Sap Apo DP Cycle

First-hand
knowledge.
Reading Sample
Start with the basics! In this reading sample, we dive into the
basic planning functionality found in SAP APO, in addition to the
customization and master data modeling steps for creating
your supply chain plan.
“Preparing for Basic

Planning Functionality”
Contents
Index
The Authors
Sandeep Pradhan
Demand and Supply Planning with SAP
APO
813 Pages, 2016, $79.95
ISBN 978-1-4932-1333-7
www.sap-press.com/4011
In this chapter, you’ll learn the basic planning functions that are
performed in SAP APO, as well as the basic customization and
master data modeling steps needed to start creating your supply
chain plan.
4 Preparing for Basic

Planning Functionality
In this chapter, you’ll learn the basic customization steps for APO-DP and
APO- SNP in SAP APO. While this task is usually performed by a solutions
designer in the SAP APO project, this chapter also aims to help business users
understand the foundation on which the SAP APO standard configurations are
performed.
This chapter will help you to better understand the calculations that the SAP
APO system performs during the planning run. We’ll also explain the APO-DP
forecasting models and APO-SNP modeling objects that prepare the system for
the basic task structure performed during the weekly planning cycle.
Understanding this basic foundation will also enable you to help enhance a
company’s SAP APO functionality for any change in future business models.
As shown in the mind map for this chapter (see Figure 4.1), we will be
discussing how to set up basic planning functionality in SAP APO. Besides
highlighting the customization steps in APO-DP and APO-SNP, we’ll also
discuss how to set up forecasting models and a supply chain model as part of
SAP APO functionality.
We’ll delve further into using our business case study, ABC Technology, as an
example. While ABC Technology is focused on both manufacturing and
distribution, the company’s primary focus is on inventory control and goods
distribution. We’ll get started with understanding the basic planning tasks that a
supply chain planner must go through with SAP APO, and see how these tasks
fit into ABC Technology’s methods.
149
4 Preparing for Basic Planning Functionality
Basic Planning Tasks 4.1
Model/Version
Location
to its customer base on the shortest possible lead-time, in order to keep its next-day
Calendar delivery value proposition.
Product Location
Transportation Lane
Transport Method
TLB Profile
Supply Chain Modeling in
APO
Basic Planning Tasks Demand Planning
Supply Planning
In the following sections, we’ll review the planning tasks performed by the
Lot Size Profile
Quota Arrangement Nav. Attribute
demand planner and supply planner in the SAP APO landscape and identify the
Characteristics
Resource
Production Data Structure
InfoObjects business planner’s interactions with SAP APO. Understanding the planner’s
Key figure
Consistency Check
Supply Chain Engineer
Fixed kf
routine business activities is important for the SAP solution designer when it
Planning Area
Basic Customization in APO-DP
Planning Books comes to designing the system per business requirements.
InfoObjects Basic Planning Macros
Planning Area Functionality in SAP APO Aggregation and Proportional
Factor Disaggregation
Planning Book Basic Customization in APO-SNP Time-Based
Disaggregation
Demand Planning
Category Group
Time series Consistency Checks
BW Extraction
Inbound Historical The planning tasks in SAP APO are always based on algorithm programs, which
Forecast Methods Data Staging in APO- Delta
Forecast Profiles
Background Processing
Setting up Forecast
Methods
DP
Outbound BW Extraction
the business planner can validate and adjust, if necessary. Figure 4.2 shows the
Forecast Errors schematic activity flow for APO-DP.
Characteristics Value
Combination Data Handling SAP APO
Realignment
Figure 4.1 Learning Points for the Chapter (Mind Map) History APO-DP
Planning
SAP ERP
Books
Delta
sic Planning Tasks
APO-DP
The goal of the supply chain planner role is to balance the demand and supply Planning
APO-SNP
and
plan for their group of products. The planner performs these planning tasks on a Books
PP/DS
Statistical
History
weekly or monthly cycle. Forecast
SAP BW
SCP is an iterative process that consists of creating an unconstraint demand plan Analyze
Delta Alerts
using the forecasting process, and then optimizing various supply plans in the
form of procurement, production, replenishment, and distribution plans. SAP
APO is the best tool to help with these tasks, as it’s a decision-support tool that
outputs planning results for the supply chain planner to evaluate analysis and Figure 4.2 Demand Planning Tasks
make any necessary changes.
Historical sales orders are required for the statistical forecasting process 1. The
Example
history is primarily staged from SAP Business Warehouse (SAP BW). SAP BW
ABC Technology wants to use SAP APO to plan its laptop, desktop, and monitor products. extracts the sales orders from SAP ERP using Logistics Information System
Since it manufactures and distributes these products in North America, the company (LIS) structures in SAP ERP. As shown in the architecture in the figure, there
plans to use APO-DP for forecasting and APO-SNP for replenishment and distribution will be two data loads: the initial historical data for the last two or three years,
supply plans. The company is challenged with providing custom products
and the post–go-live weekly delta loads on actual sales orders recorded in the
past week.
150 151
Basic Planning Tasks 4.1
Some companies might include a custom filter in SAP BW to segregate sales
orders based on order types for business reasons. This task is primarily per- the next twelve months, in monthly buckets. ABC Technology uses the combination of
formed by the company IT group; no user involvement takes place. defined forecasting (exponential, seasonal, and linear) and automatic forecasting mod-
els, the latter being used for products for which the individual forecasting is difficult to
SAP APO has a small, built-in SAP BW component that can be used to stage identify.
the data coming from SAP BW. The data flows from SAP APO’s SAP BW ABC Technology’s demand planner reviews the forecast and makes any adjustments
component to the SAP liveCache time series planning books 2. The planner in SAP APO planning books for the short horizon to better reflect market demand
validates historical data, and might make manual adjustments to the history. situations.
Once the history is adjusted, it becomes the baseline for statistical forecast
calculation 3.
Supply Network Planning
Next, the baseline history serves as input for the forecasting run, which either
Once the final demand plan is released to supply planning (APO-SNP, in our
can be set to run a model automatically, or based on user definitions. In the case
business case), the supply planner starts his or her planning activities. The role
of the automatic forecasting model, the system selects the model that gives the
of the supply planner is not only to check the supply feasibility of the
lowest forecast error (for example, MAPE). Alternatively, the user may select
unconstraint demand plan, but also to formulate a feasible procurement,
defined forecast models for his or her product or product groups based on pre-
distribution, and production plan. The supply planner communicates with
analysis. The result of the forecasting run is analyzed by a demand planner in
sourcing units (e.g., facto- ries and vendors) to check the feasibility of proposed
the APO-DP planning book 4.
plans. He or she is further discussed in the monthly sales and operations
The demand planner can analyze the forecasting run by looking at the forecast meeting. The supply planner also needs to check both the material availability
errors, which are identified by the forecast model that’s selected by a system or and capacity to supply the demand.
business user. Also, an alert can be set up to compare the forecast with the aver-
Figure 4.3 shows the schematic activity flow for APO-SNP in SAP APO. The
age sales from the last three months and provide an alert if the proposed forecast
major activity for the business in these processes would be analyzing the SAP
is more than, say, 25% of that value. The planner again has the ability to
APO result and fine-tuning the master data for any parameter corrections. The
override the system’s proposal with some judgmental adjustments. Also, in this
figure illustrates the following system flow:
activity, the sales and marketing team enters the promotions to close the gap on
the demand plan and yearly operational plan (i.e., budget). 1 The supply chain activities require supply chain modeling before planning
begins. Using transportation lanes and other SAP APO master data elements,
The final demand plan then undergoes discussion in the monthly forecast review
the business user models their supply chain in SAP APO. The modeling
meetings before the monthly sales and operations plan. Once the supply chain
process includes setting up the supply network and relevant master data
and sales, marketing, and finance teams reach a consensus on the final demand
settings for the SAP APO solvers to calculate an accurate supply plan. The
plan during the business meeting, an SAP BW snapshot is taken of the plan and
core master data is transferred from SAP ERP using SAP APO’s Core
released to supply planning to check on supply feasibility 5. The release of the
Interface (CIF) technology. The supply chain data objects are further
demand plan to supply planning can be either to one of the SAP APO functional-
discussed in Section 4.7. Also defined within the supply chain model is the
ities (APO-SNP or PP/DS) or the SAP ERP-MRP system directly, based on
target inventory for each location in the supply network.
procurement planning design selection.
2 Besides the master data, transaction code data is also activated via CIF
Example between SAP ERP and SAP APO. All SAP APO-relevant receipts, demands,
and stocks are exchanged between the two systems in real time. There is a
ABC Technology distributes its products from three distribution centers where customer
standard CIF compare/reconcile consistency report that the IT support group
orders are captured. SAP APO will perform forecasting at the location product level for
needs to run
152 153
Basic Customization in SAP APO-DP
periodically in order to ensure that all transactional data is consistent between
7 The final supply plan is published to the manufacturing, distribution, and pro-
the SAP ERP and SAP APO systems.
curement teams for supply chain execution. The planner may use the
Transport Load Builder (TLB) in APO-SNP to ensure that the proposed stock
transport order and purchase order meet the load capacity and vendor
SAP ERP SAP APO minimums.
Supply
Chain
Execution Example
SNP SNP
Planning Planning ABC Technology’s network consists of manufacturing and distribution facilities. The
APO DP
Books Books supply planner uses the APO-SNP planning book to review the demand and supply sit-
uations across the network following the nightly planning run. Though the supply plan-
ning is done at the weekly bucket level, the planner closely monitors the inventory lev-
Planning Analyze
Planning els across the network to ensure that customer orders are being fulfilled, and that prod-
Master Data Supply Chain Run Run
Model Alerts ucts are produced and replenished on time.
Having studied the planner’s basic tasks, we’ll now discuss the steps you need to
Transaction Data follow to configure the SAP APO functionality for both APO-DP and APO-SNP.
Manufacturing
Planning
Basic Customization in SAP APO-DP

Figure 4.3 Supply Network Planning Tasks
This section explains the basic customization steps for APO-DP, as well as the
3 The unconstrained demand plan is released from APO-DP at the location background information and basic definitions you’ll need to get started. The cus-
product level. The planner analyzes the supply situation before the nightly tomization steps consist of setting up a planning object structure for planning
run and makes any required adjustments (for example, increasing capacity). based on the product, customer, and time characteristics; identifying the key fig-
ures (e.g., forecast, sales orders, promotions); and setting up the planning book
4 The nightly planning run touches the complete supply network and plans the
and macro (used for mathematical calculation) for both background and interac-
safety stock, replenishment, distribution, and production plans. Depending on
tive planning.
the business requirements, the first planning run can consider infinite or finite
capacities.
Example
5 The supply planner analyzes the supply situation again and reacts based on
ABC Technology would like to design an SAP APO planning book with different prod-
supply alerts (for example, stockouts) to focus on items that require critical uct, customer, and time characteristics. Some examples of these characteristics are
action. The planner may accept the system proposals, or may override those product, product family, brand, customer, customer group, and calendar month. The
proposals with his or her own feasible plan for the sales and operations plan- key figures display the planning data for the identified characteristics. Some examples
ning meeting. of the key figures are historical sales orders, forecast, and sales and marketing
promotions.
6 A second planning run is performed to re-balance demand and supply across
Customizing APO-DP starts with a data modeling exercise in identifying
the network. Any excess inventory will trigger alerts for stock balancing. This
InfoOb- jects (characteristics and key figures), which is explained in the
planning run may run on finite capacity and constraint environment. A
following sub-sections. The solution designer performs the customization,
monthly snapshot may be taken at this stage by SAP BW.
taking into account business requirements from demand planner users.
154 155
Basic Customization in SAP APO-DP 4.2
Aggregates
Macro
InfoObjects Data Modeling Exercise
InfoObjects represent the smallest selling unit in SAP BW. They define the The data model defines the customer, product, or time characteristics on which
business process and information we are seeking. An example of an we want to divide the planning data in the SAP APO planning book. As Figure
InfoObject is customer, product, or historical sales order quantity. Before we 4.4 shows, we start by drawing a three-dimensional axis with product, customer,
start customizing InfoObjects, you need to understand some background and time dimensions.
information about them. First of all, there are five different types of InfoObjects:
Example
€ Characteristics
Some examples of characteristics are customer, product, material group, cus- For ABC Technology, we need to identify the product, geography, and customer hierar-
tomer group, and location. These represent the planning levels and consist of chies relevant to planning and promotions. Though the hierarchy master data may have
several levels, we only need to identify the aggregation level against which we forecast
customer and product attributes. One or more characteristics make up the key
and distribute the products for SAP APO planning. For each product, customer, and
to the data record for demand planning. Characteristics are definitions for time dimension, we list all of the hierarchical objects that would be relevant for APO-
describing the business object, not the data. DP.
€ Key figures
Key figures represent the numeric information for the business object. There
are different types of key figures: quantity, amount, date, time, number, and Sales
Organization
integer. Some examples of key figures are selling price and actual sales order
quantity. Sales Region Product
Category
€ Time characteristics
Product
Time characteristics describe time reference for the business event. Some of the Location Brand
standard SAP time characteristics are calendar day ( 0CALDAY), calendar week
Customer Demand
(0CALWEEK), calendar month (0CALMONTH), calendar quarter (0CALQUARTER), Group Planner
Channel Range
calendar year (0CALYEAR), fiscal year (0FISCYEAR), and fiscal period
(0FISCPER).
Calendar
Customer Product
Week
€ Unit characteristics
Unit characteristics are used for providing a unit of measure for the defined Calendar
key figure. Time Month
€ Technical characteristics
Customer/Geography
Technical characteristics are used for technical purposes. An example is a
request ID for storing the data load information. Figure 4.4 InfoObject Data Modeling
These InfoObjects are translated with the data modeling, which identifies the
product, customer hierarchy, and time dimensions to be used in the SAP APO Figure 4.4 shows how an ABC Technology business planner would separate his or
planning object structure. Before you start customizing, you should always her data for planning and reporting purposes in SAP APO. Examples of product
understand the dimensions of the characteristics to be used in the SAP APO characteristics are product category, brand, range, and product, while customer
database model for which you’d like to perform demand planning. As such, characteristics are sales organization, sales region, location, channel, and cus-
we’ll start with a data modeling exercise. tomer. The time dimensions are calendar week and month. The planner can also
156 157
4 Preparing for Basic Planning Functionality Basic Customization in SAP APO-DP 4.2
identify characteristics to be used for selection and navigation, but not for plan-
group, product, customer, sales organization, location, and material group,
ning. This type of characteristic is called a navigational attribute. An example of a
which all help to separate planning data into different dimensions. As Figure 4.5
navigational attribute is the demand planner code as part of product characteris-
shows, we can either directly input the InfoObject, or create a new one. You can
tics, and the customer group for customer characteristics.
access the InfoObjects via Transaction RSD1 for any further maintenance.
Customization Steps
Now you’re ready to start creating InfoObjects.
First, create the InfoObject in the Administrator Workbench in SAP APO via the Create InfoArea
menu path SPRO • SAP REFERENCE Img • ADVANCED PLANNING AND OPTIMIZATIoN • Create char. catalog
SUPPLY CHAIN PLANNINg • DEMAND PLANNING • BASIC SETTINgs • DATA WAREHOUS-
INg WORKBENCH. Direct Input
or create new char.
In the left part of the DATA WAREHOUSIng WORKBENcH, in the MODELIng section, InfoObject
click on INFOObJECTS. Right-click the node INFOObJECTS and choose CrEATE INFO- Create key
AREA. An InfoArea is used for storing the characteristics and key figure catalogs figure catalog
relevant to the data model.
Tips & Tricks

