Search Results for: supply-planning

  • How to Use the Lot Size Functionality in SAP APO

    ByPrimary Researcher

    … disappointed in what I found, so I thought I would write a post on the topic.
    Let us start with the definition I developed. As this site is dedicated to software, the definition will have a software orientation or bias. It applies to SAP APO but applies equally to any supply planning application.
    “The lot size is the order batch quantity which is implemented in the system to control and conform production orders and purchase orders to the objectives of the company. The lot size prevents orders from being created in non-economic quantities, and serves to batch orders.”
    At …

  • How to Understand PPDS Production Planning and Scheduling Heuristics

    ByPrimary Researcher

    … alerts) This procedure essentially blows out the MRP by the low-level code (or the top item, then the subcomponents, and so on). = MRP
    SAP_MRP_002 – Product planning does the opposite. It plans all top-level materials and components at once. (aka plan components immediately, if a dependent requirement was created for them in planning the superior product).

    An interesting result of this is that because MRP is both a supply planning and production planning method,  PPDS can create STRs with an MRP run (which is a PPDS heuristic – SAP_MRP_001). Furthermore, the PPDS Tab has the following

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    How to Understand Resources in SAP APO

    ByPrimary Researcher

    … a resource as a Bottleneck tells the system that the resource in question is the maximum capacity or throughput of the entire process (that is, the sequence of all operations) for a product. In PP/DS and production planning, generally, the operations are within a single facility. In SNP and supply planning, the operations’ sequence is transportation lanes between facilities, combined with any operations that are performed within the facility (pick, pack, etc.) They are not in a sequence the way that a discrete manufacturing production line is. This is an important distinction between production planning and supply planning resources …

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    How to Understand Capacity Planning Tools in SNP

    ByPrimary Researcher

    Executive Summary

    We cover the basics of capacity planning in SAP APO, including Resource Categories for SNP and Resource Types for SNP.
    There are capacity planning tools in MRP and heuristics.

    Introduction to Capacity Planning Tools
    Capacity planning is a broad description of how capacity is managed in a supply planning system. In this article, you will learn about the capacity planning tools within SNP.
    Our References for This Article
    If you want to see our references for this article and other related Brightwork articles, see this link.
    Notice of Lack of Financial Bias: We have no financial ties to …

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    How to Understand CTP - Capable to Promise in SAP APO

    ByPrimary Researcher

    Executive Summary

    Capable to promise, or CTP, is a capability that requires integration between order promising and production scheduling or between GATP and PP/DS.
    We cover model structures and the Strategy Planning Profile in ERP PP and the prerequisites for using CTP.

    Introduction to CTM
    CTM is an order based or allocation based methods of performing supply planning. You will learn the history of this allocation based functionality and technical aspects of CTM, and how CTM should be deployed.
    Our References for This Article
    If you want to see our references for this article and other related Brightwork articles …

  • How to Best Understand Multi Echelon Inventory Optimization

    ByPrimary Researcher

    Executive Summary

    Multi echelon inventory optimization MEIO is one of the significant methods of supply planning.
    MEIO is related to effective lead time.
    Multi-echelon versus DRP for deployment.

    Introduction: What Multi Echelon Answers
    The short answer is that multi-echelon inventory optimization answers the question of “where” in the supply network should inventory be located. Multi-echelon is a supply positioning model. You will learn how multi echelon planning differs from standard planning.
    See our references for this article and related articles at this link.

    One can see the different supply positioning model that is created with multi-echelon …

  • How to Understand Spare Part Planning by Different Industries

    ByPrimary Researcher

    … companies service only a small fraction of its products with spare parts. When other companies come in and service your products with parts a high percentage of the time, this says a lot about your service capabilities.
    Customizing the Planning Method for Spare Part Planning
    None of the major historical supply planning methods have ever been customized for spare parts before inventory optimization and multi-echelon. In industry, finished goods both tend to focus on where the majority of development effort goes. Part of this is driven by the fact that the finished goods market is significantly bigger and that …