SAP Supplier Network Planning (SNP) 26125069

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SAP 2007-2008 / 0
SAP Supplier Network Planning (SNP):

Features, Functions, Best Practices,
and Infrastructure
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Claudio Gonzalez
SAP America
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What to Expect from This Workshop
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Introduction to Supply Network Planning (SNP)
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Learn about the various features in SNP

Understand how and when to use these features
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How SNP fits into the planning process
Where does it fit into your overall planning process?

Integration with other SAP modules
What to consider when implementing SNP
Project team consideration

Change management aspects
At the end, you should have a good overview of:
SNP as a module in SAP APO

What to consider, watch out for, and dig further into
SAP 2007-2008 / 2
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What We'll
Well Cover ...
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Overview of SNP and how it fits in SAP SCM

Master data in SNP
Planning with SNP
Deployment with SNP
Truck loading with SNP
Planning by exception with the Alert Monitor
Special planning topics in SNP
Integration of SNP with DP, PP/DS, and SAP ERP
Wrap-up
SAP 2007-2008 / 3
Planning Horizon
Planning Horizon
Demand Planning (DP)
Planning horizon goes from

wide to narrow
SAP APO SNP is used for:
Production Planning (PP)
Deployment (SNP)
TLB Transport Load Builder (SNP)

SAP 2007-2008 / 4
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Supply Network Planning (SNP)
Detailed Production Scheduling (DS)
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Mid- to long-term planning

to create a feasible supply
plan
Short-term planning to
deploy product to
warehouses
Build trucks
How wide and how narrow

varies from industry to
industry, for instance:
SNP: 3 months to 18
months
Deployment: 10 days to
30 days
TLB: 5 days to 15 days
SNP Planning Functionality

Mid- to Long-Term Planning Methods
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SNP Heuristic
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Capable-to-Match (CTM)
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SNP Optimizer
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Deployment (Short-Term Replenishment Planning)
Deployment Heuristic
Deployment Optimizer
Deployment Prioritization
Transportation Load Builder (TLB)
Grouping of deployment stock transfers to a Stock Transfer

Order (STO)
SAP 2007-2008 / 5
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Defining the Planning Horizon in SNP

Starting point for planning with SNP is defined with the
SNP Production Horizon
Defined in calendar days, weeks, or months

Calculation starts on the:
System date
Planning start date of the Planning Book
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Defined globally by planning version or by product and

location
SNP Production Horizon: 25 calendar days

Not planned by SNP
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SNP Stock Transfer Horizon can also be used to

define the starting point for planning
Example:
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Planned by SNP
Planning horizon
25 Calendar
SAP 2007-2008
/ 6 days
Defining the Planning Horizon in SNP

(cont.)
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SNP Horizons
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SNP Prod Horizon No planned orders created
SNP Stk Trans Horizon No PurReq created
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Extended SNP Prod Horizon only manual planned orders

in this horizon, must be in complement with SNP Prod
Horizon, not standalone
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SAP 2007-2008 / 7
SNP Planning Sequence and Flow
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Set up master data and

supply chain model
Build loads for

non-assigned
transport orders
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Release demand
plan
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TLB run
Perform SNP Heuristic,

Optimization, or CTM run
Deployment
run
Check plan/
solve problems
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Release constraintbased SNP

plan to DP
SAP 2007-2008 / 8
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Finalize SNP plan

and release to PP/DS
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Interactive Planning with SNP

Planning Book
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Time
Buckets
SNP Planning
Book Screen
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Shows data selected

Planning Book
Executable
Functions (by
Location,
Network, MultiLevel)
The selection profile

shows selection
IDs used by the
current planner
Key figures
This section of the screen can display different data

(Alerts, Product View) depending on selection made
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SNP plans in buckets, not to individual orders by dates

and times
Data can be stored in Order liveCache or Times Series
Buckets can be defined as daily, weekly, or monthly

Time bucket profiles are used to define the buckets and
planning horizon
Different buckets can be used over the planning horizon
Example for a 12-month planning horizon:
Week 1 to 4 daily
Week 5 to 30 weekly
Rest monthly
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Demand and supply is grouped together to one number per

bucket
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Planning in Buckets with SNP
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Data
section
SAP 2007-2008 / 9
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The Data Views

area is where the
planner selects
Planning Books
and Data Views
You can use
macros to perform
complex
calculations
quickly and easily
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Detailed orders per bucket can be displayed
SAP 2007-2008 / 10
Key Figure Definitions

SNP Key Figures
SAP 2007-2008 / 11
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Source
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Forecast
This will come from Demand Planning after DP release to SNP
Sales Order
This will come from SAP ERP into SAP APO via CIF. Sales orders will
consume the forecast.
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Distribution Demand
(Planned)
Stock transfers that are generated during the SNP planning process and
updated in every planning phase. The distribution demand shows the
supplying locations view of these stock transfers (the view from the receiving
location is provided by the distribution receipts). This will be populated after
Distributed Resource Planning (DRP) run for non-subcontracting materials.
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Distribution Demand
(Subcontracting)
Same as Distribution Demand (Planned) for subcontracting materials
Distribution Demand
(Confirmed)
Same as Distribution Demand (Planned), but as a stock transfer to the

receiving plant. These are also called Deployment Requisitions. Distribution
Demand Planned is populated by the deployment process based on
inventory Available-to-Deploy (ATD). Distribution Demand Confirmed will
consume the Distribution Demand Planned.
Distribution Demand (TLB)
Stock Transport Order (created during TLB run). Distribution Demand TLB
will consume Distribution Demand Confirmed.
Distribution Receipt
(Planned)
Stock transfers that are generated during the SNP planning process, and
updated in every planning phase. The distribution receipt shows the receiving
locations view of these stock transfers (the view from the supplying location
is provided by the distribution demand). This will be created as above, but on
receipts side.
(Subcontracting)
Same as Distribution Receipt (Planned) for subcontracting materials

(receiving side)
(Confirmed)
Same as Distribution Receipt (Planned), but as a stock transfer to the plant

(receiving side)
Distribution Receipt (TLB)
Same as Distribution Receipt (Planned), but as STO plant (receiving side)
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Key Figure Definitions (cont.)

SNP Key Figures
SAP 2007-2008 / 12
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Source
In Transit
Inbound Deliveries or Advanced Shipment Notifications for POs

or STOs from SAP ERP
Production (Planned)
Production Planned at manufacturing plant
Production
(Subcontracting)
Same as Production (Planned) but for subcontracting material
Production
(Confirmed)
Same as Production (Planned) but for confirmed production
Stock On-Hand
Current or Projected unrestricted inventory available at a location
Supply Shortage
Difference between Demand and Supply calculated by a macro
Reorder Point
Threshold value for the available stock below which procurement

proposals should be created (from Product Master)
Safety Days of Supply
Target value for the days supply of a location product (from

Product Master)
Safety Stock Level
Represents a stock level that should be reached through

planning in order to smooth out production and cover sporadic
requirements
Days Supply
The system calculates the days supply as follows: Stock is

divided by daily demand (macro calculation)
ATD Receipts
Available-to-Deploy (macro calculation) for receipts (what you

can deploy as receipts)
ATD Issues
Available-to-Deploy (macro calculation) for issues (what you

deploy as issue)
Macros in SNP
Macros are assigned to Planning Books and Data Views

Can be executed automatically or on demand by the user
Unlike in DP, SNP has many standard macros provided by SAP

Standard macros might be sufficient most of the time
Custom macros are like user-defined formulas
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Can choose from SAP-provided standard macros or build

custom macros in SAP APO
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Macros function similarly to formulas in spreadsheets, but are

more advanced and provide greater flexibility
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Provide planners with the ability to model user-specific planning

scenarios based on individual business tasks
Can create context- and user-specific planning views
Can trigger alerts in the Alert Monitor or Data View to inform the
planner of specific business situations
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SAP 2007-2008 / 13
Building Macros in SNP
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Different
elements
available
for
building
macros
Assignments
that
determine
how and
when the
macros are
executed
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All macros assigned to a

