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SAP Integrated Business

Planning for supply


September 2014

SAP Integrated Business Planning for supply


Overview
Goal

Generate a mid to long-term time-series based supply plan based on forecasts, inventory
and inventory targets.

Utilize a multi level sourcing determination model for both distribution and Bills of Material

Development of rough cut capacity supply plan, with the ability to create and use
simulation capabilities for scenario planning

Creation of either a unconstrained or constrained production, distribution, and


procurement plan, using heuristics or optimization based algorithms.

Result

Supply simulation as integral part of the sales and


operations planning process

Times series bucketed supply plan that can be used


as constrained demand and for supply chain
decision-making

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Overview

IBP Sales and Operations Planning offers set of planning algorithms to


compute a complete plan for the supply chain network

An arbitrarily deep network of supply chain relevant locations and production


steps can be modeled and planned.

Planning algorithms utilize master data such as sourcing rules or quotas,


resources, bill-of materials, lead-times, lot-sizes, co-products etc. and input
planning data such as Consensus Demand, Inventory Target, Available
Capacity etc.

S&OP allows you to generate supply plan using two algorithms types:

Heuristics

Optimization.

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Heuristics (Unconstrained Demand and Supply Planning )

The heuristic algorithm supports Unconstrained Demand and Supply Planning


mode.

In Unconstrained Heuristic, resource capacities are not taken into account to


compute supply.

The supply is computed based on the assumption that resource capacities are
infinite, i.e. they are unlimited. Resources might be overloaded, i.e. based on
the resulting computed plan some resources might have a utilization of more
than 100%.

Unconstrained planning mode does not compute a feasible plan.

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Heuristics (Unconstrained Demand and Supply Planning )


Besides resources there can be other constraints in the supply chain network,
and these are also relevant for the Unconstrained Demand and Supply Planning
mode:

Due to the fact that there are lead times, in some situations products or components cannot be
transported or procured on time to fulfill demand
In general Adjusted key figures can be used to overwrite and fix the plan. This can be done for
production, for transports (between locations and from locations to customer) as well as for
external sources of supply. These are material constraints introduced by the user

The S&OP Unconstrained Demand and Supply Planning mode does not
propagate constraints upstream.
Rather it creates a shortage for the location product where a constraint occurs, so
that it becomes visible. This is aligned with the idea of an unconstrained plan,
which fulfills customer demand but shows the bottlenecks (similar to resource
capacities).

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Infinite Complete Planning: Example 1


DC 1
D:
080 160
I: 020 000 000
N:
060 160
R:
060 160
S:
080 160

Customer 1
CD: 100 200
TD: 100 200

Plant A
D:
120 280
I: 010 000 000
N:
110 280
R:
110 280
S:
120 280

DC 2

Customer 2
CD: 040 080
TD: 040 080

DCD: 040 | 080


100%

CD: Consensus Demand


TD: Total Constrained Demand
D: Dependent Demand
I: Projected Inventory
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TR:

040 | 080

D:
060 120
I: 000 000 000
N:
060 120
R:
060 120
S:
060 120

N: Net Demand
S: Supply
R: Total Receipts
TR: Transport / Constrained Demand

DCD: Dependent Customer


Demand
DLD: Dependent Location
Demand
6

Infinite Complete Planning: Example 2


C1 / P1
CD: 10 20
TD: 10 20

Plant A / K1

Plant A / P1

D:
120 200
I: 200 080 000
N:
000 120
R:
000 120
S:
120 200

D:
60 50
I: 20 00 00
N:
40 50
R:
40 50
S:
60 50

Plant A / K2

C2 / P1

D:
80 50
I: 00 00 00
N:
80 50
R:
80 50
S:
80 50

CD: 50 30
TD: 50 30

C1 / P2
CD: 20 40
TD: 20 40

Plant A / K3

C2 / P2
CD: 50 10
TD: 50 10

D:
70
I: 95 25
N:
00
R:
00
S:
70

50
00
25
25
50

DPD: 00 | 25
1:1

TR:

