1.

1 Forecasting Building Blocks

It is required to set up the Demand Planning environment before any forecasting activities can be
carried out. Unlike SNP, where one can start straight away using the delivered system, we need to
go through quite a lot of steps beforehand. These prep rational steps are not required in a live
environment but going through them provides a very good chance to understand the system much
better.
Preparation and Basic Setup
Set up a DP environment with all required entities such as planning area, planning book, and
forecast profiles.
Basic Usage
In this block univariate forecasts are carried out and several parameters of the forecast profiles
will be investigated. It also provides an introduction to the maintenance of proportional factors.
Promotion Planning
Planning promotions is vital in most industries and part of this block.
Life Cycle Management
Finally some products will be planned using Life Cycle Management functionality.
Advanced Usage
The main emphasis is the usage of multiple linear regression as well as the integration with
other APO modules.
The Forecast Exercise Environment
The DP planning area and the corresponding InfoCube have 6 characteristics (Product, Product
Group, Location, Country, Customer, and Customer Group). A total of 10 key figures are defined,
of which 4 are stored in the InfoCube. For these InfoCube based key figures, sample data is
provided in a spreadsheet, which can be loaded into APO. Please note that the spreadsheet needs to
be saved as a comma delimited file before it can be used for uploading. The spreadsheet contains
data for various products, locations and planning versions. The table below lists the first section of
the spreadsheet with the data for Tdd equal to T00. The consequent sections contain the same
data with dd changing running from 00 through to 25.

Product Product
Group
Location Country Customer Customer
Group
T00PR01 T00PG01 T00DC01 AU T00CU01 T00CG01
T00PR01 T00PG01 T00DC02 AU T00CU02 T00CG01
T00PR01 T00PG01 T00DC03 AU T00CU05 T00CG01
T00PR02 T00PG01 T00DC02 AU T00CU02 T00CG01
My First Plan 7

Product Product
Group
Location Country Customer Customer
Group
T00PR01 T00PG01 T00DC01 AU T00CU01 T00CG01
T00PR03 T00PG02 T00DC02 AU T00CU02 T00CG01
T00PR03 T00PG02 T00DC03 AU T00CU02 T00CG01
T00PR05 T00PG02 T00DC01 AU T00CU01 T00CG01
Table 1 DP Product Data Overview
The info objects are grouped in catalogues. The planning granularity is weeks and months. The
planning area supports standard (i.e. no characteristics dependent) planning. Data is displayed in
the planning book using a telescoping planning buckets profile for historical and future data. The
planning book, which is created for the exercises is basic, but supports all normal planning
activities.
The master forecast profile supports all types of forecasts. It uses a 36-months history (01/1999
through to 12/2001) and 24-months forecast (01/2002 through to 12/2003) horizon. Both are
defined with fixed dates that are aligned with the provided test data.
The forecast created in the Forecasting exercises can be used as an input to the Supply and
Demand Planning exercises. All master data is aligned.
My First Plan 8

