Search Results for: sap-apo

  • How to Best Understand a Heuristic Algorithm for Service Parts

    ByPrimary Researcher

    … approached by using evolutionary algorithms /iterated search which – after a pre-set maximum calculating time – in a wide variety of cases encountered in business optimization return an acceptable solution in a vicinity of a local optimum (hopefully) close to the global optimum. – Real Optimization in SAP APO
    This describes methods that can get reasonably close to the global optimum while they do not result in an optimal result.
    One of the complicating factors in understanding the difference between heuristics and optimization is that they are often taught as separate methods. A generalization is that an optimizer has an objective …

  • The Rise and Decline of Supply Chain Cost Optimization

    ByPrimary Researcher

    … resulting recommendation realistic.
    Optimization by Industry
    Different industries have different propensities to implement specific solutions over others. This is highlighted by the quote below:
    “Clients in companies which have a strong history in mathematical optimization…..

    Refineries
    Metal Industry
    Chemical Industry

    …do not easily trust black box optimization models. They expect a high approximation quality to their “real world.” SAP as a company does not primarily position SAP APO as a tool for mathematical optimization and does not provide extensive in-depth training regarding modeling and optimization. Conceptually optimization in SAP APO has been designed in such a way that the

  • How to Understand TLB Versus Best of Breed for Load Building

    ByPrimary Researcher

    Executive Summary

    The SAP APO SNP Transportation Load Builder is an unusual but critical component to SNP.
    We cover how the Transportation Load Builders works and how it differs from SAP ERP’s functionality and the Application Load Xpert.

    Introduction to the Transporation Load Builder
    The Transportation Load Builder is an intensively used functionality in SAP SNP. You will learn its primary purpose and how it compares to other load building applications and functionality.
    What is the Transporation Load Builder?
    Transportation Load Builder or TLB is one area of functionality within APO that there is a fair amount of confusion …

  • How to Best Understand Planning Object Structures

    ByPrimary Researcher

    Executive Summary

    Planning Object Structures are a primary foundational object in SAP APO.
    It is part of the S&OP Administration and supports characteristics in both DP and SNP.
    We cover the setup of the Planning Object Structure in APO.

    Introduction
    Two of the most critical areas within APO are planning and planning object structures (POS).
    The POS configuration screen can be confusing. The transaction for creating a POS is. /SAPAPO/MSDP_ADMIN.
    Essentially we are trying to create a container for characteristics. It should be a minor thing, but SAP needs to give it a difficult name. For some …

  • How to Understand The Problems with the SAP PP/DS Optimizer

    ByPrimary Researcher

    … is driven by costs. These costs are entered here:

    There are both costs for activities and costs related to delays. The relative magnitude of the costs controls the optimization. The objective function is to minimize costs.
    Converting Planned Orders to Production Orders
    This is triggered in APO or SAP ERP. /SAPAPO/RRP7
    Triggering the conversion from APO has the advantage that the connection between the deleted planned order and the new production order is considered. The production order is matched with the planned order and the operation dates are kept.
    The conversion of the planned order usually has to take …

  • How to Understand The Production Scheduling and the DS Planning Board

    ByPrimary Researcher

    … claims and sleazy consulting companies and SAP consultants who will tell any lie for personal benefit. Furthermore, SAP pays off all IT analysts — who have the same concern for accuracy as SAP. Not one of these entities will disclose their pro-SAP financial bias to their readers. 

    The best way to look at it is that all production in SAP APO-SCM can be viewed at different detail levels. The different levels of detail can be viewed in the following way.

    Supply Network Planning (SNP): The importation of PPMs or PDSs (data structures which store routing, resource and BOM information)

  • Understanding APO and Sales and Operations Planning

    ByPrimary Researcher

    Executive Summary

    There is an important connection between reports and S&OP.
    We cover how APO feeds the S&OP process with data.
    APO was originally intended to manage constraints, but APO does not help companies in constraints in practice.

    Introduction to S&OP and APO
    Many times clients ask about how SAP APO supports the S&OP process. As an aggregated planning tool with supply, demand, and production modeling capabilities, sometimes it is expected that SAP APO has S&OP capabilities.
    Is SAP APO Used for APO?
    In fact, APO is not itself an S&OP tool. But as …

  • Finite and Infinite Scheduling in PP/DS

    ByPrimary Researcher

    … to this problem. One is the lack of investment many companies make in their resource maintenance, which is independent of the software. However, the other issue is how easy the master data is to maintain in the system, and this differs greatly depending upon the application, with resource data in SAP APO being one of the more challenging to manage comparatively.
    The fact is that MDM will not ride to the rescue on maintaining PPMs and resources and that the method that SAP has provided to the maintenance of this master data is a significant burden on the company to …

  • How to Best Understand the Frozen Planning Period

    ByPrimary Researcher

    … Companies often want to know why they should use any frozen planning period at all.
    Characteristic #2: How the APO Horizons Apply to the Frozen Period
    There are four major timings for planning in SAP APO:

    The total lead time
    The planning horizon
    The plan rerun frequency
    The planning bucket

    The planning rerun frequency has the greatest impact on the responsiveness of the plan. The higher the rerun frequency, the more responsive the plan is.
    Planning timings are some of the most critical areas of configuration to set up. In the end, the planning model should be carefully vetted …

  • Considering ILOG Inventory Optimization and Multi Echelon

    ByPrimary Researcher

    … related articles at this link.
    “ILOG was created in 2007 and is a major supplier of software products in three areas: optimization, visualization, and business rules. The optimization products are ILOG CPLEX for LP (Linear Programming), and MIP (Mixed Integer Programming) and ILOG Solver for constraint programming.” – Real Optimization with SAP APO
    They also offer products in the areas of network design to inventory optimization. The inventory optimization and multi echelon product are called IBM ILOG Inventory Analyst.
    How Does Inventory Analyst Work?
    ILOG Inventory Analyst is, according to IBM material, the only product they have that does both strategic …