pump Company, you need to ensure that the
demands from the customers are met and timely delivery of products is made.
An appropriate planning tool must be selected to ensure deliveries are made and
operations are kept as efficient as possible.

Comparing SNP Strategies

Figure 170: SNP Strategies: Comparison (1)

The Heuristic is a rapid infinite planning method that generates alerts when there
is insufficient material or a resource overload.
Capable-to-Match (CTM) is a rules-based method with extensive prioritization
capabilities and finite, global planning of production resources. CTM is an
order-related planning method that defines the first feasible solution and uses
pegging to link the prioritized demands with receipt elements.

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The optimizer considers material and resource availability simultaneously. The
optimizer uses linear programming to consider all relevant factors simultaneously
as one problem. This means that the optimizer does not use sequential processing
when determining a solution. The optimizer considers costs for transportation,
production, storage, and handling to provide a minimum-cost solution that meets
all the constraints.
In Supply Network Planning, planning is not based on individual demands, but on
the total demand per bucket. As a result, the SNP planning run cannot use pegging
to link individual demands with receipt elements.

Figure 171: SNP Strategies: Comparison (2)

In terms of performance, the three planning methods can be compared as follows:
The heuristic is the fastest method, CTM the second fastest, and the optimizer the
slowest and the most complex. If you plan a very large number of orders per
bucket and location product, the performance of CTM and the optimizer might
be comparable because planning in CTM is order-based. The performance of the
heuristic and optimizer depends on the number of location products to be planned.
The performance of CTM planning is determined by the number of demands.
The heuristic plans on an infinite basis, without taking account of material and
resource availability. CTM finds the first feasible solution by taking account of
the constraints. The optimizer finds the best results because its algorithm weighs
up all the possibilities.
Production resources can be taken into account by the optimizer and CTM
both globally and finitely. The infinite planning results of the heuristic, on the
other hand, have to be capacity-leveling post-processed in the case of a capacity
bottlenecks.

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CTM and the optimizer can consider transport-, and handling resources as
global and finite. Only the optimizer can plan storage resources .
All methods can work on a multilevel basisand therefore can plan on all bill of
material (BOM) levels.
Prioritization of demands makes no sense for the heuristic, as planning is infinite,
which means that all demands are fulfilled irrespective of their feasibility. For the
CTM planning run, you can define the prioritization of demands most detailedly
for individual demands, and have all individual-demand criteria available to
this end. In the case of the optimizer, priorities can only be set at cost and
location levels. The optimizer prioritizes needs over penalty costs for delays and
non-delivery.
The heuristic splits requirements by percentage if quota arrangements exist.
CTM attempts to fulfill quota arrangements by percentage or time unit per
planning run, in so far as this is feasible. The optimizer does not take any quota
arrangements into account. You can, however, use the optimization result to create
optimized quota arrangements.
Implementation of the heuristic is easy by comparison, because few control
parameters exist. The planning result is also easily understandable for the
planner. For CTM, profiles and master data selections must be created, and the
planning procedure is more complex. There is, however, an explanation function
and the paging network to make the planning result understandable. For the
optimizer, maintaining costs is particularly time consuming, since all costs are
interdependent. Here the automatic cost generation and the explanation function
are helpful.

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Lesson Summary
You should now be able to:

Compare the SNP Planning Methods

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Unit Summary

Unit Summary
You should now be able to:

Explain the process flow of SNP

Describe how the SNP Optimizer uses costs in the optimization run

Copy a planning version

Explain the costs and their effects on planning

Identify where to maintain the costs used in the Optimization run.

Create Cost and Optimizer profiles

Explain the settings in the optimizer profile

Execute an optimization run

Create a cost function and use it in the optimization run

Explain how the bound profile and the bucket offset affect the results of
the optimization run.

Compare the SNP Planning Methods

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Unit Summary

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Unit 7
Interchangeability
Unit Overview
The unit will prepare you to use the interchangeability functionality in SNP to
replace products at both the finished good and component level.

Unit Objectives
After completing this unit, you will be able to:



Describe the two basic types of product interchangeability
Create an interchangeability group to model a supersession chain
Plan in the SNP heuristic using product interchangeability
Plan in the SNP optimizer using product interchangeability

Unit Contents
Lesson: Product Interchangeability...........................................394
Exercise 24: Product Interchangeability .................................405
Exercise 25: Product Interchangeability in SNP Heuristic Planning . 411
Exercise 26: Product Interchangeability in SNP Optimizer Planning 413

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Lesson: Product Interchangeability
Lesson Overview
This lesson introduces you to the suite of functions that controls the replacement
of one product by another. This process is known as product interchangeability.

Lesson Objectives
After completing this lesson, you will be able to:



Describe the two basic types of product interchangeability
Create an interchangeability group to model a supersession chain
Plan in the SNP heuristic using product interchangeability
Plan in the SNP optimizer using product interchangeability

Business Example
Your company is replacing old products with new products. This replacement
is taking place both for finished goods and components or assemblies. This
replacement must now be planned. To replace the manufactured products in the
sales order, use product interchangeability in the rule-based availability check, or
phase-in/phase-out in SAP ECC.

Product Interchangeability

Figure 172: Product Interchangeability

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Lesson: Product Interchangeability

There are two major interchangeability scenarios:

Product Interchangeability
Form-fit-function classes

Product Interchangeability
One product is replaced by another as of a specific date. For example, the new
product may be more advanced technically or produced more efficiently. There
are two possible relationship types (directions) in product interchangeability:

Forward interchangeability
Full interchangeability

If product A can be interchanged forward by product B, replacement is possible in
this direction only. This means that a demand for product B cannot be met by a
receipt for product A. Demand for product A is redirected to product B.
If a product is fully interchangeable, product A can be replaced by product B and,
vice versa, product B can be replaced by product A.
You can specify that old product stock must be used up. You can also set a time
limit on this.
It is possible to include several products in a supersession chain.
Form-Fit-Function Classes
An FFF class contains several fully interchangeable products with the same
technical properties (form, fit and function). Planning is carried out for the leading
product only. There is no interchangeability horizon. FFF classes are supported
in Global ATP and SNP only.
The interchangeability of products is taken into account in the heuristic, in CTM,
and in optimizer-based planning. For example, you can transfer demand for a
product that is to be phased out to a successor product in the SNP run, or use
existing stock of a product to meet demand for the successor product. Demands
are redirected using substitution orders that are not transferred to SAP ECC.

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Figure 173: Interchangeability Groups

As of SAP SCM 4.0, product interchangeability is maintained through the use of
interchangeability groups in the master data of the SCM system.
In order to plan with interchangeability in SNP and PP/DS you need to create an
interchangeability group of the group type Supersession Chain and assign
it to one or more locations. You can create more than one supersession chain. No
product may, however, be included in more than one supersession chain at a time.
Configurable products cannot be used in substitution.
For each supersession chain a planning package is generated automatically for
the location products and linked to their master records (Planning Package Type
001: Planning Package for Supersession Chains). This planning package contains
the PP/DS heuristic SAP_PP_I001 with which the products of the supersession
chain are planned in the correct sequence.
You enter the successor product with a Valid From date. The Use Up strategy of
the supersession chain determines whether remaining stock of the predecessor
product should be used up before the successor product is procured. A horizon
allows you to determine for how long the use-up of stocks is possible.
Interchangeability groups can be generated from the ECC discontinued parts data.
The data is extracted in XML format and then transferred to the SCM system (for
more information, see OSS note 617281 (higher than Release 4.6C) or 617283
(Release 4.6C or lower).

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Figure 174: Planning with Forward Interchangeability

When planning with supersession chains the system passes the demand for a
predecessor product to a successor product in the form of substitution orders. A
substitution order generates a receipt for the predecessor product and a demand
for the successor product. This demand leads to the procurement of the successor
product.
Which substitution orders are created depends on the settings made in the
supersession chain for Direction (relationship type) and Use Up. In the following
example, product A is the predecessor product and product B the successor
product.

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Use-up

Creation of Substitution Orders

No

Product A is replaced by product B. As soon as the Valid From
date is reached, demand for product A is transferred to product
B via product substitution orders. The remaining inventory for
product A is not used.

Restricted

When the Valid From date is reached, demand for product A is
transferred to product B via product substitution orders as long
as the demand cannot be met by the Use Up Date with inventory
of product A.

Yes

Demand for product A is transferred to product B via product
substitution orders only if the demand cannot be met with
inventory of product A.

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Figure 175: Planning with Full Interchangeability

Use-up

Creation of Substitution Orders

No

Product A is replaced by product B. As soon as the Valid From
date is reached, demand for product A is transferred to product B
via SNP product substitution orders. The remaining inventory
for product A is not used.
It does not make sense to use this option with full
interchangeability.

Restricted

When the Valid From date is reached, demand for product A is
transferred to product B via SNP product substitution orders.
Until the Use Up date demand for product B is met, if possible,
with inventory of product A.

Yes

Demand for product A is transferred to product B via SNP
product substitution orders, and demand for product B is met, if
possible, with inventory of product A.

FFF Classes
If an FFF class is used, all demand for products in this class is transferred to the
leading product. If the demand cannot be met with inventory of the leading
product, SNP searches for stock of the other products in the class. If the total
demand cannot be met, stock is procured for the leading product.

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Interchangeability in SNP Heuristic Planning
In Supply Network Planning (SNP), both heuristic-based and optimization-based
planning takes into account the interchangeability of products. You can use
product interchangeability in the Supply Network Planning run to transfer
demands for a product that is to be discontinued onto a successor product or to
use existing stock of a current product to fulfill demand for the successor product.
SNP supports the following product interchangeability methods:


Product discontinuation - forwardly interchangeable only
Supersession chain - fully interchangeable
Form-fit-function class (FFF class) - fully interchangeable

You must use the standard SNP planning book called 9ASNP_PS with data view
PROD_SUBST to be able to take product interchangeability into account in
Supply Network Planning. This planning book contains the required key figures
Substitution Demand and Substitution Receipt, and an adapted macro (that takes
these key figures into account) for calculating the stock balance. However, you
can also create your own planning books based on this standard planning book.
Product interchangeability in SNP is a fully integrated part of the entire SAP SCM
product interchangeability process. The SNP planned orders and stock transfers
generated during planning are transferred to a connected SAP ECC system.
However, the SNP product substitution orders that are also generated and linked to
these orders are not transferred. This means that product substitution data is not
visible in the SAP ECC system during supply network planning. However, SNP
product substitution data can also be integrated with SAP ECC using Production
Planning and Detailed Scheduling (PP/DS). Product substitutions for distribution
demands cannot be transferred to the SAP ECC system. Therefore, product
interchangeability should not be used for distribution demands.
SNP does not support group type Restricted interchangeability for FFF classes
nor does it support rules.

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Prerequisites


You have activated product interchangeability in SNP Customizing, Maintain
Global SNP Settings.
You have created the master data for running the SNP heuristic or the SNP
optimizer and have made the required settings for these planning runs.
You have defined the production substitution data in the master data
for product interchangeability. This means that you have created
an interchangeability group and assigned it to your model. The
interchangeability group always has to be created at the location where there
is existing demand
If you want to run product interchangeability in the background, you have set
the Add Products From Supersession Chains indicator in the functions that
you use to run the heuristic or the optimizer in the background. All products
of a supersession chain are then included in the selection and planned. If you
do not set the indicator, the system does transfer the demand to a successor
product by creating product substitution orders, but it does not plan the
receipt for the successor product. Note that this type of planning does not
provide correct results for the entire supply chain.

Discontinuation of Products (A→B)
A product (A) is superseded by a successor product (B) on a specific date. During
the planning run, all demands that exist for this product are transferred to the
successor product from this date onwards (defined as the Valid-from Date in the
product interchangeability master data). You can specify that you first want to use
up the existing stock of product A. To this end, enter in the product's master data
for product interchangeability the indicator Use Up. You can also specify a date
by which the stock of A has to be used up.
If the system detects demand for A during the planning run and determines that A
is no longer valid, it creates a receipt (SNP product substitution order) for A in the
Substitution Receipt key figure for A. The system also creates a demand for B in
the Substitution Demand key figure to transfer the demand onto B. Demand for
B is then fulfilled as usual during the planning run (by creating an SNP planned
order in the Production (Planned) key figure, for instance). If you have set the
indicator Use Up, any remaining stock of A is used to cover demand for A. This
remains true even after the discontinuation date and continues until the stock is
exhausted or until the specified use-up value is reached.

Supersession Chain (A→B<->C)
A product (A) is superseded by a successor product (B) on a specific date.
During the planning run, the system transfers demands for A to B from this
date onwards. However, demands for B cannot be transferred to A since A was
assigned the interchangeability direction Forward interchangeable. Product B
is then to be superseded by product C at a later date. Demands for B will be

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transferred to C from this date onwards. As the direction of interchangeability
Fully interchangeable was defined for B, requirements for C can also be covered
by surplus warehouse stock for B.
To replace A with B, the system proceeds as described in the “Discontinuation
of Products ”section. If the system detects that there is demand for B and that B
is no longer valid, it creates a substitution receipt for B to compensate for the
demand for B and a substitution demand for C to transfer the demand onto C. If
the system detects demand for C and had determined beforehand that there was
still surplus stock of B, it creates a substitution receipt for C and a substitution
demand for B. Until the use-up date, the system uses the surplus stock of B for
covering demand B first. Only if stock of B is still available afterwards does the
system also cover demand of C.

Form-Fit-Function Class (FFF Class)
Different products with almost identical technical properties are grouped into
FFF classes and FFF subsets (on a location-specific basis). It is only possible to
procure the product that is labeled as the leading product of the FFF subset. In
SNP, all demands that exist for the other products of the FFF subset are transferred
onto the leading product. If there is insufficient stock of the leading product, stock
is used of the other products from the FFF subset. The leading product will be
procured (that is, produced in-house or procured externally) only if none of the
products have sufficient stock.
If the system detects demand for any product other than the leading product and
there is insufficient stock of this product, it creates a substitution receipt for this
product to compensate for the demand and a substitution demand for the leading
product to transfer the demand onto this leading product.

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Interchangeability with the SNP Optimizer
In addition to the details given above, the following information applies
specifically to interchangeability with the SNP optimizer.