Direct input
The BW Administrator Workbench can also be accessed via Transaction RSA1. or create new key
figure InfoObject
Once you’ve created the InfoArea, right-click on the INFOAREA node to

CrEATE INFOOBJECT CATALOG. The InfoObject Catalog is used to catalog the
InfoObjects, which have been created as characteristics, time characteristics, or
key figures. As Figure 4.5 shows, we want to create two separate catalogs for
characteristics and key figures. The catalog is used for storing project-specific
APO-DP InfoObjects for both characteristics and key figures. Per our case study,
you need to input the product, customer, and time characteristics into the
characteristics catalog, and the key figures into a separate catalog. You can
maintain SAP standard characteristics and key figures starting with a 9A prefix Figure 4.5 Steps for Creating Characteristics and Key Figures InfoObjects
in the catalogs by directly inputting the technical field. The standard 9A prefix
denotes characteristics (for example, 9AMATNR and 9ALOCNO) and key figures (for APO-DP offers functionality in the form of a navigational attribute, which can
example, 9ADFCST) that are provided by SAP. be used as a characteristic in the planning book for navigation, analysis, and
reporting purposes. The ABC Technology business planner can use the
Create new InfoObjects for the required characteristics and key figures by right-
characteristic Demand Planner to segregate products for planning and the
clicking the catalog, selecting CrEATE INfoObjECT, and maintaining a
customer group, as another characteristic, for the purpose of customer
technical name and description. Always select BW INFOOBJECT to be used for
segmentation. You will need to set up the navigational attribute, which helps
data staging and extraction. Some examples of characteristics are product
define the selection and
group, customer
158 159
navigation criteria without defining them as characteristics in the demand plan- Note
ning structure. The first three steps (as shown in Figure 4.6) are:
You can refer to SAP OSS Note 413526 for the list of comparisons between
1 Assign an attribute to the characteristics. The characteristics can be accessed navigational attributes and characteristics.
via Transaction RSD1 or in the BW Administrator Workbench (Transaction

RSA1) InfoObject folder. Double-click on the characteristics name to display
the details for maintenance.
2 Next, input the characteristic that needs to serve as the navigational attribute.
As shown in the figure, the navigational attribute for the customer is the
customer group. Once maintained, click the NAVIGATIONAL ATTRIBUTe icon
to switch on the navigational attribute.
Input the attribute
Switch on the
navigational attribute
Figure 4.7 Navigational Master Data Maintenance with Valid Combinations

Maintain the
attribute values
Planning Object Structure

Now that we have created the InfoObjects in APO-DP, the next step is to create
the planning object structure, which will define the characteristics we want to
model in the planning books. The planning object structure contains the charac-
teristics required for planning and stored in SAP liveCache. The characteristics
determine the planning level and how the data can be stored. In our case study,
ABC Technology has elected to use the most commonly used characteristics
Figure 4.6 Setting up a Navigational Attribute to the Characteristics
from the product and customer hierarchies.
3 The last step is to maintain the master data of the valid combination value in The key here is to select all off the characteristics that will be used for planning
the table, as shown in Figure 4.7. purposes. The activation of a planning object structure results in the creation of
160 161
an internally generated InfoCube in which the characteristic combinations for

Example
the planning object structure are stored. Follow these steps to create the
structure: ABC Technology will want to define aggregates, so the demand planner has to access
a number of stock-keeping units (SKUs) for planning. The use of aggregates serves as
1. Create a planning object structure via SPRO • SAP REFERENCE Img • ADVANcED an indexing of the demand planning data.
PLANNING AND OpTIMIzatION • SUPPLY CHAIN PLANNING • DEMAND PLANNING •
BASIC SETTINGS • S&DP ADMINISTRATION. In addition to the detailed level, the planning data is also stored in the aggregate
2. Click the PlANNING ArEAS tree structure, and then choose PLNG OBJECT STRUc- levels. Although the use of aggregates consumes little more SAP liveCache
TUREs to change the path from PLANNING AREA to PlANNING OBJECT space in-memory, the planning data load access is faster with the aggregate
STRUCTURE. mechanism. This is because there is no aggregation happening after you load
your selection. The system knows an aggregate exists and hence loads it
3. Transfer all the relevant characteristics defined earlier in InfoObject from the
directly.
right side to the left, as shown in Figure 4.8. Clicking NAVIGAtion ATTRIbutes
displays all the attributes associated with the planning characteristics. To create an aggregate, right-click the planning object structure and select CrEATE
AGGREGATE. Figure 4.9 shows an example of an activated aggregate. With
this functionality, the ABC Technology planner can now use the aggregate
characteristics as a selection profile when accessing large volumes of data in the
SAP APO planning book.
Figure 4.8 Setting up Planning Object Structure for Demand Planning
Create Aggregates
Within the PLANNING ObJECT STRUCTURE, we can also define aggregates. The pri-
mary purpose of the aggregate is to improve system performance while accessing
the planning data. This configuration will help the business planner access data
Figure 4.9 Aggregate for Planning Object Structure
faster in the planning books with large selection.
162 163
Note The fiscal year variant needs to be updated annually, at the end of each fiscal year,
Refer to SAP OSS Note 503363 for more information on the use of aggregates in plan-
in order to reflect the periods of the succeeding years. To do this, follow the menu
ning object structures. path SPRO • SAP REFERENCE Img • ADVANCED PLANNING AND OpTIMIZATION • SUP-
ply CHAIN PLANNING • DEMAND PLANNINg • BASIC SETTINgs • MAINTAIN
FIScAl YEAR VARIANT.
Planning Area Next, create a storage bucket profile, which defines how the system stores the
A planning area is the central data structure in APO-DP. It lists all the data created by APO-DP or APO-SNP. You define the storage bucket profile for a
characteristics (i.e., the planning object structure) and contains a collection of specific number of periods; thus, it is recommended that the periods be updated
key figures to be used in the planning process. You can connect the planning periodically. The fiscal variant is attached within the storage bucket profile. The
area with an SAP BW data mart to send the historical data to APO-DP. Key customization path is SPRO • SAP REFERENcE Img • ADVANcED PLANNING AND
figures for planning and their disaggregation types are defined for a planning OPTIMIZA- TION • SUPPLY CHAIN PlANNING • DEMAND PLANNING • BASIC
area. SETTINGS • DEFINE STORAGE BUCKET PROFILE. Figure 4.10 shows an example of a
storage bucket profile.
Before we begin configuring the planning area, we need to define the fiscal year
variant and the storage bucket profile, which will later be assigned to the plan-
ning area. Once users start using the SAP APO system, more characteristics and
key figures might be needed in the planning area to offer more flexibility in the
planning process. These additions require deactivating the current planning area
and the possible loss of planning data. For this reason, a backup of APO-DP is
kept in either SAP APO’s internal SAP BW system, or in the SAP BW system. This
contingency is also built during the system upgrade, when the planning areas are
deactivated and the SAP liveCache system is brought down. As a best practice, the
planning data backup is routinely scheduled every month.
Define the Fiscal Year Variant

Many companies use the fiscal year variant for financial reporting purposes. To
align finance estimates with planning volume, it would be ideal to use the fiscal
year variant for the calculation. The fiscal year variant is used to determine the
fiscal year, how many posting periods are available in a year, and which dates
con- stitute the end of each period. It is recommended that the fiscal year be Figure 4.10 Storage Bucket Profile
defined for a longer period of time than the horizon defined in the planning
books. Once we have defined the fiscal year variant and the storage bucket profile, we
can input them into the planning area, as described in the next subsection.
Example
ABC Technology would like to plan for the next rolling twenty-four months, using Configure the Planning Area
the last two years’ historical data. For this reason, if planning is done one year back
and one year ahead in the planning book, it is recommended that the fiscal variant The planning area combines the characteristics (from the planning object struc-
be defined two years in the past and two years into the future. ture) and various key figures to further configure the planning. The planning
164 165
book is where the business users perform planning analysis and adjustments to
€ Currency to be used for planning (INfo tab).
formulate a demand plan. To set up the planning area, follow these steps:
€ Unit of measure for planning (INfo tab).
1. To customize the planning area, follow the menu path SPRO • SAP REFERENCE
€ Aggregate level on which to data can be stored beside the lowest level
Img • ADVANCED PLANNING AND OPTIMIZATION • SUPPly CHAIN PlANNING •
to improve performance (AGGREGATE tab).
DEMAND PlANNING • BASIC SETTINGS • S&DP ADMINISTRATIoN.
€ Aggregation and disaggregation rules for the key figures (KEY FIGURE AGGRE-
2. Right-click the planning area node and select CrEATE PlANNING AREA. In the
GATION tab).
planning area, specify the following in various tabs:
In the PLANNING ArEA • KEY FIGURE AggrEGAtION tab, we can define the aggrega-
€ The list of the key figures (created earlier as InfoObjects) to be used for plan-
tion and disaggregation of each key figure by its calculation type and its
ning, as shown in Figure 4.11 (KEY FIGURE tab).
time- based disaggregation type. In the CALCULAtioN TYPE field, we can mention
if the key figures needs to be marked pro-rata (type S), average (type A), or a
reference to a different key figure (type P).
Proportional Factors
As Figure 4.12 shows, while the majority of key figures are marked with
calculation type S, the average price key figure is average A, and the manual
adjustment is marked P to be based on historical key figure pro rata.
Figure 4.12 Aggregation and Disaggregation Logic for Key Figures

Figure 4.11 Demand Planning Area
166 167
Similarly to the calculation type, we maintain time-based disaggregation for
of the supply network. Changing a key figure value anywhere within this plan-
defining rules for planning data disaggregation. Some examples of time-based
ning network automatically triggers a proportional re-propagation throughout
disaggregation are either proportional allocation (type P) or no time-based
the network, which was calculated earlier. You can drill down or drill up
disaggregation (type N). The time-based disaggregation is of particular interest
through one or more levels. There are two main calculation types here for
in business scenarios when the majority of the sales occur during the last week
proportional factor calculation:
or days of the month. Figure 4.12 shows different calculation and time-based
disaggregation types. The main concept here is proportional factors. SAP APO € Pro rata of planning data
uses proportional factors to enable the disaggregation of data down to the lowest The data is disaggregated according to the distribution ratio that the system
level. derives dynamically from the existing planned data. The proportional factors
are not used with this disaggregation type.
Example
€ Proportional factors
ABC Technology plans to calculate the proportional factors and use the calculation as a The proportional factors are percentage based and held in the key figure APOD-
reference for the statistical forecast key figure. This will ensure that the forecast is
PDANT. Figure 4.12 shows an example for forecasting a key figure, which uses
placed at the correct location based on the historical pattern. ABC Technology has two
the key figure APODPDANT to disaggregate. ABC Technology would like to use
locations where the historical sales were split at 40% and 60% for a specific month of
the year. When the forecast is calculated for the same future month, the system takes the most recent year’s historical proportional factor for the same bucket as this
the same percentage and disaggregates the forecast figures based on those values. year’s forecast key figure.
For some of the other product groups, the ABC Technology planner would like to have
the ability to override the system-generated proportional factors and just use the time-
based disaggregation to reflect the stocking policy across various tree locations in SAP Planning Planning
APO. In this business scenario, the business planner would maintain the location-pro- Level Pro Rata or
portional factors offline and manually upload them to the planning book. The propor- Proportional
Factors
tional factors can be generated based on actual sales history as well as manually
adjusted by the demand planner.
Tips & Tricks
It is recommended that the automatic generation of proportional factors be done Proportional

every book month to take into account any changes in the proportional factors Lowest values
Level
based on the previous book month’s actual sales. generated
Figure 4.13 SAP APO Consistent Planning
APO-DP’s method of aggregation and disaggregation is called a “consistent” plan-
ning model (Figure 4.13). Using the lowest level of actual data (usually the prod- Time-Based Disaggregation
uct-location level), it generates proportional values throughout its planning net- Besides the calculation type, we also maintain time-based disaggregation. A sce-
work (characteristic value combinations). nario for time-based disaggregation may occur when ABC Technology has prod-
ucts that always peak at month-end sales during the last week of the month. In
The system uses proportional factors to distribute its products nationally. The
this situation, we can define the time-based disaggregation key figure (type K) in
proportional factor can be overridden by the demand planner based on their
the planning area configuration, as shown previously in Figure 4.12, in the KEY
experience with the product. ABC Technology would want to change its propor-
FIGURE AgGREGATIoN tab, which defines the percentage split of the monthly fore-
tional factors based on the distribution centers (DC) stocking policy. These
cast into weekly buckets. The business planner maintains the percentage, and the
changes might be initiated due to strategic reasons or slow-moving inventory in
one part
168 169
system uses this key figure percentage during the disaggregation of the forecast
Figure 4.14, with the selection variant on the left section and the planning view
from monthly to weekly buckets. The ABC Technology planner can maintain
section in middle. There are additional setting toolbars for downloading and
the proportional factors and time-based disaggregation factor offline in
uploading planning books, pivot sorting, and more.
Microsoft Excel and use the “upload” function to load it into the demand
planning book.
Selected Header
Object Information
Planning Area Key Figure Settings Selection
Window
In a production environment, it might be necessary to change the key figure settings

to support new business requirements. An example would be if ABC Technology
would like to integrate new proportional factor logic with the planning solution. From Selected
Key Figures
SAP SCM 7.0 onwards, the planning area offers the flexibility to change the key figure Additional Settings
toolbar
setting without de-initializing the planning area using report /SAPAPO/TS_LCM_PAREA_
Standard Selections
CHANGE2. However, note that de-initializing the planning area leads to a potential loss
of all time series data for the planning area. User Specific
Planning Books
Once the planning area is configured, we next need to design a planning book.
The planning book is where most of the calculation occurs and provides Macros
information to business users. There are usually two sets of planning books— Graphical Represent
one for business planners and the other for performing background calculations.
Planning Book Figure 4.14 SAP APO Planning Book View