00 | 25

D:
00 25
I: 20 20 00
N:
00 05
R:
00 05
S:
00 25

Plant A / P2
CD: Consensus Demand
TD: Total Constrained Demand
D: Dependent Demand
I: Projected Inventory
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N: Net Demand
S: Supply
R: Total Receipts
TR: Transport / Constrained Demand

DCD: Dependent Customer


Demand
DLD: Dependent Location
Demand
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Infinite Complete Planning: Example 2


C1 / P1
CD: 10 20
TD: 10 20

Plant A / K1

Plant A / P1

D:
120 200
I: 200 080 000
N:
000 120
R:
000 120
S:
120 200

D:
60 50
I: 20 00 00
N:
40 50
R:
40 50
S:
60 50
CR: 02

Plant A / K2

C2 / P1
CD: 50 30
TD: 50 30

R1 / P1

D:
80 50
I: 00 00 00
N:
80 50
R:
80 50
S:
80 50

CD: 080 100


CU: 080 100

R1

CD: 080 125


CS: 100 100
CU: 080 125

C1 / P2
CD: 20 40
TD: 20 40

R1 / P2

CD: 000 025


CU: 000 025

CR: 01

C2 / P2
CD: 50 10
TD: 50 10

D:
70
I: 95 25
N:
00
R:
00
S:
70

Plant A / K3
50
00
25
25
50

DLD: 00 | 25
1:1

TR:

00 | 25

D:
00 25
I: 20 20 00
N:
00 05
R:
00 05
S:
00 25

Plant A / P2
CD: Consensus Demand
TD: Total Constrained Demand
D: Dependent Demand
I: Projected Inventory
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N: Net Demand
S: Supply
R: Total Receipts
TR: Transport / Constrained Demand

DCD: Dependent Customer


Demand
DLD: Dependent Location
Demand

CS:
CD:
CU:
CR:

Capa Supply
Capa Demand
Capa Usage
Consumption Rate
8

Optimizer
Two modes: Profit Maximization and Cost Minimization for full Delivery
The following costs are considered:
Non-Delivery Cost Rate of Customer Demand
Production Cost (fixed and per-unit rate)
Transportation Cost (fixed and per-unit rate)
External Procurement Cost (fixed and per-unit rate)
Inventory Holding Cost (per-unit rate)
Safety-Stock Violation Cost (per-unit rate)
Maximum Inventory Violation Cost (per-unit rate)

The following constraints are considered:


Minimum & maximum lot size
Non-Negative Projected Stock
Interactive manual adjustments (demand, customer & external receipts, production, transport)
Lead-times
Production & handling resources capacity

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Optimizer

The objective of the Optimizer is to minimize the total costs of the supply plan.

Optimization is performed via a transformation of the S&OP-model into a


mathematical model (Mixed Integer Linear Programming (MILP)-model).

The output is an optimal and feasible production, distribution and procurement


plan for the entire supply chain network taking into account the constraints.

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10

Master Data Types, Key Figures


Master Data Types
Products
Customers
Locations

Resources
Resource

Location

Customer

Source

Location

Source

Production

Source (BOM, Capacity Consumption Rates)

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Input Key Figures


Supply planning algorithms use the following key figures as inputs:

Consensus demand

Inventory Target

Stock on hand

Customer sourcing ratio

Location sourcing ratio

Component Coefficient quantity, that is, quantity of component in a bill of material


(BOM)

Capacity consumption rate, that is, of products consuming a resource in a location

Capacity supply or Available Capacity

Output coefficient or Base Production Qty

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Input Key Figures


In addition, the optimizer takes the following key figures as inputs:

Price or Non-Delivery Cost Rate

Production Cost (Fixed and per-unit rate)

Transportation Cost (Fixed and per-unit rate)

External Procurement Cost (Fixed and per-unit rate)

Inventory holding cost (per-unit rate)

Safety-stock violation cost (per-unit rate)