The optimizer’s decisions are based on the costs defined for the supply chain
model (storage, transportation, production, and procurement costs). It always
finds the most cost-effective solution. The optimizer does not calculate any
costs for the replacement of one product by another at the same location.
In contrast to the heuristic, the optimizer does not consider the product in
one location only, but in all locations of the model. Example: Product A at
location C is to be replaced by product B at location C. There is no more
stock of product A at location C. If demand comes in for product A only, the
SNP heuristic transfers this demand to product B. The optimizer, however,
checks whether other locations of the model contain stock of product A. If,
for example, sufficient stock is still available in location D, the optimizer
checks the costs that are associated with a stock transfer of product A from
location D to location C. If this is the most cost-efficient solution, because,
say, the storage costs in D are higher than the transport costs to C, then the
optimizer plans the stock transfer from D to C. The demand for product A is
then fulfilled by the transferred stock.

Product Interchangeability in CTM
In Capable-to-Match planning (CTM), you can plan the simple discontinuation of
a product. With simple discontinuation, a product is only valid until a certain date
– the discontinuation date. After the discontinuation date, the successor product
is valid. To fulfill product demands that lie after the discontinuation date, CTM
must procure the successor product. If it allows the use-up strategy, CTM can also
use the excess supplies and receipts of the product, to fulfill product demands
after the discontinuation date. However, CTM cannot use excess products to
fulfill demands for the successor product.
Hint: As CTM plans an individual demand for the entire BOM, CTM
cannot guarantee that product supplies are used up completely. This is
particularly important when you plan a product with a fixed lot size.
CTM uses product interchangeability in all planning segments with the exception
of the forecast segment. In the subcontracting scenario, CTM does not use product
interchangeability.

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Prerequisites

You have created a product interchangeability group with a supersession
chain and assigned the product interchangeability group to the supply
chain model that you have also specified in the CTM profile. The
following conditions apply to the supersession chain and the products in the
supersession chain.



The supersession chain can not contain assembly groups.
A product can only be contained in a single supersession chain.
The base unit of measure must be the same for all products of a
supersession chain.

A supersession chain cannot contain configurable products.
You have assigned the supersession chain to the locations at which you
want to plan substitutions.
In the CTM planning profile, in the Product Interchangeability field on
the Special Strategies tab page under Strategies, you have set the Use
Discontinuation option.

CTM supports linear supersession chains with products that are linked by
substitution relationships of type Interchangeable Forwards. If two products are
linked with a substitution relationship of type Completely Interchangeable, CTM
processes the products as if they were only interchangeable forwards.

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Lesson: Product Interchangeability

Exercise 24: Product Interchangeability
Exercise Objectives
After completing this exercise, you will be able to:

Create Product Interchangeability Groups

Identify the Product Master changes that occur when an interchangeability
group is created

Business Example
Product T-F2## is replaced in the location 2300 by product T-F3##. Precision
Pump wants to use the remaining stock of T-F2## before beginning to ship T-F3##.

Task:
1.

Using the following data, create an interchangeability group, FG##, for
the replacement of product TF2## by T-F3## in location 2300. Release
this interchangeability group and assign the interchangeability group to
model 000.
Field Name

Value

Group

FG##

Description

T-F2##, finished product

Group Type

Supersession Chain

Location tab page
Location

2300

Group Details tab page

2.

Predecessor

T-F2##

Predecessor quantity Factor

1

Successor

T-F3##

Successor quantity Factor

1

Rel Type

Forward

Valid from

today

Use-up

Yes

Check the T-F2## product master for changes resulting from the
interchangeability group you just created.
Continued on next page

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3.

Do you have an entry in the planning package field?

4.

Which Package Heuristic and Package Type did the system assign?

5.

Products

and

are included in this package.

Fill in the blanks to complete the sentence.

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Solution 24: Product Interchangeability
Task:
1.

Using the following data, create an interchangeability group, FG##, for
the replacement of product TF2## by T-F3## in location 2300. Release
this interchangeability group and assign the interchangeability group to
model 000.
Field Name

Value

Group

FG##

Description

T-F2##, finished product

Group Type

Supersession Chain

Location tab page
Location

2300

Group Details tab page
Predecessor

T-F2##

Predecessor quantity Factor

1

Successor

T-F3##

Successor quantity Factor

1

Continued on next page

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Rel Type

Forward

Valid from

today

Use-up

Yes

a)

Advanced Planning and Optimization → Master Data →
Application-Specific Master Data →Product and Location
Interchangeability → Maintain Interchangeability Group

b)

Choose the button

c)

Enter the Group, Description, and Group Type.

d)

Click on the Location tab and then click

e)

Enter the location from the table.

f)

In the Group Details in the lower section of the screen, click
Append row.

g)

Enter the remaining data from the table.
interchangeability group .

h)

Model Assignment. Drag
Click on the icon
model 000 from the right window to your interchangeability group in
the left window. Click

i)
2.

Append Row.

Release your

Save .
Back.

Return to the standard menu with the green arrow

Check the T-F2## product master for changes resulting from the
interchangeability group you just created.
a)

Advanced Planning and Optimization → Master Data → Product

b)

Enter

c)
3.

Create on the applications tool bar.

Field Name

Value

Product

T-F2##

Location

2300

Click the icon

Display and then

.

Do you have an entry in the planning package field?
Answer: Yes.

Continued on next page

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4.

Which Package Heuristic and Package Type did the system assign?
Answer: Click Maint. packet. SAP_PP_I001 was entered in the Product
Heuristic field, and 001 was entered in the Packet Type field.

5.

Products T-F2## and T-F3## are included in this package.
Answer: T-F2##, T-F3##
Click Products to find the list of products.

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Lesson: Product Interchangeability

Exercise 25: Product Interchangeability in
SNP Heuristic Planning
Exercise Objectives
After completing this exercise, you will be able to:

Plan product interchangeability using SNP Heuristic planning

Review the results of product interchangeability

Business Example
You have created the interchangeability group and must now ensure that the
heuristic implements supersession.

Task:
This exercise assumes that you have completed exercise 2 on the SNP heuristic
and SAP ECC integration in the first part of this course. If this is not the case,
first create a demand for 320 pieces of product T-F2## in location 2300, version
00 in two months.

2006/Q2

1.

Call up the interactive planning table with planning book 9ASNP_PS and
data view PROD_SUBST, and create a selection ID (PAT##, where PAT
stands for product interchangeability) which contains the finished goods of
your interchangeability group for version 00.

2.

Run a location heuristic for T-F2## in location 2300.

3.

Analyze the results of the planning run. Why were receipts generated for
both products?

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Solution 25: Product Interchangeability in
SNP Heuristic Planning
Task:
This exercise assumes that you have completed exercise 2 on the SNP heuristic
and SAP ECC integration in the first part of this course. If this is not the case,
first create a demand for 320 pieces of product T-F2## in location 2300, version
00 in two months.
1.

2.

3.

412

Call up the interactive planning table with planning book 9ASNP_PS and
data view PROD_SUBST, and create a selection ID (PAT##, where PAT
stands for product interchangeability) which contains the finished goods of
your interchangeability group for version 00.
a)

Advanced Planning and Optimization → Supply Network Planning →
Planning → Interactive Supply Network Planning (All Books)

b)

Double click the data view PROD_SUBST in planning book
9ASNP_PS.

c)

to open the selection window and choose the APO Location
Click
Product entry under Show. In the lower part of the window you can
now define the conditions for the location products. Accept version 00,
select APO Product in the next row, and, on the right, enter products
T-F2## and T-F3## using the multiple selection button.

d)

Save the selection under the name PAT## and assign it to your selection
profile.

Run a location heuristic for T-F2## in location 2300.
a)

Load the data for T-F2## in location 2300 by double-clicking the row.

b)

Go to change mode

and execute a heuristic run for the location

.

Analyze the results of the planning run. Why were receipts generated for
both products?
a)

Check the receipts for T-F233 in location 2300. Expand the total
receipts. The system generated a substitution receipt. Right-click the
receipt and select Detail. Load the data for T-F3## at location 1000
and view the substitution demand that was generated. Because demand
is within the validity period of the product supersession, the system
substituted TF-2## with T-F3##.

b)

Save the planning results

and check orders if need be in SAP ECC.

© 2006 SAP AG. All rights reserved.

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Lesson: Product Interchangeability

Exercise 26: Product Interchangeability in
SNP Optimizer Planning
Exercise Objectives
After completing this exercise, you will be able to:

Plan product interchangeability using SNP Optimizer planning

Review the results of product interchangeability

Business Example
You have created the interchangeability group and must now ensure that the SNP
optimizer implements supersession.

Task:
The exercise assumes that you have completed the product interchangeability
exercise in SNP heuristic planning.

2006/Q2

1.

Enter the interactive planning table with planning book 9ASNP_PS and data
view PROD_SUBST. Load the data for all product location combinations
and execute an optimization run.

2.

Analyze the results of the planning run. Why were receipts generated for
both products?

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Solution 26: Product Interchangeability in
SNP Optimizer Planning
Task:
The exercise assumes that you have completed the product interchangeability
exercise in SNP heuristic planning.
1.

2.

414

Enter the interactive planning table with planning book 9ASNP_PS and data
view PROD_SUBST. Load the data for all product location combinations
and execute an optimization run.
a)

They are in data view PROD_SUBST of the planning book 9ASNP_PS.

b)

Double click the selection ID PAT##.

c)

Click Select all, Load data and Change

d)

Start the optimizer with your GROUP## optimizer profile and the
MASTER cost profile.

.

Analyze the results of the planning run. Why were receipts generated for
both products?
a)

Check the receipts for T-F233 in location 2300. Expand the total
receipts. The system generated a substitution receipt. Right-click the
receipt and select Detail. Load the data for T-F3## in location 2300
and view the substitution demand that was generated. The system
substituted TF-2## with T-F3##.

b)

Save the planning results

and check orders if need be in SAP ECC.

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Lesson: Product Interchangeability

Lesson Summary
You should now be able to:

Describe the two basic types of product interchangeability

Create an interchangeability group to model a supersession chain

Plan in the SNP heuristic using product interchangeability

Plan in the SNP optimizer using product interchangeability

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Unit Summary
You should now be able to:

Describe the two basic types of product interchangeability

Create an interchangeability group to model a supersession chain

Plan in the SNP heuristic using product interchangeability

Plan in the SNP optimizer using product interchangeability

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Unit 8
Safety Stock Planning
Unit Overview
In this unit you will learn about the various safety stock planning methods and
create an algorithm to calculate safety stock. You will also understand how to use
demand and receipt data for safety stock planning.

Unit Objectives
After completing this unit, you will be able to:



Describe the standard methods of safety stock planning
Describe the advanced methods of safety stock planning
List the differences between the methods
Make the required settings for safety stock planning

Unit Contents
Lesson: Safety Stock Planning in SNP ......................................418
Exercise 27: Safety Stock Planning: Standard Methods..............431
Exercise 28: Safety Stock Planning: Advanced Methods.............437

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Lesson: Safety Stock Planning in SNP
Lesson Overview
This lesson will help you understand the safety stock planning methods. Safety
Stock Planning in Supply Network Planning allows you to reach a specific
service level, where safety stock is created for all intermediate products and
finished products at the appropriate locations along the entire supply chain. You
can differentiate between the standard methods of safety stock planning with
regard to their consideration of time; they are based on the planner entering the
information about the safety stock directly in the system. When using advanced
methods of safety stock planning, the system determines the safety stock levels
based on scientifically proven algorithms.

Lesson Objectives
After completing this lesson, you will be able to:



Describe the standard methods of safety stock planning
Describe the advanced methods of safety stock planning
List the differences between the methods
Make the required settings for safety stock planning

Business Example
You are the team leader of the team implementing SAP at the Precision Pump
Company. When creating plans to meet the demands of customers, you must be
able to identify planning uncertainties. There may be certain deviations of the
actual replenishment lead time from the planned lead time. As a result, you need
to create safety stocks so that products can be delivered to customers on time.

Defining Safety Stock
Basic Considerations

The following uncertainties occur during planning:

Errors in the forecasts made in Demand Planning

Scrap in production (PPM)

Longer than planned replenishment lead times
To safeguard against these uncertainties, you can plan safety stock (SStk)
as follows:


418

SFT standard methods in the product master
Calculate the time-dependent safety stock in an SNP key figure
Advanced methods of SFT planning

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Lesson: Safety Stock Planning in SNP

The standard methods of safety stock planning are used to build stock on hand
according to the safety stock values that you define in the location product master,
depending on previous experience. There are six different safety stock methods
to choose from. You can set the safety stock value as a fixed value or, using the
safety days' supply, as time dependent. You can enter the safety stock values in
interactive supply network planning or calculate them using a macro.
With the advanced methods of safety stock planning, safety stock for finished
products and components for the supply or demand side of your supply chain is
allocated in a time-based calculation. In this calculation, the forecast takes into
account forecast errors and the replenishment lead time (RLT) RLT errors.
This means that not only forecast and actual demand, but also deviations between
planned and actual demand, can be taken into account.
The calculated safety stock is displayed in an SNP key figure in interactive
planning and can be changed manually or copied into another planning version, if
required. The calculated safety stock can also be used in both Production Planning
and Detailed Scheduling (PP/DS) and in Capable-to-Match.

Figure 176: Safety Stock in Various Locations

Deciding which location fshould be used for product safety stock creation must
be taken by the planner. To do so, the planner enters a safety stock calculation
method in the location-specific product master record of the corresponding
location. The system then uses this calculation method to calculate the level of
safety stock required.

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If you keep safety stock both in the plant and in Distribution Centers (DCs), the
system uses the model-based calculation to take this into account. The system
always calculates the replenishment lead time starting from the last safety stock
leading location.

Calculating Safety Stock
Safety Stock Calculation Methods

SFT standard methods:


SFT safety stock from location product master

SZ Safety days' supply from location product master

SM Maximum of SFT and SZ from location product master

MZSafety days' supply (maintained on a time-dependent basis)

MB Safety stock (maintained on a time-dependent basis)

MM Maximum of MB and MZ (maintained on a time-dependent basis)
Advanced methods of SFT planning:



AT α-service level and reorder cycle method
AS α-service level and reorder point method
BT β-service level and reorder cycle method
BS β-service level and reorder point method

If you want to use the standard methods (methods 1-3), go to the lot size tab page
of the location product master and enter the relevant data in the following fields:


Safety stock
SB method (safety stock method)
Safety days' supply

If you have maintained safety stock in SAP ECC, the SB method is automatically
set in the SPM product master using the CIF. The safety day's supply in SAP ECC
creates the SZ method, and when both safety stock and safety days' supply are
both set, the SM method is set in the SCM product master.
If you want to use manually create safety stock on a time-dependent
basis (methods 4-6), you need planning area time series. You can enter the
time-dependent safety stocks or safety days' supply in the SNP interactive planning
table. Mass maintenance of time series was put in place for Release SCM 4.1

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(transaction /SAPAPO/TSKEYFMAIN). Alternatively, calculate the safety stocks
or safety days' supply using a macro and your own logic. You maintain the SB
method in the SAP SCM location product master on the Lot size tab.
Hint: In APO 3.1 and below, safety stock was stored in a database key
figure. However, this impaired performance. As of SCM 4.0, the planning
area 9ASNP05, containing safety stock and safety days' supply time series
keys, is delivered. Only the SB, SZ, and SM methods can still be used in
planning area 9ASNP02.
Time-dependent safety stocks are stored in time series of the key figure
9ASAFETY. If you also want to plan these stocks in PP/DS, you must
assign this key figure in PP/DS Customizing.

