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One of the building blocks of effective supply chain management in the Oil
& Gas industry is the accurate modelling of controls and constraints which
affect the handling of bulk materials.

The SAP IS-Oil Downstream Bulk Distribution Requirements Planning

application area will provide a range of tools and process optimizations
which are intended to support bulk material supply chain modelling across
the extended enterprise.

The first steps towards this objective is the development of a range of master
data extensions which facilitate the control and definition of objects used by
bulk supply chain management processes.

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A range of key function benefits are provided at the current release of the
SAP IS-Oil Downstream (Bulk Distribution Requirements Planning) Bulk
Replenishment application:

q The site control parameters function benefit allows you to set site
controls in your system.

q The replenishment control parameters function benefit supports the

setting of replenishment control parameters in your system.

q The storage objects function benefit allows you to define objects that
store materials in your system.

q The sales meters function benefit supports the definition of sales meters
in your system.


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The following master data objects exist at the current release of the SAP IS-Oil
Downstream (Bulk Distribution Requirements Planning) Bulk Replenishment
application:
q Site control parameters
q Replenishment control parameters
q Storage objects
q Sales meters

In addition some demonstration Internet transactions are provided to allow

users of IS-Oil BDRP to experiment with some of the processes which will be
fully realised in future releases of the product.

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IS-Oil BDRP master data objects always appear in the system as sub-objects
of other master data objects. This means that access to BDRP master data
objects is always via a higher level object. For example, the BDRP master
data object ’storage object’ is stored in the system in one central place, but is
referenced for maintenance purposes by its owning object. Owning objects
in the case of storage objects can be customer ship-to parties or IS-Oil MRN
business locations.

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There is a requirement to record information at the site level which is used to
control or influence bulk logistical processes such as delivery planning,
shipment scheduling and unloading operations. For example, the forecasting
of a replenishment event in terms of quantity and time is dependent on a
number of factors. One of these factors is the link between consumption of
bulk product at a retail site and the opening hours of that site. If a retail site is
not open for business over the weekend period, no product will be sold at the
site and so no consumption will occur.


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IS-Oil BDRP Site Control Parameters component can be used to record such
site level information which is specific to bulk material handling processes.
The mechanism provides an additional screen for standard site management
dialogs, in which both a standard set of site control parameters and user
installation defined site characteristics can be maintained.
Initially, the Site Control Parameter maintenance screen will be available
from the SD customer ship-to party maintenance dialog and the IS-Oil MRN
business location maintenance dialog.

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Fig. 8-1: The effect of sales hours on replenishment calculations.

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You can enter parameters to control replenishment at a delivery site using
the IS-Oil BDRP Replenishment Control Parameters screen. An additional
screen is provided within delivery site (e.g. customer ship-to) master data.
In this screen you can define replenishment control parameters for each
replenishable material at the customer site.

An additional function benefit of IS-Oil BDRP Replenishment Control

Parameter component is a structure for recording the stock figures entered
from external system for the delivery site.

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Fig. 8-2: Stock report for a delivery site based on external data.


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The IS-Oil BDRP Replenishment Control Parameter component is supplied

in prototype form only at the current release. Processes which use the data
contained in this screen are currently being developed. The structure of this
screen and the field definitions on this screen are subject to change, before
these processes are implemented.

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In connection with bulk material handling processes such as delivery
planning, scheduling and unloading operations there is a requirement to
record information about the tanks, containers or silos which are used to
receive the bulk material.

For example, the available capacity of customer storage for a particular

material should be known before a delivery is scheduled to that customer, in
order to avoid unnecessary returns or even hazardous overflows. In another
case it may be mandatory to confirm the compatibility of the target stock
receiving object with the material to be unloaded, to prevent damage or
contamination.

The IS-Oil BDRP Storage Object Characteristic component provides a

standard technique within the system to define and maintain one or many
storage objects for any given stock holding object within the R/3 system. At
the current release storage objects can be defined for the following stock
holding objects:

q Customer Ship-to

q Business Location.

The Storage Object Characteristic component is used to record information

about storage objects which is specific to bulk material handling processes. For
each storage object, the component provides screens for basic specifications,
maintenance data, assignments and linear/volumetric conversion data.
Individual storage objects are created with reference to storage object types
which are maintained in customizing. Storage object types serve both to type
storage objects and as reference storage objects for specification and
linear/volumetric conversion data.


