saphelp_scm70_en_SAP Advanced Planning and Optimization (SAP APO)

SAP Advanced Planning and Optimization (SAP APO)PDF download from SAP Help Portal:/saphelp_scm70/helpdata/en/7e/63fc37004d0a1ee10000009b38f8cf/frameset.htmCreated on September 01, 2014The documentation may have changed since you downloaded the PDF. You can always find the latest information on SAP Help Portal.NoteThis PDF document contains the selected topic and its subtopics (max. 150) in the selected structure. Subtopics from other structures are not included.© 2014 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. 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Please see /corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.Table of contentTable of content1 SAP Advanced Planning and Optimization (SAP APO)1.1 Supply Chain Monitoring1.2 Supply Chain Collaboration1.3 APO Analytics1.4 Demand Planning1.5 Supply Network Planning1.6 Multilevel Supply and Demand Matching (SDM)1.7 Global Available-to-Promise (Global ATP)1.8 Production Planning and Detailed Scheduling (PP/DS)1.9 Transportation Management1.10 Service Parts Planning (SPP)1.11 Cross-Application Topics1.12 Master Data1.13 Industry-Specific Applications1.14 Integration via Core Interface (CIF)1.15 SAP APO Administration1.16 Roles for SAP APO1.17 Archiving in SAP APO1.18 Enterprise Services in SAP Advanced Planning and OptimizationData Replication in a Side-by-Side ScenarioData Replication in an Integrated ScenarioThe data flow consists of the following phases:1. The data is replicated from SAP APO to SAP HANA.The method of data replication depends on which of the following scenarios you are using:Side-by-side scenarioIn this scenario, master data is stored in any database, and planning data (transaction data) is stored in SAP liveCache. To replicate master data, you must set up a secondary database connection for SAP Landscape Transformation (SLT). To replicate planning data, you must set up a replicationmodel and run the report Replication of Planning Data to SAP HANA (/SAPAPO/REPL).Integrated scenarioIn this scenario, master data is stored in a SAP HANA database and planning data is stored in SAP liveCache, which can be in any databaseincluding SAP HANA. You do not need to replicate master data, as it is already available in database tables within SAP HANA. However, you must still set up a replication model and run the report Replication of Planning Data to SAP HANA (/SAPAPO/REPL). These steps of the replicationprocess are required even if your SAP liveCache is stored in SAP HANA.For more information on the replication process, see the Administrator’s Guide for SAP HANA Live 1.0 on the SAP Help Portal at /hba, under Master, Installation, Security, Configuration, and Operations Information Administrator’s Guide.For more information on SLT, see the Administrator’s Guide for SAP HANA Live 1.0 on the SAP Help Portal at /hba, under Master, Installation, Security, Configuration, and Operations Information Administrator’s Guide, and SAP Library for SAP NetWeaver at /nw74 under Function-Oriented View Business Warehouse Data Warehousing Modeling Data Acquisition Transferring Data with SAP Landscape Transformation Replication Server.2. The data is used by analytic applications based on SAP HANA.Before you use an analytic application, you must make the replicated data available for the application through a virtual data model (VDM), in which the data is organized in reuse views and query views. Depending on the type of the application you want to use, you have the following options: To use HANA-based SAP SCM applications such as the SAP Supply Chain Info Center, you have to install the application and import the content of the VDM into the application.To use HANA-based business intelligence (BI) tools such as SAP Lumira and SAP BusinessObjects Analysis, Edition for Microsoft Office, you can leverage the APO VDM, or you can create your own VDM using the reuse views and query views delivered in the APO VDM.To add customized content (for example, custom key performance indicators) to HANA-based SAP SCM applications such as the SAP SupplyChain Info Center, you must create your own query views from the reuse views delivered in the APO VDM.For more information about working with the views and using HANA-based applications, see the Administrator’s Guide for SAP HANA Live 1.0 on the SAP Help Portal at /hba, under Master, Installation, Security, Configuration, and Operations Information Administrator’s Guide.1.4 Demand PlanningPurposeYou can use Demand Planning (DP) to create a forecast of market demand for your company's products. This component allows you to take into consideration the many different causal factors that affect demand. The result of Demand Planning is the demand plan.Demand Planning is a powerful and flexible tool that supports the demand planning process in your company. User-specific planning layouts and interactive planning books enable you to integrate people from different departments, and even different companies, into the forecasting process. Using the DP library of statistical forecasting and advanced macro techniques you can create forecasts based on demand history as well as any number of causal factors, carry out predefined and self-defined tests on forecast models and forecast results, and adopt a consensus-based approach