Model-Based Safety Stock Planning
The Advanced Methods
The advanced safety stock planning automatically calculates safety stock on the
basis of data that you have previously specified. This includes, for example,
the service level which calculated safety stock should attain. You also enter
the current demand forecast and historical data about demand forecasts and the
replenishment lead time (RLT) in the form of key figures. On the basis of historical
data, the system calculates forecast errors for the demand forecast and the RLT.
Alternatively, the accuracy of past demand forecast and the replenishment lead
time can also be defined in the location product master. For advanced methods
you also need planning area time series.

2006/Q2

You have checked your supply chain and determined at which points safety
stock should be planned.
Besides the basic master data for SNP planning (including quota
arrangements), you have defined the special master data for safety stock
planning. This includes, for example, service level, target days' supply,
and the safety stock method.
You have created a safety stock planning profile. In this profile you can,
for example, determine, how the system calculates forecast errors (from
historical or master data) and specify the requirement type (regularly or
sporadic).

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The system takes the following factors into account when calculating safety stock:





Demand forecast and demand forecast errors
Replenishment lead time (RLT) and RLT forecast errors
Service level
Safety stock method
Target days' supply
Requirement type

The above factors are determined by the system as follows:
Determining the demand forecast:

The forecast demand for a product at a location is the sum of the independent
requirements and the dependent requirements at the location and at all
downstream locations. You specify the independent requirements as a
key figure for the demand forecast. The system determines dependent
requirements on the basis of transportation lanes and production process
models (PPMs) or production data structures (PDS). The system also takes
inbound quota arrangements into account.
The system determines demand forecast errors on the basis of the historical
data you entered or from the location product master data (setting in SFT
planning profile).

Replenishment lead time determination:

422

The RLT for a product at a location is the total time for the in-house
production or external procurement of a product (including its components).
The system determines the RLT on the basis of the supply chain model or
from location product master data.
If the system determines the RLT on the basis of the supply chain model,
it adds the relevant production, goods issue, transport, goods receipt and
planned delivery times. If alternative procurement options are available, the
system always takes the longest option (critical path) into account. The
system ignores capacity restrictions, lot size restrictions and warehouse
stocks. The procurement from available safety stocks is possible without
size restrictions.
The system determines RLT forecast errors on the basis of the historical data
you entered or from the location product master data.

© 2006 SAP AG. All rights reserved.

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Lesson: Safety Stock Planning in SNP

Determining the requirement type:

You can use safety stock planning both for products with regular demand
as well as for products with sporadic demand. In the first case, the applied
formula is based on standard distribution, in the second case, it is based on
gamma distribution.
The system determines the requirement type from the settings that you
made in the SFT planning profile. You can determine whether regular or
sporadic demand is appropriate, or whether the system should automatically
determine the demand type on the basis of historical data.

You can specify the following parameters on the Lot sizes tab of the location
product master:
















2006/Q2

SSTck methods AT, AS, BT and BS
Service level.(%)
Forecast error demand (%) – can alternatively be calculated on the basis
of DP-historical data
Forecast error RLT (%) – can also be calculated on the basis of historical data
Target days' supply
Replenishment lead time – can also be calculated on the basis of supply
chain master data.
Minimal SFT
Maximum SFT
Demand forecast errors from historical data or location product
Level of demand forecast and forecast errors
Replenishment lead time using the supply chain structure or location product
Forecast errors from historical data or location product
Level of RLT forecast and of RLT forecast errors
Determination of requirement type (regular, sporadic or automatic).
Calculation of procurement quantities with fixed lot size of the location
product
Check on cycles in the supply chain
Sources of supply for aggregated safety stock planning

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The system determines the service level and the safety stock method from the
master data of the location product (Lot size tab). Using the safe stock method,
you define the combination of service level and reorder method that the system
should take into account.


With the reorder cycle methods AT and BT the system interprets the target
days' supply from the loction product master data as reorder cycle.
With the reorder point method BS, the system uses the target days' supply
from the location product master data to calculate the order quantity.
With the reorder point methods AS and BS, the system assumes a monitoring
interval (a time gap between subsequent reviews of stock level) of one
bucket.
The α calculation calculates a safety stock level that guarantees complete
delivery in 95% of the time buckets. The β calculation calculates a safety
stock level that guarantees complete delivery of 95% of demand in each
bucket.

Figure 177: Interpretation of the Service Level

The figure shows the different interpretations of α and β service levels. The
α calculation identifies a shortage in three of six buckets. This corresponds
to a service level of 50%. The β calculation can deliver 600 pieces out of the
total demand of 750 pieces. This corresponds to a service level of 80%. The
β-calculation calculates less safety stock than the α calculation.
Which calculation should you choose?

424

α calculation , if you need to have complete deliveries and the fixed costs
for late deliveries are high.
β calculation if you are can make partial deliveries and the variable costs for
late deliveries, depending on the shortage quantity, are high.

© 2006 SAP AG. All rights reserved.

2006/Q2

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Lesson: Safety Stock Planning in SNP

Figure 178: Model-Based Calculation

The safety stock calculation is based on time buckets. As a result, the calculation
takes into account the rounding values for transportation lanes and Production
Process Models (PPMs).

Figure 179: Safety Stock Calculation

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To calculate the safety stock:

The system takes into account the standard deviations between the demand
and receipt uncertainties.
The safety factor is calculated from the service level. The higher the service
level entered in the product location master record, the higher the safety
stock level. A service level of 100% cannot be maintained or achieved.
The RLT for a product at a location is calculated from planned delivery
times, production time, goods issue processing time, move time, and the
goods receipt processing times of upstream safety stock locations. If there
is more than one procurement method, the longest RLT is used for the
algorithm. The critical replenishment path is the path with the longest
RLT because in this case, the safety stock at a location should cover RLT
variability for the worst-case scenario.
Hint: In the system, the calculated replenishment lead time is output in
the time buckets used, and not in days.

Figure 180: Demand Uncertainty

The advanced methods of safety stock planning take the accuracy of Demand
Planning forecasts into account. For example, if previous forecasts were very
accurate in predicting demand, checked by updating from sales orders, the system
does not choose a large standard deviation and, in turn, calculates less safety stock.

426

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Lesson: Safety Stock Planning in SNP

To calculate the safety stock, you need to enter the demand planning key figures
of your planning area that contain both past forecasts and realized demand. The
forecast errors are determined from the past data. Safety stock planning uses
relative forecast errors and the relationship from forecast errors and forecasts,
which can differ from one time bucket to the next.
For the realized demand, select a key figure that contains the actual demand
realized. These values can be updated from sales orders or invoiced sales
quantities, etc., from the OLTP systems.
For the planned demand, select a key figure that contains the forecast figures
generated in the past.
As an alternative, errors for forecasts and replenishment lead times can be
predefined in the location product master record (on the Lot Size tab page).

Figure 181: Receipt Uncertainty (Optional)

The expected RLT and historical variability
RLT variability can be calculated using two key figures that you define. One
key figure is the RLT that was planned in the past and the other is the actual
replenishment lead time, which is an optional field. The algorithm can also assign
values for uncertainty in the expected replenishment lead time. If you do not
enter a key figure here, the algorithm assumes that there is no uncertainty in the
replenishment lead time.
The forecast level in % specifies the proportion of the forecast to be taken into
account to calculate safety stock. For example, you can define that you only want
safety stock to cover 80% of your forecast.

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The forecast error level in % can be used if you expect the forecast accuracy to
improve in the future. You can enter a forecast percentage here to represent the
forecast error level. For example, you can specify that in future, the forecast error
will be 80% of the past forecast error.

Figure 182: Safety Stock at Different Levels

The system defines all the demands that need to be covered by the location where
safety stock is held. Then, all forecasts and forecast errors are projected onto the
location product that has safety stock.
For supply, the system analyzes all the location products that are used for the
location product with safety stock until it finds another location product with safety
stock or an external procurement. The system looks for the critical supply route
with the longest procurement time. Then, all the forecasts and forecast errors of
this critical supply route are projected onto the location product with safety stock.
When creating safety stock for components, demand is calculated based on the
explosion of the PPM/PDS components and the independent requirements of the
finished products. If multiple PPMs exist, the PPM with the least cost is selected.
Which uncertainties contribute to the safety stock calculation for Raw1 in Plant1?

428

Demands for: Finished product 1, End1 in DC1, finished product 1 in DC2,
finished product 1 in Plant 1, component 1, Comp1, in Plant 1
Receipt of raw product 1, Raw1, in Plant1, replenishment lead times
from planned delivery times, goods receipt processing times, goods issue
processing times, and move times.

© 2006 SAP AG. All rights reserved.

2006/Q2

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Lesson: Safety Stock Planning in SNP

Which uncertainties contribute to the safety stock calculation for finished product
1, End1 in DC1?

2006/Q2

Demand of End1 in DC1.
Receipt of End1 in DC1, End1 in Plant1, and Comp1 in Plant1, delivery
times from planned delivery times, goods receipt processing times, goods
issue processing times, and move times.

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Lesson: Safety Stock Planning in SNP

Exercise 27: Safety Stock Planning:
Standard Methods
Exercise Objectives
After completing this exercise, you will be able to:

Describe the standard safety stock planning methods

Perform safety stock planning

Business Example
Precision Pump Company wants to safeguard itself against uncertainties in
the supply and demand material flow to increase its customer service level.
As planning manager at Precision Pump Company, you must decide at which
locations and bill of material (BOM) level the safety stock should be maintained.

Task 1:
You need to check the relevant entries for safety stock planning and test them
by generating planned independent requirements, executing a planning run, and
analyzing the results in interactive planning.
1.

Create a version-specific product master record for pump P-104 at location
2400 for the version SNP-## and enter the safety stock method SM, a safety
stock of 10 pieces, and a safety days' supply of 5 days.

Task 2:
Generate planned independent requirements for pump P-104.
1.

Release the demand plan of P-104 to your version SNP-##. Use the variant
RELEASE and be sure the entries are as follows:
Planning area

SALES

Source planning version

00

Key figure

FINFOR

Target planning version

SNP-##

Category
Horizon

The next 3 months

Daily buckets profile
Product

P-104

Continued on next page

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Which locations have planned independent requirements created for them?
2.

In the PP/DS product view, check that planned independent requirements
have been created in location 2400.

Task 3:
Analyze the result in the interactive supply network planning with the planning
book 9ASNP94 and the data view SNP94(1).
1.

Create a new selection for the location products of product P-104 in version
SNP-##. Call this new selection P-104##.
Load the data for product P-104 in location 2400 into the planinng table.
How is the safety stock calculated?

Task 4:
Check that the safety stock is built up by the network heuristic and save the
planning, as the result is used in deployment.
1.

432

Run a network heuristic for P-104 and verify that the planned safety stock
has been created.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: Safety Stock Planning in SNP

Solution 27: Safety Stock Planning:
Standard Methods
Task 1:
You need to check the relevant entries for safety stock planning and test them
by generating planned independent requirements, executing a planning run, and
analyzing the results in interactive planning.
1.

Create a version-specific product master record for pump P-104 at location
2400 for the version SNP-## and enter the safety stock method SM, a safety
stock of 10 pieces, and a safety days' supply of 5 days.
a)

Choose Advanced Planning and Optimization → Master Data →
Product → Product.

b)

Enter product P-104, location 2400, and click the Choose Planning
Version button.

c)

Enter your planning version SNP-## and click Create.

d)

Select the Lot Size tab page and Quantity and Date Determination tab.

e)

Enter the parameters and

save your data.

Task 2:
Generate planned independent requirements for pump P-104.
1.

Release the demand plan of P-104 to your version SNP-##. Use the variant
RELEASE and be sure the entries are as follows:
Planning area

SALES

Source planning version

00

Key figure

FINFOR

Target planning version

SNP-##

Category
Horizon

The next 3 months

Daily buckets profile
Product

P-104

Continued on next page

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Which locations have planned independent requirements created for them?
a)

Choose Advanced Planning and Optimization → Demand Planning →
Planning → Release → Release Demand Planning to Supply Network
Planning.

b)

Click Get Variant, remove the user from the Created by field, and
click

Execute.

c)

Select the variant RELEASE.

d)

Be sure that the entries match the data in the table. Choose
Execute.

e)
2.

Planned independent requirements are created for distribution centers
2400 and 2500 and plant 1000 as specified in the log.

In the PP/DS product view, check that planned independent requirements
have been created in location 2400.
a)

Choose Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning → Product View.

b)

Enter your version SNP-##, product P-104, and location 2400.
You can see the weekly planned independent requirements (the IndReq
category).

Task 3:
Analyze the result in the interactive supply network planning with the planning
book 9ASNP94 and the data view SNP94(1).
1.

Create a new selection for the location products of product P-104 in version
SNP-##. Call this new selection P-104##.

Continued on next page

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Lesson: Safety Stock Planning in SNP

Load the data for product P-104 in location 2400 into the planinng table.
How is the safety stock calculated?
a)

Use the menu path Supply Network Planning → Planning →
Interactive Supply Network Planning.

b)

and under Show select the APO Open the selection window
Location Product entry. In the lower part of the window you define
the selection conditions for the locations products: Change the version
from 00 to SNP-##, in the next row choose APO Product, and to the
right of this enter P-104. Save the selection under the description
P-104## and assign the selection to your selection profile.

c)

Double-click on product P-104 in location 2400. With the safety stock
method SM (maximum of safety stock and safety days' supply), the
safety stock will be at least 10 pieces. If the demand for the next bucket
(5 workdays) is more than 10 pieces, the safety stock for the previous
period will also be higher.

Task 4:
Check that the safety stock is built up by the network heuristic and save the
planning, as the result is used in deployment.
1.

Run a network heuristic for P-104 and verify that the planned safety stock
has been created.
a)

The data for product P-104 at location 2400 must already be loaded.
Go to change mode
planning.