Your next step is to customize the planning book for your business requirements
in order to define the planning information content and layout of the interactive Create the Time Bucket Profile
planning screen. The planning book serves as the frontend interface to the ABC
Before creating a planning book, you need to create the time bucket profile to be
Technology demand planner users. The business planners would use the plan-
used for the planning book. A time bucket profiles defines the historical or
ning book for different purposes. While the primary goal would be analyzing
future time horizon for APO-DP and helps businesses to visualize their planning
the forecast result based on history, the planner can also remove historical
data in the planning book. With this step, you define which time buckets can be
outliers and perform interactive forecasting directly in the planning book. The
used for planning, how many periods of each time bucket are used, and the
key figure in the planning book may also provide demand planning accuracy
sequence in which the time buckets appear in the planning table.
calculations for the planner to analyze.
Planning books are highly customizable, and the screen can be designed to suit Example
individual planning tasks. Besides having different time bucket views, the plan- Since the ABC Technology planner would like to visualize planning data monthly, quar-
ning book can be designed to have multiple data views based on the informa- terly, and yearly, we can define time bucket profiles and switch them accordingly in the
tion requirements. Each planning book can have multiple data views, giving the planning book. As the default for the planning book, we will assign twenty-four months
of time bucket profiles in monthly buckets.
user flexibility to view and analyze planning information in different angles.
Some examples of data views are views for historical data, key figures, and
forecasting-related key figures. A typical planning book looks like what is The first and second planning bucket profiles determine how the data (history
shown in and future) is viewed. Using the time bucket profile, the business can determine
170 171
the historical period it would like to view and the future period for viewing fore-
casts. It is not determining the forecast horizon. The third planning bucket’s pro-
file is used to determine the number of forecast value periods released from APO-
DP to APO-SNP. To customize the time bucket profile, follow the path SPRO • SAP
REFERENCe Img • ADVANCED PlANNING AND OpTIMIZATion • SUPPLy CHAIN
PLAN- NING • DEMAND PLANNING • BASIC SETTINGS • DEFINE PLANNING BUckET
PROFIlE, or use Transaction /SAPAPO/TR30.
An example of a planning time bucket profile is shown in Figure 4.15, in which

the planning bucket is split between weekly and monthly buckets. This allows
the business users to view some portion of the data on the weekly buckets for
operational planning and the rest of the data on monthly buckets for tactical
and operational planning.
Figure 4.16 Demand Planning Book Wizard (1/2)
Figure 4.15 Planning Time Bucket Profile

4. Select the planning book characteristics (used for slice and dice) required in
the planning book by dragging and dropping them from the right section to
Custom Planning Books
the left section (see Figure 4.16, 3). Click CONTINUE to move to the next tab.
The interactive Planning Book Wizard (Transaction /SAPAPO/SDP8B) is
5. Change the key figure description to make it more easily understandable for
available if you need to create custom planning books. We’ll walk through the
business users. Create auxiliary key figures directly, if required for
planning book creation process in the following steps:
calculations (see Figure 4.17). Click CoNTINUE to move to the next tab.
1. Type in the new planning book name and click CrEATE. 6. Input the time bucket profile(s) for both the past and future horizon visibility
2. Input a text description of the planning book, assign a planning area, and in the planning book. Select TABlE 2 if you need to design a two-tabular
select the forecasting method and proportional maintenance (Figure 4.16, 1). section in the planning book for business users (for example, if they need to
Click CONTINUE to move to the next tab. view two sections to compare the volume and dollar values; see Figure 4.17,
3. Select the key figures required in the planning book for both viewing and calcu- 4 and 5). Click CONTINUE to move to the next tab. In this case, the planner
lations purposes. Drag and drop from the PLANNING AREA section to the PLAN- can have two split planning book tables. While the top table shows the
NING Book section (Figure 4.16, 2). Click CONTINUE to move to the next tab.
planning data in volume, the bottom table might give the planning data in
dollar values.
172 173
Macros
A macro is an important component for facilitating planning tasks in a planning
book. Both simple and complex macros can be designed. Some examples of
simple macros are a calculation based on key figures, changing the cell color
in a planning book, and copying a key figure value from one row to the next. An
example of a complex macro is the generation of alerts or pop-up messages
when a cell falls below a certain threshold. The macros can be triggered either
interactively (i.e., manually in a planning book) or via background batch
processing.
SAP APO provides a tool called the Macro Builder, which allows you to create
your own custom macros to perform a variety of functions, such as
mathematical, statistical, logical, and planning calculations. Macros are a
prerequisite to perform some of the simple and complex mathematical
calculation in APO-DP. There are no standard APO-DP macros that you can use
out of the box, as the majority of planning books are custom. SAP provides
some examples of macro functions, which can be used as templates for building
macros. To access the Macro Builder, follow the menu path SPRO • SAP
REFERENCE Img • ADVANCED PlANNING AND OPTIMIZA- TION • SUPPLY CHAIN
PLANNING • DEMANd PLANNING • BASIC SETTINgs • DEFIne MAC- ros, or use
Transaction /SAPAPO/ADVM. As shown in Figure 4.18, the Macro Builder
has different screen areas, which we’ll discuss in the following subsections.
Elements
Events
Planning Table
Data View layout
Figure 4.17 Demand Planning Book Wizard (2/2)
7. In the final step, arrange the key figure sequence you want the business users
to visualize in the planning book (see Figure 4.17, 6). In this step, the Clipboard
solution designer needs to consult with business users to identify the layout of Depot
the key figures in the planning book. Click CompLETE to finalize the Macro
planning book creation. Development
Area
Our next step is to look at macros, which are embedded in the planning book for
either mathematical calculation or alert generations.
Figure 4.18 Macro Builder Screen
174 175
Elements
€ PROCEss MESSAGE
Elements are the building blocks of macros. You can use the following element Defines the message text and has the system issue a message in response to the
options when building your own custom macro: alert situation.
€ MACRO € ACTION box

Used for macro description and determining the period to be analyzed and Allows you to trigger an action that contains a function.
whether interactive or mass processing is mentioned. If selected interactively, € DocUMENTS
it allows business users to execute macros from the planning book. Can be used to trigger email notifications to the user.
€ USER EXIT MACRO
Used for implementing custom macros in routine code and for building com-
Macro Development Area
plex logic in ABAP language.
The MAcro DEVELopmENT ArEA serves as a work area for the solution designer to
€ STEP
create macros. Figure 4.19 shows an example of two macros created in the work
Consists of one or more macro calculations with the number of iterations for
area by dragging and dropping various elements.
each step. The steps need to be structured enough to follow the logic in
sequence. Various business calculations can be created in logical sequence
Check Activate Deactivate
with the use of steps. macro macro macro/step
€ CONTROL STATEMENT
Used with a condition statement to define macro steps and calculations. Con-
ditional statements like IF and ENDIF are embedded in the macro to draw the Level 1
business decision tree. Level 2
Level 3
€ CONDITION Level 4
Defines logical conditions together with control statements to be used in Condition
Mathematical
macro steps and calculations. Used in macros in conjunction with control calculation
statements to draw the business decision tree. macro
€ PLANNING TABLE
Consists of many sub-items for which the result of the macro calculation is
assigned either in cells, rows, or columns. Used in macros to assign the calcu-
lated value to a particular cell in the planning book.
€ OPERATOR/FunctIONs
Arithmetic, statistical, or mathematical calculation to be performed for a spe-
Control
cific row. Macros include operators and/or functions to calculate a specific statement
Alert
key figure. An example would be using COVER_CALC to calculate the macro
projected days’ supply for demand based on the receipt elements. Alert update
€ ALERT/STATUS
Writes alerts in the Alert Monitor and displays the status after the execution
of a macro. The macro can execute dynamic and database alerts and write the
Figure 4.19 Macro Builder Work Area
result in the Alert Monitor.
176 177
The first macro creates forecast bias by subtracting the forecast from the actual
Events
value, while the second macro creates alerts for the deviation based on a
percentage factor. Macros are highly customizable and can easily represent Once the macro is developed, it can be executed interactively or in a batch job.
some of the business exception rules. As seen in the first macro example, there Alternatively, the macro can be triggered automatically if assigned as EVENTS in
are four levels defined within a macro: one of four types:
€ Level 1 is the macro description. € DEFAULT

Macros are executed when the planner opens the planning book and selects
€ Level 2 is a step mentioning the time horizon the macro needs to iterate.
his or her products. The macro is also regenerated once the planner performs
€ Level 3 is a result of the specific key figure from the planning table. some action and saves the result interactively.
€ Level 4 is the argument that is often a function or logic for the macro. € LEVEl CHANGE
Macros are executed when the planner drills up and down in the interactive
Also seen in the example are the use of the control statement, condition
planning book.
statement, alert update, and simple mathematical calculations. Besides the
ACTIVATE MAcro icon, the other two icons (CHECK and DEACTIVATE) are helpful € START
to trouble- shoot the macro syntax errors during macro writing. Macros are executed when the planner opens the planning book and selects
his selection ID.
User Exit Macros
€ EXIT
User exit macros can be used to code complex business requirements not supported by Macros are executed when the planner saves the plan and exits the planning
standard macro functions. Use function module EXIT_/SAPAPO/SAPMMCP6_005, which book.
includes program ZXMUSERU0 where the user exit routine can be written.
Process Steps for Creating a Simple SAP APO Macro

Depot The following provides some simple steps for creating a macro in the Macro
The macros get parked in the DEPOT. Once the macros are activated and saved, Workbench, which is accessed via Transaction /SAPAPO/ADVM:
they can be parked in the depot by simple drag and drop. Different statuses can
1. Navigate to the macro development area. Right-click MACROS IN THE MAcro
be identified with macro status colors:
Book and then click CrEATE NEW MACro • ADD MACRO.
€ Green 2. Give a text description of the macro. If the macro can be interactively
Indicates that the macro has no syntax or logic errors and that the macro is executed in the planning book, choose any appropriate icon design in the
compiled and activated. ASSIGNED PUSHBUTTON. Click CONTINUE once done.
€ Yellow 3. Right-click the macro name and then choose ADD MACRO ELEMENT • STEP.
Indicates that the macro has been checked and does not have error but is not Give some description of the step. Click CONTINUE once done.
activated.
4. Now drag and drop Row from the PLANNING TABLE in the ELEMEnt section to
€ Red the macro development area. Identify the key figure to be used for the calcula-
The macro is not complete. tion. Click ADOPT once done. If any more key figures are dragged and dropped
for calculation (let‘s say A = B + C), select CREATE IN NEXT LEVEL for key
figures B and C.
178 179
5. Drag and drop the OPERATOR/FunctION to the key figure calculation. Choose
2. During the key figure definition, assign the second fixing key figure informa-
INSERT when inserting the mathematical operation + between two key figures B
tion on the first key figure info object within the FIXED KEY FIGURE field.
and C. Click CONTINUE once done.
3. Access the planning area administration using Transaction /SAPAPO/MSDP_
6. Click the CONSISTENCy CHECK before activating the macro. Any syntax
ADMIN. In the planning area, the first key figure will have FIXED KEY FIGUre
errors will be identified in this step. If there are no errors, the macro name
type. This is just a validation step to ensure correct assignment of the key figure.
icon will turn yellow, and we can activate the macro.
As a result of these steps, when a user is in the planning book and right-clicks the
7. If the macro needs to be executed every time we open the planning book or exit
FIx CELL option, a padlock icon and a pink font indicate that this value is
or change the planning level, drag and drop the macro under the DEFAULT,
now fixed. If you want to automate the functionality, you can fix the key figure
LEVEL CHANGE, START, and EXIT options on the EvENTS section on the Macro
with a macro by making a change in the key figure scope of the change to level
Builder.
fixing in the Macro Workbench, as shown in Figure 4.20.
8. Save the macro by clicking the SAVE icon.
InfoObject
Locking Key Figures

Sometimes a business may need to lock a key figure after planning. There can
be various business reasons for locking a key figure to avoid any system
calculation override. For example, the ABC Technology demand planner locks
the current month plan after it is released in sales and operations. This snapshot
helps the company to calculate the forecast accuracy based on the snapshot.
Another business scenario when the locking function can be used is in

allocation. This is often used when remaining material quantities need to be
redistributed to other products (for example, promotional items) in a product Fixing via Macro
group after the base product volume is fixed. The fixed value should not change
if you change other values of key figures at different planning levels. To Planning Area
customize fixing within a key figure, follow these steps (see Figure 4.20):
1. Access the BW Administrator Workbench in SAP APO using Transaction

RSA1. Define two key figures—one for the value of the key figure and one to
store the fixing information.
Note
Note that the second key figure type needs to be an SAP APO key figure (not SAP
BW). During the key figure creation, we get two options: an SAP APO key figure or
SAP BW key figure type. The SAP BW key figure type is used primarily for data
staging and extraction process, while the SAP APO key figure type is used only for
planning purposes.
Figure 4.20 Fixing Key Figures
180 181
Data Staging for SAP APO-DP
Note € Inbound staging
Refer to SAP Notes 643517 and 687074 for more information on how to fix key figures Involved in loading the historical sales orders data and delta sales orders after
with macros. system cutover.
€ Outbound staging
Involved in the extraction of planning data from SAP liveCache for reporting
4.2.7 Time Series Consistency Checks and archiving purposes in SAP BW.
Once any new master data is maintained in APO-DP, we need to execute the Figure 4.21 shows the schematic flow diagram for the inbound and outbound
consistency check and delta sync programs routinely. For data consistency, it flows in SAP APO. The inbound flow starts from SAP ERP Logistics Information
is highly recommend that you check the SAP liveCache consistency on a regular System (LIS) extractors for sales orders and deliveries that will load the actual
basis. Table 4.1 lists all transaction codes you can use to check the time series sales orders into the historical InfoCube in SAP BW.
consistency check in APO-DP.
SAP ERP SAP BW SAP APO
Transaction Description
/SAPAPO/TS_LCM_CONS_CHECK Time series consistency check
/SAPAPO/TS_PSTRU_CONS_CHECK Planning object structure consistency check Sales
Sales Sales SAP liveCache
Archiving
/SAPAPO/TS_LCM_PLOB_DELTA_SYNC Adjust time series object in planning object Reporting
ODS
structure
/SAPAPO/TS_LCM_REORG Delete time series and time bucket profiles
having no SAP liveCache anchors
SD Order
/SAPAPO/OM17 Consistency check between SAP liveCache 2LIS_11_VASCL Sales
and time series History
APO-DP Planning Area
Cube
/SAPAPO/TS_PAREA_INITIALIZE Initialize time series in planning area SD Delivery
2LIS_12_VASCL
Table 4.1 SAP liveCache Consistency Check Transaction Codes Sales
Delta
Cube Export
datasource Sales
History
Once you‘ve performed the basic configuration, it’s time to load the historical Cube
Customer Customer
data via data staging. We’ll discuss this in the following section.
Export datasource Sales
Delta
Material Material
Cube
ata Staging for SAP APO-DP

Data staging in APO-DP involves both inbound and outbound flows to SAP
Figure 4.21 Demand Planning Data Staging Involving SAP ERP, SAP BW, and SAP APO
APO. The inbound flow is the historical sales order data, which is interfaced
from SAP ERP via SAP BW. The outbound flow is the data extraction of
There are two InfoCubes: one for historical sales orders and the other for the
demand planning data for reporting purposes. The core activities performed
delta load after the system has gone live. The material and customer master data
during the inbound and outbound staging are as follows:
are also interfaced with SAP BW to be enriched with additional material and
customer
182 183
4 Preparing for Basic Planning Functionality Data Staging for SAP APO-DP 4.3
attributes (for example, MRP controller or transportation zone), which are used
for demand planning. The historical load usually consists of two to three years
of sales order history, while the delta load consists of the last week’s sales
orders. Once the data is available in APO-DP’s internal SAP BW component, it
can be transferred to the APO-DP area. The subsequent process creates
forecasting for the materials.
The outbound data staging begins once the planning is finalized and can be pub-
lished to SAP BW for the reporting and archiving processes. The data is extracted
from time series SAP liveCache and passed into SAP BW objects. The main
reasons to route the data staging via SAP BW are the scalability, archiving, and
reporting capabilities. The business uses the report for its monthly forecast review
meeting and also for sales and operations planning meetings.
Let’s see the customization steps for modeling the SAP APO inbound process
for loading historical data into an SAP APO InfoCube. All the customization
steps are done in the BW Administrator Workbench (Transaction RSA1):
1. Create a source system.

