Executive Summary A hierarchical structure can be set up in SAP DP. There are essential differences between hierarchy structures, extended hierarchy structures, and schema hierarchy structures. Introduction to Aggregate Planning Aggregate planning is a method of managing hierarchies. You will learn how aggregate planning is performed in DP. Our References for This Article If you…
The Actual Numbers We were shocked when we found this story when researching our book. We knew that many supply chain implementations failed to meet expectations, but the numbers below really surprised us. This supports the concept that companies are putting in overly complex solutions. Think about it for a moment; if many implementations fail…
Executive Summary A heuristic or optimization can perform stock deployment in SNP and the with the heuristic. Deployment can be set as either push or pull. SNP has issues with fair share distribution, and the overall deployment optimizer can’t be effectively used in production. There are essential specific areas that we will discuss setting up…
Executive Summary The SNP optimizer is the CPLEX optimizer now owned by IBM. We cover how to use a heuristic with the optimizer and comparative optimizer settings, costs, ordinary optimizer, and problem segmentation problems. Introduction: Getting into Depth on the SNP Optimizer The SNP optimizer has many essential features not published due to those that…
Executive Summary Constraint planning can be performed in SAP APO. APO can perform both finite and infinite resources. One can use the days of supply in the SNP cost optimizer. Days’ Supply = Total Inventory / Average Daily Consumption On the other hand, the Safety Stock is “hard coded” and does not vary. This keeps…
Executive Summary SAP’s 3 PL and 4 PL solutions in the SAP APO suite are extremely problematic. There are important trade-offs and costs and complexity with SAP APO. Introduction into the Solutions for 3 PL and 4 PL One question the sometimes comes up is whether SAP offers an efficient solution for 4 PL logistics…
Executive Summary Kitting is a mechanism for combining products into a kit. Kitting is supported in EWM. We cover the EWM kit to order, kitting in reverse, and the two processes in kitting. What Is Kitting? Kitting is the practice of managing items as a group. A kit is essentially a BOM that is not…
Executive Summary SNC is designed to enable supplier collaboration in demand, inventory, capacity, transport, and procurement/subcontractor collaboration. SCN can integrate with RFIDs and uses ASNs. SNC can work with release processing and schedule agreements. What Is SAP SNC? SAP SNC is a module in SAP APO which is directed to company-to-company supply chain collaboration. It…
Executive Summary The target stocking level is the target per product location combination and is a fundamental concept. The target stocking level is different from the maximum stock level. We cover how different supply planning methods can incorporate a target stock level value. Introduction The target stocking level is rarely discussed in companies but is a…
Executive Summary SNP is APO’s module that deals with supply planning and SNP has an important impact on SAP DP forecasting. Where the SNP sequence fits into the demand, supply, and production planning process. Introduction SNP is the supply planning module in APO. This article will learn about SNP’s major configuration areas and the different…