2006/Q2

, execute an heuristic run

© 2006 SAP AG. All rights reserved.

and

save the

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SCM230

Lesson: Safety Stock Planning in SNP

Exercise 28: Safety Stock Planning:
Advanced Methods
Exercise Objectives
After completing this exercise, you will be able to:

Describe the advanced safety stock planning methods

Perform planning with an advanced method of safety stock planning

Business Example
Precision Pump Company wants to safeguard itself against uncertainties in the
supply and demand material flow to increase its customer service level. The
forecast errors in SCM Demand Planning should be taken into consideration for
this so that products that can be forecasted with precision automatically receive
lower safety stock levels.

Task 1:
1.

You need time series in order to be able to save time-dependent safety stocks.
For this reason, initialize the planning area 9ASNP05 for your version
SNP-## for the next three months.

Task 2:
In the following exercise, convert your product to the new safety stock method
that takes forecast errors into account with the new reorder point method.
1.

Change your version-specific product master record for product P-104 in
location 2400 for version SNP-##: Enter the safety stock method BS, a
service level of 95% and target days' supply of 5 days.
To avoid long replenishment lead times, delete the planned delivery time
of 999 days from the version-specific product master record for product
102-110 at location 0000001003 in version SNP-##.

Task 3:
1.

View the PUMP safety stock planning profile. How are the replenishment
lead time and demand forecast errors determined? Which demand type is set?

Continued on next page

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Task 4:
1.

Execute safety stock planning for product P-104 using the following data
(you can use variant P-104 as a template). Analyze the planning result in
the application log (detail of location product).
Planning data:
Planning area

9ASNP05

Key figure for demand forecast

9ADFCST

Key figure for safety stock

9ASAFETY

Planning buckets profile

25 weeks

SFT planning profile

PUMP

Object selection - Manual selection
Version

SNP-##

Product

P-104

Location

2400

Historical data
Planning area

SALES

Planning version

00

Key figure for demand forecast

FINFOR

Key figure for actual demand

CORRHIST

Period

The last 12 months

Application log


Detailed results
Display log immediately

Caution: The RLT is displayed in this example in buckets of 7 days.
2.

If you still have time, enter fixed forecast errors in the product master, fixed
replenishment lead time or minimal and maximum safety stock, so as to
test the calculation of safety stock.

Continued on next page

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2006/Q2

SCM230

Lesson: Safety Stock Planning in SNP

Task 5:
1.

Select in planning book 9ASNP_SSP, data view SAFETY, the location
products of product P-104 in version SNP-##.
Load the data for product P-104 at location 2400 into the planning table.
Has safety stock been calculated?
Run a network heuristic for P-104 and make sure that planned safety stock
has been created. Do not save your planning.

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Unit 8: Safety Stock Planning

SCM230

Solution 28: Safety Stock Planning:
Advanced Methods
Task 1:
1.

You need time series in order to be able to save time-dependent safety stocks.
For this reason, initialize the planning area 9ASNP05 for your version
SNP-## for the next three months.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Environment → Current Settings → Administration of
Demand Planning and Supply Network Planning.

b)

Click planning area 9ASNP05 with the right mouse button, choose
Create Time Series Objects, enter version SNP-## and a time period of
the next three months, and choose

Execute.

Task 2:
In the following exercise, convert your product to the new safety stock method
that takes forecast errors into account with the new reorder point method.
1.

Change your version-specific product master record for product P-104 in
location 2400 for version SNP-##: Enter the safety stock method BS, a
service level of 95% and target days' supply of 5 days.
To avoid long replenishment lead times, delete the planned delivery time
of 999 days from the version-specific product master record for product
102-110 at location 0000001003 in version SNP-##.
a)

Choose Advanced Planning and Optimization → Master Data →
Product → Product.

b)

Enter product P-104 and location 2400.

c)

Click Choose Planning Version, enter your planning version SNP-##
and choose Change.

d)

Click on the Lot Size tab, enter the parameters and save. The target
days' supply is on the sub-tab page Quantity and Date Determination.

e)

Repeat this procedure to change product 102-110 in location
0000001003 in version SNP-##, in order to delete the planned delivery
time.

Continued on next page

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2006/Q2

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Lesson: Safety Stock Planning in SNP

Task 3:
1.

View the PUMP safety stock planning profile. How are the replenishment
lead time and demand forecast errors determined? Which demand type is set?
a)

Choose Supply Network Planning → Environment → Current Settings
→ Profiles → Define SFT Planning Profiles.

b)

The forecast error for replenishment lead time and demand is
determined from the master data. If no master data is available, then
from the historical data. Demand type is set to regular demand.

Task 4:
1.

Execute safety stock planning for product P-104 using the following data
(you can use variant P-104 as a template). Analyze the planning result in
the application log (detail of location product).
Planning data:
Planning area

9ASNP05

Key figure for demand forecast

9ADFCST

Key figure for safety stock

9ASAFETY

Planning buckets profile

25 weeks

SFT planning profile

PUMP

Object selection - Manual selection
Version

SNP-##

Product

P-104

Location

2400

Historical data
Planning area

SALES

Planning version

00

Key figure for demand forecast

FINFOR

Continued on next page

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Key figure for actual demand

CORRHIST

Period

The last 12 months

Application log


Detailed results
Display log immediately

Caution: The RLT is displayed in this example in buckets of 7 days.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Safety Stock Planning.
Enter the data and choose

b)

2.

Execute.

Analyze the planning result in the application log. Click on the
magnifying glass on product P-104 at location 2400 to show the
location product details.

If you still have time, enter fixed forecast errors in the product master, fixed
replenishment lead time or minimal and maximum safety stock, so as to
test the calculation of safety stock.
a)

Task 5:
1.

Select in planning book 9ASNP_SSP, data view SAFETY, the location
products of product P-104 in version SNP-##.
Load the data for product P-104 at location 2400 into the planning table.
Has safety stock been calculated?
Run a network heuristic for P-104 and make sure that planned safety stock
has been created. Do not save your planning.

442

a)

Choose Supply Network Planning → Planning → Interactive Supply
Network Planning (all Books) and choose planning book 9ASNP_SSP
and data view SAFETY by double-clicking.

b)

and select the APO - Location
Open the selection window
Product entry under Show. Change the version 00 to SNP-##, in the
next row select APO Product and, on the right, enter P-104.

c)

Double-click product P-104 at location 2400. The results of safety
stock planning are shown in the Safety stock (planned) key figure.

d)

and choose
Go to change mode
run. Do not save your planning.

© 2006 SAP AG. All rights reserved.

Network to execute the heuristic

2006/Q2

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Lesson: Safety Stock Planning in SNP

Lesson Summary
You should now be able to:

Describe the standard methods of safety stock planning

Describe the advanced methods of safety stock planning

List the differences between the methods

Make the required settings for safety stock planning

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443

Unit Summary

SCM230

Unit Summary
You should now be able to:

Describe the standard methods of safety stock planning

Describe the advanced methods of safety stock planning

List the differences between the methods

Make the required settings for safety stock planning

444

© 2006 SAP AG. All rights reserved.

2006/Q2

Unit 9
Deployment and the Transport Load
Builder
Unit Overview
This unit will discuss the concepts of deployment. You will learn how the ATD
quantity is calculated for a product at a plant and the factors that influence
deployment. We will analyze the fair share and push rules used by deployment.
Finally, you will understand the role of the Transport Load Builder (TLB) in the
SNP process, how to define a TLB profile, and how the TLB builds loads.

Unit Objectives
After completing this unit, you will be able to:








Explain deployment concepts
Calculate the ATD quantity for the plant
Describe the main settings for the deployment run
Explain the factors that influence deployment
Describe fair share rules for deployment
Describe push rules for deployment
Describe the role of the Transport Load Builder
Explain how the TLB functions in the SNP process
Execute a TLB run

Unit Contents
Lesson: Basics of Deployment ................................................446
Exercise 29: Deployment Run ............................................469
Lesson: Transport Load Builder...............................................478
Exercise 30: TLB Planning ................................................487

2006/Q2

© 2006 SAP AG. All rights reserved.

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Unit 9: Deployment and the Transport Load Builder

SCM230

Lesson: Basics of Deployment
Lesson Overview
This lesson will help you understand the basic concepts of deployment. After
completion of mid- to long-term cross-location planning, and possibly after
detailed PP/DS production planning, deployment determines which distribution
demands of DCs or VMI customers can really be covered by the present supply. If
the available quantities are not sufficient to meet the demand, or if they exceed the
demand, deployment makes adjustments to the stock transfers created by the SNP
run. You will learn about the principal settings for the deployment run and the
factors that influence deployment. This lesson will help you understand the fair
share rules and push rules for deployment.

Lesson Objectives
After completing this lesson, you will be able to:





Explain deployment concepts
Calculate the ATD quantity for the plant
Describe the main settings for the deployment run
Explain the factors that influence deployment
Describe fair share rules for deployment
Describe push rules for deployment

Business Example
Deployment determines which DC or VMI customer distribution demands can be
covered by the present supply. If the available quantities are not sufficient to meet
the demand, or if they exceed the demand, deployment makes adjustments to the
stock transfers created by the SNP run. The deployment run creates deployment
stock transfers. On the basis of deployment stock transfers, the Transport Load
Builder (TLB) can then consolidate transport loads and generate TLB stock
transfers. These orders can create SAP ECC stock transport orders for which you
can create deliveries and post goods movements.

446

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2006/Q2

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Lesson: Basics of Deployment

Deployment and its Settings

Figure 183: Planning Process

If actually produced and procured quantities as well as demands match the Supply
Network Planning (SNP) planning quantities, deployment confirms only the stock
transfer. If available quantities do not cover distribution demand, the system
reduces the stock transfers and decides how much each DC gets.
The quantities of different products confirmed by deployment can be combined
into stock transport orders by Transport Load Builder (TLB).
Deployment and TLB confirm OLTP stock transport requisitions and can convert
these requisitions into SAP-ECC stock transport orders or VMI sales orders.
In Customizing under APO → Supply Chain Planning → Supply Network
Planning → Basic Settings → Configure Transfer to OLTP Systems, you can
define whether or not you want the conversion to be made in deployment or using
the TLB.
Deployment and TLB are only used to confirm stock transfers. Other functions
such as route planning, selection of transportation service providers, and
generation of deliveries and shipments in the OLTP system, is planned in
Transportation Planning and Vehicle Scheduling (TP/VS). For stock transfers
involving storage location MRP areas, you cannot use deployment.

2006/Q2

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Unit 9: Deployment and the Transport Load Builder

SCM230

Figure 184: The ATD Quantity Calculation

Using the set receipt and issue categories, you determine how product quantities
made available to distribution in deployment are composed in the source location.
The total of these product quantities is referred to as the available-to-deploy
quantity (ATD quantity). Finally the system determines how the ATD quantity
is to be distributed to target locations.
All transaction data is stored in liveCache as orders with different ATP categories.
You maintain the definition for the ATD quantity in Customizing of Supply
Network Planning (Maintain Category Groups ).
All ATP categories that are to be taken into account as receipts for deployment,
such as stocks, production orders, purchase orders, etc. you consolidate together
in a category group.
All ATP categories that are to be taken into account as issue for deployment,
such as customer orders, reservations, deployment stock transfers, and so on,
you consolidate in a category group.
Caution: If you define the sales orders in the plant as ATD quantity issue,
the receipts for sales orders are not available for distribution demands.
If you do not take sales orders into account as issues, the distribution
demands receive higher priority. For SCM Release 5.0, you can use a
fair share distribution of customer orders and distribution demands (see
below).
The ATD (Available-To-Deploy) quantity is calculated by means of the category
groups for receipts and issues, which are entered in the master data for the supplier
location on the SNP tab page. If no category group has been entered into the
location master for receipts, the standard category group ATR (available to

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receipts) is used. If no category group has been entered into the location master
for issues, the standard category group ATI (available to issues) is used. As of
SAP SCM 4.1 the category groups can also be maintained in the product-specific
product master record, SNP2 view.

Figure 185: Main Settings for Deployment

In Customizing, under “Configure Transfer to OLTP Systems”, you define whether
you want deployment to create stock transport orders and VMI sales orders in
SAP ECC. If you want to consolidate the stock transfers of various products with
the Transport Load Builder (TLB), first determine that the TLB stock transport
orders and VMI sales orders are created with many items for various products
in SAP ECC.
The different deployment horizons are:


The push horizon specifies the number of days from today's date, over
which you want to take into account the receipts for today's deployment
(ATD quantity).
The deployment horizon specifies the number of days from today's date,
over which you want to confirm stock transfers during today's deployment.
The pull horizon specifies the number of days from today's date, over which
you want to take into account demands for today's deployment.

For deployment with the heuristic there is also an SNP Checking Horizon on
the SNP2 tab page of the location product master record. All ATD issues (e.g.
sales orders directly from the plant) within the checking horizon are deducted
from the ATD quantity. This ensures that, for example, later sales orders can be
delivered ex-works and that earlier stock transfers are not confirmed if the ATD

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quantity is too low. In APO 3.1 and below the ATP Checking Horizon was used.
For the deployment optimizer, you can configure the SNP checking horizon in
the planning run.

Comparing Heuristic and Optimization Methods

Figure 186: Deployment: Heuristic Versus Optimization

The deployment Heuristic calculates a replenishment plan for each product
at a delivery location. If the available quantities are not sufficient to meet the
distribution requirements, the system determines the distribution plan based on
fair-share rules. If, by contrast, supply exceeds demand, push rules can be defined
so that surpluses are assigned directly to the distribution centers. Fair-share rules
and push rules are defined in the deployment profile.
The deployment heuristic has a hierarchical view of the supply chain network.
Deployment is always executed from one delivery location to the receiving
locations (plants, DCs or customers). The deployment heuristic requires the SNP
planned stock transfers, as they inform supplying locations about the state of
demand at receiving locations.
Deployment optimization has an integrated view over the receipt situation of all
supplying locations and the demand situation of the receiving locations. The
deployment optimization does not require the SNP planned stock transfers, as
the demands of receiving locations and the ATD quantity of supplying locations
are directly analyzed.
The deployment optimization run calculates a replenishment plan for a product
in all locations within the network. If the available quantities are not sufficient
to fulfill the demand or supply exceeds demand, the system uses minimum
cost flow optimization to determine an optimum distribution plan for the entire
network at once.

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Deployment optimization works like SNP optimization. In contrast to SNP
optimization, however, production and procurement quantities remain unchanged;
only the stock transfers change.