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Optimizer Input Key Figures


DC101

Plant 101

Product1, Product2

Fixed Production Cost


Production Rate
Fixed Procurement Cost
Procurement Unit Rate

101

Inventory Holding Cost Rate


Safety Stock Violation Rate

Product1, Product2

DC102

Plant 102
Supplier
Transport Costs

Plant

102
Inventory Holding Cost Rate

Fixed Production Cost

Safety Stock Violation Rate

Production Rate
Fixed Procurement Cost
Procurement Unit Rate

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DC

Customer

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S&OP Supply Planning Capabilities


Algorith
m Type
Heuristic

Mode

Unconstrained Demand and Supply


Planning
(Infinite Without Shortage)

Planning Capabilities

Supports Supply Chain Network with Customer-Products and Location-Products as nodes


and sourcing links between these, plus production sources
Arbitrarily deep network can be modeled
Computes a complete plan (Demand and Supply Propagation) with no shortage. The
generated plan in general is infeasible (for instance, negative Projected Stocks, capacity
over-utilization, etc.).
Production and Handling Resources can be modeled
Resource capacities are not taken into account. Considered as infinite

Mixed Sourcing (Combination of Production and/or Transportation and/or External


unspecified split via quotas)
Lead times for customer sourcing i.e. shipment from own location to a customer
Lead times for location sourcing i.e. shipment from own ship-from location to ship-to location
Multi-Level BOM with components and co-products. Number of levels can be arbitrarily deep
Minimum lot-size on transportation lanes and production sources
Periodic lot-size with granular sub-periods. Relevant only for production
Target Inventory can be modeled

Manual Adjustments from end-user can overwrite and fix the plan. This acts as a constraint
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17

S&OP Supply Planning Capabilities


Algorith
m Type
Heuristic

Mode

Infinite Demand and Supply


Planning

Planning Capabilities

Arbitrarily deep network can be modeled


Supports Supply Chain Network with customer-products and location-products as nodes and
sourcing links between these, plus production sources
Computes a complete plan (Demand and Supply Propagation) based on infinite resource
capacities
Only Production resources can be modeled.
Target Inventory is modeled
Manual Adjustments from end-user can overwrite and fix the plan. This acts as a constraint
End-user simulation on time-dependent master-data input key figures. For e.g. Consensus
Demand, sourcing ratio or quotas, Component Coefficient, Capacity Supply
Single-Level BOM with components

Does Not support

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Multi-level BOM with components and co-products


Lead times
Lot sizes (Transportation and Production)
Mixed Sourcing

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S&OP Supply Planning Capabilities


Algorith
m Type
Heuristic

Mode
Finite Demand and Supply
Planning

Planning Capabilities
Arbitrarily deep network can be modeled

Supports Supply Chain Network with customer-products and location-products as nodes and
sourcing links between these, plus production sources
Computes a complete plan (Demand and Supply Propagation). The generated plan is feasible from
a resource perspective. Supply is propagated downstream so that one sees constraints on customer
demand
Only Production resources can be modeled. Resource constraints are taken into account.
In constrained situation fair-share method is used to distribute available capacity supply
Only feasible dependent demand is propagated to downstream nodes (either components or
locations) to prevent inventory build-up
Target Inventory is modeled
Manual Adjustments from end-user can overwrite and fix the plan. This acts as a constraint
End-user simulation on time-dependent master-data input key figures. For e.g. Consensus Demand,
sourcing ratio or quotas, Component Coefficient, Capacity Supply

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Does Not support


Multi-Level BOM with components and co-products
Lead times
Lot sizes (Transportation and Production)
Mixed Sourcing
Only one constraining resource per path (there can be additional unconstraining
resources)

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S&OP Supply Planning Capabilities


Algorithm
Type
Optimizer

Modes

Planning Capabilities

Two Modes:

Profit
Maximization

Cost
Minimization for
Full Delivery

Supports Supply Chain Network with Customer-Products and Location-Products as nodes and sourcing links
between these, plus production sources
Arbitrarily deep network can be modeled
Computes a feasible plan
Optimization is performed via a transformation of S&OP-model into a mathematical model (Mixed Integer Linear
Programming (MILP)-model).
Production and Handling Resources can be modeled
Resources can modeled as Finite or Infinite
Mixed Sourcing (Combination of Production and/or Transportation and/or External unspecified). Quotas are not
considered
Lead times for Customer and Location Sourcing
Multi-Level BOM with Components and Co-Products. Number of levels can be arbitrarily deep
Min-Max Lot-Sizes on Transportation lane and Production Sources
Periodic Lot-Sizes with granular sub-periods. Relevant only for Production
Manual Adjustments from end-user can overwrite and fix the plan. This acts as a constraint
End-user Simulation on time-dependent master-data input key figures. For e.g. Costs, Consensus Demand,
Sourcing ratio, Capacity Supply

Optimizer Costs:

Non-Delivery Cost Rate


Production Cost (fixed and per-unit rate)
Transportation Cost (fixed and per-unit rate)
External Procurement Cost (fixed and per-unit rate)
Inventory Holding Cost (per-unit rate)
Safety-Stock Violation Cost (per-unit rate)

Optimizer Hard Constraints

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Interactive manual adjustments (demand, customer & external receipts, production, transport)
Maximum inventory
Non-Negative Projected Stock
Minimum & maximum lot size
Lead-times
Production & handling resources

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SAP Integrated Business Planning for supply


IBP 4.0 FP1 Release
Planning Capabilities

Supply Simulation as an extension of the Sales and Operations Planning process


Multi-level supply planning, including distribution and capacity planning in a constrained mode
Two Algorithm types:
Heuristics - unconstrained by capacity
Optimization
Profit Optimization and Maximize Delivery mode
Constrained by resource (production, handling) capacity and material availability
Multi level BOMs with components and co-products
Manual user adjustments to plan become constraint

Frozen horizons for distribution and production


Build-Ahead
Production Cycles with granular time-buckets
Sub-Network Planning
Product Interchangeability
Aggregated constraints for the optimizer

Sourcing and Lot Sizes

Multi-level sourcing
Time-dependent sourcing rules
Lead time for customer and location sourcing
Mixed sourcing for various supply sources (Production, Stock Transfers and External Procurement)
In-transit inventory visibility
Min Lot Sizing as a constraint for heuristic and optimizer, available for transportation lanes and production

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Max Lot Sizing as a constraint for optimizer

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SAP Integrated Business Planning for supply


IBP Release
Planning level

Planning on most granular level


Visibility at different levels of aggregation

Versions/
Simulation Scenarios

End-user Simulation on time-dependent master-data input key figures. For e.g. Costs, Consensus Demand, Sourcing
ratio, Capacity Supply
Version specific transactional data
User-Defined simulation scenarios on top of versions
Publish simulations to version
Promote transactional data across versions
Version specific master data

Data Model \ Integration

Planning on time series (input & output)


No planning on orders
Planning output is time series values
Customer specific usage of planning output

Generic, tool-supported ETL integration with templates (HANA Cloud Integration)


Project defined integration with source system, demand elements as output

Extensibility

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Flexibility through system configuration

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SAP Integrated Business Planning for supply

Real-Time Planning &


Simulation Tools
Utilize either heuristic or
optimization algorithms to develop
a constrained or unconstrained
supply plan

Meet optimized inventory targets


set by IBP for inventory

Gain visibility for projected stock


or shortages at relevant levels of
aggregation

Use the embedded alerting


capabilities to pinpoint where
potential issues have been
detected
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23

SAP Integrated Business Planning for supply

Supply Planning
Environment
Develop the Rough Cut Capacity
Plan based upon various
resources

Plan based upon financial


aspects that ensure the most
profitable solution.

Constraints at both material and


capacity level can be modeled
and used to constrain the plan.