A source system indicates the system from which the transactional data
and master data originated. Besides the flat file system, there are multiple
other source systems available to connect with SAP BW in SAP APO.
Examples are SAP BW, DBConnect, and web services. ABC Technology would
like to upload the historical sales orders from both the flat file and the SAP BW
system. To create a source system, right-click the source system type (file, BW)
and select CrE- ATE. Figure 4.22 1 shows the source system created from the
BW Administra- tor Workbench.
2. Create a DataSource.
After the source system, we create a DataSource. Here we specify the format of
the file, which will be uploaded into the InfoCube, so this needs to be in accor-
dance with the file format that has been decided for data upload. The Figure 4.22 Steps for Creating a Source System and DataSource
ABC Technology planner has decided to load the historical sales from the flat
file. Select the DATASOURCE option from the MODELING section and right-click Custom DataSource
the unassigned node to select the CREATE DATASoURCE option. Provide the
Companies often build custom tables in their systems to support business
source system name to be linked with the DataSource. Figure 4.22 2
requirements. Use Transaction SBIW (Generic DatasSource - Maintain Generic
shows Data- Source creation for transactional data (historical sales). DataSource) for custom table extraction. Input the transactional data table name in the
TRANSACTIoN DATA field to create the DataSource.
184 185
3. Create InfoCube.
The final InfoCube, once activated, will look like what’s shown in Figure
The InfoCube serves as a data container for the planning data wherein we
4.24. The InfoCube will store the data to be transferred to the planning area as
assign the characteristics and key figures (see Figure 4.22, 3). The InfoCube
time series objects in SAP liveCache for demand planning.
can receive data from multiple InfoSources. Follow these steps (see Figure
4.23):
€ Access Transaction RSA1. Right-click INFOPROvIDER in the MODELING area to
first create an InfoArea 1.
€ Once the InfoArea is created, right-click the created InfoArea again to create
your InfoCube by choosing option CrEATE INFOCUBE 2.
€ Nominate the InfoCube to be the BW type in the CHOIce of BW APPLICATIoN
pop-up screen 3 and 4.
€ In the InfoCube, directly input the dimensions (characteristics) and key fig-
ures by clicking on DIMENSIoNS • CrEATE NEW DIMEnsIONS.
Note
If you have any navigational attributes attached with the characteristics, they will pop-
ulate automatically in the InfoCube (step 5).
Figure 4.24 InfoCube with Various Dimensions (Characteristics) and Key Figures
4. Create transformation.
Once the InfoCube is created, we need to define the transformation and data
transfer process (DTP) for mapping the source (file) with the destination
(Info- Cube). Follow these steps:
€ Access Transaction RSA1 (Figure 4.25), right-click your InfoCube name, and
select CREATE TRANSFORMATIon 1.
€ In the CREATE TRANSFORMATION screen, input the DataSource to be con-
nected with the InfoProvider (InfoCube) 2 and 3.
Figure 4.23 Steps for Creating an InfoCube in SAP APO’s Internal SAP BW Component
186 187
€ An automatic proposal of the field mapping between the DataSource and

€ In Transaction RSA1, locate your InfoCube under the INFOPROVIDER. Under
InfoCube will be shown in the next screen. Take note of the rule type by
the InfoCube structure, click the DTP to input the file loading path, per the
which we can define the data transformation method 4. The rule type is
example in Figure 4.26 (1 and 2). The DTP can be either scheduled in a pro-
used for any transformation (for example, changing the unit of measure
cess chain (Transaction RSPC or run directly via Transaction RSA1.
from an alternative to a base unit of measure). In the rule type, we define
whether any data conversion is required from the DataSource file before
loading historical data into the InfoCube.
€ Assign a constant value to a characteristic, change the calendar day to
calendar month or input routine to change the unit of measure.
Figure 4.26 Steps for Creating the DTP
€ Once the DTP process runs successfully, view the data content of the request
Figure 4.25 Steps for Creating Transformation
by right-clicking the InfoCube (see Figure 4.27) and selecting MANAGE
1. Highlight the InfoCube and select the icon on top, CONTENTs. This will
5. Create data transfer process (DTP).
display the InfoCube contents. Figure 4.27 also shows the data model for
This process will be used to upload the file into SAP APO and schedule it as a
the InfoCube 2. We can also view the data model by clicking the DISPLAY
process chain job:
DATA
188 189
Data Management in SAP APO-DP 4.4
MODEL option 3. A graphical tree structure shows how the data from
is launched or a customer/customer group starts buying a product they did not
the source system (flat file) moves to DataSource, and then via DTP to the
buy in the past, a new CVC needs to be created in APO-DP. In the following
Info- Cube.
sections, we’ll show you how to create a CVC and how to work with it.
Creating New Characteristic Value Combinations

For new products, the new characteristic combinations will have to be created
manually since the planning needs to forecast before the first actual sales
occur. In our business case example, ABC Technology has implemented a new
product introduction (NPI) workflow, which tracks the completion of all the
master data maintenance activities in a timely manner. For situations when a
customer buys an existing product for the first time, the new characteristic
combinations can be generated automatically using the history of these sales.
The CVC can be created either manually or automatically via Transaction
/SAPAPO/MC62. For manual creation, the demand planner clicks CrEATE
SIN- GLE CHARACTERISTics COMBINATION for the specific master planning object
structure. In the next screen, the demand planner maintains all the required
charac-
teristics and presses EXECUTE (F ).
Note
You can find additional information on how to maintain CVCs in Chapter 5, Section
5.2.2.
Figure 4.27 InfoCube Content and Data Model

Capturing History
The sales order history is captured in SAP APO’s internal SAP BW
ABC Technology uses the InfoCube not only for loading the historical files, for
InfoProvider (InfoCube), where we can generate the characteristics
online reporting purposes via a virtual InfoCube with SAP APO’s internal SAP BW
combinations automatically. This process can also be scheduled as a
component.
background batch job. To enable this process, the user needs to validate that the
sales order history is available in the InfoCube using Transaction LISTCUBE and
access Transaction /SAPAPO/MC62, which is used for CVC generation using the
ata Management in SAP APO-DP InfoCube (see Figure 4.28). For large- volume CVC creation, it is always
APO-DP needs characteristic value combinations (CVC) to exist for every recommended to split the job to avoid any performance issues. You should run
possible combination that needs to be planned. This means that every time a the time series consistency programs (see Sec- tion 4.2.7) after the CVC creation
new product to avoid any SAP liveCache inconsistency anchor issues.
190 191
4 Preparing for Basic Planning Functionality Setting up Forecast Methods
Figure 4.28 CVC Creation (Transaction

/SAPAPO/SDP94). During the transfer, the business planner needs to exit the planning
4.4.3 Transfer Planning Data book to avoid any data locking issues.
Once the CVC is created as APO-DP master data, we can transfer the planning Once the history is loaded in the planning book, the planner needs to identify the best
data from SAP APO’s internal SAP BW InfoCube to the APO-DP planning area. forecast model to run the product for determining future forecasts. Setting up the forecast
To do this, access Transaction /SAPAPO/TSCUBE (see Figure 4.29). Enter the method is discussed in the next section.
Info- Cube (source) and APO-DP planning area (destination) in their respective
fields, as well as the planning version (active version 000).
Map the InfoObject of the InfoCube with the key figure in the planning area.
The transfer of the planning data can be validated in the planning book
Figure 4.29 Loading Planning Data from InfoCube to Planning Area/Book
ABC Technology needs to decide on the level of the product hierarchy at which to run
the statistical forecast. It also needs to decide on the time bucket used for statistical
forecasting, the length of history and future horizons, forecasting method, parameters
tting up Forecast Methods within the method, and frequency of update for the forecasts.
Before performing the forecast modeling in the system, the business There are two different methods of forecasting available in APO-DP: univariate
planner needs to make some of the following decisions to start the forecasting and casual forecasting. The former purely studies the historical
process. pattern
Example
192 193
Setting up Forecast Methods 4.5
and proposes the best fit model based on the lowest forecast error. The latter
combines the external market factors (economic condition, price, weather, etc.) Historical
sales raw
while determining the forecast. data
Next, we will look at both univariate and casual forecasting methods. First, let
Data
us look at the univariate forecast methods. In our business case example, analysis
complete
depending on product family, ABC Technology can use either of the forecasting
models. While the univariate is easy to formulate, the casual requires more
Plot the data in
effort on the collection of external environment data. planning book and
analyze pattern
Univariate Forecasting
This section presents the overview on forecasting model framework using Is the
YES demand pattern NO
univariate forecasting as example. Further explanation on the univariate seaonal?
forecasting is provided in Section 4.5.3.
Within the univariate forecasting method, there are more than 20 different statis- Does the Does the
pattern have pattern have NO
tical models available in SAP APO, but we can broadly classify them into two: linear trend? linear trend?
exponential smoothing and linear regression. Exponential smoothing uses YES NO YES NO
Seasonal
Holt or Single
inherent properties of time series, while linear regression extrapolates a model linear Seasonal,
linear exponential
regression or no trend
fitted to the data. Table 4.2 provides the list of six commonly used forecast Regression smoothing
Holt-Winters
methods across the exponential and linear regression.
Forecast Method Profile Interactive Perform automatic

forecasting model
Single Exponential Smoothing M11 Constant Models comparision
Holt’s Method M21 Trend Models
Seasonal, No Trend M31 Seasonal Models
Holt-Winters’ Method M41 Seasonal Trend Models Manual vs.
auto forecast error
Linear Regression M94 Linear Regression acceptable
Seasonal Linear Regression M35 Seasonal and Linear Regression

YES
Table 4.2 Commonly Used Forecast Methods in SAP APO
Forecast model
identified
Figure 4.30 illustrates the forecasting model framework with steps toward iden-
Figure 4.30 Forecasting Model Framework
tifying the best fit forecasting model:
1. Collect the raw historical sales data from the source system. 3. Load the planning data into SAP APO to study the historical pattern.
2. Analyze the data and perform possible manual outlier corrections on known 4. Perform the decision tree on demand pattern seasonality and linear trends.
events.
5. Select the decision tree model and run an interactive forecast.
194 195
6. Run the automatic forecast selection model.
Ex-Post Forecast
7. Compare the manually selected and automatic forecast model with forecast
An ex-post forecast is a forecast run in the past against historical values. The ex-
error analysis.
post forecast is used to measure model fit. Figure 4.32 shows the ex-post forecast
8. Reiterate the result with a similar forecast model by fine-tuning , , and  calculated during the forecast run. The comparison of the ex-post forecast and
parameter values. history gives the forecast error used for identifying best-fit model. Some of the
9. Alternatively, identify new forecast models until the result is satisfactory, per forecast models (i.e., moving average, weighted moving average, history adopted,
business requirements. and manual forecast) do not generate the ex-post forecast. This analysis allows the
ABC Technology demand planner to look at the outliers identified during the ex-
post moving average calculation.
Forecast Definitions
Before we look at various forecast methods in more detail (later on in this sec-
tion), let’s look at some common definitions used in the forecasting process.
Initialization Ex-post Forecast Forecast
Data Values
Model Parameters
The model parameters—alpha (), beta (), and gamma ()—control the Forecast
weighting of each historical value. Alpha is used in basic value calculation, beta Values
in trend value calculation, and gamma in the seasonal index calculation. Values History Values
History Future
for the parameters range from 0 to 1. Values closer to 0 will use the whole
history, while values closer to 1 use only the more recent historical data. The
parameters also control how reactive the forecast is to changes in the historical Figure 4.32 Ex-Post Forecast and Initialization During the Forecast Run
pattern.
Model Initialization
Figure 4.31 graphically depicts the three parameters. ABC Technology presents
the lowest value of 0.1 across all three parameters in the auto-model and lets the As most of the model uses the recursive method to look at the history pattern,
system perform in increments until it finds the lowest forecast error. depending on the model, one or more period is required for initialization. Table
4.3 gives the list of minimum periods required by the system and ideal history for
proper statistical calculation.
Forecast Method System Statistical

Single exponential smoothing 3 6
Holt’s method 4 6
Seasonal value ()
Trend Seasonal, no trend 12 24
Holt-Winters’ method 15 24
value ()
Linear regression 1 6
Basic value ()
Seasonal linear regression 12 24
Past
Table 4.3 Minimum Number of Periods Required by the System
Future
Figure 4.31 Forecasting Model Parameters
196 197
4 Preparing for Basic Planning Functionality Setting up Forecast Methods 4.5
Forecast Error Forecast Profile

A forecast error is defined as deviation between the actual history and the In APO-DP, the logic of how a forecast is carried out is stored in the forecast
calculated ex-post forecast. The lower deviation (forecast error) means the profile. Since different models can be used for different products, various
forecast has used more of the historical pattern while estimating the future forecast profiles can be set up in the system. The forecast model to forecast
forecast. The demand planner needs to closely monitor the forecast error while seasonal products may be different than stable products. The maintenance of
picking the best fit forecasting model for their products. SAP APO provides the forecast profile is done primarily by the business users. The ABC
alerts in form of diagnosis group where the % forecast error tolerances can be Technology demand planner uses his or her product experience to set some of
defined for monitoring the forecasting result. Table 4.4 lists all the forecast the products on the auto-forecasting model and separate others to run on a pre-
errors. Industry best practice recommends using forecast errors MAPE and defined forecasting model.
MAD for forecasting model identification.
Best Practice
Forecast Error Definition Comment
As an industry best practice, the forecasting model is reviewed by the business once
Name
every quarter by analyzing the forecast accuracy performance. The same forecast
Mean absolute The mean absolute deviation is calcu- The mean absolute deviation profile can be used for both interactive and background batch jobs.
deviation (MAD) lated by the absolute difference is the error calculation used
between the ex-post forecast and the to determine the best fit in
actual value. the Auto Model 2 Forecast-
A forecast profile is created in Transaction /SAPAPO/MC96B, as shown in Figure
ing Model. MAD is an exam- 4.33. Besides defining the forecast and history key figures, we also define the
ple of absolute error. horizons and the forecasting model.
Error total (ET) The error total is the sum of the dif-
ference between the actual and the
ex-post forecast.
Mean absolute The mean square error is the average The mean absolute percent-
percentage error of the sum of the square of each dif- age error is the most com-
(MAPE) ference between the ex-post forecast monly used in the industry,
and the actual value. along with MAD. MAPE is an
example of relative error.
Mean square error The mean square error is the average
(MSE) of the sum of the square of each dif-
ference between the ex-post forecast
and the actual value.
Square root of mean The root mean square error is the
square error (RMSE) square root of the average of the sum
of the squared difference between
the actual and ex-post forecast value.
Mean percentage The mean percentage error is the Mean percentage error is the
error (MPE) average percentage error of the simplest of all the errors,
difference between the ex-post with high chances of being
forecast and the actual values. skewed due to outlier
record. Figure 4.33 Forecast Profile
Table 4.4 Forecast Error Used for Analysis
198 199
Assignment of Forecast Key Figures Single Exponential Smoothing (Method 11)