to reconcile the demand plans of different departments. To add marketing intelligence and make management adjustments, you use promotions and forecast overrides. The seamless integration with Supply Network Planning (SNP) supports an efficient Sales and Operations Planning (SOP) process.IntegrationWith Other APO ComponentsActivity Procedure Other informationTrack exceptional, unexpected or critical situations in thedemand planning processOpen the Alert MonitorShare plans with your supply chain planner Use the functions for releasing data to and from SNP The supply chain planner can plan resources based on afull and reliable picture of demand, and the demandplanner can monitor where adjustments to the demandplan have been necessary due to production, distributionand other constraints.Do reporting Install a SAP BI front end and launch queries from yourSAP SCM systemWith Other SystemsActivity Procedure Other informationLoad actual and planned data into Demand Planning from an SAP BI system, an SAP ERP system, an external system, or from a flat file Use Data Warehousing Workbench in Demand Planning The functions of the Data Warehousing Workbench inSAP SCM are identical to those of the Data WarehousingWorkbench in SAP NetWeaver usage type BusinessIntelligence (SAP BI).Do reporting Run the Business Explorer component in SAP BILoad data into SAP BI Use the DP Data Warehousing Workbench to load datainto the SAP BI system. Loading data basically occursfrom one data mart to another.The functions of the Data Warehousing Workbench in SAP SCM are identical to those of the Data Warehousing Workbench in SAP NetWeaver usage type Business Intelligence (SAP BI).Manage your customers' forecasts using vendor-managedinventory (VMI)Gather your customers' inventory and POS data via EDIBuild a forecast together with your suppliers, customers and other business partners Use Collaborative Demand Planning.Partners without an SAP SCM system plan demandthrough a web-based interface.1.5 Supply Network PlanningPurposeAPO Supply Network Planning (SNP) integrates purchasing, manufacturing, distribution, and transportation so that comprehensive tactical planning and sourcing decisions can be simulated and implemented on the basis of a single, global consistent model. Supply Network Planning uses advanced optimization techniques, based on constraints and penalties, to plan product flow along the supply chain. The result is optimal purchasing, production, and distribution decisions; reduced order fulfillment times and inventory levels; and improved customer service.Starting from a demand plan, Supply Network Planning determines a permissible short- to medium-term plan for fulfilling the estimated sales volumes. This plan covers both the quantities that must be transported between two locations (for example, distribution center to customer or production plant to distribution center), and the quantities to be produced and procured. When making a recommendation, Supply Network Planning compares all logistical activities to the available capacity.The Deployment function determines how and when inventory should be deployed to distribution centers, customers, and vendor-managed inventory accounts. It produces optimized distribution plans based on constraints (such as transportation capacities) and business rules (such as minimum cost approach, or replenishment strategies).The Transport Load Builder (TLB) function maximizes transport capacities by optimizing load building.In addition, the seamless integration with APO Demand Planning supports an efficient S&OP process.IntegrationThis component forms the framework for an order-oriented planning in the medium to long-term planning horizon.and an additional function for distributing stocks and receipts, the Supply DistributionGlobal ATP contains the functions for the ATP check in SAP APO. Schedulingknown as the availability check – represents an online search that should ensure that your company can provide the requested product at the requested time in the quantity requested by the customer. The ATP check can determine, using the so-called check methodsThe check methods, which are also known to the ERP system, have been extended in SAP APO by the following new methods, such as:● Example for Combining Check Methods● Capable-to-Promise (CTP)● Multilevel ATP Check● Rules-Based ATP Check● Correlation CalculationYou can use Backorder ProcessingThe Explanation and Simulation of the Availability CheckIntegrationYou can call Global ATP using different functions from SAP APO or components from an OLTP system. For more information, see Calling the ATP Check from Different Systems .Production Planning and Detailed Scheduling (PP/DS)PurposeYou use the Production Planning and Detailed Scheduling (PP/DS) component:· To create procurement proposals for in-house production or external procurement to cover product requirements · To optimize and plan the resource schedule and the order dates/times in detailYou can take the resource and component availability into account here. Above all, PP/DS is used to plan critical products, such as products with long replenishment lead times or products that are produced on bottleneck resources. You can use PP/DS to create executable production plans and:· Reduce lead times· Increase on-time delivery performance· Increase the throughput of