Use collaboration capabilities


both internally and externally to
make manual adjustements

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Multi-level supply chain model example


Demand- Forecast
or Orders
On-Hand/Target
Inventory

Customer 1
A

On-Hand/Target
Inventory

Required /
Available Supply

Capacity Limit

SUP 301

MFG 201

Customer 2

DC 101

A
A

Multi-level
BOM

SUP 302

DC 102

Customer 3

MFG 202

Product

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A
3

Sourcing Ratio
& Lead Times
Sourcing Ratio
& Lead Times

Location

Capacity
Resource

Material

Multi-level
BOM

Sourcing Ratio
& Lead Times

Production
Source
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AGENDA

Business Scenario

Overview of Key Concepts

Hands-On Exercises

Review Supply Chain Master Data Set-Up


Execute Heuristics and Review the Output
Execute Profit Optimization and Review the Output
Manual Adjustments
Extend Master Data

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Exercise 1A: Products

In a Supply Chain Network products are produced, transported and stored. The S&OP
product ID corresponds to a material number in ERP and a product number in APO

Note:

Only the Product ID field is mandatory. Its represented by the attribute PRDID. The
other fields & attributes are an example only.

Components are products that are used as inputs in production process. You can define
a separate master data type for components (with key attribute PRDFR)., which then
comes with its own set of master data entries, or you can reuse the entries already
maintained as products by defining reference master data type. In the training model
we are using it is defined as reference master data

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27

Exercise 1B: Customers

Products are sold to and shipped to customers. S&OP customer ID corresponds to


customer number in ERP or APO.

Note: Only the Customer ID field is mandatory. Its represented by the attribute CUSTID.
The other fields & attributes are an example only.

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Exercise 1C: Locations

A location is often a physical place where products are stored, produced, shipped to or
shipped from (via a transport). The locations can be of type Distribution Centers,
Manufacturing Plants.

In S&OP suppliers can also be modeled as locations.

Note: only the Location ID field is mandatory. Its represented by the attribute LOCID. The
other fields & attributes are an example only.

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Exercise 1D: Resources

S&OP on HANA offers two types of resources: production and handling


resources.

Production resources model a production or assembly process. Their capacity


is consumed per produced or assembled unit of product.

Handling resources apply to all goods receipts at a location in the sense that
each arriving unit of a product consumes a certain capacity unit of the
resource. This resource type is relevant for all receipts of the location product,
which are Transport, Production and External Receipts.

Resource in S&OP can be modeled as finite or infinite.

Available Capacity or Capacity Supply is defined at Resource Location level

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30

Exercise 1E: Sourcing Rules Or Quotas

Sourcing rules define how a demand for customer or at a certain location has to be
satisfied.

S&OP distinguishes between sourcing rules for Customer demand (Customer Ratio or
C-Rule), for transportation (Transportation Ratio or T-Rule), production (P-Rule) and
unspecified (U-Rule).

Customer Source (C-Rule):

Defines from which location (distribution center, plant or supplier) of the supply network a
customer demand has to be satisfied in what percentage.
Customer Sourcing can be maintained as time-dependent or time-independent

Transportation Source (T-Rule):

To plan supply through stock transfer from another location one has to specify a suitable
transport sourcing rule (T-rule).
Transport Sourcing can be maintained as time-dependent or time-independent

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31

Exercise 1E: Sourcing Rules And Quotas

Production Source (P-Rule):

Another way to satisfy a demand is to manufacture the required product at the given location.
The meaning of a production sourcing rule is that Product is produced at the location where the
demand for Product exists
Production rule can comprise of BOM and Production resources

Unspecified Source (U-Rule):

U sourcing role is specified when the source of supply to meet the demand is not required to be
modeled explicitly.
If, for instance, the supply network terminates at a location product where components are
purchased and the supply chain of the supplier should not be taken into account one needs
sourcing rules indicating the planning algorithms to stop the network propagation but to make
supply available. This is the task of un-specified sourcing; U stands for unspecified.
U SOURCES DO NOT HAVE A SOURCING QUOTA. There can only be one U rule per product location