Key figures can be assigned to store the calculations of forecast, corrected history, This method is best suited for products with a historical pattern that does not
corrected forecast, ex-post forecast, and ex-post forecast MLR. This assignment is include any seasonality or trend. Some of the ABC Technology products, such
done in Transaction /SAPAPO/MSDP_ADMIN with the path EXTRAS • as desktops, have stable sales and will use the single exponential smoothing
FoRECAST SETTINgs. Figure 4.34 shows the forecast key figure assignment. method. This method forecasts the next period (monthly bucket), and this value
is repeated for next 12-18 months. The forecast method yields a flat line. The
forecast is a weighted average of the baseline history, and the recent history is
weighted more than the past periods.
A parameter value of  closer to 0 will result in a slower decline, while one

closer to 1 will result in a fast decline. A recommended parameter value  is
between 0.2 and 0.5. An example of a single exponential smoothing model from
ABC Technol- ogy is shown in Figure 4.35.
Figure 4.34 Forecast Key Assignment in Planning Area
Corrected History
The outlier from the history can be corrected either manually or automatically
by defining in the forecast profile—outlier correction, as shown in Figure 4.33.
The correction is done for the outlier lying outside the tolerance level calculated
with reference to standard deviation. The ABC Technology demand planner
reviews the automatic cleansing of the outliers to ensure that the historical
pattern is not touched during the correction.
Corrected Forecast
The corrected forecast takes into account the workday correction for the respec-
tive bucket. This can be achieved by maintaining the DAYS IN PERIod field in the
univariate forecast profile (Figure 4.33). An alternative would be to use a macro
based on the time stream planning calendar defined in the location master.
Univariate Forecasting Methods Figure 4.35 Single Exponential Smoothing Model

Let’s study some of the commonly used univariate (statistical) models in this
section.
200 201
Holt’s Method (Method 21) Seasonal, No Trend Model (Method 31)

ABC Technology markets some products that have specific lifecycles (for ABC Technology also markets some products (monitors) that demonstrate some
example, laptops) and need to model the upward/downward trend pattern to seasonal patterns during school holiday and holiday seasons. For these groups of
ensure that they do not have excess inventory when the product is being products, the company plans to model the seasonal forecasting model. This
replaced with another product line. Holt’s method is suitable for products with a method is suitable for products with a historical pattern that includes seasonality
historical pattern that does not include any seasonality but does have a but no consistent trend. The forecast will copy the seasonal pattern into the
consistent linear trend, upward or downward. future, but there will be no trend adjustment.
The forecast is a straight line, with a positive or negative slope. Two parameters Two parameters are needed to estimate the forecast:  and . As for single expo-
are needed to estimate the forecast:  and . As for single exponential nential smoothing, a controls how much weight is given to the recent periods,
smoothing, while parameter  controls the seasonal pattern used to forecast. A
 controls how much weight is given to the most recent periods and  controls
recommended parameter value  is between 0.3 and 0.5, and for , between 0.1
how strongly the trend is smoothed. A trend dampening profile can be defined
and 0.3. The lower value of  favors two seasonal patterns. An example of a
in the forecast profile to smooth out the trend. A recommended parameter value seasonal model from ABC Technology is shown in Figure 4.37.
for
 and  is between 0.3 and 0.5. Higher values favor more recent data. An example
of the Holt's method modeled from ABC Technology is shown in Figure 4.36.
Figure 4.37 Seasonal Model
Holt-Winters’ Model (Method 41)

This method is suitable for ABC Technology products with a historical pattern
that includes seasonality and a linear trend. (For example, the company is selling
Figure 4.36 Holt’s Trend Model
202 203
some computer accessories, but they’re outdated and sell worse from year to
priate smoothing factors. Setting up the auto model allows the ABC Technology
year.) The forecast will copy the seasonal pattern into the future and adjust a lin-
demand planner to review the system-proposed model and makes any changes
ear trend, upwards or downwards. Three parameters are needed for this method
as required.
be set: , , and . These three parameters need to be fine-tuned with the
iterative forecasting process to achieve a low forecast error values (MAD and Forecast Error Result Analysis
MAPE).
Implement BAdI /SAPAPO/SDP_FCST4 to record the background processing results of
forecasting models in tables /SAPAPO/FCSTHEAD and /SAPAPO/FCSTACCU. Set the EV_
FLAG_ACTIVE = ‘X.
Linear Regression (Method 94)
This method is an alternative to method 21, but based on a different approach.
No parameters need to be set. This method uses a classic linear regression based Mathematical Formulas1
on the least-squares principle. This regression is extrapolated. It is the same
Let’s see some of the standard formulas used in the forecasting calculation. Table
method as the linear trend line option in Excel.
outlines the constant, trend, and seasonal trend models and the basic formulas.
Seasonal Linear Regression (Method 35) Model Model Parameters
This method is an alternative to method 41, but based on a different approach. Constant model Basic value = Hist(1) where Hist(i) is the ith historical value
No parameters need to be set. This method first estimates seasonal indexes, Trend value = 0
which are used to de-seasonalize the baseline history. Then, a linear regression Seasonal indices = 1
is applied. This regression is extrapolated, and the forecast is seasonalized back. Mean absolute deviation (MAD) = 0
This method weights the values in the past equally. Note also that the trend Trend models Hist(3) – Hist(1)
Trend value =
component cannot be eliminated within this method. 2
Hist(3) + Hist(2) + Hist(1)
Basic value = + Trend
Croston Model (Method 80) 3
Seasonal indices = 1
The Croston Model (80) is used when demand is sporadic or intermittent. The 3
return is a constant model to meet the possible sporadic demand. This model is Σ |Basic value – Hist(i)|
used by ABC Technology for some of its product line that doesn’t have a stable Mean absolute deviation (MAD) = ————————i=—1———————
history. 3
Seasonal models Basic value = Mean of the historical values of the first historical season
Trend value = 0
Automatic Forecasting Models Seasonal index for a period = Historical value for that period divided
SAP APO also offers an automatic forecasting model that the business can opt by the basic value
to use for initial forecasting model identification or comparison purposes. The Mean absolute deviation (MAD) = 0
most commonly used is Auto Model Selection Procedure (Method 56). This Table 4.5 Constant, Trend, and Seasonal Trend Model Formulas
method tests for constant, seasonal, and/or trend models while attempting to
1 help.sap.com
minimize error by adjusting , , and  parameters. This model adjusts , , and
 between the values of 0.1 and 0.5 in increments of 0.1, while calculating the
MAD for each iteration. The iteration with the lowest MAD is the model
chosen, with the appro-
204 205
Model Model Parameters
Model Model Parameters For the seasonal model
Seasonal trend Trend value = T(t) = 0,  = 0
models
Hist(1+SL) + Hist(2+SL) + Hist(3+SL) – Hist(1) – Hist(2) – P(t+i) = The forecast calculated for the period (t+i) in the current
Hist(3) (3* SL) period (t)
i = Forecasted horizon
where Hist(i) is the ith historical value and SL is the length of a season.
G(t) = The current basic value for the current period
SL+3
Σ Hist(i) (t) G(t-1) = The previous basic value from the previous
i =4 Tr e n d * ( S L – i)
Basic value = ———— — ——— + — — — — — — — — — — period
SL 2
L = Period length (often 12)
Seasonal index for a period = V(t) = Actual demand (history) for the current period (t)
Hist(i+3)
S(i+3) = —————— ————— T(t) = The current trend value calculated for the current period
———————
Basic value – Trend* (SL-i) T(t-1) = The previous trend value from the previous period
S(t) = The seasonal index for the period (t)
Where S(i) is the ith seasonal
S(t-L) = The previous seasonal index for the period (t)
index. Mean absolute deviation
(MAD) =
 = Smoothing factor for the basic value ‘G’, 0 <  < 1
 = Smoothing factor for the trend value ‘T’, 0 <  < 1
SL
Σ |[Basic value – (SL–i) * Trend] * S(i) – Hist(i+3)|  = Smoothing factor for the seasonal indices ‘S’, 0 <  < 1
i=1
——————————————————————————— Table 4.6 Seasonal and Trend Model Formulas
—————————— SL
Table 4.5 Constant, Trend, and Seasonal Trend Model Formulas (Cont.)
Casual Forecasting Methods
Table 4.6 outlines the seasonal and trend basic formulas. Casual forecasting is based on the relationship between the variable to be fore-
casted and an independent variable. The SAP APO casual forecasting method is
Model Model Parameters
based on multiple linear regression (MLR) using the ordinary least squares
Seasonal and trend Forecast value for the period method. The equation for the method is simple: y = a + bx. This is a simple
models (t+i) P(t+i) = [G(t)+i * T(t)] * S(t– alge- braic formula. It simply defines the shape of a line.
L+i) Where:
When used with regression analysis, the y, or dependent variable, represents the
Basic value: G(t) = G(t–1) + T(t–1) + 
[ V(t)
– G(t–1) – T(t–1)
S(t–L) ] demand. This is the number we are trying to forecast. The x, or independent
variable, represents the item that directly influences the shape of the line. a is
Trend value: T(t) = T(t–1) +  [G(t) – [G(t–1) + T(t–1)]
the intercept, while b is the slope of the line. Correlation measures the strength
Seasonal index: S(t) = S(t–L) +  [ V(t)
G(t)
– S(t–L) ] of the relationship between the dependent and independent variables.
For the constant model Example

T(t) = 0,  = 0, S(t) = 1.0,  = Gamma = 0 For example, ABC Technology uses the price as one of the casual variables in the calcu-
For the trend model lation, while the other business scenario uses weather as one of the drivers for the MLR
S(t) = 1.0,  = Gamma = 0 calculation.
Table 4.6 Seasonal and Trend Model Formulas
206 207
Basic Customization in SAP APO-SNP 4.6
Now that we’ve completed the basic customization of APO-DP, we’ll move on
Category Group
to customizing the other important SAP APO module: Supply Network
Planning. Every key figure in APO-SNP is linked with categories. The categories are
descrip- tions of different stock types, receipt types, or requirement types in
SAP APO. A group of categories (also known as ATP elements) can be classed
as a category group representing various elements. This way, the aggregation of
Basic Customization in SAP APO-SNP
all the categories is shown in the key figure for the specific bucket. Another
This section focuses on explaining the basic customization steps for APO-SNP. important use of the category group is the ability to specify the quantity type for
Unlike what you saw with APO-DP, where we had to create many different ele- each of the defined categories. With this functionality, different key figures can
ments, APO-SNP uses the majority of the standard InfoObjects, characteristics, be configured to specify the requested sales orders, confirmed sales orders, or
key figures, and planning books from SAP. There are multiple standard APO-SNP backorders in the planning book. The flexibility of defining the category per key
planning books that ABC Technology can use as a template to design its supply figure provides flexibility to businesses to distinguish the use of each demand
planning books. The flexibility of macros on these planning books allows the and supply planning key figure for calculation.
company to change some of the demand and supply calculations.
Example
In the following sections, we’ll show you where to find APO-SNP InfoObjects
An example from ABC Technology is the inventory type taken into account for the
and planning materials, and how to use them. demand and supply calculation. The company wants to take only unrestricted inventory
into account and not count blocked or restricted inventory into stock calculations.
Another use is separating two key figures for sales orders and deliveries.
InfoObjects
Standard characteristics and key figures are used in SAP-provided planning areas To customize a category (see Figure 4.38), follow menu path SPRO • SAP REFER-
and planning books. The planning data in APO-SNP can be stored either in time- ENCE IMG • ADVANCED PLANNING AND OPTIMIZATion • GlobAL AvAILABLE To
series based SAP liveCache or order-based SAP liveCache. The key figure informa- PrOMISE • MAINTAIN CATEGORy. Here you’ll see all the available categories in SAP
tion to be stored as order or time series SAP liveCache is defined in the planning APO; these can be transferred from SAP ERP by the CIF integration model for the
area configuration. The order SAP liveCache key figures are the ones that are ATP customizing object. The activity can be performed in SAP ERP via generating
interfaced with CIF to SAP ERP. and activating the CIF integration model using Transactions CFM1 and CFM2.
The standard characteristics provided are listed in the master planning object
Similarly, you customize a category group via menu path SPRO • SAP REFERENCE
structure 9ASNPBAS, while the key figures are displayed in standard planning
IMG • ADVANCED PlANNINg AND OpTImIZATIoN • SUpply CHAIN PlANNING • SUPPLY
areas 9ASNP01, 9ASNP02, 9ASNP03, 9ASNP04, and 9ASNP05. The master
NETWORk PLANNINg • BASIc SETTINGS • MAINTAIN CATEgory GROUps. As
planning object structure and planning area can be accessed using
Figure
Transaction /SAPAPO/ MSDP_ADMIN. If you don’t see the characteristics and
4.38 shows, the quantity type can capture the requested, original, and confirmed
key figures, run report
quantity. From the defined list of the categories, we define a new category
/SAPAPO/TS_D_OBJECTS_COPY from Transaction SE38 (ABAP Editor).
group. Under this new category group, we input all the categories we want to
Additional key figures can be created to support business requirements either by display in the key figure. For some specific key figure, we can define whether
navigating to the BW Administrator Workbench (Transaction RSA1) and follow- the category quantity type is requested, original, or confirmed.
ing the path RSA1 • EDIT • OBJECTS • INFOObJECT, or by directly typing Transaction
RSD1. Here, maintain the SAP APO key figure of quantity (QUAN) and base unit
of measure 0BASE_UOM.
208 209
Categories
Category Group SNP Planning Area
Category Group
DP to SNP Release
Figure 4.38 Categories Assignment to Category Group