Figure 187: Factors That Influence Deployment (Heuristic)

After PP/DS production planning is complete and the system knows the planned
level of stock on hand, the deployment run generates confirmed stock transport
orders.
The deployment heuristic requires the SNP planned stock transfers, as they inform
supplying locations about the state of demand at receiving locations. The SNP
planned stock transfers practically reflect the demands, on-hand stock, and safety
stock of distribution centers in the plant.
If new demands have been created in the receiving location since the last SNP,
you must enter the Realtime Deployment flag in the deployment planning run.
Then an SNP run will be conducted between the source location selected in the
selection screen and the corresponding target location. All SNP stock transfers
already existing in the target location will be deleted before hand. As opposed
to usual SNP runs, real time deployment will not take transportation lanes and
quota arrangements between target locations and locations other than the given
source location into account. The transportation lanes between the specified
source location and target location are treated as if a quota arrangement of 100%
had been specified. Stock transfers are thus only created between deployment
source location and the target location. After an SNP run has been performed,

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a deployment run is executed on the basis of created SNP stock transfers. At
the same time, SNP stock transfers are reduced by the amount of the created
deployment stock transfer.
Hint: As of Release SCM 5.0, a fair share distribution of ATD quantities
is used, so as to cover the planned independent requirements and customer
requirements in the source location and also the distribution requirements
in the target location. To ensure that the system can execute a fair share
distribution of ATD quantities, you must execute the deployment heuristic
in the real time deployment mode. To ensure that the system can execute a
fair share distribution of demands, you must execute the deployment in the
form of real time deployment. You must also use the special planning area
9AVMI03 and the planning book 9ADRP_FSS containing the key figure
of deployment reserve quantities (or a planning areas and a planning book
that you created with this key figure). The system stores the quantity that
it reserves for the demands of the source location in this key figure. Please
note that the system for demand in the source location does not create
orders but only saves the reserved quantity for information purposes in
a time series key figure. The system does not support the integration of
deployment reserve quantities in the ERP system or other systems. You
can only use the function in the active version if the system deployment
stock transfers are either not transferred into the ERP system or, if so, then
as purchase requisitions. Also be aware that you must execute real time
deployment with the Replan all option, since the system must plan all
deployment stock transfers afresh.

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Rules of Heuristic Deployment

Figure 188: Rules of Heuristic Deployment

There are several rules available for the deployment heuristic: fair share
deployment, push deployment, and pull-push deployment.
A fair share rule is used when an ATD quantity is smaller than total demand. The
fair share rule determines how the shortage is processed in the network. If the
ATD quantity is larger than total demand, a push strategy can be used to transfer
stock as early as possible.

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Figure 189: Fair Share Rules

The pull deployment horizon, which is defined in the SNP demand profile,
determines which demands are taken into account during the deployment
calculation.
The push deployment horizon, which is defined in the SNP supply profile,
determines which supplies are taken into account during the deployment
calculation.

Figure 190: Fair Share Rule A

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If you defined fair share rule A in the product master record, the quantities are
deployed in proportion to the original demands in the distribution centers when
the total distribution requirement exceeds the supply.

Figure 191: Deployment Result: Fair Share Rule A

The following are the results of a deployment heuristic run using fair share rule
A. These results are displayed after planning in the background: Today, 1000
units are available in the plant for distribution. The stock transfer for the current
demand from DC1 can be confirmed. The stock transfer for the next day can also
be confirmed. However, two days later demand exceeds the remaining quantity
in the plant. The 400 units are thus deployed to the distribution centers using the
configured fair share rule A.

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Figure 192: Fair Share Rule B

Fair share rule B increases the stock on hand at all demand locations to the same
percentage of the target stock level. The percentage per destination location is
defined as planned stock on hand divided by the target stock level. In the event of
a shortage, the system first tries to remedy the shortage in these target locations.
Then, the system attempts to increase the stock on hand at all destination locations
to the same percentage of the target stock level.

Figure 193: Deployment Results: Fair Share Rule B

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Figure 194: Fair Share Rules C and D

The objective of fair share rule C is to distribute the ATD quantity at the demand
locations according to the outgoing quota arrangements. To apply this rule, you
have to define outgoing quota arrangements for source location products.
Fair share rule D distributes the stock according to the priorities of the outbound
transportation lanes of the source location. If a fair share situation occurs, the
system attempts to fulfill all the demands from the current date until the ATD
quantity is exhausted. For example, there are three outbound transportation
lanes in your network to your destination locations A, B, and C, each with the
corresponding priorities 1, 2, and 3. Your ATD quantity is 150 pieces and
the requested quantity at each location is 100 pieces. If you choose fair share
rule D, destination location A receives a quantity of 100 through the priority 1
transportation lane. Destination location B receives 50 pieces through the priority
2 transportation lane, and destination location C receives nothing through the
priority 3 transportation lane.
Fair share rule X (user-defined fair share distribution): Here you can define
your own fair share rule using the DEPLOY_USER_DEFINED Business Add-In
method.
Fair share rules B, C, D, and X are only used in conjunction with the deployment
heuristic, and not for the deployment optimizer.

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Figure 195: Push Rules

The push rules are used if supply exceeds demand, and the surplus needs to be
distributed as soon as possible. The quantities allocated to the distribution centers
ensure that each distribution center receives the same target days' supply. You
define the push rules in the product master data.

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Figure 196: Push Rules in Detail



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

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Figure 197: Push Rules: A Comparison

The above example shows the three different ways in which push logic can be
applied according to the time horizons maintained in the demand and supply
profiles:

Pull (without push rule) – A quantity of 200 pieces is distributed to the
distribution centers for every day within the pull horizon that has demand
(four days into the future).
Pull-push (the P push rule) – A quantity of 200 pieces is distributed on the
first day, when the supply is 200 pieces. A quantity of 600 is distributed on
the second day. Although the supply is 1000 pieces, the demand within the
pull horizon is only 600, so only 600 pieces are distributed.
Push (push rule X) – A quantity of 200 pieces is distributed on the first day
when supply is 200. A quantity of 1000 pieces is distributed on the second
day when supply is 1000. Since the demand in the system is for 1400 pieces,
all the supply can be distributed. A demand of 200 pieces at the end of the
planning horizon is left unfulfilled due to a lack of supply within the push
horizon. If the demand in the system had been 800 pieces, only 800 pieces
would be distributed on the second day.

The deployment heuristic requires the stock transfers planned in SNP in order
to show the demand situation of the DCs. Only planned stock transfers can be
confirmed. Real-time deployment is used to update the stock transfers prior to
the actual deployment if the SNP run dates back further. This form of deployment
takes account of the current demand situation in the target locations. In particular,
when using fair share rule B it is important that the distribution is based on the most
accurate calculation of target stock levels and planned stock on hand. If you set
this indicator, an SNP run will be carried out between the source location selected

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on the selection screen and the associated target locations. All existing SNP stock
transfers in the target locations will be deleted first. Unlike the usual SNP run,
real-time deployment will not take account of transportation lanes and quota
arrangements between the target locations and source locations other than the one
specified. The transportation lanes between the given source location and the
target locations are treated as though a quota arrangement of 100% were defined.
Stock transfers, therefore, are only created between the deployment source
location and the target locations. When the SNP run is complete, a deployment
run is carried out on the basis of the SNP stock transfers created. The SNP stock
transfers are reduced by the quantity of deployment stock transfers created.
In APO 3.1 and below, it was not possible to change quantities that had been
confirmed by deployment, either interactively or in the planning run, to reflect
changes in the demand or supply situation. The old orders had to be deleted using
/SAPAPO/RLCDELETE. As of SCM 4.0, you can change confirmed distribution
requirements interactively for the delivery location in planning book 9ADRP, data
view DRP(1). The deployment run can reschedule either all quantities, the unfixed
quantities, or the unconfirmed quantities with real-time deployment.
If you execute the deployment heuristic run in the background, you can decide
how the system should proceed with the SNP stock transfers using the following
options:

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To simulate results select Do not change.
Select Reduce to reduce the planned stock transfer orders by the confirmed
quantity. Using this option, the remaining planned stock transfers are
considered during a later deployment run.
Select Delete to delete the planned stock transfers.

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Deployment Optimizer

Figure 198: Deployment Optimizer

Deployment optimization has an integrated view over the receipt situation of all
supplying locations and the demand situation of the receiving locations. The
deployment optimization does not require the SNP planned stock transfers, as
the demands of receiving locations and the ATD quantity of supplying locations
are directly analyzed.
Hint: The deployment heuristic requires the stock transfers planned in
SNP in order to show the demand situation of the DCs. Only planned
stock transfers can be confirmed (-> real-time deployment). The
optimization run deletes all existing stock transfers, since demands from
the DCs as well as other plants can be covered, as originally planned. It
then generates new, optimized deployment stock transfers.
The deployment optimization run calculates a replenishment plan for a product in
all locations within the network. If the available quantities are not sufficient to
fulfill the demand or supply exceeds demand, the system uses minimum cost flow
optimization to determine an optimum distribution plan for the entire network.
Deployment optimization works like SNP optimization. In contrast to SNP
optimization, however, production and procurement quantities remain unchanged;
only the stock transfers change.

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The system uses the ATD quantity in the plants to try and maximize the days'
supply for the distribution centers according to the demands there. If demand
exceeds supply, the following rules are employed:

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In the case of cost optimal splitting, the deployment optimizer only
considers the costs defined in the supply chain model and the restrictions
specified in SNP deployment optimizer profile when dividing ATD
quantities. The calculated distribution plan corresponds to the plan with
the lowest total costs. With this option it can happen that, for example, the
demand from a certain location is not covered at all because the demand
from another location can be covered at a better price.
With fair share distribution according to requirements, the deployment
optimizer pays particular attention to the aim of fairly distributing the ATD
quantity according to the requirements of target locations (sales orders and
forecast). When distributing the calculated quantities, the system also takes
the costs defined in the supply chain model into account. This way, the
optimizer can decide, for example, to reduce costs by not distributing the
allocated quantity directly to a target location, but to distribute to this targat
location by detour to another location. In the event that the calculated fair
share quantities cannot be distributed to individual locations because of the
restrictions that were put in place, these quantities will be distributed to the
other target locations based on cost factors.
In conjunction with the fair share distribution option by demands, you can
determine the earliest possible delivery so that the deployment optimizer,
when conducting fair share distribution, completely covers the earliest
demands first before planning coverage of other demands. If you do not
select this option, the optimizer will try to distribute the ATD quantity
proportionally based on the requirements in the different periods.

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If the deployment optimizer determines that the ATD quantity exceeds the demand
from the destination locations, the rule that you defined for supply surplus in the
SNP deployment optimizer profile will be used. The following rules are available:

In the case of cost optimal splitting, the deployment optimizer only
considers the costs defined in the supply chain model and the restrictions
specified in SNP deployment optimizer profile when dividing ATD
quantities. Usually, however, the system covers all the requirements of the
target location, as high non-delivery costs prevent a requirement from being
unfulfilled. The optimizer distributes surplus stock to the locations with the
lowest costs. This will not necessarily be a location with demand.
With push distribution according to demand the deployment optimizer
pays particular attention to the aim of fairly distributing the ATD quantity
according to the requirements of target locations. Since the ATD quantities
exceed demand quantities, the calculated percentage exceeds 100%, in
contrast to a fair share situation (this means that target locations receive an
amount that exceeds their requirements). As in fair share distribution, when
distributing the calculated quantities, the system takes into account the costs
stipulated in the supply chain model and, if required, takes detours in the
supply chain into account if total costs are thus reduced.
In conjunction with the push distribution according to demand option, you
can determine that the deployment optimizer in push distribution distributes
the total available ATD quantities as early as required to the the target
locations. If you do not select this option, the optimizer will try to distribute
the ATD quantity proportionally based on the requirements in the different
periods.

With strict prioritization, the product priority classes are arranged as follows:



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Customer demand has priority 1
The corrected forecast has priority 5
Forecast demand has priority 6
The priority for safety stock can be configured

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Figure 199: The Deployment Optimizer Profile

The optimization of deployment is controlled via its own deployment optimization
profile. The cost profiles are valid both for SNP optimization and for deployment
optimization.
In the deployment optimizer profile, you specify the following:




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Which resources you want to be planned on a finite basis and any shelf
life settings
Whether safety stock deviations should be treated absolutely or relatively
Whether discrete or linear optimization, and cost-based or strict priorization
should be used as well as the solution methods
Whether existing orders should be deleted
(Global) pull, push, and SNP check horizons

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Figure 200: SNP Cost Profile

You can use the cost profile to configure the relative weighting of the various
costs. It is used to simulate various cost situations to study their impact on the
planning results.
The costs that may be considered are as follows:




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Costs for transporting stock
Costs for Storage stock
Costs for Handling stock
Costs for violating safety stock
Costs for not delivering

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Figure 201: Input Parameters for Deployment Run

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Exercise 29: Deployment Run
Exercise Objectives
After completing this exercise, you will be able to:

Explain deployment concepts

Calculate the ATD quantity for the plant

Describe the main settings for the deployment run

Explain the factors that influence deployment

Execute a deployment run

Business Example
Precision Pump Company uses deployment based on PP/DS planning to determine
feasible stock transfers to distribution centers for the next few days. If there
are short-term changes to the receipts or demands, the system recalculates
the distribution of goods. The confirmed deployment stock transfers tell the
distribution centers what quantities are actually delivered. The availability check
for sales orders in the distribution center can then be based on these confirmed
quantities.

Task 1:
1.

In the product view, execute PP/DS interactive planning for product P-104
at location 1000 for version SNP-##. Save and repeat for product P-104
at location 2300.

Task 2:
1.

Access SNP interactive planning. Load product P-104 at location 1000 and
version SNP-## using selection P-104 ##. Check that the PP/DS planned
orders are displayed in the “Production (confirmed)” key figure. How are the
ATD receipts and issues calculated?

Task 3:
1.

Open another session and use mass processing to run deployment for product
P-104 in location 1000 with a deployment horizon of 30 days. First specify
that the stock transfers are not to be changed (simulation mode). Analyze
the detailed results in the application log. Were all disribution demands
confirmed?

Continued on next page

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Field Name

Input Data

Planning book

9ASNP94

Data view

SNP94(1)

Deployment horizon in days

30

Planning version

SNP-##

Location

1000

Product

P-104

Do Not Change

Select

Detailed results

Select

Display log immediately

Select

Hint: If you select SNP Stock Transfers: Do not change, the system
will not change the SNP stock transfers. The deployment results
are only simulated.
Only stock transfers that are within the deployment horizon are
confirmed.
The horizons in the training system are not realistic. In practice,
deployment is normally used to confirm stock transfers for the next
few days in daily buckets profiles. In this course we cannot wait
until the orders reach the short-term horizon.
2.