products and reduce the stock costs, through better coordination of resources, production, and procurementIntegrationYou can use PP/DS with other SAP APO components and with OLTP systems. With Demand Planning (DP), for example, you create a demand plan and transfer the planned independent requirements to PP/DS. With PP/DS, you create the procurement proposals to cover these requirements.You transfer the planning-relevant data such as master and transaction data (for example, sales orders and stocks) from an OLTP system to SAP APO. You plan the critical products in SAP APO and transfer the planning results to the OLTP system. In the OLTP system, you execute order processing for manufacturing orders and, if necessary, plan the uncritical products. You manage the stocks here too.Integration of PP/DS with other SAP APO components and an OLTP systemActivityProcedureOther InformationCreate master dataYou transfer the master data from the OLTP system and complete the master data in SAP APO.The OLTP system provides PP/DS with master and transaction data. For more information, see Integrationof SAP APO and SAP R/3.Process the Supply Chain Model Use the Supply Chain Engineer (SCE)In the SCE , you assign locations, products, resources,and production process models (PPM) to a model. You then add transportation lanes and assign the products tothem.Make planned independent requirements from DP available to PP/DSRelease the Demand Plan to Supply Network Planning (SNP)Requirements that fall within the PP/DS horizon and thusthe planning responsibility of PP/DS, are transferred automatically to PP/DS when the demand plan is released.Transfer SNP procurement proposals to PP/DSConvert the SNP procurement proposals on the PP/DS horizon into PP/DS orders You can also convert SNP orders that are outside the PP/DS horizon.Carry out an availability check in the sales order ( Global ATP ) and trigger procurement in PP/DS, if necessaryYou use the following processes:· Capable-to-Promise (CTP)·Multilevel ATP checkDisplay exceptional, unexpected, or critical situations in the PP/DS planning process Access the alert monitorYou can define which alerts you would like the system to generate and display.Execute manufacturing ordersUse the execution functions in the connected OLTP systemHere you execute confirmations or goods receipt postings.Features· PP planning proceduresYou use PP planning procedures to specify which planning action the system executes for each product, if a planning-relevant event occurs for a product in SAP APO or in the OLTP system. For example, the system can immediately automatically plan the product or write a planning file entry for the product when there is a change in requirement.· Production planning runYou use the production planning run to execute heuristics, detailed scheduling functions, or optimization for a large number of objects online or as abackground job. During the production planning run, several heuristics or functions can be executed one after the other. In a production planning run, you execute procurement planning in particular for products with planning file entries (net change planning).· Interactive planningYou can use interactive planning for important products that you wish to plan manually or to solve any planning problems that have arisen during automatic planning. Various tools are available for interactive planning, such as the detailed scheduling planning board or theproduct planning table .·Detailed SchedulingDetailed Scheduling schedules orders automatically on the resources, taking various planning conditions into account (such as the component or resourceavailability).· HeuristicsYou use heuristics to solve planning problems for specific objects (for example, products, resources, or orders) using a particular planning algorithm. You can use heuristics in interactive planning and in the production planning run.· OptimizationUsing the optimization tool, you can optimize the resource schedule according to certain criteria, such as setup times and setup costs, to improve the planning situation and solve particular detailed scheduling problems.· PeggingSAP APO uses pegging to create relationships between the stock, receipt, and requirements elements of a product within a location. Based on these relationships, the system can identify quantity and date/time problems and forward date/time changes to other BOM levels.Cross-industry and industry-specific solutionsPP/DS supports various processes across industries (for example, make-to-order production or make-to-stock production) and production types (for example, shop floor production, repetitive manufacturing, or process manufacturing). In addition to the standard solutions, industry-specific solutions are available. For moreinformation, see SAP Automotive, SAP Mill Products, or SAP Oil & Gas.See alsoFor an overview of SAP notes on planning with PP/DS, see the SAP note 441102.1.9 Transportation ManagementPurposeYou use this process to plan, optimize, and execute the complete transportation process between companies in a detailed manner. You execute transportation planning in SAP Advanced Planning and Optimization (SAP APO) using the component Transportation Planning/Vehicle Scheduling (TP/VS). The orders (sales orders, purchase orders, returns, or stock transport orders) and deliveries that you have created in SAP R/3 and transferred to SAP APO using SAP APO Core Interface (CIF) form the basis for planning. The result of TP/VS planning are planned shipments that you transfer to SAP R/3 after planning is complete. There you use the SAP R/3 component Logistics Execution (LE) for transportation execution.