1.1.1 FC Building Block 1 Preparation and Basic Setup

1. Create Info Objects
2. Create Info Object Catalog
3. Create InfoCube
4. Load InfoCube
5. Create Storage Buckets Profile
6. Create Master Planning Object Structure
7. Create Planning Area
8. Create Characteristic Value Combinations
9. Create Planning Buckets Profile
10. Planning Book Design
11. Create Forecast Profiles
1.1.1.1 Step 1: Create Info Objects
Info Objects are the main elements of any planning area. They are used to define characteristics and
key figures of planning areas, irrespective of the way the data is stored (i.e. in liveCache or in an
InfoCube). The first step is to create these Info Objects. Before starting with the creation of the Info
Objects, check whether the Info Area APOTRAINING is set up. If this is not the case, it needs to
be created. Create the following Info Objects as described with dd being your initials.
From the APO tree structure, select Demand Planning > Environment > Current Settings >
Administrator Workbench
Check whether the Info Area APOTRAINING is listed on the right side of the screen. The
entries might not be in alphabetical order. If the Info Area does not exist, follow these tasks
else proceed to the next step.
Select the Data Targets node (not the header line) on the right side of the screen and
activate the context sensitive menu.
Select Create Info Area.
Define the Info Area name (APOTRAINING) and a long description.
Press the <Enter> pushbutton.
Press the <Maintain Info Objects> pushbutton (Shift F8) on the button bar.
Specify the Info Objects listed below, select their type and press the <Create> pushbutton.
Select APO (and not BW) on the next pop-up window. Press <Activate> and <Return>
after the creation of each characteristic.
Select Type Characteristic and create the following Characteristics:
o Characteristic Long Description. Reference Char. Data Type Length
TddCH01 Product 9AMATNR
TddCH02 Product Group Char 7
TddCH03 Location 9ALOCNO
My First Plan 9
TddCH04 Country Char 2
TddCH05 Customer Char 7
TddCH06 Customer Group Char 7
Select Type Key Figure and create the following Key Figures:
o Key Figure Long Description Type Data Type Fix UoM
TddKF01 Historical Data Quantity QUAN PC
TddKF02 Key Figure 02 Quantity QUAN PC
TddKF03 Key Figure 03 Quantity QUAN PC
TddKF04 Key Figure 04 Quantity QUAN PC
TddKF05 Base Forecast Quantity QUAN PC
TddKF06 Promotion Quantity QUAN PC
TddKF07 Corrected History Quantity QUAN PC
TddKF08 Corrected Forecast Quantity QUAN PC
TddKF09 Ex-Post Forecast Quantity QUAN PC
TddKF10 Total Forecast Quantity QUAN PC
Leave the Administrator Workbench.
1.1.1.2 Step 2: Create Info Object Catalog
In this subsequent step the previously created Info Objects are grouped in Info Object Catalogs.
This is an optional step. Using an Info Object Catalog helps easily identify own Info Objects and
speeds up subsequent tasks.
From the APO tree structure, select Supply Chain Planning > Demand Planning > Environment >
Current Settings > Administrator Workbench

Press the <Edit Info Objects> pushbutton (Shift F5) on the button bar.
Press the <Info Object Catalog> pushbutton (Ctrl F6) on the button bar.
Specify the name of the new catalog (TddCHC for the Characteristics) and press the <Edit>
pushbutton.
Enter the name (TddCHC) and a description for the catalog of the characteristics.
Specify the Info Object Type Characteristics, the Info Area APOTRAINING, and select
Create. Do not use a template.
Using the <Transfer Fields> pushbutton, copy the desired characteristics (the newly created
ones in the previous step) from the template to the structure. Once all Characteristics are added
to the Info Object Catalog select <Activate> and <Back>.
Repeat the previous steps for all Key Figures accordingly (name for the Key Figures Catalog is
TddKFC and Info Object Type is Key Figure).
Leave the Administrator Workbench.
1.1.1.3 Step 3: Create InfoCube
My First Plan 10
The InfoCube is used to store historical data. It can only be read, and consequently, the forecast is
not written into the InfoCube based key figures, but into liveCache based key figures.
Subsequently, the InfoCube will be linked to the planning area.
From the APO tree structure, select Supply Chain Planning > Demand Planning > Environment >
Current Settings > Administrator Workbench
Activate the context sensitive menu on Info Area APOTRAINING and select Create
InfoCube. Enter a name (TddIC) and a description for the InfoCube and select <Create>.
Select BW as your choice of BW application (do not use APO!) and select <Continue>.
Select the Characteristics tab.
Choose the characteristic 9AVERSION to be included in the structure. Transfer the
characteristic from the template to the structure using the <Transfer Fields> pushbutton in the
middle of the screen.
Select the characteristics from your Info Object catalog by clicking on the Info Object catalog
icon in the upper right corner and double clicking on the name of the Info Object catalog
TddCHC.
Confirm the Transfer Fields Automatically query with Yes. This copies all Characteristics
of your catalog into your InfoCube automatically.
Click on the <Dimensions> pushbutton.
Create four dimensions; one for the version, and the others for the other characteristics. You do
not need to create dimensions for time characteristics or units; these are created automatically.
o Select the <Create> pushbutton and define a dimension description. Repeat this step for all
dimensions.
Dimension Characteristic 1 Characteristic 2
Planning Version 9AVERSION
Product TddCH01 TddCH02
Location TddCH03 TddCH04
Customer TddCH05 TddCH06
o Then click on the Assign tab.
o Select the characteristic you want to assign. To do so click on the check box of the
respective characteristic and place the cursor on the dimension to which you wish to
assign it and click on the <Assign> pushbutton. After all characteristics are assigned to
dimensions, select <Continue>.
Click on the Time Characteristics tab.
Transfer the Time Characteristics 0CALMONTH and 0CALWEEK from the template to
the structure.
Click on the Key figure tab.
Select the key figures TddKF01 through to TddKF04 and press the <Transfer Fields>
pushbutton (do not transfer all your previously created key figures!)
Choose <Activate>, <Back> and confirm the Save query (if any).
Leave the Administrator Workbench.
1.1.1.4 Step 4: Load InfoCube
My First Plan 11
In order to carry out forecasting exercises, test data is required. The loading of this test data from a
spreadsheet into the InfoCube is carried out in this step. The loading of data is a multi-step process.
It is easy to make mistakes during this process, which will lead to an incorrect, if any, data load. In