Compare the deployment results with the planning data from interactive
planning in your alternative mode. How is the ATD quantity calculated
from ATD receipts and issues?

3.

In a third session, call the product view for product P-104 in location 1000
for version SNP-##. Reduce the quantity of the earliest PP/DS planned order
by 10 pieces, and increase the quantity of a PP/DS planned order for 2 weeks
later by 10 pieces. Save. This changes the ATD quantity, enabling you to
display the effects in deployment.

4.

In a second session, reexecute deployment in the background, and reduce the
SNP stock transfers. Analyze the detailed results in the application log. How
were the distribution demands confirmed? Was happens to the unconfirmed
quantity? In the first session of interactive planning, check whether the
distribution demand in plant 1000 has also been confirmed.

Continued on next page

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Task 4:
1.

In the second session, run deployment optimization in the background.
Manually select version SNP-## and all three final products (P-102, P-103
and P-104). Make sure that these entries correspond with the entries in
the following table. In the first session, reanalyze the result in interactive
Supply Network Planning.
Field Name

Input Data

Planning book

9ASNP94

Data view

SNP94(1)

Manual selection

Select

Planning version

SNP-##

Product
P-102
P-103
P-104

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Optimizer profile

Master

Cost profile

Master

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Solution 29: Deployment Run
Task 1:
1.

In the product view, execute PP/DS interactive planning for product P-104
at location 1000 for version SNP-##. Save and repeat for product P-104
at location 2300.
a)

Choose Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning → Product View and confirm any
messages.

b)

Enter your version SNP-##, product P-104 and location 1000.

c)

Go to change mode
with

d)

Save the

, choose the Product heuristic button, and plan

.
data, and repeat planning for location 2300.

Task 2:
1.

Access SNP interactive planning. Load product P-104 at location 1000 and
version SNP-## using selection P-104 ##. Check that the PP/DS planned
orders are displayed in the “Production (confirmed)” key figure. How are the
ATD receipts and issues calculated?
a)

Choose Supply Network Planning → Planning→ Interactive Supply
Network Planning.
Double-click your selection P-104 ##. The selection window then
shows a list of location products.
Double-click P-104 at location 1000 to load the data.
To find out how the total receipts are made up, double-click the Total
receipts key figure. The PP/DS planned orders are displayed in the
Production (confirmed) key figure. The ATD receipts consist of
PP/DS planned orders and SNP planned orders. The ATD issues are
determined using forecasts.

Task 3:
1.

Open another session and use mass processing to run deployment for product
P-104 in location 1000 with a deployment horizon of 30 days. First specify
that the stock transfers are not to be changed (simulation mode). Analyze
the detailed results in the application log. Were all disribution demands
confirmed?

Continued on next page

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Field Name

Input Data

Planning book

9ASNP94

Data view

SNP94(1)

Deployment horizon in days

30

Planning version

SNP-##

Location

1000

Product

P-104

Do Not Change

Select

Detailed results

Select

Display log immediately

Select

Hint: If you select SNP Stock Transfers: Do not change, the system
will not change the SNP stock transfers. The deployment results
are only simulated.
Only stock transfers that are within the deployment horizon are
confirmed.
The horizons in the training system are not realistic. In practice,
deployment is normally used to confirm stock transfers for the next
few days in daily buckets profiles. In this course we cannot wait
until the orders reach the short-term horizon.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Supply Network Planning in the Background
→ Deployment.
Enter the data from the table and click execute.

b)

Analyze the planning result in the application log. To do so, go to the
Deployment Results (Details) row and click the magnifying glass
to display the deployment details. Normally, all distributon demands
are confirmed.

Continued on next page

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2.

3.

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Compare the deployment results with the planning data from interactive
planning in your alternative mode. How is the ATD quantity calculated
from ATD receipts and issues?
a)

Double-click your selection ID P-104 ##. This displays a list of
location products in the selection window.

b)

Double-click product P-104 at location 1000 to load the data.

c)

To find out how the total demand is made up, double-click the total
demand. You only receive demands in the DistrDemand (Planned)
key figure, and not in the DistrDemand (Confirmed) key figure,
because you only executed the deployment run as a simulation.

d)

The ATD quantity is calculated by subtracting the ATD current issues
(forecasts) and issues from previous periods from the ATD receipt.

In a third session, call the product view for product P-104 in location 1000
for version SNP-##. Reduce the quantity of the earliest PP/DS planned order
by 10 pieces, and increase the quantity of a PP/DS planned order for 2 weeks
later by 10 pieces. Save. This changes the ATD quantity, enabling you to
display the effects in deployment.
a)

Choose Advanced Planning and Optimization → Production Planning
→ Interactive Production Planning → Product View and confirm any
messages.

b)

Enter your version SNP-##, product P-104 and location 1000.

c)

, and change the Receipt/reqmts quantity
Switch to change mode
of the planned orders. Save .

Continued on next page

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4.

In a second session, reexecute deployment in the background, and reduce the
SNP stock transfers. Analyze the detailed results in the application log. How
were the distribution demands confirmed? Was happens to the unconfirmed
quantity? In the first session of interactive planning, check whether the
distribution demand in plant 1000 has also been confirmed.
a)

In case you are still in the application log in the second session, go back
to the planning screen with . Now choose SNP Stock Transfers:
Reduce , and execute deployment again.

b)

Analyze the planning result in the application log. To do so, go to the
Deployment Results (Details) row and click the magnifying glass
to display the deployment details. Now only some of the distribution
demands are confirmed completely. The unconfirmed quantity is
transferred to subsequent periods (Rollfw).

c)

In the first session, click the Refresh button to update the data in the
SNP interactive planning table. Now you receive quantities in the
DistrDemand (Confirmed) key figure, too.

Task 4:
1.

In the second session, run deployment optimization in the background.
Manually select version SNP-## and all three final products (P-102, P-103
and P-104). Make sure that these entries correspond with the entries in
the following table. In the first session, reanalyze the result in interactive
Supply Network Planning.
Field Name

Input Data

Planning book

9ASNP94

Data view

SNP94(1)

Manual selection

Select

Planning version

SNP-##

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Product
P-102
P-103
P-104
Optimizer profile

Master

Cost profile

Master

a)

In the second session, choose Advanced Planning and Optimization →
Supply Network Planning → Planning → Supply Network Planning in
the Background → Deployment Optimization.
Enter the information from the table and click execute.

b)

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In the first session, analyze the results in the SNP interactive planning
table by choosing Refresh.

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Lesson: Basics of Deployment

Lesson Summary
You should now be able to:

Explain deployment concepts

Calculate the ATD quantity for the plant

Describe the main settings for the deployment run

Explain the factors that influence deployment

Describe fair share rules for deployment

Describe push rules for deployment

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Lesson: Transport Load Builder
Lesson Overview
This lesson will help you understand the role of the Transport Load Builder (TLB)
in the Supply Network Planning process. Using the TLB, you can build stock
transfers confirmed by deployment for means of transport and ensure that the
means of transport are loaded to their full capacity. In addition, you will learn
to execute a TLB run.

Lesson Objectives
After completing this lesson, you will be able to:


Describe the role of the Transport Load Builder
Explain how the TLB functions in the SNP process
Execute a TLB run

Business Example
Using the TLB, you can build stock transfers confirmed by deployment for means
of transport. As the Planning Manager at Precision Pump Company, you need
to ensure that means of transport are utilized to the possible maximum when
distributing products to distribution centers and VMI customers. As a result, you
need to deploy stock transfers for various products so that transport means are
filled to the maximum possible capacity.

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Lesson: Transport Load Builder

Overview of Transport Load Builder

Figure 202: The Transport Load Builder

With the transport load builder (TLB), you can build loads for determined
transport means and ensure that the capacity of transport means is utilized to the
possible maximum. TLB planning prioritizes the following aims:


Grouping of products for the same transportation planner
Time-based grouping: The TLB brings forward stock transfers within the
pull horizon and checks whether the quantity is already available.
Grouping of locations using transport zones

You can create transportation zones for the Transport Load Builder or transfer the
transportation zones from SAP ECC. With these transport zones you can, for
example, group your locations using the TZONE hierarchy (choose Master Data
→ Hierarchy). Assign this hierarchy to your model. In Customizing in TP/VS,
you can choose to maintain a transport-based hierarchy and assign the TLB
application to your hierarchy. The TLB can now build deployment stock transfers
for several locations within one transportation zone.
Grouping ensures that:

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the minimum capacity of transport means is respected in terms of volume,
weight, and pallet quantity
the maximum capacity of transport means is not exceeded in terms of
volume, weight, and pallet quantity

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Load plans for stock transport orders that could not be satisfied during the TLB
run due to specified constraints must be built manually.
Hint: You can employ the TLB in SAP Inventory Collaboration Hub
(SAP ICH) or in Supply Network Planning (SNP). In SAP ICH, additional
function features are available which are not included in SNP-TLB.

Figure 203: The Transport Load Builder

The system groups deployment stock transfers for individual products together
until the TLB-profile defined minimum values for volume, weight, and pallet
quantity for creating a load have been reached. If transportation recommendations
cannot be converted, the system generates an alert and the planner can convert
the transfers manually. The Alert Monitor informs the planner about the arisen
exceptional situation.
TLB groups planned stock transfers into practical freight units. If the TLB transfer
is for a Vendor-Managed Inventory (VMI) customer, the results are processed in
the SAP ECC system as sales orders. Otherwise, the result is a stock transport order
in the SAP ECC system. You can specify additional conditions for VMI customers.
In APO 3.1 and below, the Transport Load Builder could only create full pallets
with the same product. In SCM 4.0, pallets can be loaded with several different
products (Global SNP Settings in Customizing).
Prioritization of Deployment Stock Transfers
You can distribute the deployment stock transfers by requirements type and assign
priorities. The transport priority that was assigned to the deployment stock transfer
is displayed in the TLB view in interactive SNP planning. The priority enables
you to assess the relative importance of a stock transfer and use this information

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when manually building the TLB shipments. The TLB run ignores the transport
priority. You can only implement prioritization for deployment stock transfers
that are not transferred at all or that are transferred as purchase requisitions to
a connected OLTP system. Deployment stock transfers that are transferred as
purchase orders to the OLTP system cannot be processed using this function.
Starting from SCM 4.0, you can prioritize deployment stock transfers according to
the following categories:


Category 1: Stock transfers to cover current demands and shortfall quantities
Category 2: Stock transfers to cover demands based on a specified target
stock level
Category 3: Stock transfers that represent a delivery in excess of the target
stock level (overdelivery), e.g. on the basis of the push rule

You carry out prioritization after deployment and before the TLB run with the
transaction /SAPAPO/DPLSPLIT prioritize deployment stock transfer.

Working with the TLB Profile

Figure 204: The TLB Profile

Supply Network Planning (SNP) only plans transportation lane capacity (of an
entire transport fleet). The TLB is first to consider individual means of transport.
In the TLB profile, the minimum and maximum values for volume, weight, and
pallets are defined per load. You can also use business add-ins to define additional
customer-specific parameters. For further details, refer to SAP Note 710198.

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Rounding values and the maximum lot size can be determined in the product
master of the target location or in the transportation lane, or a combination of
the two. The Transport Load Builder uses the lot size profile to determine how
to build transport loads. The TLB uses the stacking factor (product master) and
the maximum number of pallet positions to work out the maximum amount of
pallets. On the GR/GI tab page of the product master, indicate whether a product
can be palletized.
In the TLB, in SCM 4.1 and above you can also define flexible rule relationships
for linking the upper and lower limits. Use the /SAPAPO/TLBPRF_TRANS
report to adapt the SCM 4.0 TLB profile to suit the new logic. The following
standard connections are allowed:

Combine upper limits with “and”, lower limits with “or”: The TLB may not
exceed any of the defined upper limits when building shipments. In addition,
at least one of the lower limits must be reached or exceeded in line with
how you defined the rules.
Combine upper limits with “and”, lower limits with “and”: The TLB may
not exceed any of the defined upper limits. In addition, all defined lower
limits must be reached or exceeded.
As well as the standard connections, you can also establish user-defined
relationships between the rules. Using the AND and OR operators as well as
brackets, you can define which combination of these rules the TLB should
use when building the shipments.

Settings in the Transportation Lane:
When building the transport loads, the TLB (in SCM 4.1 and above) takes account
of the loading methods that you defined in the transportation lane for the means of
transport. It does its best to load the means of transport using the same products or
products from the same loading group (product-by-product loading) or distributes

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the products equally among all the shipments (equal loading). Note, however, that
the TLB does not use optimization methods and is therefore unable to guarantee an
optimal solution. Individually, the TLB considers the loading methods as follows:

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

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Figure 205: Building Consolidated Loads

In the Transport Load Builder's interactive planning table, you can view the
deployment and TLB stock transfers generated automatically by the TLB for
a specific day. If the load does not meet the minimum capacity requirements
specified for a full transport load within the specified pull-in horizon, you can
manually add TLB stock transfers that are planned for a later shipment and ship
them early to achieve a full truckload. If deployment stock transfers were not
converted, you can use Drag&Drop to include them in existing TLB stock transfers
or create new TLB stock transfers.
Hint: As of SCM 5.0, you can temporarily change the TLB profile
settings and the transportation lane in a dialog window in order to
improve grouping.
How the TLB treats remaining shipment quantities:
If the Transport Load Builder was unable to load one of the TLB shipments up to
the defined lower limit using the stock transfers or replenishment orders from the
current period, it redistributes the product quantities. The TLB now attempts to
ensure that all shipments are within the valid upper and lower parameter limits

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Lesson: Transport Load Builder

by only loading some shipments to the lower limit. It thus rebuilds all shipments,
taking the loading methods into account. If the TLB is still unable to find a valid
solution, it uses the following methods for changing the shipment quantity:

Shipment quantity increase: The TLB increases the product quantities to be
transported by including more deployment stock transfers or replenishment
orders from within the pull-in horizon. In addition to this, the TLB sorts the
stock transfers within this horizon according to their days' supply. In the
master data of the location product you can define a coverage period for a
product. The TLB can only reschedule as many deployment stock transfers
of the product as are necessary to cover demand within this period. You can
also exclude the shipment quantity increase for a product. The TLB increases
the transport quantities with individual rounding values of the products until
all shipments lie with the applicable upper and lower parameter limits.
Shipment quantity decrease: The TLB decreases the product quantities to
be transported by prioritizing and reducing the current period's deployment
stock transfers or replenishment orders, taking their days' supply into account.
Hint: As of SCM 4.1, the basic settings in SNP Customizing allow you to
implement settings for the TLB. Here, you define the method used to build
the shipment, the search method for increasing the shipment, the heuristic
for increasing the transport quantities, the search method for decreasing
the shipment, the heuristic for decreasing the transport quantities, and
back-tracking just to look for valid or maximum transport loads.
Here you can also find increasing the shipment quantity. When using this
method, the system normally increases the quantities to be transported
until they reach a point where they lie within the valid range between the
upper and lower parameter limits. If you set the flag, the system will
increase the shipment quantities up to the defined upper limit, where
this is possible. You can also decide whether you want to set a shipment
decrease in the event that the shipment increase fails.