Book and
Planning
SAP 2007-2008
/ 14Data View
Work area for

creating/changing macros
Calling Macros in SNP Interactive

Planning
Directly executed
macros are only
executed by
the user in the
Planning Book
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Default macros
are executed
automatically
whenever data is
entered in the
Planning Book
Start macros
are executed
automatically
when the data is
loaded into the
Planning
Book / 15
SAP
2007-2008
What We'll
Well Cover ...
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Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 16
Master Data Objects Needed for
SNP
Locations
Production plants, DCs, vendors, customers, etc.
Transportation lanes
Relationship (connection) between locations
Products
By location (product location a unique object in SAP APO)
Resources
Production, handling, storage, transportation
SNP Production Process Models (PPMs)/Product

Data Structure (PDS)
Based on production version with Bill of Material (BOM),

routing, or master recipe from SAP ERP system
SAP 2007-2008 / 17
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Core Interface (CIF) for Master Data

Transfer
SAP ERP
Initial Data
Transfer
SAP ERP Master Data
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SAP APO
SAP APO Master
Data
Plant
Location
Customer
Product
Resource
Work Center
Production
Process Model
or
Production
Data Structure
Routing/Recipe
Bill of Material/Prod Version
Core Interface (CIF) for Master Data

Transfer (cont.)
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Transfer of master data

SAP ERP is the execution system for master data, and it
retains ownership of all master data
CIF always transfers SAP APO-relevant master data from
SAP ERP to SAP APO
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Incremental
Data Transfer
SAP 2007-2008 / 18
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Material Master
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Vendor
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Core interface performs initial data transfer as well as subsequent

data changes
Subsequent data changes can be scheduled to run in real time
or periodically
It is recommended to schedule master data change transfer

periodically during off hours for performance and system
integrity reasons
It is possible to set the definitions of SAP APO-relevant
master data in SAP ERP or via CIF user exits. New SAP
APO fields often have to be set up in SAP ERP
because they do not currently exist there.
SAP 2007-2008 / 19
Most Common Locations in SAP APO

for SNP
SAP APO Location/Location Type
SAP ERP Master Data
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Customer
1010
Customer
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Vendor
1011
Vendor
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1007
MRP Area
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CIF
MRP Area
Plant
1001
Production Plant
1002
Distribution Center
SAP 2007-2008 / 20
Node Type
5000
PL
6000
DC
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DRP Customizing in SAP ERP

Plant
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SAP ERP IMG:

Production>DRP>Basic Settings>
Maintain Assignment of Node
Type-plant
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Data in Locations
Locations contain
data that is:
CIFd over from SAP ERP
Data maintained directly

in SAP APO
Time zone
ERP vendor number for

plant
Address
Production
Warehouse
Shipping
Receiving
Resources
General data:
Planning calendars for:
Maintained directly in
SAP APO
Data that is CIFd from

SAP ERP
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Handling
Storage
Category groups for:
Stock
Available-to-Deploy receipts
Available-to-Deploy issues
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SAP 2007-2008 / 21
Planning Calendar/Time Stream in

SAP APO
Time stream (planning calendar) defines available
days/time (i.e., working time) using:
Time zone
Factory calendar
Time horizon
Calendar type
Factory calendar (with gaps)

Period calendar (without gaps)
Period type
Weekly
Monthly
Two types of time streams exist in SAP APO:

Standard SAP APO time stream
CTM time stream (without gaps is suggested)
SAP 2007-2008 / 22
Time Stream ID
General data
Horizon
Time zone
Calendar type
Factory Calendar
(with Gaps)
Period Calendar
(Without Gaps)
Period type
Weekly
Monthly
Period definition
SAP 2007-2008 / 23
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Factory Calendars in SAP APO

Factory calendars in SAP APO are the same as in SAP ERP
Define workdays of a week and holidays

Can be synchronized with SAP ERP via Transfer Global Settings
Transfer Global Settings
Global master data settings available for transfer from connected

SAP ERP source system:
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Units of currency
Units of measure
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Fiscal year variants

Factory calendars
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Various available options for transfer:
Update tables
Rebuild tables
Tcode: RSA1
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SAP 2007-2008 / 24
Time Zones
Set of rules that defines the offset of the users local time from
Coordinated Universal Time (UTC)
UTC replaces the term Greenwich Mean Time (GMT)
The local time of a particular location or user depends on their

position on the globe
The offset of a location from UTC is influenced by:
Geography (position on the globe)
Political factors (time zones are assigned for a country, region, or even a
postal code)
Daylight Saving Time (DST), if applicable
Time zones are important master data that help derive realistic
lead times for procurement proposals during planning runs
Can be set by the user in his or her user profile settings
SU3) / 25
(txn.
SAP 2007-2008
Transportation Lanes
The Transportation Lane defines:
Which location is the source of a product to a target location

Relationship between two locations
The transport lead time
The means of transportation (truck, train, plane, etc.)

The capacities of each means of transport in a lane,
including:
Needs to be in sync with routes in SAP ERP
Volume
Weight
Number of pallets
Products that can be transported from the source to the

target location (defined for each lane)
Product assignments can be maintained via Special

Procurement Key in SAP ERP
SAP 2007-2008 / 26
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Transportation Lanes (cont.)
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Prioritization Factor
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SAP 2007-2008 / 27
Product/Material Master
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The Material Master in SAP ERP correlates with the Product

Master in SAP APO
Product Master in SAP APO is created by:
Transferring Material Master from SAP ERP to SAP APO via the CIF
Creating directly in SAP APO
Importing from a non-SAP system
Certain data is transferred from SAP ERP to SAP APO
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Basic data
Units of measure
MRP data
Classification data
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Other data is maintained directly in SAP APO
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Special settings that dont exist in SAP ERP for: (unless new fields are
created)
CTM
Optimizer
Deployment
SAP 2007-2008 / 28
Product/Material Master Basic Data
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Values relevant to SAP APO will pass through the CIF

SAP ERP
SAP APO
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SAP ERP
SAP 2007-2008 / 29
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Product/Material Master Planning

Parameters
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Values relevant to SAP APO will pass through the CIF
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SAP ERP
SAP APO
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SAP 2007-2008 / 30
Resources
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Resources are created to represent the capacities and working

times of production lines, equipment, and labor
Production resources can be transferred from SAP ERP to
SAP APO
SAP ERP
SAP APO
Plant
1000
Work Center
F1Y1
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Resource
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Two Multi Mixed
Capacities
Location
Resource Name
Cat
P
1000
1000
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Cap Category
001
Machine
WF1Y1_1000_001
Cap Category
002
Labor
WF1Y1_1000_002
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SAP 2007-2008 / 31
Resource Types in SAP APO
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Capacity Definitions in Time
Available Capacity/Activity
Time Continuous
Single
Single Activity
Resource
Time Continuous
and Time Intervals
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Time Intervals
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Single Mixed
Resource
Bucket Resource
Multi
Multi Activity
Resource
Multi Mixed
Resource
PP/DS
PP/DS & SNP
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SNP
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SAP 2007-2008 / 32
System of Origin for Resources
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Production resources are typically CIFd from SAP

ERP to SAP APO
Capacity information is maintained in SAP APO, not in

SAP ERP
Needed in SAP ERP and SAP APO for link between routing/recipe
in SAP ERP and PPM/PDS in SAP APO
Handling, storage, and transportation resources are

created and maintained in SAP APO only
Mixed resources can be used in both SNP and PP/DS,
and are recommended to use as much as possible
Very difficult to change resource type later if PP/DS is used
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SAP 2007-2008 / 33
SNP PPMs
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PPM has detailed information required for producing a product
Resources
Components
Plan and PPM
Time
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PPM is a combination of routing and BOM from SAP ERP in one

object in SAP APO
Finished
O
The plan puts together:
product
Costs
Routing
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Co-products
Operations
Activities
Bill of Material (BOM)
Input products (I)

Output products (O)
PPMs are assigned to the plan:
Location-dependent (PPM ID)

Minimum/maximum lot sizes for the finished product
Validity periods
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SAP 2007-2008 / 34
Converting a PP/DS Product Process

Model to an SNP Product Process Model
Production versions (including routing and BOM) are transferred
as PP/DS PPM from SAP ERP to SAP APO
SAP APO allows you to generate SNP Production Process Models

(PPMs) based on existing PP/DS PPMs
Conversion options for generation of SNP PPMs are:
SNP PPM generation with lot size margin

SNP PPM generation without lot size margin
Conversion process needs to be repeated for subsequent

changes that were made to routings/BOMs and/or PP/DS PPM
SNP PPM can be created directly in SAP APO without reference
to a PP/DS PPM
Transaction to maintain PPMs

