Search Results for: supply-planning

  • How to Understand Duration Optimization for Production Scheduling

    ByPrimary Researcher

    Executive Summary

    Duration optimization is the best fit for production planning and scheduling.
    We cover why duration optimization works so well.

    Introduction
    Cost-based optimization or cost minimization has been the most common way to perform supply planning, production planning, and scheduling optimization. Duration optimization means making the minimize objective time function of the optimizer. A duration optimizer requires that the amount of time it takes to perform setups, to perform operations, to transfer materials between locations, that all of the appropriate times be placed into the optimizer. Duration or time optimization offers some very significant advantages over cost optimization …

  • How to Understand Redeployment Decision Matrix for SAP APO

    ByPrimary Researcher

    Executive Summary

    Different Redeployment Designs in Conjunction with APO
    Redeployment Decision Matrix
    Integrating with the SAP Deployment Solution
    The Approach for Transportation Lane Management
    The Downsides

    Introduction
    Redeployment is a much less discussed supply planning thread. Some redeployment is necessary at most companies.
    Different Redeployment Designs in Conjunction with APO
    Companies do not meet their redeployment (not be confused with deployment needs, which are met with the SNP deployment heuristic) needs with APO. I have been through this topic with several companies, with a desire by either the consulting company or SAP, that we “get creative” in coming up with …

  • How to Best Document SAP APO Configuration

    ByPrimary Researcher

    … spreadsheet, I often include a graphic, which explains the overall connection between various configuration objects. This is particularly important for SAP as many of its configuration objects are illogically named.
    The one thing that cannot be copied between regions is the supply network. This is, of course, unique to every region.

    The configuration in the supply planning system can also be extracted and from the system.
    Extracting Configuration Data From SAP
    Not all the necessary data can be extracted. For instance, much of the configuration data can be extracted from SAP by going into the configuration transaction, selecting the “select

  • The Lack of Advice Setting Up Global SAP System

    ByPrimary Researcher

    Executive Summary

    The Emphasis of the Various Supply Planning Threads During the Setup
    Setting Up a Global SAP Planning System from the Beginning
    The Forethought Required for Setting up a Global SAP SNP Instance

    Introduction
    In this article, we will be describing the effort required for setting up the jobs for a global SAP SNP APO instance and, therefore, different supply planning threads in the system. But to begin, let us layout the different supply planning threads.
    The following are the general frequency of the different supply planning processes.

    S&OP & Rough Cut Capacity Plan: These are used for long …

  • Global Schedule for Intercompany Transfer

    ByPrimary Researcher

    … goods between company codes within one multinational.
    Secondly, there is a document also that explains some issues that face companies as they attempt to develop the logic and assumptions for the global batch schedule.
    The Planning Runs and the Global Schedule
    SNP uses a variety of planning runs to meet supply planning and initial production planning requirements. These are both planning runs in the active version (the version that integrates and shares information with SAP ERP) and for simulation versions, such as S&OP and rough-cut capacity planning. The simulation versions are not part of the global batch schedule …

  • How to Understand The Shortage of Publications on Global Planning

    ByPrimary Researcher

    … clients. As there was very little published source material to draw from, this book is entirely based on my consulting experience at many companies that have implemented global designs. Knowledge of how to set up global designs is a valuable skill and knowledge base to have, yet, not that many people know how to do it well.
    Furthermore, companies are becoming increasingly interested in running global instances of supply planning and other planning, applications and companies want and should strive for truly global solutions, and this means a single model which processes the global supply chain network from one location

  • Introduction to SAP APO DP

    ByPrimary Researcher

    … into the rest of the enterprise. SAP ERP can be run with its internal forecasting capability, or this functionality can be disabled, and SAP DP can be used to send the demand plan directly to SAP ERP. It can also be used along with SNP, allowing SNP to perform the supply planning and communicating the purchase requisitions to SAP ERP.
    Forecasting in SAP APO is performed in SAP DP and several other places, including SAP SPP and F&R. For example, Expected Goods Receipt functionality can be seen as a forecast in SAP EWM, and SAP SNC manages forecasts.
    Basic …

  • How to Adjust CTM and the SNP Heuristic for Changes to Location Products

    ByPrimary Researcher

    … client will “code” a spreadsheet that is filled with product location combinations with the method that is used (reorder point, reorder point, CTM forward scheduling profile, CTM backward scheduling profile). And that any new products or product changes would be coded this way. This is part of using multi-method supply planning.
    The concept is that the companies that want to do this will “code” a spreadsheet filled with product location combinations with the method used. That is:

    Reorder point
    CTM forward scheduling profile
    CTM backward scheduling profile

    …and that any new products or product changes would be coded this …

  • Book on How to Use Lean and Reorder Point Planning

    ByPrimary Researcher

    … upon advanced supply planning methods to create the supply plan.
    Proponents of Lean are often in companies trying to get a movement to Lean. However, how does one implement Lean in software? The re-order point is one of the significant methods.

    Implementing Lean in Software
    Unknown to many, all supply planning applications have “Lean” controls built within them. And there are, in fact, some situations where re-order points will provide superior output. With supply planning, even within a single company, it is not one size fits all. The trick is understanding when to deploy each of the approaches …

  • Our Book on Sales and Operations Planning in Software

    ByPrimary Researcher

    … the Supply Chain Forecast Bias
    Identification Interpretation and Planning of Consensus Planning Processes
    New S&OP?
    The Increased Complexity of Planning Promotions Product Proliferation
    How Product Proliferation Interferes with Manufacturing and Supply Chain Productivity
    Conclusion

    Chapter 8: How Misunderstanding Service Level Determines Effective S&OP

    Essential Requirements for Both Service Level and Safety Stock Setting
    Safety Stock Calculation Requirements
    Service Level Calculation Requirements
    Requirements That Apply to Both Service Level and Safety Stock
    Other Inventory Parameters
    The Reality of Supply Planning Parameters
    Giving the Business the Parameter Support it Needs
    Calculating the Values
    An Inventory Parameter Calculation Project
    The 3S