Executive Summary Why is a causal forecasting a missed opportunity? How to get the right data for causal economic forecasting? Introduction One of the missed opportunities in forecasting I have discussed in the past is using macroeconomic trends to adjust forecasts. This type of adjustment would be performed at the top-level of the hierarchy, and…
Executive Summary One can use backorders or the order fill rate. We compare a recent paper and its use of backorder service measurement and why backorder is superior. Introduction The order fill rate is the most popular service level measurement method in supply chain management. However, there is another service level measurement based upon backorders….
Executive Summary The term master production schedule changed through time and differs in critical ways from the term MRP. Four dimensions make up the MPS, but there are questions about whether an MPS is still necessary. A Strangely Named Term The Master Production Schedule or Master Production Schedule was always a problematic term. Firstly it…
Executive Summary Safety stock calculated can be performed in several ways in SAP SNP. We cover how safety stock methods compare in SNP versus SAP ERP and the common limitations of SAP’s safety stock. Introduction (Skip if You Watched the Video) The safety stock method is one of the essential functionalities of SNP. SNP’s safety…
Executive Summary The SAP forecast consumption settings include backward and forecast consumption. Forecast consumption is used to smooth out the peaks. The timing of sales orders and the effect of the backward consumption setting. The most common scenario of sales orders exceeding the forecast. There is a relationship between when sales orders are received and…
Executive Summary We cover the major components of the Planning Book with our mockup. We cover row selection, SAP Macros, demand Key Figures, forecast Key Figures, supply Key Figures, stock Key Figures, and the APO Macro Builder. Introduction: A (Relatively)Comprehensive Run-through of the Planning Book This article is designed to clarify how to interpret the…
Executive Summary There are essential factors to the staffing requirements for SAP DP. Why SAP DP is more expensive to support than other forecasting applications. What is Staffing Level Required to Keep SAP DP Working? Most companies I have worked with are unfamiliar with how much work and workforce are required to implement SAP DP…
Executive Summary Shaun is the Founder of Brightwork Research & Analysis Shaun created Brightwork as there was, and really still is, no unbiased independent research entity that covers SAP or Oracle. Shaun Snapp’s Publications and Video Linking to and Following Shaun Snapp Contact information Bio Shaun wears several hats. Shaun is an independent SAP APO…
Executive Summary The jargon-heavy core statistical forecasting parameters known as “Alpha, Beta, and Gamma” could just as easily be called by the more descriptive names of “Base Factor, Trend Factor, and Seasonality Factor.” Introduction The jargon-heavy core statistical forecasting parameters known as “Alpha, Beta, and Gamma” could just as easily be called by the more…
Executive Summary What is a heuristic algorithm, and how can a heuristic be compared against an algorithm, and what is a meta-heuristic? Introduction to Heuristic Algorithms This post documents an email discussion between myself and Wayne Fu regarding the heuristic algorithm. Question for Wayne Fu “What is a heuristic based optimization algorithm, or a heuristic…