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Fig. 8-3: The allocation of storage objects to a site object within IS-Oil

A facility is provided within the storage object master data to manage the
conversion of linear dip values to physical volumes. Such conversions are
commonly referred to in the industry as tank strapping conversions.

During a delivery or stock taking cycle the contents of a particular tank/silo

can be evaluated through the use of a dip reading. The dip reading is
normally taken with a calibrated rule inserted into a perforated guide tube.
The guide tube ensures verticality of the rule. The dip reading is used to
measure both depth of product and water in any particular tank or tank
group.

The tank/silo or tank/silo group consist of storage vessels of irregular shape

- typically these shapes will spherical or cylindrical. This means that the
conversion between a linear dip and the volume of product held in the tank
is non-linear. The industry response to this is to define conversion tables
which contain a number of conversion constants. Each conversion constant
consists of two fixed values, one of which represents a linear measure and
the other the volumetric capacity which is contained in the storage object for
a dip of the specified linear value. For a given dip of a specific storage
object, it is possible to ascertain the volume of product contained within the
storage object.

Because the linear and volumetric values of a sequence of conversion

constants do not have to be co-incremental, it is possible to model irregularly
shaped storage objects.


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Fig. 8-4: Calculating the volume contained in a tank based on a dip measurement

The IS-Oil BDRP Storage Object Characteristic component supports the

definition of sets of linear/volumetric conversion constants (LVCC sets) for:

q Storage object types, where the conversions apply to all storage objects
of a particular type

q Individual storage objects, where the conversions apply only to a single

storage object

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In connection with bulk material handling processes such as delivery
planning, scheduling and unloading operations there is a requirement to
product flow meter data and convert it to product quantities. For example,
the material consumption data of a delivery site is required in order to
calculate replenishment quantities. The data is available in the form of
meter readings. A log is therefore required of each meter installed at the site
along with the assignments of meters to materials at the site. Material
consumption quantities can then be calculated by subtracting the current
reading from the previous reading for each meter, making adjustments
where necessary and aggregating the converted quantities by material.

The IS-Oil BDRP General Meter Management component provides a standard

technique within the system to define and maintain one or many meters for
any given stock holding object within the R/3 system. At the current release
meters can be defined for the following stock holding objects:

q Customer Ship-to


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The General Meter Management component is used to record information about

meters which is specific to bulk material handling processes. For each meter,
the component provides screens for basic specifications and maintenance data.
Individual meters are created with reference to meter types.

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Fig. 8-5: How the sales meter function benefit will be used to calculate sales
quantities

The IS-Oil BDRP General Meter Management component is supplied in

prototype form only at the current release. Processes which use the data
contained in this screen are currently being developed. The structure of this
screen and the field definitions on this screen are subject to change, before
these processes are implemented.


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The BDRP component provides some demonstration Internet transactions to
allow users of IS-Oil BDRP to experiment with some of the processes which
will be fully realised in future releases of the product.

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Fig. 8-6: Process flow of internet scenario which includes determination of

material assignment and use of tank strapping tables.

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A pair of values which describe a permanent correlation between a linear
quantity and a volumetric quantity. Linear/volumetric conversion constants
form the basis of calculations made to determine the quantity of material in a
storage object for any given measurement of the depth of material in that
storage object.

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Any object in the system for which storage process relevant data need to be
captured. For example, a delivery scheduler needs to know the maximum
capacity of oil tanks at both a plant and a customer business partner.


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Any variable or descriptive text which describes an object which can be used
to store materials. Some storage object characteristics are entered and
maintained in application specific objects such as plants and storage locations.
Other storage object characteristics can be maintained using the storage object
characteristic maintenance tool.

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The number of a subordinate storage object in terms of the owning object.
For example a ‘ship-to’ customer may have three storage objects with the
numbers 001, 066 and X74.

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The technique used to support the definition of common reference data for
storage object characteristic segment instances.

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The process whereby the quantity of a material in a storage object can be
determined from the depth of material in that storage object. Accurate tank
strapping requires the maintenance of a large number of linear/volumetric
conversion constants. The system uses these constants to calculate a
volumetric quantity from an input linear measure or tank dip.