Figure 4.39 Category Group Assignment in APO-SNP Planning Area, APO-DP Release
The category and category group can be maintained in either of the following
four function areas in both configurations and also during the planning data € Location master
release from APO-DP to APO-SNP: Default stock category, available to deploy and available to issue fields
specific to a location can also be specified in the location master data
€ Planning area
(Transaction
Assignment of category and category group to individual key figures in Trans-
/SAPAPO/LOC3), as shown in Figure 4.40.
action /SAPAPO/MSDP_ADMIN, as shown in Figure 4.39.
€ Location product master
€ Demand Planning release to Supply Network Planning
In situations where a business would like to prioritize the local forecast over
Assignment of category when releasing the demand plan, from the time series
internal replenishment transfers request, you need to maintain the location
to order SAP liveCache. Figure 4.39 shows the Transaction
product master, as shown in Figure 4.40. In the SNP2 tab, maintain the cate-
/SAPAPO/MC90 demand plan release to supply planning. As shown in the
gory group in fields ATD/ATI to be taken into account for the APO-SNP
figure, we maintain the TIME SERIES LIVECACHE for APO-DP to be released as
distribution planning process. The values maintained in the location product
OrDER LIVECACHE in APO-SNP. The forecast order category is maintained as
take precedence over the location master data category group. This allows the
FA.
business to define the parameters per location product combination.
210 211
APO-SNP Description
Planning Area(s)
9ASNP01 € Time series based.
€ Used for supply and demand propagation for simulating changes
caused by supply chain constraints to fulfill market demands.
€ All results stored as time series for quantity and time
restrictions.
9ASNP02 € Order based.
Location Master
€ Central planning area used for supply planning.
€ Encompasses many basic (replenishment, distribution, and
capacity) and advanced (aggregated, subcontracting, shelf life,
Product Location and product substitution) functionalities in supply planning.
9ASNP03 € Scheduling agreement processing using SNP heuristics planning.
9ASNP04 € Optimization-based planning with time-dependent
restrictions.
€ APO-SNP optimizer profile lists all the constraints to be factored
during the optimization run. However, there may be situations
when the constraints need to be defined that are time-based.
€ Upper limits of production, supplier capacity, transportation,
Figure 4.40 Master Data Maintenance of Category Groups or stock on hand can be defined as constraints.
9ASNP05 € Safety stock planning.
Planning Area € Both basic and advanced safety stock planning can be performed
in this planning area.
As with the demand planning area, we need to maintain planning areas for the
9AVMI03 € Used for deployment heuristics with consideration for demands
APO-SNP business process. The planning area is where we maintain the base plan- in the source location.
ning unit of measure, time bucket, and key figures. APO-SNP comes with two pre-
€ Used primarily for VMI scenario.
delivered planning objects: structure 9ASNPBAS (supply planning) and 9ASNPSA
Table 4.7 List of Standard APO-SNP Planning Areas
(scheduling agreement). It is recommended that we use these two planning object
structures during the APO-SNP planning area creation. The APO-SNP PlANNING
indicator in the planning object structure automatically assigns all the APO-SNP To create your own APO-SNP planning area, copy the planning areas listed in
characteristics. Table 4.7 by going to Transaction /SAPAPO/MSDP_ADMIN, selecting the
planning area, and right-clicking Copy. Additional custom key figures can be
Similar to what we discussed in Section 4.2.3 regarding APO-DP, we need to
added if required to support the business process. Other parameters, such as
create a storage bucket profile. A storage bucket profile defines how the
defining the storage bucket profile or unit of measure, can be done in the
system stores the data created in SAP liveCache and how it is used for
planning area. Since the ABC Technology planner uses a different unit of
calculation purposes. Use Transaction /SAPAPO/TR32 to create the storage
measure for planning, we can specify a common planning unit of measure in the
bucket profile. Unlike with APO-DP, SAP offers pre-defined APO-SNP
planning area.
planning areas that are recommended to be copied and used per business
requirements (see Table 4.7). You need to initialize the planning area by right-clicking INITIALIZE PLANNING VER-
SION for usage.
212 213
Planning Book APO-SNP Planning Book(s) Description
As explained in Section 4.2.4, the planning book serves as both the frontend 9ASNPAGGR This planning book supports APO-SNP hierarchical plan-
user interface for the business users to plan and for batch background process- ning. The book has two data views to perform aggre-
ing for planning cycles and alert generations. The ABC Technology business gated planning and planning with aggregated resources.
users plan to use the supply planning book to visualize the demand, supply, and 9ASNP_PS This planning book is used for product interchangeabil-
inventory information on a real-time basis to make key decisions. SAP delivers ity when planning. The book has one data view, with
additional key figures to support the product substitu-
standard APO-SNP planning books and recommends its customers to use these
tion features.
planning books as templates while building their own custom planning books
9ATSOPT This planning book is used to maintain the time-based
(see Table 4.8).
constraints for the APO-SNP optimizer. The planning
book has two data views.
APO-SNP Planning Book(s) Description
9ASNP_SSP This planning book is used for basic and advanced safety
9ASNP94 Interactive planning book for executing supply planning stock calculations.
and Transport Load Builder (TLB) features. Using this
9ADRP_FSS This planning book is used for the deployment heuristics
planning book, the planner can create external procure-
to also consider the customer demand in the source
ment, replenishment, production, distribution, and load
location and not deploy the entire inventory for internal
plans.
replenishment transfers.
There are two data views in 9ASNP94. The first data
view, SNP94(1), is for supply planning, while the second 9ASNP_SHLF This planning book is used for shelf life planning. There
data view SNP94(2) is for capacity planning. The TLB are four additional key figures with shelf life functions to
screen is accessed by using the icon. support the planning process.
9ASNP94_INTERACT This planning book is for displaying aggregated supply
9ASOP This planning book is used to run the APO-SNP planning
planning and aggregated resource planning information.
method based on supply and demand propagation.
There are four data views in 9ASOP: Location product, 9ASNP94_BATCH This planning book is for running the supply planning
transportation, PPM, and resource. processes in the background.
9ADRP This planning book is similar to the 9ASNP94, with the

difference being the addition of the table view, showing Table 4.8 List of Standard APO-SNP Planning Books Delivered by SAP (Cont.)
the distribution receipts and issues. There is only one
data view on this planning book.
The custom planning book can be easily created using one of the SAP standard
9AVMI This planning book is for the VMI scenario. In addition
planning books from the table as a template. The planning book can be created in
to APO-SNP data, we can display VMI receipts and
demand key figures in this planning book. There are
Transaction /SAPAPO/SDP8B in four steps, as shown in Figure 4.41:
two data views for this planning: one for planning and 1 Define your new planning book and data view using a reference with
the
standard data view. In our scenario, we are copying the standard 9ASNP94(1)
other for capturing external partner forecast.
planning book. Once you click the CrEATE icon, a message will pop-up
9ASA This planning book is used for the APO-SNP scheduling
agreement process. There is only one data view for mentioning that “macros were copied and are inactive.”
this planning book. 2 Assign your own planning area to the planning book from transaction menu
Table 4.8 List of Standard APO-SNP Planning Books Delivered by path EDIT • ASSIGN PLANNING AREA.
SAP
214 215
4 Preparing for Basic Planning Functionality Basic Customization in SAP APO-SNP 4.6
3 Select your planning area and click CONTINUE. An application log will be
generated mentioning that the new planning area is assigned. While exiting,
if this message appears again for resetting the original value, select No.
4 Generate all the macros for the planning book in Transaction /SAPAPO/ADVM.
Demand
Supply
Inventory
Figure 4.42 Standard Planning Book Key Figures
Figure 4.41 Steps for Creating a Custom APO-SNP Planning Book

The business needs to clearly understand the definition of the standard key fig-
ures, as some are transactional while others are macro function calculated. Let’s
Key Figures and Macros
look at the standard APO-SNP key figure definitions in tabular form in Table
The standard APO-SNP planning book provides all the vital information required 4.9.
for supply chain planning. Per business definitions, we can change the
naming abbreviation of the key figure to make it easier for the business to Key Figure Definition Macro Calculation Category
understand. For example, for the SNP DISTRIBUTIon DEMANd key figure, we Forecast This key figure initially A consumption FC req: Forecast require-
can change the name to PUrcHASE OrDErs key figure. represents the gross (forecast/sales ment
forecast, but once the orders) based on the
Let’s look at the definition of standard key figures and macro calculations pro- sales orders come, it requirement strat-
vided in the standard planning book 9ASNP94. As shown in Figure 4.42, the key represents the net egy of the product
figures are grouped into three categories: demand, supply, and inventory. forecast (unconsumed performs the fore-
forecast). cast consumption
function.
Table 4.9 Standard APO-SNP Key Figure and Macro Definitions
216 217
Key Figure Definition Macro Calculation Category
Key Figure Definition Macro Calculation Category
Sales order Requested sales orders
and open deliveries. Total This key figure adds all Sub-macro of stock
Additional custom key demand the demand elements balance. Adds all
figures can be defined highlighted in the above the demand ele-
to identify the con- rows. ments.
firmed sales orders Forecast + Sales
based on quantity type Order + Distri-
maintenance in the cat- bution Demand
egory group. (Planned) + Dis-
Distribution This key figure rep- BC: Stock transfer tribution Demand
demand resents the stock trans- reservation (Confirmed) +
(planned) fer requisitions from the Distribution
BH: Stock transport
supply network. This Demand (TLB Con-
requisition
replenishment will firmed)+ Depen-
BJ: Supplier scheduling
include unconstraint dent Demand
agreement requirement
requirements to fulfill Distribution This key figure rep- AG: Purchase requisition
EB: SNP release for stock
both possible customer receipt resents the proposed
transport requisition BD: Stock transfer
backorders and addi- (planned) purchase requisitions to
ED: SNP VMI sales order reservation
tional stock build in the source location.
HJ: SNP suppliers sched- BE: Scheduling agree-
other distribution cen-
ule agreement release ment schedule line
ters.
EA: SNP purchase
Distribution This key figure rep- EG: Deployment:
requisition
demand resents the outgoing Purchase requisition
(confirmed) constraint supply plan HG: SNP scheduling
EH: Deployment VMI
after the APO-SNP agreement schedule line
sales order
deployment run. Distribution This key figure rep- EF: Deployment pur-
Distribution This key figure rep- BI: Stock transport order receipt resents the confirmed chase requisition
demand (TLB resents the stock trans- (confirmed) purchase requisitions to
confirmed) port order (outgoing the source location.
load plan) build after
Distribution This key figure rep- BF: Purchase order item
the APO-SNP TLB inter-
receipt (TLB resents the purchase schedule line
active or batch run.
confirmed) order to the source
Dependent This key figure AY: Dependent demand location.
demand represents demand in EL: SNP dependent
the form of a BOM In transit This key figure rep- AH: Advanced shipment
demand
explosion. resents the goods in notification
AU: Order reservation transit to the destina- EI: In transit
without withdrawal tion location.
AV: Order reservation
with withdrawal Table 4.9 Standard APO-SNP Key Figure and Macro Definitions (Cont.)
Table 4.9 Standard APO-SNP Key Figure and Macro Definitions (Cont.)
218 219
Key Figure Definition Macro Calculation Category Key Figure Definition Macro Calculation Category
Production This key figure rep- EE: SNP planned order Stock on This key figure Sub-macro of stock
(planned) resents the APO-SNP hand represents stock on balance. Calculated
planned production. hand at different as:
Production This key figure rep- AC: Production order periods. Unrestricted
(confirmed) resents the production (created) inventory +
plan created by the AD: Production order receipts -
manufacturing module. (released) demand or
AI: Planned order projected stock
(firmed, unconfirmed) on hand +
BU: Inspection lot incoming
receipts
AJ: Planned order (not
- outgoing demand
firmed, confirmed)
Supply This key figure rep- The supply shortage
Manufacture This key figure EM: Receipt from manu-
shortage resents how short on value is dependent
of co- represents the receipt facture of co-products
inventory the company upon the stock on
products elements for the
is versus demand. hand projected key
co-product.
figure. The macro
Total receipts This key figure adds all Sub-macro of stock equations reads as
the supply elements balance. Adds all follows:
highlighted in the above the supply
IF the Stock on
rows. elements.
Hand Projected
Distribution
Key Figure
Receipt
> = 0,
(Planned) +
THEN
Distribution
Receipt Stock on Hand
(Confirmed) + Initial = Stock
Distribution on Hand Pro-
jected
Receipt (TLB
Confirmed) + In AND Supply
Transit + Shortage = 0
Production ELSE IF
(Planned) + Stock on Hand
Production = 0
(Confirmed) +
THEN Absolute
Manufacture of
Value (Stock on
co-products Hand Projected)
Table 4.9 Standard APO-SNP Key Figure and Macro Definitions (Cont.) Table 4.9 Standard APO-SNP Key Figure and Macro Definitions (Cont.)
220 221
Supply Chain Modeling for SAP APO-SNP 4.7
Key Figure Definition Macro Calculation Category Key Figure Definition Macro Calculation Category
Safety stock This key figure is used Calculated by a ATD issue This key figure is used in Populates per the
for safety stock calcula- sub-macro to the the deployment planning location or location
tion by the function Safety Stk/Reor- and calculates the avail- product master data
SAFETY_CALC. der Point/Targt able-to-issue quantity maintenance.
The advanced safety Stock Lvl macro. from the source location.
stock method takes into
account demand, supply Table 4.9 Standard APO-SNP Key Figure and Macro Definitions (Cont.)
variability, and service
level.
Supply Chain Modeling
Days’ supply for SAP APO-SNP
This key figure Macro calculation
represents the days of (Stock on Hand /
supply the company is Total Demand) * The APO-SNP process starts with the business deciding how it wants to model
holding inventory Days in the its supply chain in the SAP APO system. The modeling not only reflects
against future demand. Period. mapping the distribution network in SAP APO, but also defines parameters
The number of days based on supply chain constraints. Supply chain modeling is one of the key
in the period is activities that require business involvement and validation. In the modeling,
another macro:
ABC Technology defines not only the network structure for its distribution, but
workdays.
also master data parameters to reflect the business requirements. While the
Reorder This key figure rep- The standard macro
point resents the reorder adds the safety ABC Technology desktop and monitor businesses may have structured network
point and returns the stock during the models, the laptop business distribution might look more like a web network.
function REORDER_ reorder point
CALC. calculation. In this section, we’ll highlight the data elements that make up the supply chain
Target days This key figure is calcu- model in APO-SNP. These elements are primarily master data settings needed
of supply lated through use of the to support APO-SNP planning business processes. Before we get started,
TARGET_DAYS function. however, a clear understanding of master data modeling is required before we
Target stock This key figure is calcu- The standard macro begin the planning process in APO-SNP.
level lated through use of the adds the safety stock
function TARGET_CALC. during the target
stock level cal- 4.7.1 Model and Planning Versions
culation.
The model in SAP APO stores all the master data (i.e., location, product,
ATD receipts This key figure is used in Populates per the loca-
transportation lanes, and production data structures) and can have multiple
the deployment plan- tion or location product
linked versions. The version primarily stores the transaction data for the model
ning and calculates the master data mainte-
available-to-deploy nance. master data definitions. All the data versions are stored in SAP liveCache for the
quantity from the source business to access and analyze the planning data. However, there will be only
location. one active version 000, which synchronizes the transactions between SAP ERP
and SAP APO. The other simulation versions created will be snapshots of the
active version and can be used for what-if analysis.
Table 4.9 Standard APO-SNP Key Figure and Macro Definitions (Cont.)
222 223
The model and version are created via the menu path ADVANCED PLANNING AND
ners, such as vendors and customers. Only locations that the business wants to
OpTIMIZATION • MASTER DATA • PlANNING VERsIoN MANAGEMENT • MODEL
include in the supply chain model need to be transferred to SAP APO. The loca-
AND VERSION MANAGEMENt (Transaction /SAPAPO/MVM). Figure 4.43 shows
tion master is transferred from SAP ERP via CIF.
the model and version creation with some version options for APO-SNP:
€ CHANGE PLANNING AcTIVE