User exit to create PPMs programmatically (BEST option)
SAP 2007-2008 / 35
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Product Data Structure
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A structure generated in SAP APO from a production

version or Bill of Material in SAP ERP similar to the PPM
Contains information about the production resource and the
component assignment for the production of a product
You can use PDS as a source of supply for in-house
production in PP/DS, SNP, Capable-to-Match (CTM), and
Demand Planning (DP) areas
SNP PDS can be transferred separate from PP/DS PDS
Cannot be maintained in SAP APO
Can select to use on the Product Master PP/DS Tab
Alternate object to PPM going forward (SAP SCM 4.1 and
above)
Restrictions exist which might require use of PPMs

See also SAP Notes 705018, 709884, and 744445
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SAP 2007-2008 / 36
SNP Product Process Model or PDS

Functionalities supported by
PDS, but not by PPM:
Engineering Change
Management (ECM) for PP/DS
Subcontracting in SNP is fully

integrated with SAP ERP
Direct transfer of SNP-PDS from

SAP ERP (no conversion step)
Use of object dependencies
in SAP APO
Order-BOM and WBS-BOM
Rapid planning matrix
Functionalities supported by
PPM, but not by PDS:
Maintenance in SAP APO

Push-production
Container resources
Net flag for component scrap
Step function for the standard

value of the duration
Overrule the synchronization

setting of the resource on
activity level
Restriction of the validity

requirements of an order on
activity level
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SAP 2007-2008 / 37
What We'll
Well Cover ...
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Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 38
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Planning Methods in SNP

SNP Heuristic
Heuristics run creates an Infinite Supply Plan

Sourcing can be done via quota arrangements
Capacity leveling as second step for finite plan
Capable-to-Match (CTM) profile and rules-driven
Sourcing based on priorities or quota arrangements

Finite capacity planning possible
SNP and PP/DS modes possible
SNP Optimizer
Cost/penalty-driven
Finite capacity planning possible
Full constraint-based planning possible
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SAP 2007-2008 / 39
Heuristics Definition
What does the word Heuristic mean?
Heuristic comes from the Greek word Heuriskein, which

means to find or discover
It was originally used to describe the art of invention
In SAP SCM, it means to find a sufficiently good solution in

an acceptable period of time
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In other words
SNP Heuristics will allow the plan of materials either

through production or procurement on an infinite manner
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SAP 2007-2008 / 40
Heuristics Scenario Sourcing
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How is sourcing determined? Priorities and quotas
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SAP 2007-2008 / 41
SNP Heuristic and Capacity Leveling
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Repair-based planning process consisting of two steps:
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Heuristics
Capacity leveling
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Heuristic: Infinite planning
Performs requirements planning
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Location by location
Product by product
Plans/creates infinite supply plan to satisfy demand requirements in the

supply chain network
Capable of handling quota arrangement functionality for source
determination
Explodes the BOM and generates supplies in the network
Capacity leveling is done in a separate step
Address capacity over and under load

Can be executed interactively or in background job
Alternative Resource option as of SAP APO 5.0
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SAP 2007-2008 / 42
Heuristic Options
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Heuristics can be run either interactively or in the background.

The following three options are available interactively through
the planning book:
1) Location Heuristics Plans only selected location product
2) Network Heuristics Plans the selected product for all
locations
3) Multi-level Heuristics Plans the selected product with all
components at all locations
Note: Multi-level Heuristics is not available to run in the background,

but there is an option to take components into account in the
planning run
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SAP 2007-2008 / 43
Heuristics Scenario Infinite
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Plans receipts based on unconstraint capacity
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Capacity
140
120
SNP
Unit
03/0
5/07
03/1
2/07
03/1
9/07
Available
Capacity
Hrs.
120
120
120
Overloading
Alerts
117
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100
80
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60
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40
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20
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83
Capacity
Consump
tion
Capacity
Level
Hrs.
100
83
140
117
100
83
83
0
3/5/2007
SAP 2007-2008 / 44
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3/12/2007
3/19/2007
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Capacity Leveling
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Backward and Forward leveling is supported

Backward: Looks in the past for available capacity
Forward: Looks in the future for available capacity
Backward/Forward: Looks for capacity in both directions
Capacity
140
Overloading
Alerts
100
Backward
Forward
83
83
80
0
3/5/2007
3/12/2007
3/19/2007
Capacity Leveling in SNP
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Alternative resource option in SAP APO 5.0
Check box to activate the option

Procurement Priority on the PPM/PDS is used to determine the order in
which the alternates are selected
All Relevant Resources = Select ALL existing resources in SAP APO
Resource = Specific resource(s) as defined by user
Selection Profile = Resources as defined in the profile
Source Determination Level: Use only if Resource Hierarchy exists
(AGG)
_________________________________
_________________________________
20
_________________________________
_________________________________
40
_________________________________
_________________________________
60
SAP 2007-2008 / 45
_________________________________
_________________________________
117
120
_________________________________
Only Header Level: All subresources are replaced by header resources

Only Sublevel: All header resources replaced by subresources
All Levels: Resource set remains unchanged
_________________________________
_________________________________
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_________________________________
SAP 2007-2008 / 46
CTM General Concept
_________________________________
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SAP 2007-2008 / 47
Source: SAP
CTM Planning Process and

Components
_________________________________
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_________________________________
SAP 2007-2008 / 48
Source: SAP
CTM Regenerative Planning
_________________________________
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_________________________________
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_________________________________
SAP 2007-2008 / 49
Source: SAP
Demand and Supply Aggregation
_________________________________
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_________________________________
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_________________________________
SAP 2007-2008 / 50
Source: SAP
Demand Prioritization
_________________________________
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_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 51
Source: SAP
CTM 5.1 Enhancements

Supply Distribution after or before a CTM planning run transfers
surplus receipts and stocks available to other location in the
supply chain model
To ensure a feasible transfer, lot sizes as well as transportation
and handling resources are now considered during the supply
distribution
New supply distribution is incorporated into CTM planning run

One level push of surplus supply happens according to the outbound
quota
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 52
SNP Optimizer Overview
Just like Heuristics, Optimizer is a quantity-based,

cross-location planning engine
Unlike Heuristics, the Optimizer takes cost-based

constraints to arrive to a most feasible and
cost-effective solution
Optimization is based on linear and mixed integer

linear programming
The Optimizer does not use quotas, but can create

them
Note: As of SAP APO 5.1 inbound quotas

are supported
SAP 2007-2008 / 53
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SNP Optimizer
_________________________________
The Optimizer uses linear programming methods for

planning, such that it simultaneously considers all relevant
factors, making the entire chain as a single problem
The objective of the Optimizer is to find the optimal solution

to an equation (target function) in which all the cost and
penalty factors are considered simultaneously
Since the Optimizer assesses alternatives
this way, it can determine the best
feasible plan on the lowest cost
SNP Optimizer run modes:
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
One time period (bucket)
Running the Optimizer from the Interactive

Planning Desktop
Running the Optimizer in the background
Likely
SAP 2007-2008 / 54
way to run it in a live environment
Demand at a location
_________________________________
_________________________________
_________________________________
_________________________________
Dependent demand at a
location
Processing flow
Optimizer Scenario Sourcing

How is sourcing determined? Least feasible cost.
_________________________________
_________________________________
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SAP 2007-2008 / 55
Linear vs. Discrete

The use of fixed and minimum lot sizes and time-dependent
costs (cost functions) will require a discrete run
Discrete runs have the potential to significantly increase the run
time to arrive at an optimal solution
_________________________________
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SAP 2007-2008 / 56
Optimizer Profile General

Constraints
_________________________________
_________________________________
Activates the
constraints during
optimization
Activates maximum
lot size
Activates safety stock
constraint, absolute vs.
relative option
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Activates shelf-life
constraint
_________________________________
SAP 2007-2008 / 57
Optimizer Profile Automatic Cost

Generation
_________________________________
_________________________________
_________________________________
Activates
parameters
Determines
transactional
priority
Activates
product
priority
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 58
Automatic Cost Generation

Costs are generated based on determined
business goals
Costs used during generation will override
maintained costs
Not all costs are generated
Geared towards less complex models
SNP Cost Profile not taken into consideration
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
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_________________________________
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_________________________________
_________________________________
SAP 2007-2008 / 59
SNP Optimizer 5.1 Quota