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TLB Run

Figure 206: Input Parameters for the TLB Run

If you do not enter an end date for the planning horizon, the TLB run is only
performed for the first day of the planning horizon.

Figure 207: Results of TLB Run

The spool list from the TLB run gives you a results list of used capacity (volume,
weight, pallets) and free capacity of the means of transport.

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Lesson: Transport Load Builder

Exercise 30: TLB Planning
Exercise Objectives
After completing this exercise, you will be able to:

Explain the role of the TLB in the SNP process

Complete the configuration settings for the TLB

Execute a TLB planning run

Business Example
Task 1:
As the transportation planner at Precision Pump Company, you must make sure
that the TLB planning run distributes the deployment stock transfers sensibly
among the means of transport. You must also group the unconverted deployment
stock transfers interactively into TLB stock transfers so that stock transport orders
will be generated in SAP ECC. These can then be converted to deliveries in SAP
ECC or using SCM TP/VS.
1.

Check the PUMP TLB profile and note down the lower and upper limits for
volume and weight:
Lower limit

Upper limit

Volume (M3)
Weight (TO)

Task 2:
1.

Check that the PUMP TLB profile is assigned to the transportation lane from
plant 1000 to distribution center 2400.

Task 3:
1.

Now run the Transport Load Builder for the stock transfers confirmed by
deployment in interactive planning. Select the version SNP-## transportation
lane from plant 2300 to DC2400. You should only find stock transfers
confirmed by deployment for your three finished products P-102, P-103 und
P-104. Execute the TLB run for this transportation lane and do not save.

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Are stock transfers split? Do your receive stock transfers that contain
multiple products? Check that the lower and upper limits for volume and
weight that you noted above have been observed. If deployment stock
transfers were not converted, use Drag&Drop to include them in existing
TLB orders, or generate new TLB orders.
Try to improve the utilization of the means of transport. Interactively
increase the TLB threshold to 20 cubic meters und 15 tons. Load the original
deployment stock transfer and plan the grouping again using the TLB run.
Was the utilization of the means of transport improved? Save the orders.

488

2.

What happens to stock transfers that are not converted?

3.

What effect would this action have had in SAP ECC if you had planned in
the active version 00?

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Lesson: Transport Load Builder

Solution 30: TLB Planning
Task 1:
As the transportation planner at Precision Pump Company, you must make sure
that the TLB planning run distributes the deployment stock transfers sensibly
among the means of transport. You must also group the unconverted deployment
stock transfers interactively into TLB stock transfers so that stock transport orders
will be generated in SAP ECC. These can then be converted to deliveries in SAP
ECC or using SCM TP/VS.
1.

Check the PUMP TLB profile and note down the lower and upper limits for
volume and weight:
Lower limit

Upper limit

Volume (M3)
Weight (TO)
a)

Use the menu path Supply Network Planning → Environment →
Current settings → Profiles → Define Transport Load Builder (TLB)
Profiles .

b)

Double-click the PUMP TLB profile, and you will obtain the following
information in the lower section:
Lower limit

Upper limit

Volume (M3)

10

40

Weight (TO)

5

38

Task 2:
1.

Check that the PUMP TLB profile is assigned to the transportation lane from
plant 1000 to distribution center 2400.
a)

Choose Advanced Planning and Optimization → Master Data →
Transportation Lane → Transportation Lane.

b)

Enter your model SNP-##, start location 1000, and destination location
2400. Then click on Display.

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Task 3:
1.

Now run the Transport Load Builder for the stock transfers confirmed by
deployment in interactive planning. Select the version SNP-## transportation
lane from plant 2300 to DC2400. You should only find stock transfers
confirmed by deployment for your three finished products P-102, P-103 und
P-104. Execute the TLB run for this transportation lane and do not save.
Are stock transfers split? Do your receive stock transfers that contain
multiple products? Check that the lower and upper limits for volume and
weight that you noted above have been observed. If deployment stock
transfers were not converted, use Drag&Drop to include them in existing
TLB orders, or generate new TLB orders.
Try to improve the utilization of the means of transport. Interactively
increase the TLB threshold to 20 cubic meters und 15 tons. Load the original
deployment stock transfer and plan the grouping again using the TLB run.
Was the utilization of the means of transport improved? Save the orders.
a)

Choose Advanced Planning and Optimization → Supply Network
Planning → Planning → Transport Load Builder (TLB) .

b)

, to open the selection window. Then enter the data in
Choose
the table below.
Field

Value

Show

APO Transportn Lane

APO Planning Version

SNP-##

APO Source Location

2300

APO Destination Loc.

2400

c)

Double-click the transportation lane. Your deployment stock transfers
appear in the upper window on the right.

d)

Switch to change mode and click
Start TLB start above the
middle window to execute the TLB run. TLB orders are displayed if
the conditions of the TLB profile can be met. Large stock transfers are
split. You receive stock transfers that contain several products if you
have run the deployment optimizer for the three finished products.

e)

Interactively increase the threshold to 20 cubic meters and 15 tons
TLB parameters. Load the original deployment stock
by clicking
transfers using
Refresh Orders and plan the grouping by choosing
Start TLB again. The utilization of the means of transport is improved.
Save your planning.
Continued on next page

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Lesson: Transport Load Builder

2.

What happens to stock transfers that are not converted?
a)

3.

What effect would this action have had in SAP ECC if you had planned in
the active version 00?
a)

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Stock transfers that are not converted can be converted manually by
the planner. If deployment stock transfers were not converted, use
Drag&Drop (from the right window) to include them in existing TLB
orders (in the left window), or generate new TLB orders.

In SAP ECC, the stock transport requisitions are converted into stock
transport orders using the TLB.

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Lesson Summary
You should now be able to:

Describe the role of the Transport Load Builder

Explain how the TLB functions in the SNP process

Execute a TLB run

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Unit Summary

Unit Summary
You should now be able to:

Explain deployment concepts

Calculate the ATD quantity for the plant

Describe the main settings for the deployment run

Explain the factors that influence deployment

Describe fair share rules for deployment

Describe push rules for deployment

Describe the role of the Transport Load Builder

Explain how the TLB functions in the SNP process

Execute a TLB run

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Unit Summary

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Unit 10
Summarizing SNP
Unit Overview
This unit will give you a brief overview of all the topics discussed in the previous
units. You will discuss the supply chain planning process and the role of SNP in
SAP SCM planning. You will learn to configure settings for SNP and understand
the role of SNP optimization, deployment, and the TLB. You will also learn how
SCM integrates with the execution system.

Unit Objectives
After completing this unit, you will be able to:




Describe the supply chain planning process
Describe the role of SNP in SAP SCM planning
Summarize the configuration of SNP
Explain the activities of the SNP heuristic, Capable-to-Match (CTM), and
SNP optimization, as well as deployment and the TLB
Describe how SCM integrates with the execution system

Unit Contents
Lesson: SNP: Unit Summary..................................................496

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Unit 10: Summarizing SNP

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

Lesson Objectives
After completing this lesson, you will be able to:




Describe the supply chain planning process
Describe the role of SNP in SAP SCM planning
Summarize the configuration of SNP
Explain the activities of the SNP heuristic, Capable-to-Match (CTM), and
SNP optimization, as well as deployment and the TLB
Describe how SCM integrates with the execution system

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

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Lesson: SNP: Unit Summary

SNP Process

Figure 208: Supply Chain Planning at a Glance

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

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

Figure 209: Configuration of Supply Network Planning (SNP)

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

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Lesson: SNP: Unit Summary

Figure 210: The Supply Network Planning Process Flow

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

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

SNP Planning Methods

Figure 211: Heuristic Scenario

The heuristic is the most frequently used cross-location planning method in SCM.
It is used to:

500

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

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Lesson: SNP: Unit Summary

The above figure shows how the Heuristic works:
1.

2.

3.

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

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

Figure 212: Capable-to-Match (CTM) Scenario

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

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CTM is an order-based planning method for individual demands that uses
pegging to track orders back to the individual demand. Therefore, CTM is not
a true form of SNP because SNP provides quantity-based and not order-based
planning. However, CTM is a part of this course because it is a form of
cross-location planning. Neither the optimization nor heuristic run generates an
assignment (pegging relationship) of planned receipts for the original sales order.
The above figure shows how CTM works:
1.

2.

3.

The system determines the sequence of locations internally and finds demand
in the distribution center. The net requirements calculation does not find
any receipts. The product is procured externally. The system determines
the possible transportation lanes. CTM checks whether or not the finished
product and components can be procured from the plant with the higher
quota arrangement. The entire quantity cannot be procured. As a result,
procurement is distributed according to feasibility and transferred to the
plants using stock transfers.
There is no stock at the plants. Therefore, the SNP plans, PPMs, are
exploded, planned orders are created for the finished product, and dependent
requirements are created for the components. The plants have the required
capacity to supply the planned orders. The supply chain planner does not
need to intervene.
Components are procured through the possible transportation lanes according
to quota arrangements or priorities. The suppliers can deliver the required
quantity. The supply chain planner does not need to intervene.

Figure 213: Optimizer Scenario

502

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: SNP: Unit Summary

The SNP optimizer is a cost-based, cross-location planning method that takes into
account constraints such as available capacity and materials during the planning
run and finite planning.
The feasibility of receipts is checked globally and the solution that is feasible
and cost-effective is scheduled. Priorities are set using control costs that you
maintain in SAP SCM, excluding procurement costs. The optimizer ignores quota
arrangements although these quota arrangements can be optimized and created
during the planning run.
The optimization run, similar to the heuristic run, is a quantity-based planning
method without pegging. The optimization run does not generate an assignment of
planned receipts for the original sales order.
The above figure shows how an optimizer functions:
1.

2.

3.

2006/Q2

There is demand but no receipt at the distribution center. The system
determines the possible transportation lanes. The optimizer makes global
checks to find the most cost-effective way of procuring the finished product
and its components. The entire quantity cannot be procured from the most
cost-effective plant. As a result, procurement is distributed to the plants
according to feasibility and costs using stock transfers.
There are no existing receipts at the plants. As a result, the SNP plans and
PPMs are exploded and planned orders are created for the finished product.
Dependent requirements are created for the components. The plants have the
required capacity to supply the planned orders. The supply chain planner
does not need to intervene.
Components are then procured through the possible transportation lanes
based on costs and, possibly, delivery capacities. The suppliers can deliver
the required quantity. The supply chain planner does not need to intervene.

© 2006 SAP AG. All rights reserved.

503

Unit 10: Summarizing SNP

SCM230

Relationship Between SNP and PP/DS

Figure 214: Transition from Medium to Short-Term Planning

If you decide to use both SNP and PP/DS for planning, the PP/DS and SNP
horizons are used to separate the areas of responsibility for these two planning
functions. So, for example, the SNP planning run can only create planned orders
outside of the SNP production horizon, and PP/DS can only create planned orders
inside of the PP/DS horizon. If requirements within the SNP production horizon
cannot be covered by PP/DS, then SNP plans the receipt outside of the SNP
production horizon (this corresponds to the logic of the PP/DS planning time

504

© 2006 SAP AG. All rights reserved.

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SCM230

Lesson: SNP: Unit Summary

fence in short-term planning). If the PP/DS horizon in the product master is set to
a greater length than the SNP production horizon, this gives rise to an overlapping
area in which both SNP and PP/DS receipts can be created.

Supply Network Planning (SNP) is used for medium to long-term planning
across the entire supply chain, especially if there are several plants and
distribution centers. Demands are aggregated for the defined bucket, for
example, a day. In this instance, it is irrelevant whether a demand is in the
early shift or late shift. The receipts are planned per bucket, and no account
is taken of break times or setup times. In addition to time-based aggregated
planning in SNP, you can perform spatial aggregated planning, if required.
You can define specific “bucket resources” to be used for SNP, which can
represent the available capacity of an entire warehouse. The master data
for rough-cut production planning is referred to as SNP plans (PPMs) or
SNP PDS (production data structures). This master data is either generated
from PP/DS PPMs or transferred directly from ECC using the CIF interface.
Order sequences with their exact times do not play a role in SNP.
PP/DS is used for short-term planning, where orders are scheduled to the
minute and order sequences, that is sequence planning and optimization,
are considered.

Pegging is the link between receipts and issues along the supply chain. The
planning run determines which demand is covered by which receipt element; this
information is stored in liveCache. When an order is moved to an earlier or later
time, all dependent orders can be adjusted automatically due to this pegging.
This function is only available in Detailed Scheduling. SNP is based purely on
quantities and buckets.

2006/Q2

© 2006 SAP AG. All rights reserved.

505

Unit 10: Summarizing SNP

SCM230

Overview of Deployment

Figure 215: Deployment

The deployment function in SNP plans the short-term distribution of the produced
or procured products to the distribution centers. It determines when, and in what
quantity, inventory and planned receipts can be deployed to distribution centers
and vendor-managed inventory (VMI) accounts. If the ATD (available-to-deploy)
quantity is insufficient to cover all demands, the fair share rules define the DC
prioritization. These generate feasible, or even optimized, distribution plans with
constraints (e.g. transportation capacities) and business rules (e.g. minimum cost
approach or replenishment strategies), which can be transferred to ECC in the
form of executable stock transport orders.
Depending on the current situation, several deployment strategies can be used:


506

Fair share deployment, if the receipt at the plant is insufficient to cover total
demand from the distribution centers.
Push deployment, if the receipt at the plant exceeds total demand from the
distribution centers and the surplus quantity is to be deployed directly.
Pull/push deployment, if the receipt at the plant exceeds total demand from
the distribution centers for the next few days and the surplus quantity is to
be deployed directly.
Rule-based deployment can be substituted by an optimization of the
deployment stock transfers with minimum costs.