Maintain Location Master Data
Used by SNP heuristics for net change planning.
The menu path for the location master data maintenance is ADVANCED PlANNING
€ No PLANNED ORDER WITHOUT SUPPLY SOURCE
AND OpTIMIZAtion • MASTER DATA • LoCATION • MAINTAIN LoCATION
The SNP optimizer looks for valid production data structure (PDS) or produc- (TRANSAc- TION /SAPAPO/loc3). The LOCATION tabs that are relevant for APO-
tion process model (PPM) and if checked, will not create planned orders
SNP are CAl- ENDARS, RESoURCEs, SNP, and ExTRA ATTRIBUTes.
unless referenced to PDS or PPM.
In the location master, the following tabs are used for populating data fields
€ CONSIDER STOCK TRANSFER HORIZON of SOURCE LOCATION
relevant to APO-SNP:
Affects the SNP heuristics and CTM planning process by defining a time
fence for the distribution receipt where the new requirements can only be € CALENDAr
fulfilled after the stock transfer horizon. In the CALENDAR tab, we maintain the shipping, receiving, and production cal-
€ LoCAL TIME ZONE endars (time stream). The time stream calendar is maintained via Transaction
Enter a check mark to consider a local time zone instead of UTC. /SAPAPO/CALENDAR. This offers the business the flexibility to specify the
calendar per location. The shipping calendar refers to the weekdays when
Model and Planning the goods can be outbound from the warehouse, and similarly, the receiving
Version create
calendar specifies the weekdays the goods can be received inbound to the
warehouse. The production calendar specifies the manufacturing plant
calendar for production schedule.
€ RESoURCE
In the RESOURCE tab, we can maintain storage and handling resources. While
the storage calendar can be used for measuring the warehouse capacity for the
specific location, the handling resource can be used to take into account
the goods receipt processing time in SAP APO in the business scenario in which
the production needs additional time for quality.
€ SNP
In the SNP tab, we represent the stock, available to deploy, and available to issue
Figure 4.43 Model and Planning Version Management in SAP APO category groups for APO-SNP calculations. The business can model which re-
ceipts it wants to distribute per its business rule.
4.7.2 Location € ADDT.
In the ADDT. tab, we can maintain five additional, freely definable attributes for
Locations in SAP APO represent both internal and external physical entities in
the location used for selection, planning, or reporting purposes. The attributes
the supply chain model. The physical entity can also represent external business
can be defined in the configuration path SPRO • SAP REFERENCE IMG •
part-
ADVANCED
224 225
PLANNING AND OPTIMIZATIOn • MASTER DATA • MAINTAIN FREELY DEFINABLE
master data fields in the table are maintained in different ways. For example,
ATTRI- BUTES. The attributes are stored in table /SAPAPO/LOC.
while the majority of the master data is transferred via CIF from SAP ERP,
Figure 4.44 shows the various location master tabs and the calendar maintenance. some of the master data is directly maintained in SAP APO. The maintenance in
SAP APO can be done either with mass maintenance Transaction MASSD or
other data maintenance (e.g., LSMW) techniques. Let’s look at the fields that
are transferred via CIF or SAP APO-specific techniques in Table 4.10.
Master Data Tabs Master Data Field Definition

(Views) (CIF/APO)
Administration SNP planner (CIF) Planner code assigned for planning book,
(location) background processing, and alerts selections.
Properties (global) Material group Used planning book, background processing,
(CIF) and alerts selections.
Product hierarchy Used for planning books, background pro-
(CIF) cessing, and alerts selections.
Transportation Grouping of products while building trans-
group (CIF) port loads.
SDP relevance Indicator for excluding products planning in
(APO-specific) APO-DP and APO-SNP.
Weight (CIF) Product attribute used in APO-SNP TLB.
Figure 4.44 Location Master in SAP APO
Volume (CIF) Product attribute used in the APO-SNP TLB.
Stacking factor Product attribute used in the APO-SNP TLB,
4.7.3 Location Product (CIF) which indicates how many pallets can be
The location product represents the material master from the SAP ERP system. The stacked over each other.
SAP APO location product is transferred via CIF from SAP ERP. The product mas- Shelf life (CIF) Indicates how many shelf life days the
ter has global and location-specific properties maintained similarly to the SAP product has before expiring and includes
maturation time.
ERP material master. SAP APO uses SAP ERP as the source system for the master
Planning with shelf Indicator for considering shelf life for APO-
data creation. The business can identify whether it would like the real-time
life (CIF) SNP planning processes.
changes to reflect from SAP ERP to SAP APO or in batches.
Maturity time (CIF) The incubation period after the production
receipt before the product can be shipped
Maintain Location Product Master Data to customers for sales.
Required minimum Used in shelf life planning and indicates the
These settings of master data transfer in SAP ERP are maintained in Transaction
shelf life (CIF) minimum shelf life required on batches for
CFC9. The menu path for the location product master data maintenance is sales.
ADVANCED PLANNING AND OPTIMIZATioN • MASTEr DATA • PRODUcT •
Table 4.10 SAP APO Location Product Master Data Fields
MAINTAIN ProDUCT (Transaction /SAPAPO/MAT1). Let’s look at various
product master fields relevant to the APO-SNP planning process in Table
4.10. The SAP APO
226 227
Master Data Tabs Master Data Definition
(Views) Field (CIF/APO)
Required maxi- Used in shelf life planning and indicates the
Supply profile The profile helps to determine how supply is
mum shelf life (CIF) maximum shelf life required on batches for
(APO-specific) calculated in the SNP heuristics and deploy-
sales
ment planning runs. We can define in APO-
Additional data Additional attributes specific to the product SNP production horizon, where SNP produc-
(APO-specific) to be used in the planning process (for exam- tion plans are not created, and similarly in
ple, price). Up to three freely definable attri- APO-SNP stock transfer horizon, where stock
butes can be defined specific to the location transfers are not created. We can also define
product to support the planning process. the push deployment horizon, where planned
The attributes can be defined in configura- distribution receipts are considered for
tion path SPRO • SAP REFERENCE IMG • deployment. If the indicators for Fix Produc-
ADVANCED PLANNING ANd OpTIMIZATION • TIoN and Fix STOCk TrANSFERs are checked,
MASTER DATA • MAINTAIN FREELY DEFiNABLe the earlier planning results are fixed for the
ATTRIBUTES. The attributes are stored in table APO-SNP production horizon and APO-SNP
/SAPAPO/MATKEY. stock transfer horizon during the SNP heuris-
Unit of measure Unit of measure Defines all the available alternative units of tics and optimizer runs.
(global) (CIF) measure for planning. A scenario may consist Deployment pro- The profile helps to determine the distribu-
of different products being planned in differ- file (APO-specific) tion rules for deployment heuristics during
ent purchasing units of measure. To get plan- the planning run. Push distribution covers
ning consistency, a common planning unit of various scenarios when the available-to-
measure may be defined for the SAP APO deploy (ATD) is enough to cover the demand.
planning book. The fair share rule is defined for scenarios
SNP1 (location) Penalty costs Location-dependent penalty cost to be when demand is greater than supply (see
(APO-specific) used by the SNP optimizer can be defined Chapter 5).
here. Penalty costs can be defined for no
Demand at source The two fields—CoNSIdER SALES ORDERS and
delivery, delay, and maximum delay across
location (APO-spe- CONSidEr FORECAST—can be checked if we
various demand types (e.g., forecast,
cific) want deployment heuristics to take into
customers, and
account the source location sales orders and
sales orders).
forecast during the real-time deployment
SNP2 (location) Demand profile The profile helps to determine how demand
run.
(APO-specific) is calculated during the SNP heuristics and
deployment planning runs. We can define SNP interactive THE No FixiNG indicator can be checked to
the FORECAST HoRIZON field, where the fore- order creation undo any fixing for any APO-SNP orders cre-
cast is not taken into account; PuLL DEPLOy- (APO-specific) ated by the planner in the planning book.
MENT HorizoN, where planned distribution CTM settings TimE BASEd prioriTY and DEMAND SELECT HOri-
demands are considered for deployment; (APO-specific) zoN can be defined for product-location spe-
and PERiod SPLIT for disaggregating the cific during the CTM planning run.
demand release to supply plan.
Table 4.10 SAP APO Location Product Master Data Fields (Cont.) Table 4.10 SAP APO Location Product Master Data Fields (Cont.)
228 229
(Views) Field (CIF/APO) Master Data Tabs Master Data Definition
Other data (CIF- Defines the product priority, ATD receipts,
and APO-specific) and ATD issues for the location product. The Stock data Defines the safety stock, reorder point, and
product priority is used in CTM and SNP (APO-specific) max stock level. Also defines the basic and
optimizer runs. The ATD defined in the loca- advanced safety stock method to be used.
tion product is taken into account in the For the advanced safety stock method, addi-
APO-SNP deployment and TLB runs. tional fields like SErvicE LEVEL, DEMAND FORE-
CAST Error %, and REPLENISHMENT LEAD TIME
Demand (location) Proposed strategy Primarily transferred from SAP ERP material
FORECAST Error % are maintained.
(CIF) master strategy group. The proposed strategy
helps in determining how the forecasted Procurement (loca- Procurement type This field defines whether the product is pro-
demand is produced and consumed with tion) (CIF) duced in house, externally procured, or a
sales orders. The CoNSUMPTION modE directs combination of both.
on the forward or backward consumption Procurement costs Used in the SNP optimizer for cost calcula-
direction, as well. (APO-specific) tions.
Pegging Considers fixed or dynamic pegging strategy. Stock cost Production storage cost and safety stock cost
(APO-specific) (APO-specific) are used for the SNP optimizer calculation.
Available stock Settings for additional stock category to ABC indicator (CIF) Defines whether the product is fast moving
(APO-specific) be considered in the APO-SNP CTM run. or slow moving based on the ABC indicator.
Lot size (location) Procedure (CIF) Defines various lot size procedures to be GR/GI (location) Processing times, Defines the goods receipt processing time and
used during the APO-SNP planning run. The in days (CIF) goods issue processing time to take into
lot size procedures available are LOT-TO-LOT, account additional time for handling and
PERiodic, FIXED, and REOrDER POINT. quality checks. Added on top of transporta-
Quantity deter- Defines the maximum lot size, minimum lot tion lead times during the availability date
mination (CIF) size, rounding value, target stock level calculation.
method, and target days of supply. The lot
Capacity consump- The STORAGE CONSUMPTION pEr BASE UOM
size parameters and target stock level
tion (APO-specific) field can be used for the storage capacity.
methods are used during the APO-SNP
Handling resource capacity consumption can
planning run.
also be defined.
Scheduling Defines the safety days of supply and period
Shipping (CIF) Loading group can be used for APO-SNP TLB
(APO-specific) factor. The safety days’ supply used in APO-
during the load building.
SNP and CTM (safety time) identifies the
number of workdays over which the system Extra (location) Freely definable Up to five freely definable attributes can be
has to take into account future demand when attributes defined specifically to the location product to
(APO-specific) support the planning process. The attributes
calculating safety stock. The period factor sig-
can be defined in configuration path SPRO •
nifies when the availability date/time needs
to be scheduled in the bucket, on the range SAP REFERENCE IMG • ADVANCEd PLANNING
of 0 to 1. The value of 1 signifies a date AND OPTIMIZATiON • MASTER DATA • MAINTAIN
toward the end of the bucket And is only used FREELY DEFiNABLE ATTribuTES. The attributes
if the period factor is not defined in the are stored in table /SAPAPO/MATLOC.
transportation lane.
Table 4.10 SAP APO Location Product Master Data Fields (Cont.)
Table 4.10 SAP APO Location Product Master Data Fields (Cont.)
230 231
Example
ABC Technology would like to change some of the parameter values during the standard
transfer using CIF. These changes are done via CIF user exit enhancement, which will be Work Center—CR03
explained in detail in Chapter 15.
Transaction CFC9
Resources
Resources in the form of production, transportation, and storage represent a pool
of capacity for checking supply plan feasibility. As APO-SNP uses bucket-
oriented planning, the planning time buckets are represented by day
denominations. The resource to be used for APO-SNP production plan creation
is either a bucket, single-mixed, or multi-mixed resource. The bucket resource
shows the capacity consumption once the production orders are planned. The
single-mixed and multi- mixed resources can be used for the APO-SNP and
PP/DS planning processes. While the single-mixed resource has a single
capacity (100%) the multi-mixed may have more than a single capacity (>
100%). Figure 4.45 Resource Settings in SAP ERP
Example
Once transferred from SAP ERP (see Figure 4.46), various planning
Depending on the solvers used by ABC Technology, different resources might be used. parameters can be maintained in SAP APO. The menu path for the resource
For product families using the SNP heuristics as a planning engine, we only need a pro-
master data maintenance is ADVANCED PLANNING AND OPTIMIZATion • MASTER
duction resource for manufacturing and a handling resource for modeling goods receipt
lead time. For another set of product families, various resources in the form of produc-
DATA • RESoURCE • MAINTAIN RESOURCE (Transaction /SAPAPO/RES01). One such
tion and transportation can be used for cost optimization. important parameter is the definition of APO-SNP bucket capacity for us to
analyze the bucket consumption. The purpose of the resource in APO-SNP is
to provide a rough-cut capacity plan, which is managed by capacity variant
The SAP APO resource master data is primarily maintained in SAP ERP. The busi-
settings. Here, we can define the normal, maximum, and minimum capacities
ness user maintains the SAP ERP master data using Transaction CR02. The SAP
(defined by quantity/rates). Fol- low these steps (see Figure 4.46):
APO resource master is transferred from the SAP ERP work center and capacity
master data. As shown in Figure 4.45, within the capacity maintenance, we can 1. Create a definition of the quantity/rate per bucket. Define the bucket capacity
maintain the parameters for the SAP APO resource. Also via Transaction CFC9 in for normal, minimum, and maximum for the period type (single day).
SAP ERP, we can direct the CIF to create a single-mixed or multi-mixed resource 2. Create capacity variants. Assign the three capacity definitions to three
in SAP APO. capacity variants in the SAP APO resource master data.
232 233
4 Preparing for Basic Planning Functionality Supply Chain Modeling for SAP APO-SNP 4.7
Resource in SAP liveCache
Run report /SAPAPO/CRES_CREATE_LC_RES periodically to correct any

inconsistencies in the resource master creation in SAP liveCache.
Production Data Structure

The PDS/PPM functionality represents the combination of the work center and
BOM in SAP APO. The master data is transferred via CIF from production ver-
sion. The SAP ERP production version combines both routing and BOM master
data. The APO-SNP PDS is generated directly from SAP ERP, while the APO-SNP
PPM is converted from PP/DS PPM in SAP APO via a generation report.
The PDS is used to calculate production time, production cost, material flow, and
resource loads in the plant. The menu path for the PDS master data maintenance
is ADVANCED PLANNINg AND OPTIMIZATion • MASTER DATA • ProDUCTion DATA
STRUCTURE • DISPLAY PRODUCTIon DATA STRUCtURE (Transaction /SAPAPO/CUR-
TO_SIMU). The PDS (see Figure 4.48) has an operation category to define the pro-
duction activities. For each activity, there can be modes (resources) and
components (product) assigned. The mode contains the throughput rate to
produce the base quantity. The components represent the input and output
components of the operation.
Figure 4.46 Maintenance of Capacity Variants in the SAP APO Resource Master
3. Once the variants are maintained, we can see all three capacities in the APO-
SNP planning book. The business planner gets the visibility of the maximum,
minimum, and normal capacities for the modeled resource (see Figure 4.47).
Figure 4.48 Production Data Structure in SAP APO
The following information summarizes the PDS shown in the figure:
Figure 4.47 APO-SNP Capacity Planning Book € Each PDS includes one or more operations, which are steps in the production
process.
234 235
€ Each operation includes one or more activities, the components consumed by

€ /SAPAPO/CURTO_SNP
the activity, and their sequence within the operation. Calculate bucket consumption of resources with the CALC_BUCKET_CONSUMPTION
€ The PDS has validity parameters by lot size and time intervals. method of this BAdI. This method, which executes standard calculation of bucket
consumption, is active automatically. However, you can change the calculation.
€ The variable costs defined for a PDS include the costs of input material as
€ /SAPAPO/CULLRTOSNP
well as the cost of production.
Carry out optimization-based APO-SNP planning. You can use the FILL_COST_
Since PDS is bucket oriented, the production lead time is calculated based on FIELDS method of this BAdI to fill the SNP PDS cost fields.
the critical path operations, in days, and with the use of the resource factory SAP also provides Transaction /SAPAPO/CURTO_EDIT to change the APO-SNP PDS
calendar (Figure 4.49). header data in SAP APO locally.
Operation 4.7.6 Transportation Lanes