Arrangements (New)
_________________________________
SNP Optimization respects time-dependent inbound quota

arrangements on procurements from source locations, external
suppliers, and in-house production
Deviation from quotas are penalized and visualized with the Objective
function
It is possible to define inbound quotas for products or product groups
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Product Group
Penalty for deviation below target quantity

Penalty for deviation above target quantity
Time-dependency
Optimizer Profile
General Constraints Tab:
_________________________________
_________________________________
SAP 2007-2008 / 60
Profit Driven Supply Network

Optimization Penalty Groups
_________________________________
Consider penalty groups to prioritize customers or customer segments

within SNP optimization
Use the grouping as input for layered SNP Optimization to sequentially

plan customer segments according to their importance
_________________________________
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SAP 2007-2008 / 61
SNP Planning Methods Comparison

Function
Safety Stock
Min/Max lot-size
Rounding value
Transportation Duration
Selection of Means of Transport
(Dates vs. Costs)
Stock Transfer Horizon
Production Duration
Production Resource
Transport Resource
Handling Resource
Storage Resource
Quota Arrangements
Procurement Priority of
Transportation Lane
SNP
Heuristic
Yes
Yes
Yes
Yes
Yes
CTM
Yes
Yes
Yes
Yes
Yes
SNP
Optimizer
Yes
Yes1
Yes1, 7
Yes
Yes
Yes
Yes
No4
No5
No5
No5
Yes
Yes
Yes3
Yes
Yes
No5
No5
No5
Yes
Yes
Yes2
Yes
Yes
Yes
Yes
Yes
No6
No8
With discrete optimization only but not with linear
Capacity loads are calculated but no finite planning
Setting in Optimizer profile
Setting in control setting
SNP Optimizer can be used to create quota

arrangements YES in SAP SCM 5.1
Not in SNP Heuristic, but can be done with

capacity leveling step
Either from product master or transportation lane
Transportation cost is used to select means of transport
SAP 2007-2008 / 62
_________________________________
_________________________________
_________________________________
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_________________________________
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_________________________________
_________________________________
_________________________________
SNP Planning Methods Comparison

(cont.)
_________________________________
_________________________________
Complexity and Degree of Difficulty
HEURISTICS
CTM
OPTIMIZER
_________________________________
_________________________________
FUNCTIONAL COVERAGE
QUALITY OF PLAN OBTAINED
DIFFICULTY OF PARAMETERIZATION/CONFIGURATION
MAINTENANCE
INTERACTION ON PART OF USER
INTERPRETATION OF RESULTS
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
PERFORMANCE
VIABILITY OF PARAMETER DEFINITION
_________________________________
SAP 2007-2008 / 63
What We'll
Well Cover ...
_________________________________
_________________________________
_________________________________

Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 64
Deployment Definition
Deployment determines which distribution center and
VMI customers demand can be covered by
current receipts
If quantities are not sufficient, or if they exceed the
demand, deployment can make adjustments to the
stock transfers made by the SNP run
Orders created by this tool are called Deployment
Stock Transfers
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Deployment is only used to confirm stock transfers (actual route

planning, transport service selection, and delivery generation are
handled by TP/VS)
SAP 2007-2008 / 65
_________________________________
Available-to-Deploy Calculation
1000
900
400
05.01.2007
06.01.2007
07.01.2007
_________________________________
Requirements:
100 (DC1)
500 (DC2)
800 (DC1+2)
Demand
Today
ATD Quantity:
Supply
Date:
_________________________________
_________________________________
Detailed requirements per DC:

DC1
DC2
200
600
_________________________________
Deployment Results
05.01.2007
06.01.2007
07.01.2007
07.01.2007
_________________________________
Plant to DC1
Plant to DC2
Plant to DC1
Plant to DC2
100
500
100
300
Available-to-Deploy (ATD) quantity defines the quantity that is available in the

delivering plant for distribution
Defined by ATR (receipt) and ATI (issue) category groups in customizing, and
assigned to Location master or Product master at the location level
(SAP SCM 5.0)
Receipts (Available-to-Receipts) can be stock on-hand, production orders,
purchase orders, etc.
Issues (Available-to-Issues) can be STOs, sales orders, deployment orders, etc.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 66
Deployment Methods in SNP
_________________________________
_________________________________
Calculates a replenishment plan for each product at a

delivery location
Rules-based
_________________________________
_________________________________
_________________________________
Calculates a replenishment plan for a product in all

locations within the network
Cost-based
_________________________________
_________________________________
_________________________________
_________________________________
Extra step after deployment run
Determines importance of deployment order
_________________________________
SAP 2007-2008 / 67
_________________________________
Deployment adjusts the stock transfers for short-term changes

on both the supply and demand side (distribution detailed planning)
The Deployment Heuristic uses

predefined rules for:
DC1
Fair share in a shortage situation
Push deployment in a surplus

situation
Hierarchical view of supply network

Plant
SAP 2007-2008 / 68
DC2
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Calculates replenishment plan for a

product in a delivery location
_________________________________
Started for one product; product by

product
_________________________________
Bases for Deployment Heuristic are

the stock transfer requisitions
(planned) created by an SNP
planning run
_________________________________
_________________________________
Deployment Heuristic vs. Optimizer

Heuristic
Heuristic
Started for one source location

and multiple target locations
Product by product
Rules-based
Easier to use and deploy
Focuses on network
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Optimizer
_________________________________
Optimizer
Multiple source and

target locations
All products and all locations

Coverage maximization
Cost-based optimization
Can consider constraints like
transportation and storage capacity
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 69
SNP Planning and Deployment Run

Sequence
Heuristic
SNP Heuristic (or SNP Optimizer)
Creates distribution demand (planned)
Distribution demand (planned) is the basis for deployment

Creates distribution demand (confirmed)
Optimizer
Deletes all distribution demand

Creates distribution demand (confirmed) from scratch
SNP Optimizer (or SNP Heuristic)
Distribution demand (confirmed) are firmed for SNP run

Creates distribution demand (planned)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 70
Prioritization of deployment stock transfers: Introduction
_________________________________
_________________________________
Deployment priority further optimizes the deployment process
_________________________________
Deployment prioritization considers deployment orders from Deployment

Heuristic or Optimizer as input
_________________________________
Prioritization sets a priority number for all deployment stock transfers

Prioritize can be displayed during Truck Load Building (TLB)
_________________________________
Prioritization function groups the deployment stock transfers

into three categories:
Cat. 1 stock transfers for fulfilling shortages

Cat. 2 stock transfers for fulfilling safety stock level
Cat. 3 stock transfers for fulfilling planned replenishments above
safety stock levels
SAP 2007-2008 / 71
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Deployment Prioritization (cont.)

Deployment prioritization assigns a priority number to all
deployment stock transfers by category
The assigned shipment priority number indicates the relative
urgency of the deployment stock transfer
Category
Priority Range
Priority Description
Cat. 1: Stock transfers for 0

fulfilling shortages
Highest priority of all

i.e., 0
Cat. 2: Stock transfers for 1-10

fulfilling safety stock level
Represents the percent of safety

stock level left if not fulfilled
i.e., 1 = 10%
6 = 60%
Cat. 3: Stock transfers for 11-99

fulfilling planned
replenishments above
safety stock levels
Factor above safety stock after

deployment stock transfer received
i.e., 14 = 1.4 X of safety stock
20 = 2.0 X of safety stock
SAP 2007-2008 / 72
What We'll
Well Cover ...
_________________________________
_________________________________
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_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 73
Transport Load Builder (TLB)
The TLBs main purpose is to create multi-product transport
orders (STOs) based on the results of a deployment run
For a transportation lane and means of transport
For a specified time period
Loads are grouped according to:
Products (transportation planner)

Time (pull in horizon)
Transportation zones (target and means)
Ensures that minimum and maximum

requirements are met for:
Volume
Weight
Number of pallets
SAP 2007-2008 / 74
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Transport Load Builder (TLB) (cont.)
_________________________________
TLB changes the stock transfer

orders (confirmed) from the
deployment run into TLB orders
Stock transfer orders are grouped
together until maximum capacity is achieved
If minimum capacity is not achieved, it has to be
processed manually
There is no tracking of resource usage, product-specific
constraints, or special transport requirements
Some basic modeling of constraints is possible by means of

transport
If the planned transport orders do not meet the minimum or

maximum requirements, an alert is generated
Only for stock transfer and does not include deliveries for
sales orders
SAP 2007-2008 / 75
TLB Profile
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
The TLB Profile minimum and maximum values are defined