this case, it is best to start right from the beginning of the activities listed here.
From the APO tree structure select Supply Chain Planning > Demand Planning > Environment >
Current Settings > Administrator Workbench
Create Application Component
Select the Modeling shutter and the Info Sources section in the left tree structure.
Activate the context sensitive menu on the folder Info Sources in the right tree structure
and select Create Application Component.
Specify name (TddAC) and description for the Application Component and select
<Enter>.
Create Info Source
Activate the context sensitive menu on the Application Component TddAC and select
Create Info Source. Choose Transaction Data.
Enter the name (TddIS) and a long description for the Info Source and select Enter.
Create Source System
Select the Modeling shutter and the Source Systems section in the left tree structure.
Activate the context sensitive menu on the folder Source Systems in the right tree
structure and select Create.
Select File System, manual meta data, data using file interface and <Transfer Enter>.
Specify the name (TddSS) and description for the Source System and select <Continue
Enter>.
Assign Data Source
Select the Modeling shutter and the Info Sources section in the left tree structure.
Activate the context sensitive menu on the Info Source TddIS and select Assign Data
Source.
Select the Source System TddSS, press <Enter> and confirm saving query.
Enter all Info Objects of the InfoCube (Characteristics, Time Characteristics, and Key
Figures) into the column Info Object. The Info Objects must be entered in exactly the
same sequence as they appear in the data columns of the Excel spreadsheet. Input the data
only into the one column called Info Object; the other fields are populated
automatically. The sequence is:
Name Info Object
1. Product TddCH01
2. Product Group TddCH02
3. Location TddCH03
4. Country TddCH04
5. Customer TddCH05
6. Customer Group TddCH06
7. Week 0CALWEEK
8. Month 0CALMONTH
9. Planning Version 9AVERSION
10. TddKF01 TddKF01
11. TddKF02 TddKF02
My First Plan 12
12. TddKF03 TddKF03
13. TddKF04 TddKF04
Select the Transfer Rules tab.
Transfer all Info Objects to the Communication Structure/Transfer Rules. To do so either
select one info object after the other and click on the <Transfer in Transfer Rules>
pushbutton, or use the <Propose Transfer Rules> pushbutton.
Then <Activate> and <Back>.
Create Update Rules
Select the Modeling shutter and the Data Targets section in the left tree structure
Activate the context sensitive menu on the InfoCube TddIC in the right tree structure and
select Create Update Rules.
Select the Info Source TddIS on the first screen and press the <Next Screen> pushbutton.
Select <Activate> and <Back>.
Create Info Package and Load Data
Select the Modeling shutter and the Info Sources section in the left tree structure
Activate the context sensitive menu on the Source System TddSS in the right tree structure
and select Create Info Package.

