Search Results for: erp

  • How to Understand Synchronized Integrated Factories with Stock Transfers

    ByPrimary Researcher

    … unknown, arrival time is essential. Under this design, the stock transport order is created just a few minutes before the goods issue, and an inventory count is performed at the source plant’s shipping dock. In this case, the planning system / APO is not involved in decision-making, and the ERP systems are used to record what occurred.
    A second approach is to have the truck wait until production to the planned stock transport order is complete. In this case, the stock transport requisition is planned in APO / SNP and then converted to and stock transport order (STO). The shipping …

  • How to Understand GATP and the Supply Plan Quality and the Order Promise Horizon

    ByPrimary Researcher

    … availability checking system that is completely dependent upon the supply chain plan’s quality and accuracy. However, while many executives want the capabilities provided in GATP, not every company has the plan quality to make GATP a worthwhile implementation.
    In a previous article, I described the issues related to how ERP systems need to be run to enable the implementation of advanced planning systems. SAP placed GATP in APO, even though order promising is not planning. However, GATP does interact strongly with the output of a planning system, and GATP has been provided with the functionality to kick off planned …

  • Analyzed Issues Article Links

    ByPrimary Researcher

    … Misuse of the Term “MRP” on Projects
    Synchronizing Integrated Factories with How Stock Transfers are Initiated
    Understanding the ERP System’s Usage in Preparation for an APO Implementation
    GATP and the Supply Plan Quality and the Order Promising Horizon
    The Superplant Concept
    The Connection Between BOMs, Routings, Work Centers in ERP and PPMs, PDSs in APO
    Localizing Explanations and Instructions for Planning Master Data Retrieval
    Understanding the Connections Between Supermarkets and SNP
    Reorder Points in SAP APO and their Stock Calculation Method
    KANBAN’s Connection to Supply Planning and KANBAN in SAP ERP
    SNP and GATP’s Integration and Backorder …

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    Can CTM Be Used to Create an Unconstrained Plan?

    ByPrimary Researcher

    Executive Summary

    How can CTM be used for unconstrained as well as constrained planning?
    Where are the configuration settings that would have to be changed to run CTM in an unconstrained mode

    Introduction
    The ability to perform constrained planning is a major motivating factor for companies to use CTM. Constrained planning is a major motivator for companies to move from SAP ERP to SAP APO in their supply planning. CTM and the SNP optimizer are often discussed in terms of being “constraint based planning methods.” But in fact, a more accurate description is that either CTM or the SNP optimizer …

  • Understanding 3rd Party Processing in SAP APO

    ByPrimary Researcher

    … company receiving the sales order.

    This means that the company managing this process accepts orders and plans and communicates the demand signal to the third party / i.e., the supplier. The matrix of who does what is the following:

    The flow of third party processing looks like the following:

    SAP ERP eventually creates a purchase order for it, even though it is planned by APO. SAP has the following to say about 3rd party processing.
    “In the SAP Enterprise Resource Planning (SAP ERP) back-end system, when you create the sales order using the item category and corresponding schedule line …

  • How to Use SubContracting in SAP APO

    ByPrimary Researcher

    … PReq is created by the multi-level heuristic (it is also unknown if this same issue persists if the CTM is used or if the SNP optimizer is used) (unless the TLane is created manually)
    The STR is created by and sits in APO and is not transferred to SAP ERP.

    This is described in the screenshots below:

    This is how the subcontractor process flow should work (there are several subcontractor process flows, which is described in this link)
    Conclusion
    Subcontracting is a complicated scenario that requires exceptional coding in the supply planning application. It causes it to perform an …

  • My Experiences with Dynamic or Extended Safety Stock

    ByPrimary Researcher

    … Z” is the service level. Roughly speaking, the formula accounts for variability on both the supply and demand sides while increasing or decreasing the safety stock in conjunction with the service level.
    The Dynamic Safety Stock Settings in SAP APO
    SAP ECC and SAP APO (SNP) have the dynamic safety stock calculation. The dynamic safety stock calculation is the only functionality in ERP systems to account for variability and service level. As we will discuss and provide specific reasons, dynamic safety stock is rarely implemented in ERP systems. This means that most companies that use ERP do not account for

  • Supply Planning References

    ByPrimary Researcher

    … 2001
    https://help.sap.com/printdocu/core/print46c/en/data/pdf/ppsopdrp/ppsopdrp.pdf
    Material Requirements Planning (PP-MRP), SAP, 2001
    https://help.sap.com/printdocu/core/print46c/en/data/pdf/ppmrp/ppmrp.pdf
    Capacity Planning in MPS and MRP, SAP, 2001
    https://help.sap.com/printdocu/core/print46c/en/data/pdf/PPCRPMRPMPS/PPCRP_MRPMPS.pdf
    240 Training Manual SCM Production Planning ERP, SAP, 2006
    https://help.sap.com/saphelp_40b/helpdata/en/f4/7d257044af11d182b40000e829fbfe/content.htm
    Smoothie Help Documentation, 2010, Demand Works
    Consumption Based Planning, MM-CBP, 2001, SAP
    Capacity planning, Wikipedia, January 16 2012
    https://en.wikipedia …

  • Inventory Optimization and Multi Echelon References

    ByPrimary Researcher

    … production scheduling and control, econometrics, logistics, procurement and supply” and problems which could be solved with it.
    https://www.cs.virginia.edu/brochure/images/manuals/IBM_704/IBM_704.html
    Fortran Reference Manual. 1956.
    https://www.fortran.com/FortranForTheIBM704.pdf
    Cullinan, Charles, Steve G. Sutton and Vicky Arnold. Technology Monoculture: ERP Systems. Bingley , UK. Emerald Publishing Group Limited, 2010
    Cohen, Morris, Pasumarti V. Kamesam, Paul Kleindorfer, Hau Lee, and Armen Tekerian. Optimizer: IBM’s Multi-Echelon Inventory System for Managing Service Logistics. Institute of Management Sciences, 1990.
    “Lean Construction.” Wikipedia. Last Modified January 2012.
    https://en.wikipedia.org/wiki/Lean …

  • MRP, DRP, Heuristic, Allocation and Optimization Vendor Profiles

    ByPrimary Researcher

    MRP, DRP, Heuristic, Allocation and Optimization Supply Chain Software Vendor Profiles

    The following supply chain enterprise software vendors are showcased in the Brightwork Research & Analysis supply chain planning book “Supply Planning with MRP/DRP and APS Software.” Each of the vendors makes more than just software that creates the supply plan, however, this book showcases just their functionality in either MRP, DRP, heuristics, allocation or optimization for creating the supply plan. SAP has both its SAP ERP (MRP and DRP) product as well as its SAP SNP product showcased. PlanetTogether is as a system for creating the supply plan but …