TLB uses lot size profile when building loads
Load Method: Options on how to load the means of transport (Product
by Product, Equal Loading)
Pull-in Horizon: Number of days from todays date during which the TLB
can take into account existing deployment stock transfers to create TLB
shipments
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 76
Source: SAP
Load Building
Transport loads generated by the tool can be seen in the Interactive

Planning tool by day
If minimum capacity was not met within the pull-in horizon, TLB stock
transfers for later deliveries can be moved manually
Drag and Drop functionality for unconverted deployment stock transfers

is available
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 77
Transport Load Builder (TLB)

Interactive
_________________________________
TLB Planning
Screen
Lane and means of

transport selection
Order
Numbers
Deployment
requirements to
be loaded are
displayed here
Truck load section
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Deployment Requirements section
_________________________________
_________________________________
_________________________________
Truck load details (for order
selected above)
SAP 2007-2008 / 78
Stages of a Stock Transfer in SNP
_________________________________
_________________________________
Stock Transfer Requisition
SNP planning run
_________________________________
_________________________________
Deployment Order Confirmed
Deployment run
_________________________________
_________________________________
TLB Order
_________________________________
TLB run
_________________________________
Stock Transfer Order
Transfer to SAP ERP
_________________________________
_________________________________
SAP 2007-2008 / 79
Stock Transfer Requisition After

SNP Planning Run
_________________________________
When a Stock Transfer Requisition is created at the receiving location, it creates a distribution
demand at the sending location
_________________________________
_________________________________
_________________________________
Distribution Demand
(Planned) after SNP
Heuristic, CTM, or
SNP Optimizer run
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 80
Deployment Order Confirmed After

Deployment
The Deployment Order Confirmed is displayed as Distribution Demand (Confirmed). Note
that the Stock Transfer Requisitions disappear from Distribution Demand (Planned) line.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 81
TLB Order Confirmed After TLB Run

The TLB Order/STO is displayed as Distribution Demand (TLB-Confirmed). Note that
the Stock Transfer Requisitions disappear from Distribution Demand (Confirmed) line.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 82
What We'll
Well Cover ...
_________________________________
_________________________________
_________________________________

Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 83
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Alert Monitor in SNP
_________________________________
Alert Monitor provides users with visibility of exception cases in

the Supply Network Plan
You can define, by user:
Which type of alerts to show and their thresholds using Overall Profiles
What data is displayed in Alert Monitor using Display Hierarchies
Exceptions are calculated using macros

SAP provides standard macros and the ability to build your own macros
to create customized alerts
Alerts are generated for user-defined planning situations

involving Location products and Resources
The Alert Monitor is organized by profiles per application area:
SDP alert profile monitoring DP and SNP alerts
TLB alert profile monitoring TLB and Deployment alerts
VMI alert profile monitoring VMI alerts
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 84
Alert Monitor Setup Pointers
_________________________________
Only an Overall Profile

can be assigned to the
Alert Monitor
_________________________________
_________________________________
_________________________________
Be aware of the checked

boxes. They will generate
alerts even if no
threshold is set.
Only the SDP Alert Profile can be

assigned to a Planning Book.
Multiples can be created, but
only one is current on the
Overall Profile.
Issue
_________________________________
_________________________________
_________________________________
The Selection Profile

assignment determines
the products that the
alerts will be
generated against
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 85
Alert Monitor
_________________________________
_________________________________
Alert Monitor (Transaction /SAPAPO/AMON1)
Interactive Alert Display (transaction

/SAPAPO/SDP94)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Clicking on an item in the

Alert Monitor will take
you to the Planning Book
with details for that item
SAP 2007-2008 / 86
_________________________________
_________________________________
What Well Cover ...
_________________________________
_________________________________
_________________________________

Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 87
Special Planning Topics
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Safety Stock Planning in SNP

Vendor Managed Inventory (VMI)
Subcontracting with SNP
Product Interchangeability
Aggregate Planning with SNP
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 88
SAP APO Safety Stock Planning
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Safety Stock to cope up with uncertainties
Planning
Planning
Realization
Realization
Demand uncertainties (forecast quantity)

Supply uncertainties (replenishment time)
Methods to protect against uncertainty
Overestimate customer demand
Underestimate production output quantity
Overestimate procurement lead times
Build up/ 89
safety stock
SAP 2007-2008
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Objectives of Safety Stock Planning
_________________________________
Business goal:
_________________________________
To ensure (high) service level of product at the lowest cost despite

fluctuations in the various levels of the supply chain
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Uncertainty of supply
Uncertainty of demand
Problem:
At which locations within the supply chain do you want to have safety
stock?
How much safety stock do you want to hold at a particular location?
_________________________________
_________________________________
SAP 2007-2008 / 90
Methods for Safety Stock Planning

How to determine safety stock for each product
location?
By choosing a safety stock method for a product and

location
What safety stock level?
_________________________________
_________________________________
_________________________________
_________________________________
Basic (standard) safety stock methods

Advanced (extended) safety stock methods
Safety stock planning is embedded into Supply

Network Planning
_________________________________
_________________________________
Depending on chosen safety stock method
_________________________________
SNP Heuristic and Optimizer

Can be used in CTM and PP/DS applications
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 91
Safety Stock Fields on Product

Master in SAP APO
_________________________________
_________________________________
_________________________________
_________________________________
SB Requires fixed safety stock quantity
SZ Requires safety stock days
Safety Stock Method

(set via CIF or
maintained in SAP APO)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Fixed safety stock qty (CIFed from

SAP ERP for basic methods)
SAP 2007-2008 / 92
Values for advanced safety stock methods

- Service level and
- Demand and procurement error
_________________________________
Safety Stock Fields on Product

Master in SAP APO (cont.)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Safety Days Supply (CIFd from SAP ERP Safety Days) for basic methods
SAP 2007-2008 / 93
Advanced Safety Stock Planning

Key inputs
Desired service level

Mode of replenishment
Uncertainties
Deviation between forecasted and realized demand

Deviation between planned and actual replenishment time
Prerequisites
Regular demand as opposed to sporadic demand
Can be used with sporadic demand with SAP SCM 5.0
Backorder scenario (as opposed to lost sales case)
Considerations
Location product master data
Safety horizon
Target stock level
Selection of appropriate safety stock method

Adjustments in Interactive Planning after safety stock run
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 94
Desired Service Level for Safety

Stock
Interpretation of service level
Alpha (shortfall event-oriented)
Expected number of periods with complete delivery fulfillment/total number

of periods
Percentage of how often product is delivered on time
Beta (shortfall quantity-oriented)
Expected quantity delivered in time/expected total demand

Percentage of how much of ordered quantity is delivered
Choosing a service level depends on:
Customer satisfaction
Alpha complete delivery necessary

Beta partial delivery possible
Costs for late deliveries
Alpha backlog-independent (fix) costs of late delivery are significant

Beta backlog-dependent (variable) costs of late delivery
are significant
SAP 2007-2008 / 95
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Example of Advanced Safety Stock

Planning Run
_________________________________
_________________________________
SNP Planning Area + Version
_________________________________
_________________________________
_________________________________
Key figure to calculate safety stock

Key figure for Demand Forecast
(transferred from Demand Planning)
_________________________________
_________________________________
_________________________________
Start and end date

for calculation of
forecast error
_________________________________
_________________________________
SAP 2007-2008 / 96
Result of Advanced Safety Stock

Planning Run
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Safety stock
_________________________________
SAP 2007-2008 / 97

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 98
What Is Vendor Managed Inventory

(VMI)?
_________________________________
Business goal:
To include key customers in Supply Chain Planning
Benefits overview:
Capability for the manufacturer to perform the

replenishment planning tasks for their business partners
Enable better decision support for vendors, along with more
knowledge and control over the logistical process
Increase visibility to actual customer demand as well as
customer inventory levels
Allow manufacturers to make better decisions on how to
deploy goods across various customers, which leads to:
Increased customer service level
Lower transportation costs
Reduced inventory levels
Lower sales costs
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 99
VMI: Component/Process Overview

