Search Results for: supply-planning

  • Analyzed Issues Article Links

    ByPrimary Researcher

    … Order Promising Horizon
    The Superplant Concept
    The Connection Between BOMs, Routings, Work Centers in ERP and PPMs, PDSs in APO
    Localizing Explanations and Instructions for Planning Master Data Retrieval
    Understanding the Connections Between Supermarkets and SNP
    Reorder Points in SAP APO and their Stock Calculation Method
    KANBAN’s Connection to Supply Planning and KANBAN in SAP ERP
    SNP and GATP’s Integration and Backorder Processing
    Experiences with Enhanced / Dynamic Safety Stock in SAP SNP
    Planning Horizons on APO
    Order or Supply and Demand Selections for CTM
    Customer Prioritization in CTM
    What if your Planning Roles are Not Setup for APO …

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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 …

  • How to Best Understand Order Firming and Order Fixing in SAP APO

    ByPrimary Researcher

    … me if it is possible to have a status called semi-firmed. This is not possible; it also is a problem only from a logical perspective. Whether an order is firmed or non-firmed determines whether it can be deleted by subsequent planning run.
    The system needs to know definitively whether it can delete an order. Therefore, there is a good reason that semi-firmed does not exist in SAP APO.
    While there is no “semi-firmed” status, it should be considered that a supply planning procedure can be set regarding how it deals with confirmed orders and firmed …

  • How to Understand Aggregate Production Planning and Resources in SAP APO

    ByPrimary Researcher

    … sequential flow from supply planning to production planning.
    However, this can also be a case in some projects where a repetitive manufacturing environment produces the necessity to perform interactive supply and production planning rather than following the standard workflow of SNP and PP/DS, which has a sequential flow from supply planning to production planning.
    This is an additional problem because SNP creates the initial production plan when it has production constraints (and this is quite common). In fact, I was told by a client one time that “supply planning and production planning are the same things.” However, they aren …

  • How to Use Reorder Point Planning in SAP ERP and SAP APO

    ByPrimary Researcher

    … be the following:
    Sum (Safety Stock + Expected Average Consumption for the Replenishment Lead Time)
    Therefore the reorder level or reorder point is essentially order demand over lead time + the safety stock, which is the upper level of demand based upon the variability in supply and demand (depending on how the company calculates safety stock takes into account).
    How is Reorder Point Planning Different from Forecast Based Planning?
    Forecast planning feeds a forecast from demand planning to supply planning, and a supply planning procedure or method (i.e., heuristics, optimization) is then run on these requirements. Reorder point planning uses no

  • How to Use SubContracting in SAP APO

    ByPrimary Researcher

    … returning to the OEM for further processing, and some have the products being completed by the subcontractor and being shipped from the subcontractor.
    The Extra Complexity of Subcontracting
    The multiple subcontracting processes place an extra layer of complexity on planning and accounting for subcontracting in a supply planning system.  However, in each case, the subcontract location is treated by the supply planning and execution system as if the external location is planned internally.
    Some have the products returning to the OEM for further processing, and some have the products being completed by the subcontractor and being shipped from the …

  • Supply Chain Enterprise Software Books FAQ

    ByPrimary Researcher

    … on supply chain and or software. Would these books be good candidates to include in my curriculum?

    Do these books cover the mathematics in each of the topic areas?
    Yes, but only the more basic math. For instance simple statistical forecasting models are demonstrated in “Supply Chain Forecasting Software.” In “Supply Planning with MRP, DRP and APS Software,” MRP and DRP are explained somewhat mathematically by showing the logic within their application tables. Both MRP and DRP and simple approaches that don’t require a great deal of math. (in fact MRP and DRP are highly related to one another …

  • My Experiences with Dynamic or Extended Safety Stock

    ByPrimary Researcher

    Executive Summary

    Dynamic safety stock in ERP and external supply planning systems is commonly desired to be activated by companies.
    Extensive testing and observations illustrate that the standard dynamic safety stock calculation is incorrect.
    In this article, we cover many topics around dynamic safety stock.

    Introduction to Dynamic Safety Stock
    This article covers the topic of dynamic or enhanced safety stock (SS) in SAP. This is one of the most commonly requested SS areas to be active in SAP SNP by SAP customers. However, the issues in this article regarding the dynamic SS calculation also apply to the formula generally …

  • How to Best Understand the Naive Forecast

    ByPrimary Researcher

    … how a forecasting method is determined if it adds value. For instance, many people are very optimistic about Crostons as a method for improving lumpy demand forecasting. However, some tests have shown that while Crostons is more accurate than more simple methods, mainly when including minimum lot sizes on the supply planning side, Croston’s may not add as much value as originally thought when looking at the forecast accuracy improvement.
    How Long Should You Test the Naive Forecast Against the Current Live Forecast?
    Michael Gilliland makes the good point that one should give it time when evaluating a forecasting …

  • Forecasting References

    ByPrimary Researcher

    … blog/4231183/Product-proliferation-is-driving-me-crazy-and-we-do-it–too-
    7 Secrets of Sales Forecasting, Right90
    Sheriden, William A., “The Fortune Sellers,” John Wiley & Sons, 1998
    Snapp, Shaun,” Software Approaches for Improving the Bill of Materials,” Brightwork Research & Analysis Press, 2012
    Snapp, Shaun, “Inventory Optimization and Multi Echelon Planning Software.” Brightwork Research & Analysis Press, 2012
    Snapp, Shaun, “Supply Planning with MRP, DRP and APS Software.” Brightwork Research & Analysis Press, 2012
    Star schema, Wikipedia, February 16 2012
    https://en.wikipedia.org/wiki/Star_schema
    Sun, Jinping (Editor), and Thomas D. Lynch (Editor), “Government Budget Forecasting: Theory and Practice,”