Search Results for: sap-apo

  • How to Understand Synchronized Integrated Factories with Stock Transfers

    ByPrimary Researcher

    … the maximum lot size of the subcomponent so that the production order does not drive the stock transport requisition to be larger than what is desired to be shipped in increments between the factories, and thus breaking the continuous flow of material required to support integrated manufacturing. The setting in SAP APO to control for this is shown below:

    This setting forces the creation of stock transport requisitions in quantity determined in the maximum lot size field. Because the requirement (initiated by a planned production order) will land on a specific day, this may mean the system will create all …

  • Where Material and Procurement Planning Occurs in SAP ERP and APO

    ByPrimary Researcher

    … SAP ERP. When a company only uses SAP ERP, MRP and DRP are performed, which controls the planning. When a company uses SAP ERP, they convert purchase requisitions to purchase orders in SAP ERP. This makes SAP ERP much easier to understand and design a material planning process than when SAP APO is in the mix. The question becomes what system to use for what process. Some companies try to follow the rule of thumb that different individuals should only work in one system, either SAP ERP or SAP APO.
    However, this is not a good approach as each system …

  • The Problem with SAP Big Bang Implementation Approaches

    ByPrimary Researcher

    … approach is sequential. That is, the company is expected to move in the precise sequence that is described above. A problem with this is that in complicated supply chain planning software like SAP APO, there are so many settings and so many options that the consultant can’t explain all available options. The learning cycles are necessary for the user community and the company’s management to know the right answers to give.
    Secondly, with so much functionality, the consultant can’t have implemented every functionality they must place into the design for a new implementation. Thirdly, because not …

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    Is Multi Sourcing Supported with CTM or even SNP?

    ByPrimary Researcher

    … the Fair Share Rule and determines where deployment requirements are processed when the Fair Share Rule D (Proportional Demands Based upon Priority) is set. Therefore, it has nothing to do with CTM but instead is related to the deployment heuristic.
    More on Priorities Verus Quota Arrangements
    Supply Chain Management with SAP APO has the following quotes on this functionality.
    “CTM switches to alternative sources with a lower priority in case of capacity or material constraint.”
    This is a critical topic because it can sometimes confuse how material constraints change or affect the plan. When capacity constraints are used, CTM will …

  • How to Best Perform Backflushing in SAP ERP

    ByPrimary Researcher

    … and SAP APO
    Backflushing is set in three places in SAP ERP.

    At the material
    At the BOM
    At the routing

    This allows a company to set backflushing for the entire BOM or just the BOM levels (by setting the backflush indicator at the material).
    Where is Backflushing Performed?
    For those companies that use SAP APO alongside SAP ERP, it is misleading to think of backflushing as an APO functionality as it is entirely performed in SAP ERP because it is a feature of execution rather than planning.
    While backflushing is something that is done more in repetitive manufacturing …

  • Analyzed Issues Article Links

    ByPrimary Researcher

    … there are links in this article are:

    Unconstrained Planning in CTM
    Order / Supply and Demand Selection in CTM
    Resources by Product Group
    Aggregated Resources in SNP
    Running CTM Daily or Interactively?
    GATP Integration with CTM
    3rd Party Processing in SCM 7.2
    Front Loading Resources in SNP
    Constraining Suppliers in SAP APO
    Reorder Point Planning in SAP ERP
    CTM Customer Priorities Versus Order Priorities
    Order Firming and Fixing
    Pegging in SAP APO
    Choosing Between the PPM and the PDS
    Subcontracting
    Choosing Between Discrete and Manufacturing Functionality in SAP APO
    Segmentation of the Product Location Database for SNP
    CTM and Multi …

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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 …

  • My Experiences with Dynamic or Extended Safety Stock

    ByPrimary Researcher

    … lead time-oriented values as orange and the demand values as blue. “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 …

  • Supply Planning References

    ByPrimary Researcher

    … Wiley, 2010.
    British Department for Transport, The. Procedures for Dealing with Optimism Bias in Transport Planning. Last modified June 2004. https://flyvbjerg.plan.aau.dk/0406DfT-UK%20OptBiasASPUBL.pdf.
    Clark, A.J. A Dynamic Single-Item, Multi-echelon Inventory Model. RAND Corporation, 1958.
    Dickersbach, Jörg Thomas. Supply Chain Management with SAP APO(TM): Structures, Modelling Approaches and Implementation of SAP SCM(TM). Springer, 2008.
    Dickersbach, Jörg Thomas. Service Parts Planning with mySAP SCM(TM): Processes, Structures, and Functions, Springer. 2007.
    Gaddam, Balaji. Capable to Match (CTM) with SAP APO, SAP Press. 2009.
    Gass, Saul I. An Illustrated Guide to Linear …

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

    ByPrimary Researcher

    … along with its optimizer can serve as an external prototype environment) MathWorks is the leading developer of mathematical computing software for engineers and scientists. Founded in 1984, MathWorks employs 2200 people in 15 countries, with headquarters in Natick, Massachusetts, U.S.A. The book focuses on the optimizer plug in for MATLAB.
    www.mathworks.com
    SAP
    SAP is the largest enterprise software company in the world. They offer an enormous array of applications. This book focuses only on their supply planning functionality contained within SAP ERP (MRP and DRP)  and SAP APO SNP (heuristics, allocation and optimization).
    www.sap.com