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32

Exercise 1E: Sourcing Rules And Quotas


Multi-Sourcing :

It is possible to mix multiple source types, one can specify Net Demand to be distributed
according to quotas between different sourcing types.
Its possible to source a Net Demand

30% from Production Sourcing (P-rule)


50% from a Transportation Sourcing (T-rule)
Remaining 20% from Unspecified Sourcing (U-rule)

Meaning that 30% of the Net Demand should be propagated to a production process, 50% to
another location and 20% of the Net Demand are assumed to be available without limitations

The sum of quotas has to sum up to <= 100%.

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33

Exercise 1E: Sourcing Rules And Quotas

MULTI-SOURCING

Product demand at a certain location can be distributed according to quotas between


different sourcing types:

Following Source types are supported

Production at own location specified via Production Sourcing Rule (P-Rule)

Stock-Transfer from another location via Transportation Sourcing (T-Rule)

External Unspecified Source (U-Rule)

The sum of quotas has to sum up to 100% (+/- a small epsilon which is needed due to
rounding errors).

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34

Exercise 1E: Sourcing Rules And Quotas

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35

Exercise 1E: Sourcing Rules And Quotas


Plant A / Prod. P

T- and U-rule
Dep. Dem.:
Proj. Stock: 0
Net Demand:
Receipts:
Supply:

Distrib. Center 1 /
Product P
Dep. Dem.:
Proj. Stock: 4
Net Demand:
Ext. Receipts
Receipts:
Supply:

10
0
6
3
5
9

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3
0
3
2
2

10
0
10
7
7

20
0
20
10
17
17

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Exercise 1F: Production And Transportation Lot-Sizes

Lot sizing allows to model production and transportation quantities per period to be set
within limits and / or according to a certain strategy.

The Following Lot-Sizing procedures are supported


Minimum Lot-Size:
o Transportation and Production quantity cannot be lower than a minimum.
o If production or transport is triggered, the quantity has to be equal or higher than the minimum lot size.
o Heuristic algorithm and optimizer will respect the minimum lot size
Maximum Lot-Size
o Defines the maximum production or transportation quantity
o Only optimizer respects the Maximum lot size
Periodic Lot-Size
o The system plans to produce the demand of N future successive periods, where the parameter N is called
the periods of coverage
o Relevant for production only.
o Only infinite planning heuristic respects the periodic lot-size.

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37

Exercise 1F: Production And Transportation Lot-Sizes

Lot sizes are time-independent master data settings.

Examples:
Transportation Lot-Size (SOURCELOCATION)
PRDID

LOCID

LOCFR

TMINLOTSIZE

TMAXLOTSIZE

LEADTIME

TRATIO

P1

L1

L2

500

1000

0.5

P1

L1

L3

100

5000

0.5

Production Lot-Size (SOURCEPRODUCTION)


PRDID

LOCID

P2

L1

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SOURCETYPE

PRATIO

PERIODSOF
COVERAGE

PMINLOTSIZE

PMAXLOTSIZE

1.0

1000

10000

38

Exercise 1F: Production And Transportation Lot-Sizes


Notes:

If No values are specified for the minimum and maximum lot-size, lot-for-lot planning
procedure is used

If a minimum and a periodic lot size is specified the system will plan to produce at least
the quantity specified by the minimum lot size.

If periodic lot size is defined in conjunction with a maximum lot size the optimizer will
limit the periodic lot size to the quantity specified by the maximum lot size, which can
have the result that the demand of the N periods might not be covered in one period.