Customer/Retailer
My Company
SAP APO
SAP ERP
ERP
Generate
Demand
Forecast
Transfer of
Consumption and
Inventory Data
2.
3.
4.
Supply and
Distribution
Planning
Build Efficient
Truck Loads
1.
Transfer of
Customer Forecast
Automated Sales
Order Creation
Automated
P.O. Creation
Pick, Pack, Ship

Goods Issue
Advanced Shipping
Notification
Invoice
Post
Goods Receipt
Post
Invoice Receipt
5.
6.
7.
8.
9.
10.
SAP 2007-2008 / 100
Receive consumption and

inventory data from
customer
Create demand forecast
Run SNP
Build efficient truck load
(TLB) to replenish stock
Sales order is created
automatically
Purchase order is created
in the customer system
Issue product and send
Advanced Shipping
Notification (ASN) to
customer
Receive product at
customer
Send invoice to customer
Customer receives invoice
and initiates payment
VMI Replenishment Strategies

Min/max replenishment
The inventory is maintained within a fixed band

New sales order is generated as soon as the inventory
reaches the lowest level of the band
Sales order quantity will replenish the inventory to the
maximum of the band
Forecast-based replenishment
The inventory is calculated to maintain forecast coverage for
the specified number of days
Sales order is generated as soon as the inventory drops
below the calculated amount
Sales order quantity will replenish inventory back to the
amount that covers forecasts for a specified number of days
The strategy has the benefit of being able to account for
seasonal spikes in the demand
SAP 2007-2008 / 101
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Collaboration with SNC

(Formerly ICH)
Plans/Orders
Inventory
Alerts
_________________________________
Customer
My Company
Inventory
Demand
Release Update
_________________________________
Customer
Collaboration
Supplier
Collaboration
Supplier
_________________________________
SAP Supply
Network
Collaboration
(SNC) formerly ICH
POs
Change POs
Confirmations
In-Transits
_________________________________
PO Number
_________________________________
Sales
_________________________________
Forecasts
Forecast Revision
Promotions
ASNs
GR Update
_________________________________
PO Ackn.
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 102

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 103
Subcontracting Business Value
Lets companies create a feasible procurement plan

for subcontract manufacturers, taking into account
all materials and capacity constraints
Planning of subcontractor production lines

Planning which bill of material will be used for each
subcontract build
Lets companies consider preferred subcontractor

production lines by priority or cost
Lets planners perform manual adjustments and
create subcontract purchase requisitions manually
to incorporate any new information into the
planning results
Features seamless integration with SAP ERP 6.0
as of Enhancement Package 3
SAP 2007-2008 / 104
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Business scenario
Your company provides components to the supplier
Supplier assembles the components and returns the

finished product
SAP solution with SNP
Supplier is set up as a location in SAP APO
In-house planned order is created at the supplier location to

plan assembly of the components
Subcontracting order is created for the stock transfer from:
_________________________________
Your plant to supplier for components

Supplier to your plant for assembled end product
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 105
Subcontracting with SNP (cont.)
_________________________________
Key considerations:
Functionality addressed by SNP Heuristics and Optimizer
Can be CIFd from SAP ERP
Transportation lanes needed between supplier location and

your plant location
Followed by manual changes in Interactive Planning
Separate Planning Book/Data View for subcontracting in

Interactive Planning
SNP PPM or PDS is needed for relationship of components
to the end product
_________________________________
Lanes are created via CIF

Special subcontracting indicator
Relationship is maintained automatically between:
Planned order at supplier location and stock transfer requisitions

to/from supplier location in SAP APO, and
Purchase
requisition (subcontracting order) in SAP ERP
SAP 2007-2008
/ 106
SNP Subcontracting Process
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Components
_________________________________
_________________________________
Finished Good
Plant
Subcontractor
In a subcontracting scenario, the plant provides the subcontracting

components to the supplier. The supplier assembles the components
and returns the finished product.
To support this process in SAP APO, in-house-production orders for the
source location (suppliers site) and related subcontracting orders for
the stock transfer from supplier to plant, are being created.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Subcontract information record allows several production versions to be

defined per subcontract vendor/material relationship, ensuring efficient
utilization of existing capacities.
SAP 2007-2008 / 107
_________________________________

Detail
SAP
APO
_________________________________
SAP
ERP
SNP-Run
_________________________________
_________________________________
_________________________________
Demand
_________________________________
SNP Purchase
Requisition 1
Purchase
Requisition 1
SNP Purchase
Requisition 2
Purchase
Requisition 2
SNP-Planned
Order (PPM_1)
SNP-Planned
Order (PPM_2)
Plant
Subcontractor
Transportation lane: subcontracting
PPM_1
PPM_2
PPM_3
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 108

Detail (cont.)
1.
2.
The SNP run (Heuristic, Capable-to-Match, or Optimization) determines

the subcontractor as the source of supply and generates a
subcontracting purchase requisition to transfer the finished product from
the source location (subcontractor) to the destination location (plant)
The SNP run determines the source(s) of supply (PDS/PPMs) at the
subcontractor and creates the subcontracting in-house-production
order(s) in the source location (subcontractor).
3.
The subcontracting purchase requisition can also be created manually in

SNP with the ability to assign/change the subcontractor and the source of
supply
A purchase requisition, which takes the subcontracting components

(materials provided to the subcontractor) from subcontracting in-houseproduction order(s), is generated in the SAP ERP system
Prerequisite to consider multiple production

versions in an SNP Subcontracting Process:
SAP ERP 6.0 Enhancement Package 3
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 109

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 110
_________________________________
_________________________________
Business scenario
Consider full interchangeability and discontinuation of product in the

supply chain
Consider constraint of limited validity and availability of materials and
components in the supply chain
Enables full interchangeability and discontinuation at any product
location level
_________________________________
Transfer demands for a product that is to be discontinued onto a successor

product
Use existing stock of a current product to fulfill demand for the successor
product
Can be done at any product level
_________________________________
_________________________________
_________________________________
End product or components of BOM
Works with SNP Heuristics and the SNP Optimizer

Integrated with DP
_________________________________
_________________________________
_________________________________
_________________________________
Creation of like or phase-in/-out profiles

Product split and realignment
SAP 2007-2008 / 111
Product Interchangeability (cont.)
_________________________________
_________________________________
Benefits:
Systematic and automated changeover from one product to another
Optimizing product availability
Minimizing material stocks and scrap
Securing consistent data models
Enabling continuous process flows
_________________________________
_________________________________
_________________________________
Types of product interchangeability:
A product is replaced by another one
_________________________________
Supersession
_________________________________
Discontinuation
_________________________________
A chain of products that can replace each other
Form Fit Function (FFF)
_________________________________
Grouping of interchangeable parts, which are identical in respect to

all of their technically-relevant properties
Related to
SAP 2007-2008 / 112
manufacturer part number functionality
Supersession/Discontinuation
_________________________________
_________________________________
Discontinuation
_________________________________
Product is replaced by another

Simple case of supersession
_________________________________
_________________________________
Supersession
_________________________________
Chain of products that can replace each other

Constant process of replacement
_________________________________
_________________________________
_________________________________
Forward and backward relationships
Forward interchangeability
Full/backward interchangeability
SAP 2007-2008 / 113
_________________________________
_________________________________
Supersession/Discontinuation Inputs
_________________________________
Scope of supersession
_________________________________
Location(s)
Products
Successor product
_________________________________
Direction of interchangeability
A
Forward, or
Fully interchangeable
A
Substitution valid from
_________________________________
B
B
_________________________________
_________________________________
<date>
_________________________________
Use up of stock
_________________________________
No
Yes
Restricted until <date>
_________________________________
_________________________________
Use up date date until the currently valid product can be used
SAP 2007-2008 / 114
Maintaining Interchangeability
Group
_________________________________
_________________________________
Location(s)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Product to be
substituted
Successor
Product
Direct of Interchangeability
- Forward
- Full
Indicates the use up of stock

- Yes
- No
- Restricted by Use Up Date
_________________________________
_________________________________
SAP 2007-2008 / 115

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 116
Aggregated Planning with SNP

Business scenario
Planning at an aggregate level for products and locations
Ability to aggregate products and locations as well as resources and

