Search Results for: sap-apo

  • An Approach for Improving Master Data Maintenance: Better than MDM Software

    … s typically the software itself that is blamed rather than the easy-to-change parameters. The first step to this process is extracting all the parameters from a supply chain planning system and going over them in detail with the business. We do this most often with SAP ECC and SAP APO, both of which are highly encapsulated systems that lack transparency. Over time I have developed an approach that uses relatively inexpensive tools to improve the controls with the system.
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    Conclusion
    Experiences on multiple accounts have shown that it’s easy to have confidence in providing …

  • Supply Planning with MRP, DRP and APS Software

    … Methods

    Background
    The Three Methods within APS
    Heuristics
    What Is a Heuristic?
    Can Heuristics Be Used to Emulate MRP?
    How Heuristics Process the Supply Network
    How Cost Optimization Processes the Supply Network
    How to Think of Heuristics When Selecting Between the Different Supply Planning Methods
    Beyond the Business Requirements
    When Does Using Supply Planning Heuristics Make Sense?
    Allocation
    The SAP APO CTM Application
    CTM Product Substitution
    Defining the Customer Priority List
    Learning From Past Allocation Projects
    How Allocation Decomposes the Network
    How to Think of Implementing Allocation Projects
    When Does Using Allocation Make Sense?
    Cost Optimization
    The Use of …

  • Brightwork Enterprise Software Books

    … ERP Books
    IT Decision Making Books

    Click the tabs to the right of the first tab to see a brief description of each book.
    IT Decision Making Books
    [whistles type=”tabs” group=”it-decision-making” order=”ASC” orderby=”ID” limit=”-1″]
    Demand Planning Books
    [whistles type=”tabs” group=”supply-chain-software” order=”ASC” orderby=”ID” limit=”-1″]
    Supply Planning Books
    [whistles type=”tabs” group=”supply-planning” order=”DESC” orderby=”date” limit=”-1″]
    S&OP Books
    [whistles type=”tabs” group=”sop” order=”DESC” orderby=”date” limit=”-1″]
    Manufacturing and Production Planning Books
    ERP System Management Books
    SAP APO – Advanced Planning Books

  • The Problem with SNP Optimizer Flow Control

    Executive Summary

    The SNP optimizer has two types of methods of deployment. The deployment optimizer has major problems with the second method, which is called cost optimization.
    The deployment optimizer cannot fair sharing stock to locations.
    This topic is hidden by SAP and SAP consulting companies from customers.

    Introduction to Optimization in APO
    In its early years, SAP APO was sold on its ability to perform optimization. This is primarily because it was an industry-wide practice to market advanced planning software in this way. SAP APO, or SAP Advanced Planning & Optimization, had the term directly in its name.
    The …

  • How Gartner Distributes Press Releases On SAP HANA

    … sometimes never to arrive, my SCM projects are asked to make up for BW’s lack of efficiency by developing our reports in APO.
    Furthermore, SAP APO has excellent reporting functionality. This is false. I don’t need to be sold a future vision “information appliances” with data floating on clouds synchronized in perfect harmony. What I need and what my clients need is for BW to show up and pull its weight on projects.
    Also, merely listening to SAP and reprinting what they say is not journalism; it serves as a marketing arm for PR. Did Gartner expect …

  • A Sensitivity Analysis Approach for Supply Chain Optimization

    … that in software companies such as SAP or i2 Technologies, far more people are found with a computer science background than a mathematical programming background. In the latter community modeling languages are more frequently used supporting the concept of strictly separating the data, model and solution methods. – Real Optimization with SAP APO
    However, if SAP APO would become open in the sense that the user can access the variables and constraints, a modeling language would definitely be the better choice. A modeling language would also make it easier to modify and extend the predefined model – Real Optimization with SAP APO

  • The Types of Problem Segmentation in the SAP SNP Optimizer

    … integer linear program) problem solver runtimes can get very high; integer models are a consequence of discrete decisions such as modeling lot size intervals. As the implementor does not have direct access to SAP’s mathematical model formulations these methods of handling the solution times are the approximate way of influencing the behavior of the SAP APO optimizer (apart from changing master data that define the coefficients in the model equations). Especially when dealing with large MILP problems the runtime of the algorithm might be cut by decomposing the problem into smaller subproblems.” – Real Optimization with SAP APO
    Optimization with

  • How to Understand Transportation Lane Configuration in SAP SNP Part 1

    … have the same concern for accuracy as SAP. Not one of these entities will disclose their pro-SAP financial bias to their readers. 

    Introduction: How Transporation Lanes are Setup in APO
    Transportation Lanes connect the nodes in the network. Transportation lanes are a complex and multifaceted master data object in SAP APO with enormous settings. You will learn about the many settings of Transportation Lane.
    What is Transportation Lane?
    The following description of a Transportation Lane by a Rajendra on the SCM-APO forum at www.sdn.sap.com.
    “Transportation lanes control the material flow along the supply chain. Defines …

  • How to Understand Supply Prioritization in CTM

    Executive Summary

    How does CTM work concerning supply and demand prioritization?
    What is the downside to the sequential approach to allocation?
    What is supply versus demand prioritization?

    Background on CTP and Prioritization
    There is an excellent point in the book “Real Optimization with SAP APO” regarding the limitations concerning CTM (capable to match). This highlights that while CTM can provide sophisticated demand prioritization, its order based approach does not consider the global view of how resources are used. This, of course, relates to supply prioritization. CTM can be considered to control both supply prioritization and demand prioritization. CTM is an …

  • How to Understand The Safety Stock Calculation in SAP SNP

    … SAP ERP, the safety stock will be automatically updated in SAP SNP.

    Here we can select the Safety Stock Method.

    ATD and Safety Stock
    Often undiscussed is the effect of safety stock on the available to deploy quantity or ATD. However, as stated in the book Supply Chain Management with SAP APO:
    “Having the ATD-quantity defined, it is distributed according to the deployment settings defined in the location product master. Safety stock is ignored by deployment (at least by the deployment heuristic). Since safety stock is modeled in SAP APO™ as a demand and not a supply element …