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39

Exercise 1G: Multi-Level Bill Of Material

Enables multi-level production processes with production of components

Number of Levels is arbitrary i.e. not limited

Example: Product P is produced from component X. Component X is produced from


component Y

Defines the base


production qty

Header (SOURCEPRODUCTION)
SOURCEID

PRDID

LOCID

SOURCETYPE

OUTPUTCOEFFICIENT

S1
S2

P
X

L1
L1

P
P

1.0
1.0

Detail: (PRODUCTIONSOURCEITM)
SOURCEID

SOURCEITEMID

PRDID

COMPONENT-COEFFICIENT

S1
S2

10
10

X
Y

1.0
2.0

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Defines the Qty


Per. Can be
modeled as
master data or
time-series

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Exercise 1G: Multi-Level Bill Of Material

Enables to model co-products

Example:

Product P1 is the finished product. C1 is the Co-product.


A and B are components to produce Product P1

For every 10 units


of P1 produced, 5
units of C1 is
produced

Header
SOURCEID

PRDID

LOCID

SOURCETYPE

OUTPUTCOEFFICIENT

S1
S1

P1
C1

L1
L1

P
C

10.0
5.0

Detail:
SOURCEID

SOURCEITEMID

PRDID

COMPONENT-COEFFICIENT

S1
S1

1
2

A
B

1.0
2.0

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Output co-efficient
can be modeled
as master data or
time-series

41

Exercise 1G: Multi-Level Bill Of Material


Product 1

Subassembly

Component 1

Product 2

Component 1

Component 3

Component 2

Finished Product
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Component
42

Exercise 1G: Multi-Level Bill Of Material

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43

EXERCISE 1H: CAPACITY CONSUMPTION RATES FOR PRODUCTION RESOURCES

This master data type describes resource consumption rate for production source.

PRODUCTIONRESOURCE table is used

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44

EXERCISE 2A: EXECUTE UNCONSTRAINED DEMAND AND SUPPLY PLANNING HEURISTIC

1.

Execute the plan from Simulate mode Unconstrained Demand and Supply

2.

Review results

Open Location Centric View Locaton View Favorite


Open Transportation View DC to Customer Transport View favorite
Open Transportation Views Plant-to-DC Transportation View favorite
Open Capacity View Capacity View Favorite
Open BOM View Parent-Child BOM view Favorite

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45

EXERCISE 2B: Profit Optimization

1.

Execute the plan from Simulate mode Profit Optimization

2.

Review results

Now lower the Consensus Demand Price(Non-Delivery Cost Rate) for


Product1/Cust101 to 10 for few buckets and Click Profit Optimization under Simulate
button in Consensus Demand View

3.

4.

Open Location Centric View Location View Favorite


Open Transportation View DC to Customer Transport View favorite
Open Transportation Views Plant-to-DC Transportation View favorite
Open Capacity View Capacity View Favorite
Open BOM View Parent-Child BOM view Favorite

Non-Profitable demand is not met or shorted

Open Capacity View. Reduce the Capacity Supply for Resource 2 to 2000 from (Jan,
Feb and March 15). Run the Optimizer

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EXERCISE 2C: Manual Adjustments

Adjusted key figures are special type of Key Figures that allow adjusting (i.e.
overwriting) the input or the output of an algorithm.

The main use case of Adjusted Key Figures is interactive planning, where a
user changes these key figures manually to influence the output of a planning
algorithm. For that reason, Adjusted Key Figures are also called manual
adjustments.

For example, if the algorithm computes that the dependent demand at a


location is X, you can over-write this dependent demand by inserting a value of
your liking for the key figure Adjusted Demand.

2013 SAP AG. All rights reserved.

47

EXERCISE 2C: Manual Adjustments


The following are the Adjusted Key figure types currently available:
Adjusted Transport Receipts
Adjusted Customer Receipts
Adjusted External Receipts
Adjusted Production Receipts

2013 SAP AG. All rights reserved.

48

EXERCISE 2D: Extend Master Data


ACME Company has introduced a new product (PRODUCT3) to market and would like to model
the Supply Chain master data.
PRODUCT3 will be sold to Customer 101 and will be supplied from DC101. PRODUCT3 at DC101
will be procured from PLANT101.
The PRODUCT3 will be manufactured at PLANT101 on RESOURCE1 by consuming
COMPONENT1

2013 SAP AG. All rights reserved.

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