PPMs/PDS
Works with SNP Heuristics and the SNP Optimizer
CTM is supported with SAP SCM 5.0
Separate planning area and Planning Book/Data View
Area 9ASNP05 (same as advanced safety stock planning)

Book 9ASNPAGGR/view SNPAGGR(1) and SNPAGGR(2)
Benefits of planning at aggregated level:
Performance improvements by calculation on aggregate levels

Larger supply chain models can be planned
Performance improvements
Simplified planning process by making planning decisions at an aggregated
level
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 117

(cont.)
Prerequisites for setting up aggregated planning
Create hierarchy structures and assign them to the SNP

AGG planning area
Define the aggregated planning objects
SAP provides some standard hierarchy structures for locations,

products, resources, PPMs/PDS
Location aggregates, product aggregates, PPM/PDS aggregates,
resource aggregates
Define the relations between aggregated objects and

detailed objects
Location-product hierarchies, PPM/PDS hierarchies, resource

hierarchies
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 118
Aggregated Planning Process Steps

Process steps for standard scenario (product location)
1.
Aggregated Safety Stock Planning (optional step)
2.
Single-Level Supply and Demand Mapping (optional step)
3.
Standard and extended safety stock methods are available

See also SAP Note 858794
Prevents the system from assigning receipts to the wrong demands
during aggregated planning, due to detailed information no longer
being available at aggregated level
Aggregate demand, receipts, and stock to product group

level (automatically)
Delete all planned replenishment elements on detailed item level

that are part of the aggregate before performing an aggregated
planning run
Optional but recommended way for live environment

Defined in configuration (Basic Settings Maintain Global
SNP Settings)
SAP 2007-2008 / 119
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

(cont.)
(cont.)
4.
SNP planning run at Aggregated Level (Product Group

level)
5.
SNP Heuristics and Optimizer and CTM with restrictions

Results aggregated planned production, planned external
procurement, or stock transfers
Disaggregate planning data to detailed item level
Aggregated values copied to:
Aggregated Distribution Receipt or Aggregated Distribution Demand

(Planned) key figures, and
Aggregated Production (Planned) or Aggregated Dependent Demand
key figures
Detail view of the aggregated key figures you display lists orders that
the system created for the sub products
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 120

(cont.)
(cont.)
6.
Check and adjust plan at product group level or detailed

level
Example execute capacity leveling at product group level and not

item level
Aggregate and disaggregate data interactively before and after

changes were made
Can be used for Aggregation only without disaggregation
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 121

Planning Book
Separate
Key
Figures
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Planning
Book
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 122
What We'll
Well Cover ...
_________________________________
_________________________________
_________________________________

Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 123
Integration of SNP with DP, PP/DS,
and SAP ERP
Integration of SNP with DP
Integration of SNP with PP/DS
Integration of SNP/SAP APO with SAP ERP
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 124

Demand Planning
_________________________________
Supply Network Planning
Release
Forecasts
to SNP
Planned
Independent
Requirements
_________________________________
_________________________________
_________________________________
_________________________________
SNP Planning
Run
Macros/Alerts
_________________________________
Release
Feasible Sales Qty
Production Plan
to DP
_________________________________
_________________________________
_________________________________
Integration can go both ways

From DP to SNP
From/ 125
SNP to DP
SAP 2007-2008
_________________________________
Release Demand Plan from DP to SNP
_________________________________
_________________________________
Demand Plan is transferred as Planned Independent

Requirements (PIRs) to SNP
_________________________________
Demand plan/forecast is stored in buckets/times series data in DP

PIRs are stored as orders in SNP
Flexibility to have different/many PIRs per location product
_________________________________
_________________________________
Order category FA or FC
_________________________________
Demand Plan is released to a product location
_________________________________
Ability to break up forecast during release via:
Location splits
Product splits
_________________________________
Ensure product location master data exits in SNP for all Characteristics
Value Combinations (CVCs) in DP
Don't
DP has CVCs for product and location independent of SNP
SNP needs to have corresponding product master maintained
Forget
_________________________________
_________________________________
SAP 2007-2008 / 126
Release Demand Plan from DP to SNP

(cont.)
Offers flexibility to account for different time buckets in
DP and SNP
_________________________________
_________________________________
_________________________________
Monthly, weekly, or daily split
_________________________________
Can vary over the planning horizon
_________________________________
Daily for short-term horizon

Weekly for mid-term horizon
Monthly for long-term horizon
_________________________________
_________________________________
User exit available for custom logic
Forecast created in DP can be transferred online or in

the background to SNP
Typically done in background in a live environment
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 127
DP
Integration of DP with SNP
_________________________________
Forecast in Demand Planning Stored in Time Buckets

Forecast
_________________________________
_________________________________
Release Forecast
to SNP
_________________________________
Planned Ind Req
_________________________________
Distribution
Centers
_________________________________
SNP
_________________________________
_________________________________
Manufacturing
Plants
_________________________________
_________________________________
Suppliers
Purchase Order
SAP 2007-2008
/ 128
STO
Planned Order
DC
Planned Independent Req
Release of Forecast from DP to SNP
_________________________________
_________________________________
Provides the
source of forecast
data in Demand
Planning
Offers ability to
transfer forecast
data to any planning
version in SNP
Specifies mapping
of forecasts to
order category
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Selection of
products and
locations for which
forecast will be
transferred to SNP
_________________________________
_________________________________
SAP 2007-2008 / 129

and SAP ERP
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 130
Conversion of SNP Orders to PP/DS

Orders
PP/DS is a detailed planning and scheduling tool ideal for shortterm planning
Detailed planning of manufacturing steps

Scheduling/sequencing of individual orders
SNP is a bucketed planning tool ideal for mid- to long-term

planning
Supply planning across the network to:
Determine best sourcing option

Create a constraint-based production plan in buckets
SAP offers seamless integration for converting orders from SNP

to PP/DS through:
SNP production horizon and PP/DS horizon
SNP production horizon separates PP/DS planning period from SNP

planning period, or they could overlap
Conversion of SNP planned orders to PP/DS planned orders
SAP standard Heuristics are available to convert SNP orders to PP/DS

orders inside the SNP horizon
SAP 2007-2008 / 131
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Planning Process with Unique

Planning Horizon
Time Fence
_________________________________
_________________________________
PP/DS Horizon
equals
_________________________________
Conversion
_________________________________
_________________________________
Time
Today
_________________________________
_________________________________
PP/DS schedules existing orders
SNP creates orders
SNP Production Horizon starts after the PP/DS horizon
_________________________________
SNP and PP/DS planning areas are unique, SNP orders for
all products can be converted to PP/DS orders
_________________________________
SNP is used for mid- to long-term planning while PP/DS is

used for short-term planning
_________________________________
SAP 2007-2008 / 132
Planning Process with Common

Planning Horizon
Product A Time Fence
_________________________________
_________________________________
PP/DS Horizon
_________________________________
Conversion
_________________________________
Time
Today
SNP creates orders
_________________________________
_________________________________
_________________________________
PP/DS schedules existing orders
SNP Production Horizon starts within the PP/DS horizon
_________________________________
SNP and PP/DS planning areas overlap, seamless

integration of SNP planning into PP/DS planning
_________________________________
Useful when SNP has control over certain products and

their critical components
_________________________________
SAP 2007-2008 / 133

and SAP ERP
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 134
Core Interface (CIF) to Integrate

SAP ERP and SAP APO
The Core Interface (CIF) is responsible for data exchange

between SAP APO and SAP ERP
The CIF is a real-time interface that can link an SAP APO

system with multiple SAP ERP systems
The CIF can perform initial transfer as well as subsequent

data changes
The CIF can transfer both master data (1 way) and

transaction data (both ways)
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 135
Core Interface for Transaction Data

Transfer
SAP ERP
SAP ERP Transaction Data
Initial Data
Transfer
SAP APO
_________________________________
SAP APO Transaction

Data
_________________________________
(Orders with Category)
Purchase Orders
Purchase Orders (BF)
Purchase Requisitions
Purchase Requisitions (AG)
Sales Orders
Sales Orders (BM)
Planned Orders
Planned Orders (AI)
Planned Independent Reqs
Forecast (FA)
Reservations
Product Reservations (AM)
Stocks
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Stocks (CC)
_________________________________
SAP 2007-2008 / 136
Real-Time
Incremental
Data Transfer
Customizing in SNP for Transfer of