 Enter the description for the Info Package TddIP and select <Enter>. The following
parameters have to be defined:
o External Data tab:
Load external data from: Client Workstation
File Name: Define spreadsheet file path.
Control File: No
File Type: CSV File
Data Separator: Switch the Hex setting off
Use the character comma (,).
Escape Sign: Switch the Hex setting off
Use the character inverted comma ().
o External Data Parameters tab:
Thousand Separator: Use the character colon (:).
Character Decimal Point: Use the character point (.).
Number of Headers 1
o Data Target tab:
Ensure your own InfoCube TddIC is listed there.
Select Save.
Choose the Schedule tab and press the <Start> pushbutton.
Select <Goto Monitor> and ensure that the load was successful.
Leave the Administrator Workbench.
1.1.1.5 Step 5: Create Storage Buckets Profile
In this step the storage buckets profile, which determines the way the data is stored, is defined.
Since we also need a time stream, this time stream (also called periodicity) is created at the same
time.
My First Plan 13
From the APO tree structure select Supply Network Planning > Environment > Current Settings >
Maintain Planning Calendar (Time Stream)
Type in the time stream ID (TddTSDP), and then click on the <Create> button.
Define a name for the time stream on the upcoming screen and select the appropriate tabs to
define the following:
Header Data
Years In Past 4
Years In Future 4
Time Zone UTC
Calendar AU
Factory Calendar with Gaps on
Calculation Rule
Select the <Change Calculation Rule> pushbutton and select Week (weekdays).
Define the From and To times for periods Monday through to Friday. To do so type a
1 into the first period field and specify the start and end times (00:00:00 to 24:00:00).
Continue for all 5 workday periods.
Press Enter to see all day definitions.
Select the <Generate Periods> pushbutton.
Select <Save> and <Exit>.
From the APO tree structure select Demand Planning > Environment > Current Settings >
Periodicities for Planning Area
Name the storage buckets profile TddSBP and press <Enter>. This automatically creates the
profile.
Select the required periodicities week and month
Define the horizon 01.01.1999 through to 01.01.2010
Select the Time Steam ID TddTSDP.
Select the <Save> and <Exit> pushbuttons.
1.1.1.6 Step 6: Create Master Planning Object Structure
The master planning object structure determines the functionality of the planning area that is
created in the next step.
From the APO tree structure select Demand Planning > Environment > Current Settings >
Administration of Demand Planning and Supply Network Planning
Press the <Selection> pushbutton and select Planning Object Structures.
Activate the context sensitive menu on the folder Planning Object Structures and select

Create Master Planning Object Structure.

Name the structure TddMPOS and press <Enter>.
On the upcoming screen provide a long description. The SNP Planning, Characteristics
Based Forecasting, and DP BOMs Relevant flags must all be off.
My First Plan 14
Select all 6 characteristics as listed below in the right (Copy From) pane and press the <Add
Characteristic> pushbutton to transfer them to the left (Planning Object Structure) pane.
TddCH01 Product
TddCH02 Product Group
TddCH03 Location
TddCH04 Country
TddCH05 Customer
TddCH06 Customer Group
Select Extras > Assign Prod/Loc and define the following:
Product TddCH01
Location TddCH03
Press the <Continue> pushbutton.
Activate the master planning object structure, save and return to the menu.
In order to carry out Life Cycle Management, some specific settings are required. The first two
settings were the characteristic assignments carried out above. The othet required activities are
listed below.
From the APO tree structure select Tools > Accelerated SAP > Customizing > Edit Project
Press the <SAP Reference IMG> pushbutton.
Select Advanced Planner and Optimizer > Master Data > Product > Specify Output Format of
Product Number
Ensure that:
Product Number Length is not greater than 30.
Product Number Template is not used.
Leading Zeroes is off.
Press the <Save> pushbutton, and the <Exit> pushbutton three times.
From the APO tree structure select Tools > Administration > User Maintenance > Users
Specify your User ID and the <Change> pushbutton.
Select the Parameters tab.
Define parameter /SAPAPO/FCST_LIKE and set it to X.
Press <Enter>, <Save>, and <Exit> twice.
1.1.1.7 Step 7: Create DP Planning Area
The planning area is the central object, linking various elements, such as e.g. the storage buckets
profile and the InfoCube. It is based on a master planning object structure. Aggregation and
disaggregation rules are proposed, but could be changed if required.
From the APO tree structure select Demand Planning > Environment > Current Settings >
Administration of Demand Planning and Supply Network Planning
My First Plan 15
Press the <Selection> pushbutton and select Planning Area.
Activate the context sensitive menu on the folder Planning Areas and select Create
Planning Area.
On the upcoming screen provide the planning area name TddPADP and relate the planning
area to your master planning object structure TddMPOS as well as the storage buckets profile
TddSBP.
Define the planning area base unit of measure PC and press the <Okay> pushbutton.
The upcoming screen contains various tabs:
1. Info
No further definitions are required here.
2. Aggregation
No further definitions are required here.
3. Key Figures
Select all key figures as listed below in the right (Copy From) pane and press the
<Column Left, Previous> pushbutton to transfer them to the left (Planning Area) pane.
o TddKF01 TddIC
o TddKF02 TddIC
o TddKF03 TddIC

