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…
Executive Summary We cover SAP CTM with how CTM was first developed. Our coverage includes the Planning Run tab, the planning scope, the Supply Distribution tab, the Strategy tab, the Aggregation tab, and the Technical Setting tab. Using CTM means understanding fixed and dynamic pegging. Understanding CRM is no easy feat! Introduction to CTM Thinking…
Executive Summary Supply and demand pegging elements are critical to supply planning in SAP. This article covers how CTM differs in pegging, pegging in PP/DS, two types of pegging, static/fixed and dynamic pegging, and much more. What is Pegging? Peggings are very important for a variety of reasons. Pegging allows a planner to trace the…
Executive Summary There is a hierarchy of a source of supply for SNP heuristics and CTM. The SNP optimizer supposedly enables multisourcing. One of the concepts is that one can constrain the source of supply. Introduction to Sources of Supply in APO This article will cover how APO can set up the logic for choosing…
Executive Summary We cover the difference between plant stock and project stock. There is also valuated stock and non-valuated stock, and project stock. Introduction: Stock Types in Project Stock Environments Some industries like aerospace and defense and other sectors with substantial government contracts work off of a concept called project stock, which is entirely different…