supply chain planning and sap apo overview

SAP Advanced Planning and Optimization (APO) Overview

Email id : [email protected] (Anup-Trainer) : (314) 720-1012 (USA)Phone (Admin) : 7829052104 (India)Skype id : sapapoexpertWebsite : www.sapapoexpert.com

Production Planning & Detail Scheduling

SCM /APO Overview

Global ATP

AgendaDemand Planning

Supply Network Planning

Q & A

www.sapapoexpert.com Email [email protected] Phone (314) 720-1012 (USA) :: 7829052104 (India)

mailto:[email protected]

Also referred to as the logistics networkIt’s a set of approaches used to efficiently integrate Suppliers,

Manufacturers, Warehouses, Distribution centers,So that the product is produced and distributed, In the right quantities, To

the right locations and at the right timeSystem-wide costs are minimized and Service level requirements are

satisfied

What is the Supply Chain

Suppliers Manufacturer Distribution Retailer Consumer

Maintenance/After Sales ServiceMaintenance/After Sales Service

Product/ServicesProduct/Services

InformationInformation

CashCash



Evaluation of SAP SCM Solution



APO Application Architecture

Supply Network Planning (SNP)

Demand Planning (DP)

Production Planning (PPDS)

Deployment

SAP NerWeaver BI

Planning Sequence



APO Demand Planning Overview

• Anticipation of Future Demand (POS to actual delivery time frame)

• Demand visibility and consistency

• Forecast quality (Forecast techniques)

• Avoid Stock outs

• High inventory levels

• Response to changing market

• Collaborative forecasts



Product Launch

Aggregate

End of Life

Life Cycle Planning

Promotion Planning

1 2 3 4 5 6 7 8 9 10 110

20

40

60

80

100

120

2009 2010 2011

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

150 200 150 50 20 0 0 0 0 0 0 100 150 150 150 100 20 0 20

350 220 0 0 400 320 20

Seasonal Planning

Collaborative Planning

Vendor

Sales Production

Distributors

Duet Planning

APO Demand Planning Overview



SNP ensures the optimal Use of Manufacturing, Distribution, and Transportation Resources to meet Forecasts and actual Demand while considering all Constraints in the Supply Chain

SNP plans Production, Procurement and Transportation throughout the entire Supply Network using Optimizing and Heuristic Approaches

SNP Overview

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Supplying Location (Goods issue processing time = 1 day)

Transport (Tranfer time = 4 days)

Distribution Center (Goods receipt processing time = 1 day)Due date

Delivery date

Distribution Center

Distribution Center

Plants Plants Plants

Transportation Lanes Transportation Lanes

Demand (SALES Orders / Forecast)



Categories Model 1 Model 2 Unfulfilled Demand 100000 100000 Production Cost 5000 1000 Safety Stock 7000 8000 Shelf Life 1000 7000 Storage Cost 9000 9000 Transportation Cost 1000 90000

SNP Algorithms: SNP Heuristics, CTM, SNP Optimizer

SNP Heuristics SNP Optimizer Capable To Match

Quota Arrangements Cost Based Planning Model Matches supply to available demand via production and transportation capacity check

Production capacity check Selection of best production site

Capacity leveling Optimization of production, transportation, and inv. costs

Ex FMCG, Electronics Ex Trading OrgsEx Textiles, Electronics



SNP Overview: Deployment, TLB, VMI

Date ATD - Quantity Requirements01.05.2012 1000 100 (DC1)01.06.2012 900 500 (DC2)01.07.2012 400 800 (DC 1+ DC2)

Requirement Summation DC1 200 DC2 600

Deployment Result 01.05.2012 Plant to DC 1 10001.06.2012 Plant to DC 2 50001.07.2012 Plant to DC 1 10001.07.2012 Plant to DC 2 300

Deployment Transport Load Builder Vendor Managed Inventory

Optimized plan for stock transfers

Group transport loads for certain means of transport

Replenish Vendor Stock

Push/Pull Rule Upper Limit Lower Limit definition

Replenish Manufacturer Stock

Fair Share Rules Means of Transportation



GATP is a part of sap APO tool that supports business to promise to delivery of customer demands based on predefined checks on existing stocks.

Global Available To Promise comprise of:

• Basic Methods• Product Check• Product Allocation• Check Against Forecast• Combination of all these

• Advanced Methods• CTP• MLATP

• Product Check Rules

• BOP – Back Order Processing

Product A - Stock 200

Product A - Stock 300 Product A - Stock 100 Product A - Stock 200 Product A - Stock 200

Transportation Time 7 Days

3 days

2 days2 days

Product A = Product B

Product B - Stock 200

Lead Time 5 days

GATP – Global Available To Promise



PPDS– Production Planning and Detail Scheduling

• Time continuous planning

• Suitable for plant level planning

• DS board for graphical order planning

• Integrated with GATP

• Optimal planning such as: • Sequence Optimization• Block Planning• Shelf Life Planning• Campaign planning

• Heuristic based planning

• Supports variant configuration and CDP



• Reduction in costs due to simulation, ‘what-if’ capabilities

• Integrating companies in the supply chain

• Simultaneous planning of the problem to reach a synchronized sales, procurement, distribution and transport planning across the supply chain

• Robust Supply Chain modeling capabilities.

• Decision making capabilities for the optimal location of facilities for the supply chain network

• All modules (DP/SNP/GATP/PPDS) are tightly integrated so that the supply chain entities can change their plans according to the needs of the market and this change can be seamlessly integrated across all the module

• Tightly Integrated with ECC using Core Interface – enabling easy sync between planning and execution

Benefits of Advanced Planner and Optimizer



Thank You

supply chain planning and sap apo overview

Software

ppds production planning

product b product b

usa phone admin

sap advanced planning

production cost

available demand

safety stock

transportation cost