Search Results for: erp

  • How to Capacity Constrain Vendor Locations in SAP SNP

    ByPrimary Researcher

    Executive Summary

    The requirements for vendor capacity modeling have been driven in part by contract manufacturing, where the outsourced plant is not a typical supplier but rather a slave plant.
    Often the question arises as to whether there is value to using a vendor planning book.
    There are several approaches to constrain based planning at vendor locations.
    There is also the issue of modeling the vendor in APO versus ERP.

    Introduction to Supplier Constraints
    This article will address one of the most complex and problematic types of modeling in supply planning, which is capacity constraints for the supplier of a …

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    Managing Storage Location MRP Areas in SNP and GATP

    ByPrimary Researcher

    … location is an MRP area, GATP cannot interoperate with this design. Without GATP, this is a manually intensive design with planners controlling stock movement between the different locations. However, when this design is connected to GATP, sales orders are automatically routed to the correct storage location.
    MRP Areas in SAP ERP Versus Locations in APO
    SAP ERP and APO deal with the level below a location in different ways. In ERP, An MRP Area is a distinct entity, which is not a location. However, in APO, every geographic entity is represented as a location. A shipping point, which is simply …

  • A Debate on How to Recover SAP DP for Forecasting

    ByPrimary Researcher

    … processes. From SAS, deep experience in analytics.” – SAS Forecasting for SAP APO
    The problem is this is just marketing fluff. There is nothing particular about SAP SCM DP that relates to any workflow. The standard workflow is to perform forecasting in DP and then release to SAP SNP or SAP ERP. The integration is very straightforward, and SAS could easily release its demand plan to SNP or SAP ERP, so there is no benefit for SAP SCM DP being in the middle.
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    Conclusion
    I hope that this article was interesting to the individual who proposed the critique …

  • How to Use GATP Allocations for Supplier Capacity Modeling

    ByPrimary Researcher

    … this information takes a lot of work. However, SAP has its unusual overhead, which makes the maintenance even more problematic.
    To understand how this is done, let us review some important aspects of GATP to begin.
    GATP Background
    GATP has the following unusual characteristics:

    CIF synchronizes the data between SAP ERP and GATP in near real-time.
    The ATP check is performed in ERP when GATP is not available.
    GATP integrates closely with supply planning for the order fulfillment process and commits to customer’s orders based on the input information provided by the supply planning receipt elements.

    There are …

  • How to Understand The History of MRP and DRP

    ByPrimary Researcher

    Executive Summary

    We cover the history of MRP and DRP and how these methods were developed and why MRP is the basis of DRP, and how both became absorbed into ERP.

    Video Introduction: How to Understand The History of MRP and DRP
    https://youtu.be/C2VEOoW3yFM
    Text Introduction (Skip if You Watched the Video)
    This is a comprehensive article on the history of MRP and DRP. It reviews the history of supply planning before MRP and DRP arrived on the scene and how MRP and DRP can be set up in some well-known systems. It shows how MRP and …

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    Labor Pool as a Constraint in SNP and PPDS

    ByPrimary Researcher

    Executive Summary

    Labor constraints can be managed with a labor pool in SNP and PP/DS, and ERP.
    There is a relationship between the labor pool and machine resources.
    Is APO really the right place to constrain the labor resource?

    Introduction to the Bottleneck Resource
    The bottleneck resource is critical to managing production constraints. You will learn about how bottleneck resources and labor pools work.
    Our References for This Article
    If you want to see our references for this article and other related Brightwork articles, see this link.
    Notice of Lack of Financial Bias: We have no financial ties to …

  • Planned Orders and Purchase Requisitions and Their Deletion

    ByPrimary Researcher

    Executive Summary

    A Planned Order or a Planned Production Order is different from a Purchase Requisition.
    How Purchase Requisitions sent to outlier locations, and how can one determine if Purchased Requisitions should be in APO?

    Video Introduction: Understanding Planned Orders
    https://youtu.be/IRKYxFP3w50
    Text Introduction (Skip if You Watched the Video)
    There is confusing terminology used in SAP regarding things like planned orders and purchase requisitions. This combined with how purchase requisitions are treated differently by SAP ERP depending upon the type they are, can make the topic of the deletion of these items even more confusing. This article …

  • What if Your Planning Roles are Not Setup for APO?

    ByPrimary Researcher

    … I began working in advanced planning in 1998. Essentially the planning roles at a company are designed around the modules. Therefore, a demand planning planner focuses on the tasks within the demand planning module, a supply planning role for SNP, etc. However, at some companies that may be in an ERP or have an ERP system but be in a pre-ERP stage (for the various stages and their implications, see this article.)
    Our References for This Article
    If you want to see our references for this article and other related Brightwork articles, see this link.
    Notice of Lack of …

  • How to Understand The Planning Horizon in SAP SNP

    ByPrimary Researcher

    … Horizon Per Planning Run
    Four types of planning runs are generally performed in any supply planning system.

    S&OP and Rough Cut Capacity Plan: This is used for long-range planning and, in most cases, is an off-line analysis and is not part of the live environment.
    The Initial Supply Plan (performed by MRP in ERP systems): Produces the initial production and procurement plan. It is focused on bringing stock into the supply network and on creating inventory with planned production orders. It can also be called the master production schedule (MPS) if the initial supply plan is …

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    How to Understand Multi Plant Planning Stock Transfers

    ByPrimary Researcher

    … bill of material developed and used by engineering and design when it was creating the product design. This highlights the differences between the bills of material as presented to different groups within a company and is an excellent example. Still, one of many may be presented as to why the ERP system should never record the bill of materials.
    Capacity Planning the Superplant
    When it comes to capacity planning, the resources are also distributed across locations. This means that constraining a full production (from raw material to finished goods) process by a bottleneck resource is now not feasible. Instead, the …