o TddKF04 TddIC
o TddKF05
o TddKF06
o TddKF07
o TddKF08
o TddKF09
o TddKF10
After all required key figures are transferred to the left pane press the <Details>
pushbutton. Define in the InfoCube field per key figure the InfoCube in which this key
figure is stored (TddIC). The InfoCube must have been defined beforehand. If no
InfoCube is defined here, the key figure is automatically saved in liveCache! Leave all
other fields as they are.
4. Key Figure Aggregation
On this tab specify how key figures are aggregated vertically (from one level to the next)
and horizontally (over time). Defaults are created for this definition and should be left as
is.
5. Key Figure Assignment
On this tab all key figures that are part of the planning area are listed in the right panel. No
activity is required or possible here.
Save the planning area and press the <Back> pushbutton.
Right mouse click the planning area you created above.
Choose Forecast Settings and define the following.
Forecast Key Figure TddKF05
Corrected History TddKF07
Corrected Forecast TddKF08
Press the top <Adopt> pushbutton.
Press the bottom <Adopt> pushbutton.
Right mouse click again the planning area you created above.
Choose Create Time Series Objects.
My First Plan 16
Enter the planning version Tdd to be used. The planning version must exist already! For
instructions how to create planning versions and supply chain models see steps four through to
six of the SDP Building Block 1.
Enter the start (01.01.1999) and end (31.12.2003) date.
Press the <Execute> pushbutton.
Exit the transaction.
1.1.1.8 Step 8: Create Characteristic Value Combinations
The characteristics value combinations are the key to access the data in the planning area (InfoCube
or liveCache) and must be created prior to planning.
From the APO tree structure select Master Data > Demand Planning Master Data > Maintain
Characteristics Values
Specify your Master Planning Object Structure (TddMPOS) and the InfoCube (TddIC).
Select Generate Characteristic Combination and the planning version. The planning version
is the same as the one used when loading the data (Tdd).
Set the time interval (01.01.1999 to 31.12.2001).
Select Create Time Series Objects.
Press the <Execute> pushbutton.
1.1.1.9 Step 9: Create Planning Buckets Profiles
The first created planning buckets profile determines how the data (history and future) is viewed. It
is not determining the forecast horizon. The second planning buckets profile is used to determine
the number of forecast value periods released from DP to SNP.
From the APO tree structure select Demand Planning > Environment > Current Settings > Maintain
Time Bucket Profiles for Demand Planning and Supply Network Planning
Name the planning buckets profile (TddPBP), its description, and press <Enter>.
Set the field Number to 24.
Set the Display Periodicity to M.
Pressing <Enter> automatically opens the second line and populates some fields with data.
Set the field Number to 12.
Set the Display Periodicity to W.
Press the <Save> pushbutton.