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Lesson: SNP: Unit Summary

Figure 216: Transport Load Builder

The principal function of the Transport Load Builder (TLB) is to group the
confirmed deployment stock transfers for individual products into feasible freight
units from several products. The TLB ensures that, in ECC:

Stock transport orders are generated with a definable minimum weight,
volume, or number of pallets
Stock transport orders are only generated to maximum capacity Stock
transfers can also be split.

The TLB can maximize transportation capacities by optimizing load building. The
system checks the confirmed stock transfers against the minimum and maximum
values defined in the system. If the confirmed stock transfers do not meet either
the minimum or maximum requirements, the system generates an alert and the
planner can readjust the TLB plan.

2006/Q2

© 2006 SAP AG. All rights reserved.

507

Unit 10: Summarizing SNP

SCM230

Integrating SCM with ECC

Figure 217: Integration Between SCM and ECC

The above graphic shows how transaction data is exchanged between SCM and
the connected execution systems. These systems (for example, ECC systems) are
known as online transaction processing (OLTP) systems.
You can transfer the results of demand planning as planned independent
requirements to SCM or to the OLTP systems. This is comparable with the
transfer from flexible planning, or from demand and operations planning, to
program planning.
You can transfer the SNP planning results to the OLTP system as planned orders,
purchase requisitions, and stock transport requisitions.
You transfer the PP/DS planning results to the OLTP system as planned orders,
purchase requisitions, and stock transport requisitions. If you convert SNP
planned orders into PP/DS planned orders, the planned orders are adjusted in the
OLTP system. Planned orders can only be transferred to the OLTP system as
production orders from PP/DS.
Deployment and TLB confirm stock transport requisitions and can convert these
requisitions into stock transport orders or VMI sales orders in the execution
system. Cross-system stock transfers are also allowed. In Customizing in the
execution system, you can define whether you want the stock transfer using stock
transport orders or purchase orders with sales orders to take place, for example,
cross-company.

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2006/Q2

SCM230

Lesson: SNP: Unit Summary

Choose Customizing → APO → Supply Chain Planning → SNP → Basic Settings
→ Configure Transfer to OLTP Systems to define the type of transfer you want
to make.

SCM Reports

Figure 218: Reports in SCM

You can use the BW front end in the internal SAP BW system to run reports for
SCM planning data.
Reports can be run for the data of the internal BW system, for example from
InfoCubes, and also for all order and time series objects from liveCache.
You require the following to generate live reports for orders and time series: A
planning area in SCM, an extraction structure for the planning area, an InfoSource,
and an SAP RemoteCube that reflects the liveCache data.

2006/Q2

© 2006 SAP AG. All rights reserved.

509

Unit 10: Summarizing SNP

SCM230

Lesson Summary
You should now be able to:

Describe the supply chain planning process

Describe the role of SNP in SAP SCM planning

Summarize the configuration of SNP

Explain the activities of the SNP heuristic, Capable-to-Match (CTM), and
SNP optimization, as well as deployment and the TLB

Describe how SCM integrates with the execution system

510

© 2006 SAP AG. All rights reserved.

2006/Q2

SCM230

Unit Summary

Unit Summary
You should now be able to:

Describe the supply chain planning process

Describe the role of SNP in SAP SCM planning

Summarize the configuration of SNP

Explain the activities of the SNP heuristic, Capable-to-Match (CTM), and
SNP optimization, as well as deployment and the TLB

Describe how SCM integrates with the execution system

2006/Q2

© 2006 SAP AG. All rights reserved.

511

Course Summary

SCM230

Course Summary
You should now be able to:






512

Create a model that represents your supply chain network and all relevant
locations, resources, and relationships
Develop queries and collect information about the supply chain
Detect and resolve problems in the supply chain using the Alert Monitor
Set-up SNP master data and configure SNP
Perform SNP runs using SNP Heuristics , the SNP Optimizer, and Capable
to Match
Execute a Deployment run to determine the distribution of available supply
Use the Transport Load Builder to create multi-product loads

© 2006 SAP AG. All rights reserved.

2006/Q2

Appendix 1
Appendix

Figure 219: mySAP SCM Curriculum (Planning)

2006/Q2

© 2006 SAP AG. All rights reserved.

513

Appendix 1: Appendix

SCM230

Figure 220: Company Profile: Precision Pump Company

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

514

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2006/Q2

SCM230

Appendix 1: Appendix

Figure 221: Plants and Distribution Centers

This slide shows the main part of the Precision Pump company's supply chain. All
the locations displayed exist as “plants” in the connected OLTP (ECC) system:
Three production plants:
1000 – Hamburg
2300 – Barcelona
3000 – New York
Three distribution centers (DC)
2400 – Milan
2500 – Rotterdam
3800 – Denver

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515

Appendix 1: Appendix

SCM230

Figure 222: Bill of Materials for P-102

This slide shows the ECC bill of material (BOM) for product P-102 (T-F2##). The
SCM Core Interface (CIF) was used to transfer this bill of material as a PP/DS
BOM. Only hexagon head screw 102-130 is planned in ECC. An SNP BOM
was then generated from the PP/DS BOM. During automatic conversion, it was
specified that only products P-102, 102-100, 102-110, 102-300, and 102-310 are
relevant to SNP.
Legend: (Material number demo for sales and distribution, consulting)
(Type of material, course material number (xx = 00 - 20))
(Plant, stock, individual/collective requirement indicators)

516

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2006/Q2

SCM230

Appendix 1: Appendix

Figure 223: Partial Procurement and Production

This slide shows the most important suppliers for the Precision Pump company's
European plants. Dependent demands for the raw materials are generated for the
supplier locations. The following raw materials are delivered:
1003 – Gusswerke (100-110, 100-120, 100-210, 100-310, 100-410)
1006 – Blacks Inc. (100-120)
1011 – Kugelmeier (100-120, 100-210, 100-310, 100-410)

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Appendix 1: Appendix

SCM230

Figure 224: Sales from Sales Organizations Italy and The Netherlands

This slide shows how finished products P-102, P-103, and P-104 are distributed.
DC 2400 can obtain finished products P-102, P-103, and P-104 from plant 1000
(Hamburg) and plant 2300 (Barcelona). The quota arrangement function specifies
that the distribution center (DC) receives 80% from plant 2300 and 20% from
plant 1000.
DC 2500 can obtain finished products P-102, P-103, and P-104 from plant 1000
(Hamburg) and plant 2300 (Barcelona). The quota arrangement function specifies
that the DC receives 80% from plant 1000 and 20% from plant 2300.
Pumps P-102, P-103, and P-104 are delivered to customers 2502 and 2503 from
DC 2500 (Rotterdam).
Pumps P-102, P-103, and P-104 are delivered to customers 1320 and 2403 from
DC 2400 (Milan).

518

© 2006 SAP AG. All rights reserved.

2006/Q2

Index
Numerics/Symbols
α calculation, 424

A
airline strategy, 293
alert, 222
Alert Monitor, 9
Alert Profile, 171
APO aggregate, 141
APO Core Interface, 6, 19,
497
APO master data, 139
APO scheduling agreements,
247
assembly scrap, 68
ATI, 448
ATP, 448
ATP category groups, 145
ATP rules, 330
ATR, 448
availability dates, 372
Available safety stock
methods, 420
available-to-issues, 448
available-to-promise, 448
Available-to-Promise rules,
330
available-to-receipts, 448

B
Back Order Processing, 285
Basic Solve, 360, 363
Bill of materials, 106, 129
BOP, 285
branch methods, 364
bucket resources, 81
Business Information
Warehouse, 38
BW, 38

2006/Q2

C
βcalculation, 424
Capable-to-Match, 279, 387
capacity check, 222
Category, 146
characteristic, 140
characteristic values, 140
characteristics, 141
CIF, 6, 19, 497
Collaborative planning, 36
Collaborative Planning
Forecasting and
Replenishment, 36
collaborative procurement,
248
component area, 186
cost minimization, 360
COVER_CALC, 169
CPFR, 36
critical replenishment path,
426
CTM, 109, 279, 284, 290,
387, 501
CTM Planning Mode, 284
CTM planning run, 331
CTM profile, 284, 286

D
Database alerts, 170
DC, 5, 49, 420
demand planning, 201, 338,
426
Demand Planning, 19, 185,
310, 497
dependent demand, 70
Deployment, 32, 506
deployment horizon, 449
deployment optimization,
450, 462

© 2006 SAP AG. All rights reserved.

519

Index

SCM230

Descriptive characteristics,
310
Discrete manufacturing
master data, 107
Discretization, 363
distribution center, 254
Distribution Center, 27
Distribution Centers, 5, 49,
420
Distribution receipt, 72
domino strategy, 293
DP, 203, 497
Dynamic alerts, 170

E
external procurement, 119

F
fair share rule, 455
fixed lot size, 68

G
Global ATP, 497
global Available-To-Promise
check, 497
Goods Issue, 254
Goods Receipt, 254

H
header information, 188
heuristic, 201–202, 387, 500
Heuristic, 28, 93

I
in-house production, 119
Inbound quota arrangement,
204
inbound quota arrangements,
118, 289
INITIAL_STOCK, 169
integration models, 24

K
KEYFS_VERSION, 169

L
liveCache, 284
liveCache order objects, 143

520

© 2006 SAP AG. All rights reserved.

liveCache time series objects,
143
location heuristic, 208
location-specific product
master, 67
Lot-sizing procedures, 66, 68

M
macro area, 186
MacroBuilder, 167
make-to-stock production
strategies, 22
make-to-stock production
strategy, 69
Master data, 125
master data objects, 5, 49
master planning object
structure, 141
Master recipe, 107
material master, 66
Material Requirements
Planning, 19, 497
materials, 65
means of transport, 58
mixed resources, 81
Model-Based Safety Stock
Planning, 419
MRP, 19, 126
MRP type, 66
multi-sourcing, 204
multilevel heuristic, 208
multiple transportation lanes,
60

N
network heuristic, 208
notes, 190
notes navigation, 190

O
OLTP, 3, 447, 508
OLTP system, 203
OLTP systems, 125, 144
online transaction processing,
3, 447
Online Transaction
Processing, 508

2006/Q2

SCM230

Index

optimization, 348
Optimization Method, 360
Optimization Parameters, 357
Optimization run, 29
optimizer, 357
order dates, 372
outbound quota arrangements,
118

P
Pegging, 31, 505
penalty costs, 348
Period, 92
permit shortages, 292
pivot sorting, 188
planned independent
requirements, 67, 309
Planned independent
requirements, 125–126,
133
planned orders, 311
Planned orders, 128
planner, 222
planning area, 139
Planning area, 37
Planning area 9ASNP02, 146
Planning book, 155
planning books, 139
planning buckets profile, 157
planning horizon, 156
Planning process, 125
PP, 128
PP PI, 107
PP/DS, 19, 108, 128, 201,
284, 338, 419
PP/DS horizon, 130
PPM, 7, 108, 314
PPMs, 425
Priorities, 288
Priority decomposition, 362
procurement priority, 289
procurement type, 66
Product decomposition, 361
Product Plan Assignment, 117
Production Planning and
Detailed Scheduling, 19,
128, 201, 338, 419

2006/Q2

Production planning run, 129
production procedure, 66
production process models, 7
Production Process Models,
425
profit maximization, 360
pull deployment horizon, 454
pull distribution, 459
pull horizon, 449
pull-push distribution, 459
purchasing info records, 57
push deployment horizon, 454
push distribution, 459
push horizon, 449

Q
Quota arrangement, 117
quota arrangements, 288

R
reference resource, 85
REORDER_CALC, 169
Replenishment Lead Time,
419
RLT, 419
rounding profile, 68
Routing, 107
Routing group, 107

S
safety stock, 426
Safety stock, 419
SAFTY_CALC, 169
Sales and Distribution
processing, 54
Sales and Operations
Planning, 19, 497
SAP ECC, 19, 50, 54, 58, 66
SAP ECC Demand
Management, 126
SAP ECC SD, 126
SAP SCM, 5, 50
SCC, 9
SCE, 9
SCM, 3, 508
SCM stock transfer, 23
SDP relevance indicator, 96

© 2006 SAP AG. All rights reserved.

521

Index

SCM230

shipping calendar, 55
shuffler, 186
SNP, 4, 71, 125, 338, 447
SNP bucket, 97
SNP heuristic, 201, 206
SNP Heuristic planning, 222
SNP Heuristic run, 222
SNP optimizer, 29, 59, 67, 84,
109, 339, 503
SNP production horizon, 130
SNP run, 338
SNP scheduling agreement
schedule lines, 247
SNP Supply and Demand
profile, 67
SOP, 19, 497
SStk, 418
standard capacity, 85
Stock transfer horizon, 130
Stock transfers, 125
stock transport orders, 26
STOCK_CALC, 169
Storage buckets profile, 142
supply categories, 287
Supply Chain Cockpit, 9
Supply Chain Engineer, 8–9,
52, 204
supply chain management, 3
supply chain mode, 8
supply chain planning, 66
Supply chain planning, 3, 125
Supply Network Planning, 4,
125, 140, 185, 201, 338,
419, 447, 497, 505
Supply Network Planning,
benefits, 2

T
target day's supply, 68
TARGET_CALC, 169
The Optimizer Profile, 359
Time decomposition, 361
time period until order
creation, 292

522

© 2006 SAP AG. All rights reserved.

Time-Based Capacity
Leveling by decreasing
order quantity, 226
Time-Based Capacity
Leveling by decreasing
product priority, 226
Time-Based Capacity
Leveling by decreasing
storage (days' supply), 226
TLB, 134, 201, 338, 447, 479,
499
total demand, 185
total receipt, 72
total receipts, 185
TP/VS, 134, 447
Transport Load Builder, 20,
33, 134, 201, 338, 447, 479,
499, 507
transport lot size profiles, 60
transportation costs, 349
transportation lane, 56, 289
transportation lanes, 50
Transportation lanes, 132
Transportation planning, 134
Transportation Planning and
Vehicle Scheduling, 447
transportation resource, 81

V
variants, 84
Vehicle resource, 82
vendor managed inventory,
447
Vendor-Managed Inventory,
26, 480
versions, 139
Versions, 8
VMI, 26, 447

W
Web browser, 36
work areas, 10
work center, 80

2006/Q2

Feedback
SAP AG has made every effort in the preparation of this course to ensure the
accuracy and completeness of the materials. If you have any corrections or
suggestions for improvement, please record them in the appropriate place in the
course evaluation.

2006/Q2

© 2006 SAP AG. All rights reserved.

523