■ To monitor your shipments, you can connect SAP Event Management.■ To evaluate the transportation process, you can connect SAP Business Information Warehouse (SAP BW).Prerequisites● You have SAP APO and SAP R/3 4.6C or higher. You can use SAP R/3 4.6B after consultation with SAP.● You have already executed the steps described under Master Data and Settings.ProcessEach delivery can contain only one location for picking up goods.2. You execute transportation planning in TP/VS. When doing this you assign the orders and deliveries to vehicle resources. The system uses thisassignment to generate planned shipments automatically. When creating planned shipments the system takes various constraints into account, for example,vehicle capacities and deadlines.3. You check the planning situation. Interactive planning offers planning boards where you can display all planning objects (orders, resources, and plannedshipments) in a graphical format. You can also continue to manually process planned shipments that the optimizer has created.4. You can then assign the required transportation service provider to your planned shipments. To do this you select transportation service providers, eithermanually or in the background.5. You can determine and rectify deadline differences between sales orders or deliveries and the corresponding shipments in the following ways:(GATP) to check the deadlines for these sales orders.○ If you plan planned shipments for deliveries, you can change delivery deadlines in SAP R/3 from within TP/VS.6. When you have finished planning, you release the planned shipments. Released planned shipments are fixed, that is, you can no longer change themtransportation planning).7. If you have already assigned a transportation service provider to your planned shipments and have set up cooperative transportation planning for thistransportation service provider, the system sends a tender to this transportation service provider when the planned shipments are released. The transportationservice provider can accept or reject the planned shipments that have been tendered or suggest a change to the deadline.8. After planning has been completed, you trigger the generation of deliveries in SAP R/3 within TP/VS, either manually or in the background. As a result,deliveries are automatically generated in SAP R/3 for the orders for which planned shipments exist.9. You check in TP/VS either manually or in the background if deliveries have been created in SAP R/3 for all the orders for which planned shipments havebeen created. Only if this is the case can you transfer the planned shipments to SAP R/3.10. You transfer the planned shipments to SAP R/3 either manually or in the background. The shipments are created automatically in SAP R/3.11. You use the SAP R/3 component Logistics Execution (LE) for transportation execution. In the case of sales orders, this covers picking, loading, andfreight cost processing, for example. Moreover, you can print shipping documents and perform dangerous goods checks where appropriate. For moreinformation about transportation execution, see the documentation for the component Logistics Execution (LE).1.10 Service Parts Planning (SPP)Service parts planning (SPP) provides planning functions specific to service parts and transparency throughout the supply chain, right from the moment demandoccurs through to the delivery of the product. Planning for your service parts takes place in distribution structures (abbreviation: BOD - bill of distribution), whichcontain all of your locations. Locations can be, for example, distribution centers, contract packagers, or your customers and dealers. Alongside the current BOD,you can also work with future BODs. This means that you can define a specific time in the future when a BOD will replace a different BOD. The system takesthis future BOD into account, for example, as part of forecasting and distribution requirements planning (DRP).SPP considers the characteristics of each product during planning. It takes into account, for example, the locations at which you most need a certain product,whether a product is fast-moving or slow-moving, and the sales behavior of a product. Depending on these properties, you can decide for each product whetheryou want to perform period-based service parts planning based on the forecast or whether you would rather plan your service parts based on a reorder point. If you use period-based planning, SPP generates the forecast for a product either on the basis of past sales values or on the basis of leading indicators. We recommend using leading indicators as the basis for generating the forecast if you have reliable information about your installations, that is, about your equipment on the market, that are relevant for the future sales behavior of your service parts. If you are using past sales values as the basis for the forecast of a service part, SAP distinguishes between products with constant demand, trends, seasonal demand, and products with sporadic demand. SPP links the stocks within