Search Results for: supply-planning

  • The Benefits of Using a Simulation and Archival Blog For Supply Chain Planning

    ByPrimary Researcher

    … concern is that S&OP will become the singular simulation environment for planning. This would be unfortunate because the types of things that S&OP looks for are different than the more functional areas that want to verify. For instance, S&OP would not be interested in checking for the changes in lot size.
    However, what would make sense is to combine all simulation requirements related to the supply chain into one area and prioritize requests from S&OP, Supply Planning, Demand Planning, Production Planning, Transportation Planning, etc., in one queue.
    Conclusion
    Simulation a very beneficial capability to have. SAP

  • How to Best Understand Multi Echelon Planning

    ByPrimary Researcher

    Executive Summary

    Multi echelon planning uses advanced mathematics to perform supply planning with each location, knowing the inventory of other locations in the supply network.
    There are specific tests that can be applied to any multi-echelon system.

    Introduction
    Multi echelon planning is an advanced method of accounting for location dependencies during supply planning. Multi echelon planning capability means that the software can account for effective lead times when making stocking decisions. The only software that can accomplish this has multi echelon capability, which means having advanced mathematics to solve this problem. You will learn in detail what multi echelon …

  • How to Best Get Around Deployment Problems in SAP APO

    ByPrimary Researcher

    … deployment, including Means of Transport, Virtual Locations, and a customized deployment in SNP.

    Introduction: A Term Often Used, But Not Often Defined
    Considering how often the term deployment is used, it is odd how infrequently it is defined. You will learn the definition of deployment and its relation to other supply planning threads and how deployment is used in SNP.
    Notice of Lack of Financial Bias: We have no financial ties to SAP or any other entity mentioned in this article.

    This is published by a research entity, not some lowbrow entity that is part of the SAP ecosystem. 
    Second …

  • How to Best Set Up the SAP SNP Optimizer

    ByPrimary Researcher

    Executive Summary

    The SNP optimizer is the CPLEX optimizer now owned by IBM.
    We cover how to use a heuristic with the optimizer and comparative optimizer settings, costs, ordinary optimizer, and problem segmentation problems.

    Introduction: Getting into Depth on the SNP Optimizer
    The SNP optimizer has many essential features not published due to those that write on the optimizer being aligned with SAP. You will learn what are frequently hidden SNP optimizer topics.
    What is the SNP Optimizer?
    The SNP Optimizer is one of the three supply planning methods available within SNP (the others being CTM and heuristics). The SNP …

  • How to Understand the Basics of Constraint Based Planning in SAP APO SNP

    ByPrimary Researcher

    … by integrating on master data parameters (safety stock, target stock level) rather than sending recommendations to either SAP ERP or to SNP.
    How Days of Supply Actually Works
    In a  cost optimizer, everything must be broken down into a cost, which is the same in the SNP optimizer. When Days’ Supply Planning is used (that is, a Days’ Supply value is set in the field above), the optimizer can leverage the penalty cost for violating safety stock. When the optimizer is set up, it is assigned different implicit and explicit costs. (this is described in the post)
    The cost assigned …

  • How to Best Understand a Forward Stocking Location

    ByPrimary Researcher

    … rounded to Truckloads in with (preference given to straight loads) to one destination.
    Min/Max volumes (Days converted to volumes) at Destination to be used in rounding weekly volumes up or down.
    This is needed to prioritize what product is needed to arrive sooner during load configuration.
    Order Writing software should not allow a destination to go below three days of inventory by SKU before generating an order (partially taken care of by supply planning)
    Available supply at origin by the hour
    Production schedule
    Rounding allowed to write full loads (ex. to trade off between things like priorities vs. single

  • Introduction to SAP SNC - Supplier Network Collaboration

    ByPrimary Researcher

    … as procurement collaboration, and the object transferred is a purchase order. You can read about subcontracting’s categorization within SNC here.
    What Level of Collaboration?
    One of the questions on projects is the degree of collaboration that is actually required. That is, is it

    EDI
    Portal
    Full SNC implementation

    Some supply planning projects have collaboration listed as necessary, but how much collaboration is necessary is important.
    https://wp.me/p9G3d-1vs
    SPP and SNC
    This post shows the integration of SNC with SPP, SAP’s service parts planning module.
    Deliberately Trying to be Confusing?
    We can’t tell if SAP …

  • How to Understand SAP Supply Network Planning

    ByPrimary Researcher

    Executive Summary

    SNP is APO’s module that deals with supply planning and SNP has an important impact on SAP DP forecasting.
    Where the SNP sequence fits into the demand, supply, and production planning process.

    Introduction
    SNP is the supply planning module in APO. This article will learn about SNP’s major configuration areas and the different things that SNP does.
    The Relationship Between SNP and Other Modules and ERP

    SNP or Supply Network Planning takes a look at requirements, typically although not necessarily from DP.
    It compares the demand plan to calculated projected on-hand (and can incorporate capacity …

  • Introduction to SAP CTM aka Capable to Match and the CTP Profile

    ByPrimary Researcher

    … CTM be Run Daily or Interactively?
    One of the major issues concerning planning projects is that companies tend to infused much of their planning with short-term execution orientations. In fact, many directors who head up planning departments don’t understand planning.
    Therefore companies will often attempt to get the supply planning system to run more frequently than weekly. Presently I have two requirements for CTM. They are the following:

    Run CTM on demand / or interactively
    Run CTM daily

    To analyze both of these requirements, it is important to understand how CTM cuts up the supply network problem and how …

  • How to Understand SAP APO Resources and Resource Types

    ByPrimary Researcher

    … production plan. SNP can plan down to the daily bucket; however, the supply planning system lacks visibility within the day.
    When planning occurs for production within the day, this is called scheduling and is only performed by the DS portion of PP/DS. An interesting article on a real requirement at a client that describes the interaction between SNP and PP/DS on the same production resources can be found in this article.
    A Listing of SAP APO Resource Types?
    The different resources that can be used in APO are clear from the tabs in the resource view, which …