Data to SAP ERP
Options available for
transfer of SNP orders
Options for transferring
orders generated from
deployment process
Options for
transferring orders
generated from the
TLB run
The above transaction indicates various options available for

transfer of data from SNP to SAP ERP (tcode /SAPAPO/SDP110)
Periodic transfer is preferred when large volumes of orders are

generated, typically after a planning or TLB run
But might be driven by process needs, too (user to review orders

to SAP ERP, especially for TLB orders)
before
SAP 2007-2008
/ 137sending
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Monitoring/Error Handling of CIF
_________________________________
Standard features/tools provided in SAP ERP to

monitor the interfaces between SAP APO and
SAP ERP
Similar to any other Remote Function Call (RFC) and

Application Link Enabling (ALE) monitoring transactions
Additional tools provided in SAP APO
Provided to manage and process delays in the interface

Offers link to application log to perform error analysis
Delta report to compare and reconcile data between

SAP APO and SAP ERP
_________________________________
_________________________________
_________________________________
_________________________________
Supply Chain Management (SCM) Queue Manager

transaction
_________________________________
Using the reconcile function, transaction data can be brought back in

sync between the two systems after any disruptions in the interface
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 138
Tools in SAP APO to Monitor CIF

Interface
Queues by order
types that are held up
in the interface
_________________________________
_________________________________
Indicates data held

up due to an error
Application Log
_________________________________
_________________________________
_________________________________
_________________________________
SCM Queue Manager is a tool provided in SAP APO to

monitor and resolve queues in the core interface between
SAP APO and SAP ERP
Provides access to the application log for detailed

error analysis
Transaction /n/SAPAPO/cq in SAP APO
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 139
CIF Delta Report for Transaction

Data
SAP-provided transaction to
compare and reconcile
transaction data between
SAP APO and SAP ERP
Ability to select specific

transaction data for selection
of products and locations
Ability to execute in real time

or in the background
Can be accessed in SAP APO

using tcode /n/SAPAPO/ccr
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Option to resend stocks

from SAP ERP to SAP
APO
Result of running the
Delta report for stocks
SAP 2007-2008 / 140
_________________________________
_________________________________
CIF User Exits/BAdIs

SAP provides a number of user exits to customize
data transfer between SAP ERP and SAP APO
_________________________________
_________________________________
_________________________________
Available for master data and transaction data
_________________________________
Suitable user exit can be in SAP ERP or SAP APO
_________________________________
Available CIF user exits/BAdIs in SAP ERP
Approximately 31 user exits and 8 BAdIs
Examples:
CIFMAT01
Enhancement for Transferring Customer-Specific

Matl Fields
CIFLOC01
CIFCID3
Enhancement for Transferring Customer-Specific

Loc. Fields
User Exits for Deltareport3
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 141
CIF User Exits/BAdIs (cont.)

Available CIF user exits/BAdIs in SAP APO
Approximately 56 user exits and 7 BAdIs
Examples:
SAP APOCF008
SAP APOCF010
SAP APOCF011
_________________________________
_________________________________
_________________________________
Inbound Processing: Resources

Inbound Processing: Sales Order
Inbound Processing: Stock
Should plan on utilizing some of these CIF user exits

or BAdIs
_________________________________
Using half a dozen to a dozen of them is not uncommon
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 142
What We'll
Well Cover ...
_________________________________
_________________________________
_________________________________

Master data in SNP
Planning with SNP
Deployment with SNP
Wrap-up
SAP 2007-2008 / 143
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Resources
Presentations
Production Master Data Overview and Strategy by BSG

Manufacturing Industries, SAP AG
_________________________________
_________________________________
_________________________________
_________________________________
Dr. Dirk Meier-Barthold, Supply Chain Safety Stock

Planning, SAP AG
Gunter Fertig, Multi-Level Supply and Demand Matching

(CTM), SAP AG
SAPPHIRE 2006 Supplier Collaboration with SAP SNC by

BearingPoint
_________________________________
CTM Workshop 11/2007 Balaji Rao Gaddam
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 144
Resources (cont.)
On your conference CD:
73 additional slides discussing key implementation

considerations and challenges
_________________________________
_________________________________
_________________________________
_________________________________
Supply Chain Engineer (SCE) Primer

How to Configure Capacity Variants/Intervals in SNP
Solution Brief of the SNP Extended Horizon Capability
Details on Calendar use in SNP and PP/DS
_________________________________
_________________________________
List of Parameter IDs (PIDs) to use in APO for more efficient

system performance
Copy of SCM Maintenance Jobs to Schedule and Execute
Help on Notes Management
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 145
7 Key Points to Take Home

SNP is a mid- to long-term planning tool and is used to
create feasible supply plans (Rough Cut Planning)
Know your business requirements and why youre
implementing SAP APO SNP to:
Select the most appropriate planning methods and

special planning features
Realize the kind of benefits desired at the beginning of
the project
SNP has 3 planning solvers to select from depending

on the business requirements:
Heuristics/Capacity Leveling 2 steps

Capable to Match (CTM) finite plan
Optimizer
SAP 2007-2008 / 146
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
7 Key Points to Take Home (cont.)

The SNP Optimizer and CTM in SAP APO 5.0 now
have an explanation tool that lets the user see
planning messages to better explain planning
situations
This was not available previously
Tightly integrate the Business into the project by:
Having business users as full-time team members on

the project
Educating the business community about SAP APO SNP

functionality and new processes throughout all project
phases, not just at the end right before go-live
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
SAP 2007-2008 / 147
7 Key Points to Take Home (cont.)

Dont underestimate the effort required to set up and
monitor the CIF for interfacing SAP APO with SAP
ERP
There will be ABAP development for the CIF user exits
Master data objects are very important to executing a

good plan in SNP. Most master data is transferred via
CIF from SAP ERP.
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
Mixed resources can be used in SNP and PP/DS
_________________________________
New production planning object, SNP PDS, can be

transferred directly from SAP ERP to SAP APO without a
separate program
_________________________________
_________________________________
SAP 2007-2008 / 148
Your Turn!
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
How to contact me:

Claudio Gonzalez
claudio.gonzalez@sap.com
SAP 2007-2008 / 149
_________________________________
_________________________________
Copyright 2007-2008 SAP AG

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SAP Supplier Network Planning (SNP):

What to Expect from This Workshop

Introduction to Supply Network Planning (SNP)

Learn about the various features in SNP

How SNP fits into the planning process

Where does it fit into your overall planning process?

What to consider when implementing SNP

Project team consideration

At the end, you should have a good overview of:

SNP as a module in SAP APO

Overview of SNP and how it fits in SAP SCM

Planning horizon goes from

Production Planning (PP)

TLB Transport Load Builder (SNP)

Supply Network Planning (SNP)

Detailed Production Scheduling (DS)

Mid- to long-term planning

How wide and how narrow

SNP Planning Functionality

Deployment (Short-Term Replenishment Planning)

Transportation Load Builder (TLB)

Grouping of deployment stock transfers to a Stock Transfer

Defining the Planning Horizon in SNP

Defined in calendar days, weeks, or months

Defined globally by planning version or by product and

SNP Production Horizon: 25 calendar days

SNP Stock Transfer Horizon can also be used to

Defining the Planning Horizon in SNP

SNP Prod Horizon No planned orders created

SNP Stk Trans Horizon No PurReq created

Extended SNP Prod Horizon only manual planned orders

SNP Planning Sequence and Flow

Set up master data and

Build loads for

Perform SNP Heuristic,

Release constraintbased SNP

Finalize SNP plan

Interactive Planning with SNP

Shows data selected

The selection profile

This section of the screen can display different data

SNP plans in buckets, not to individual orders by dates

Buckets can be defined as daily, weekly, or monthly

Demand and supply is grouped together to one number per

Planning in Buckets with SNP

The Data Views

Detailed orders per bucket can be displayed

Key Figure Definitions

This will come from Demand Planning after DP release to SNP

Same as Distribution Demand (Planned) for subcontracting materials

Same as Distribution Demand (Planned), but as a stock transfer to the

Distribution Demand (TLB)

Same as Distribution Receipt (Planned) for subcontracting materials

Same as Distribution Receipt (Planned), but as a stock transfer to the plant

Distribution Receipt (TLB)

Same as Distribution Receipt (Planned), but as STO plant (receiving side)