From the APO tree structure select Demand Planning > Environment > Current Settings > Maintain
Time Bucket Profiles for Demand Planning and Supply Network Planning
Name the planning buckets profile (TddPBPREL), its description, and press <Enter>.
Set the field Number to 365.
My First Plan 17
Set the Display Periodicity to T.
Press the <Save> pushbutton.
1.1.1.10 Step 10: DP Planning Book Design
The planning book is the interface to the user. It is based on one specific planning area. In this step
we also create a very basic macro, which will add up the base forecast and the promotions to give
us the total forecast.
From the APO tree structure select Demand Planning > Environment > Current Settings > Design
Planning Books
Set the Planning Book flag, define the planning book name (TddPBDP), and press <Create>.
A pop-up screen appears with various tabs. Go through the tabs as described:
Tab Planning Book
o Define the planning book description.
o Link the planning book to the planning area TddPADP.
o In the Include Standard Functions section leave all flags off except Manual
Proportion Maintenance, which must be on.
o Switch all flags in Navigate to Views on.
o Press the <Continue> pushbutton.
Tab Key Figures
o Drag and drop all key figures from the right Planning Area panel to the left
Planning Book panel or press the <Add All Key Figures> pushbutton.
o Press the <Continue> pushbutton.
Tab Characteristics
o Drag and drop all characteristics from the right Planning Area panel to the left
Planning Book panel or press the <Add All Characteristics> pushbutton.
o Press the <Continue> pushbutton.
Tab Key Figure Attributes
o This tab is skipped when creating planning books based on DP planning areas.
Tab Data View
o Specify the data view name (TddPBDPDV) and a description.
o Set the Planning Start to 01.01.2002.
o Select the planning (time) buckets profile for future and historical data. Use
TddPBP for both
o Set the Visible flag and specify the From to be M01.2000 using the F4 function.
o Press the <Continue> pushbutton.
Tab Key Figures
o Drag and drop all key figures from the right Planning Book panel to the left Data
View panel or press the <Add All Key Figures> pushbutton.
o Press the <Complete> pushbutton.
Confirm to save the planning book.
Press the <Edit> pushbutton and go again through the planning book design tabs by pressing
the <Continue> and <Complete> pushbuttons. Change, if desired, the sequence of the key
My First Plan 18
figures using the drag and drop functionality on the second Key Figure tab. Also, drag the
Proportional Factor key figure from the right to the left side.
Exit the transaction.
From the APO tree structure select Demand Planning > Environment > Current Settings > Macro
Builder
Define the Planning Book View TddPBDPDV, and press the <Execute> pushbutton.
Drag the Macro symbol from the Elements area onto the Macro tree structure in the
middle of the screen.
A pop-up window appears.
Define the macro name Total Forecast.
Set the flag No Direct Execution.
Press the <Continue> pushbutton.
Drag the Step symbol from the Elements area onto your new macro Total Forecast.

A pop-up window appears.

Define the step name Step 1.
Set the Processing Area to Future.
Press the <Continue> pushbutton.
Drag the Row symbol from the Elements Planning Table area onto the first step of your
new macro Total Forecast.
A pop-up window appears.
Select the row Total Forecast.
Press the <Continue> pushbutton.
Drag the Row symbol from the Elements Planning Table area onto the new row of the
first step of your new macro Total Forecast.
Select Create in Next Level.
A pop-up window appears.
Select the row Base Forecast.
Press the <Continue> pushbutton.
Drag the Operator/Function symbol from the Elements Planning Table area onto the
second new row of the first step of your new macro Total Forecast.
Select Append.
A pop-up window appears.
Select the function +.
Press the <Continue> pushbutton.
Drag the Row symbol from the Elements Planning Table area onto the operator/function
symbol of your new macro Total Forecast.
Select Append.
A pop-up window appears.
Select the row Promotion.
Press the <Continue> pushbutton.
Select your new macro, which has a red light.
Press the <Generate> pushbutton above it, which changes its color to green.
Drag your new macro onto the Default symbol in the Events area.
Press the <Save> and <Exit> pushbuttons.