your BOD optimally with the actual demands. If you cannot meet the demand within your BOD, SPP plans the covering of these demands either through external procurement or repair. SPP automates most of the release and approval processes. In this way, SPP enables you to reduce your ordering and stockholding costs, improve service levels, and shorten your delivery times.You can use all of these planning functions not only for your own locations, but also for your customers and dealers. You can include selected customer and dealers in the OEM-managed inventory process and, in this way, optimize their planning and stock situations.In addition to your actual planning, you can also carry out a simulation of the planning. This means you can simulate a particular planning process and thus optimize parameters and settings.To monitor and evaluate your planning optimally, SPP offers high-quality analytics applications that are well-suited to this purpose. In this way, SPP generates alerts in unscheduled or critical situations that occur during the planning process. SPP displays impending supply shortages in the shortage monitor so that you can take action manually in planning, if required, and thus prevent the shortage. You can analyze your complete planning process and the execution of your planning in the service fill monitor and the service loss analysis, and thereby identify strengths and weaknesses in your logistics chain. You can also use the inbound delivery monitor and the supplier delivery performance rating. These functions allow you to analyze and evaluate not only your internal planning and execution, but also the performance of your suppliers and freight forwarders.IntegrationIn addition to the planning functions in SAP Advanced Planning and Optimization (SAP APO), you can also use many analytics and monitoring functions in SAP APO, in the SAP Network Collaboration (SAP SNC), and in SAP NetWeaver Business Intelligence.FeaturesPlanningSPP is implemented in the planning services of the Planning Service Manager (PSM).ForecastThe forecasting service covers the whole life cycle of a product from phase-in planning for new products via various types of product interchangeability through to phase-out planning for products in discontinuation. You can determine the forecast on the basis of leading indicators such as your installations or the operating time of equipment, or on the basis of past requirements or a combination of the two forecast methods. If you determine the forecast on the basis of past requirements, the forecast service can use different forecast models for individually planning future requirements for products with different sales behavior. In leading-indicator-based forecasting it can be taken into account and use your knowledge about your installations. In both cases, the system approves a large proportion of the forecast results in an automated approval process and makes them available to the follow-on services. The forecast service presents only those forecast results that deviate heavily from the previous forecast results for you to check and approve manually.Inventory PlanningThe Inventory Planning Service determines the locations at which it would be sensible to increase or decrease stock. This is based on past demand. To keep your stockholding costs as low as possible, reduce purchase costs, and still maintain a high level of service for your customers, the inventory planning service plans the optimum stock and optimum order quantity for location products. According to the sales behavior of a product, the service uses either normal or Poisson distribution. The inventory planning service also groups products into ABC classes depending on their sales behavior and thereby identifies fast-moving and slow-moving items.Distribution Requirements Planning (DRP)Distribution requirements planning (DRP) organizes replenishment planning within a BOD. Based on predicted requirements, the stocks of the locations, and delivery schedules, DRP generates stock transport requisitions, scheduling agreement schedule lines, and purchase requisitions if you are procuring service parts, planned orders, and subcontracting purchase requisitions, if you are repairing service parts internally or at a subcontractor. If you use kits, DRP plans both the procurement or manufacture of the kits and the procurement of the dependent demands you require to manufacture the kits. During planning, DRP takes into account supplier shutdowns as well as product substitutions, substitutions of obsolete products, and discontinuation of products. In addition to these planning functions, DRP allows for efficient checking of the planning results and a multilevel approval process as required.DeploymentDeployment controls the distribution of incoming goods within the BOD on the basis of current demand. It uses priority tiers, sequence rules, and fair share distribution to distribute the goods optimally.Inventory BalancingThe inventory balancing service balances excess and shortage at the individual locations and thereby ensures that stock within a BOD is evenly distributed.Surplus and Obsolescence PlanningSurplus and obsolescence planning uses certain criteria to evaluate current stocks according to whether they count as surplus or obsolete stock, and can therefore be disposed of.Analytics and Monitoring。