Oper. 10
Activity Transportation lanes represent the material flow between two physical locations
in SAP APO. A means of transport is also defined within the transportation lane
Oper. 20 Components Mode with appropriate truck capacity and transportation duration, as shown in Figure
Finish-Start
4.50.
Oper. 30
Means of Transport—Truck
Transportation Duration—2 days
Oper. 40 Truck Capacity—40 cube ft
Finish-Start
Oper. 50
Distribution Distribution
Center 1 Center 2
Finish-Start Oper. 60 Transportation
Lane
Figure 4.50 Transportation Lane in SAP APO
The menu path for the transportation lane master data maintenance is ADVANcED
Production Lead time (critical
path) PLANNING AND OPTIMIZATion • MASTER DATA • TrANsporTATION LANE • MAINTAIN
TRANsporTATION LANE (Transaction /SAPAPO/SCC_TL1). The transportation lane
has three views: PRODUCT, MEANS of TRANSPORT, and PRODUCT SPECIFIC MEANS of
Figure 4.49 Production Lead Time Calculation in APO-SNP PDS
TrANSPORT, as shown in Figure 4.51.
In the PrODUCT view, the product validity date, minimum/maximum lot size, cost
APO-SNP PDS
function, block indicator, and form of procurement (e.g., subcontracting,
The APO-SNP PDS generated from SAP ERP can be influenced by using one of the fol- con- signment, and standard) are maintained.
lowing BAdIs:
236 237
from the distribution centers. The menu path for the quota arrangement master
data maintenance is ADVANcED PLANNING AND OPTIMIZATION • MAsTEr DATA
• QUOTa ARRANGEMENt • MAINTAIN QUOTa ArRANGEMENt (Transaction /SAPAPO/
SCC_TQ1).
Figure 4.52 shows a business example in which ABC Technology has two
suppliers sourcing raw materials to the manufacturing facility. Once the goods
are produced, they are distributed to three distribution centers based on quota
allocation. We have maintained quota arrangement for both inbound and
outbound material flow to the manufacturing plant.
70% 30%
Figure 4.51 SAP APO Transportation Lane: Three Views

Incoming Quota
Arrangement
In the MEANS of TRANSPORT view, one or more mean of transport is assigned to
the transportation lane, transportation duration, transport calendar, and cost of
transport method. Also defined is the TLB with the loading method (i.e., straight
loading or load balancing). If the straight loading method is used, the deployment Outgoing Quota 50%
Arrangement 30%
20%
orders are sorted per the product loading group, while the load balancing
attempts to distribute multiple products in the same truck.
In the PRODUCT-SPECIFIC MEANS of TRANSPORT, we define the transport resource

capacity consumption, lot size profile, and specific costs.
The TLB profile is maintained via Transaction /SAPAPO/TLBPRF and defines

the capacity constraints to meet vendor minimums while cutting purchase orders Figure 4.52 Quota Arrangement in APO-SNP
to truck loads and building stock transport orders for internal replenishments.
The TLB constraint parameters are defined in Transaction
Supply Chain Engineer
/SAPAPO/TLBPARAM.
Supply Chain Engineer is an SAP APO functionality that can be used to create
and maintain supply chain models in pictorial form. There is no configuration
Quota Arrangement required; you just need to have master data maintained on the supply network.
For multi-sourcing business scenarios, we can set up quota arrangement so that The supply chain model consists of the specific planner work area in scope and
the demands are based on pre-defined quota. For example, two manufacturing all SAP APO data objects to be planned.
locations are sourcing the same product to the distribution center. We can
define the percentage each sourcing should receive of the net requirements
238 239
Summary 4.8
Supply Chain Engineer is also used for mass maintenance of master data.
Another important use of the Supply Chain Engineer is for master data model
The model consists of a node and links among the physical locations, with
consistency check. The model consistency checks not only for all the master
material flow direction represented by transportation lanes. The menu path for
data consistency, but also how the model will behave when running various
the supply chain engineer master data maintenance is ADVANCED PLANNING AND
APO-SNP engines. Business users can routinely run the consistency check by
OPTIMIZA- TION • MASTER DATA • SUPPLY CHAIN ENGINEER • MAINTAIN MODEL
using Transac- tion /SAPAPO/CONSCHK.
(Transaction
/SAPAPO/SCC07). Figure 4.53 shows the supply chain engineer with a graphical
representation of the model on the top of the screen and master data elements
Summary
(work area) on the bottom. Add objects to the supply chain engineer by
right- clicking and selecting the ADD ObjECTS TO Work AREA option. The In this chapter we explained the basic configuration tasks for APO-DP and
users input their respective master data objects (i.e., location, location APO- SNP. While the configuration for APO-DP is flexible, the configuration
products, and PDS). Based on the location product combination, the for APO- SNP is more structured and standard. The main reason for the latter is
transportation lanes are automatically generated in Supply Chain Engineer. its integration with SAP ERP.
The chapter also explained how to set up the forecast model in APO-DP and
framework for identifying the best forecast method. The chapter ends by
explaining the supply chain modeling using APO-SNP and prepares the
planner for performing basic planning.
The next chapter introduces the basic navigations and demand and supply plans
that can be formulated in SAP APO. The chapter uses a weekly planning cycle
to explain different functions within APO-DP and APO-SNP.
Figure 4.53 SAP APO Supply Chain Engineer
240 241
Contents
Introduction..............................................................................19
1 Introduction to Supply Chain Planning...........................25

Sales and Operations Planning 28
Goal of Sales and Operations Planning 29
Case Study: Manufacturing and Distribution 30
Supply Chain Operations Reference Model...............................33
Level 1: Process Types 35
Level 2: Process Categories 36
Level 3: Process Elements 38
Types of Supply Chains......................................................44
Pipeline Structure 45
Late-Customization Structure 45
Diverging Structure 45
Converging Structure 45
Case Study: A Supply Chain Dilemma......................................46
Business Situation 46
Sourcing 47
Manufacturing 47
Order Management 48
Distribution 49
Modeling the Company with the SCOR Model 49
Value Stream Mapping 52
Demand and Supply Planning Overview...................................54
Demand Planning 55
Supply Planning 61
Supply Chain Maturity Model 65
Supply Chain Performance Management 67
Summary....................................................................71
2 SAP APO as an Advanced Planning and Scheduling Tool.73

2.1 Advanced Planning and Scheduling Concepts............................74
2.1.1 Planning and Scheduling .................................................. 75
2.1.2 Concurrent Planning ......................................................... 76
2.1.3 Modeling ......................................................................... 77
2.1.4 Exception Management Using the Alert Monitor .............. 78
7
Contents Contents
2.1.5 Differences between ERP and APS .................................... 79 Template Rollout Approach............................................................................120
2.2 Introduction to SAP APO ............................................................... 80 Pre-Activities 121
2.2.1 Core Planning Modules .................................................... 81 Baseline System Activities 122
2.2.2 Task Structure .................................................................. 83 Change Management 123
2.2.3 Benefits of Using SAP APO 85 Implementing Performance Measures.................................................................125
............................................... Business Benefits Realization...........................................................................128
2.3 Planning Functions ........................................................................ 90 Increased Sales 130
2.3.1 Demand Planning and Forecasting ................................... 92 Profit Optimization 131
2.3.2 Inventory Management .................................................... 93 Finished Goods Inventory Reduction..................................................................132
2.3.3 Supply Network Planning ................................................. 93 Raw Material Inventory Reduction.....................................................................133
2.3.4 Distribution Planning ....................................................... 93 Material Cost Reduction 133
2.3.5 Supply Chain Monitoring .................................................. 93 Case Study 135
2.3.6 Sales and Operations Planning ......................................... 93 Supply Chain Transformation Planning................................................................135
2.3.7 Network Design and Optimization ................................... 94 Key Guiding Principles 137
2.4 Demand Planning Overview .......................................................... 94 System Architecture 138
2.4.1 Statistical Forecasting ....................................................... 95 Sales and Operations Planning Characteristics......................................................139
2.4.2 Casual Forecasting ............................................................ 96 Demand Planning Characteristics......................................................................141
2.4.3 Composite Forecasting ..................................................... 96 Inventory and Deployment Planning Characteristics................................................142
2.4.4 Promotion Planning ......................................................... 97 Rough-Cut Production Planning Characteristics.....................................................143
2.4.5 Collaborative Demand Planning ....................................... 97 Planning Organization 144
2.4.6 Data Management ........................................................... 97 Summary 147
2.4.7 Bill of Material Forecasting ............................................... 98
2.4.8 Characteristics-Based Forecasting ..................................... 98
2.4.9 Lifecycle Management ...................................................... 98 4 Preparing for Basic Planning Functionality................... 149
2.4.10 Transfer of Demand Plan .................................................. 99
Basic Planning Tasks 150
2.5 Supply Network Planning Overview ............................................... 99
Demand Planning 151
2.5.1 Safety Stock Planning ....................................................... 100
Supply Network Planning 153
2.5.2 Solvers ............................................................................. 100
Basic Customization in SAP APO-DP...............................................................155
2.5.3 Subcontracting ................................................................. 103
InfoObjects 156
2.5.4 Scheduling Agreement ..................................................... 104
Planning Object Structure 161
2.5.5 Hierarchical Planning ........................................................ 104
Planning Area 164
2.5.6 Distribution Planning ....................................................... 104
Planning Book 170
2.5.7 Supply Chain Monitoring .................................................. 105
Macros 175
2.6 Technical Architecture ................................................................... 105
Locking Key Figures 180
2.7 SAP liveCache ............................................................................... 107
Time Series Consistency Checks 182
2.8 Summary ....................................................................................... 109
Data Staging for SAP APO-DP.......................................................................182
Data Management in SAP APO-DP..................................................................190
3 Guidelines for Implementing SAP APO.........................111 Creating New Characteristic Value Combinations...................................................191
Capturing History 191
Transformation Initiatives and Prerequisites........................................................112 Transfer Planning Data 192
Transformation Process 113 Setting up Forecast Methods.......................................................................193
Transformation Framework 114 Univariate Forecasting 194
Implementation Methodology......................................................................117
8 9
Contents Contents
4.5.2 Forecast Definitions ......................................................... 196 Load Planning Using the SAP APO-SNP Transport Load Builder....................................288
4.5.3 Univariate Forecasting Methods ....................................... 200 Demand and Supply Planning Alerts...................................................................292
4.5.4 Casual Forecasting Methods ............................................. 207 Types of Alerts 293
4.6 Basic Customization in SAP APO-SNP ............................................ 208 Visualizing Alerts with the Alert Monitor......................293
4.6.1 InfoObjects ...................................................................... 208 Methodology: The Decision Tree 296
4.6.2 Category Group ................................................................ 209 Simulation via Version Management...................................................................297
4.6.3 Planning Area ................................................................... 212 Summary 299
4.6.4 Planning Book .................................................................. 214
4.6.5 Key Figures and Macros ................................................... 216
6 Advanced Demand Planning.........................................301
4.7 Supply Chain Modeling for SAP APO-SNP ..................................... 223
4.7.1 Model and Planning Versions ........................................... 223 Promotion Planning 302
4.7.2 Location ........................................................................... 224 Promotion Planning with SAP APO 303
4.7.3 Location Product .............................................................. 226 Promotion Planning with SAP CRM 308
4.7.4 Resources ......................................................................... 232 Lifecycle Planning 310
4.7.5 Production Data Structure ................................................ 235 Phase-In/Phase-Out Modeling 311
4.7.6 Transportation Lanes ........................................................ 237 Interchangeability 314
4.7.7 Quota Arrangement ......................................................... 238 Seasonal Planning 315
4.7.8 Supply Chain Engineer ...................................................... 239 Bill of Material Functionality..................................................................................318
4.8 Summary ....................................................................................... 241 Creating a New Planning Object Structure.....................................................................319
Creating a New Planning Area 320
5 Basic Interactive Planning.......................................................243 Defining a New Planning Book 321
Maintaining the Production Process Model and
5.1 Demand and Supply Planning Cycle ............................................... 244 Production Data Structure.......................................322
5.2 Interactive Demand Planning ......................................................... 248 Maintenance of Characteristic Value Combinations.................................................324
5.2.1 SAP APO Planning Book Navigation 248 Customer and Product Segmentation.................................................................326
................................. Customer Forecast Management.......................................................................328
5.2.2 Characteristic Value Combination Maintenance ................ 255 Alerts 330
5.2.3 Realignment ..................................................................... 257 Microsoft Excel-Based UI............................................................................331
5.2.4 Notes Management .......................................................... 258 SAP Duet Demand Planning.........................................................................335
5.2.5 Fixing Cell ........................................................................ 259 Summary 336
5.2.6 Chart Engine .................................................................... 260
5.2.7 Releasing the Demand Plan from SAP APO-DP to
SAP APO-SNP .................................................................. 262 7 Advanced Supply Planning...........................................337
5.3 Interactive Statistical Forecasting ................................................... 265
Safety Stock Planning 338
5.4 Interactive Supply Planning ........................................................... 269
Manual Static Safety Stock Planning..................................................................340
5.5 SNP Heuristics ............................................................................... 271
Manual Time-Dependent Safety Stock Planning.....................................................342
5.5.1 Heuristic Engine Run Process ............................................ 274
Advanced Safety Stock Planning................................344
5.5.2 Replenishment and Procurement Using SNP Heuristics ..... 275
Aggregated Planning 349
5.5.3 Master Production Schedule and Capacity Leveling
Hierarchical Planning Scenarios 350
Using SNP Heuristics ........................................................ 278
Setting up the Hierarchy Structure..........................................................................352
5.5.4 Distribution Planning Using SNP Deployment Heuristics ... 281
SAP APO-SNP Customization 353
5.5.5 Master Data Maintenance ................................................ 282
5.5.6 Interactive SAP APO-SNP Deployment Planning ............... 286
11
10
Contents Contents
Preparing Master Data 355

Technical Design Flow...........................................357 8 Collaborative Planning.............................................................425
Testing Business Scenario 359
Overview 426
Shelf Life Planning 362
Collaborative Demand Planning.......................................................................429
Shelf Life Master Data.........................................363
Collaborative Supply Planning.........................................................................432
Shelf Life Transaction Data.........................................364
Workflow 434
SAP ERP Batch Integration......................................367
Configuration 435
Shelf Life Key Figures 369
Activate ICF Services 436
Shelf Life Propagation 372
Maintain Entries in Table TWPURLSVR...................................436
Shelf Life Alerts 372
Maintain ICM Monitor................................................437
Planning Strategies and Forecast Consumption.....................................................373
Publish Internet Services 437
Planned Independent Requirement Segment
Collaboration Partner User......................................438
(Requirement Planning).........................................376
Vendor-Managed Inventory.........................................................................442
Assignment Mode (Forecast Consumption)...................376
VMI Model and Technical Messaging Flow............................444
Category Group (Forecast Consumption).............................................................377
Configuring VMI Scenario in SAP APO-SNP........................................................446
Subcontracting 379
Integrating SAP Supply Network Collaboration with SAP APO....................................449
Master Data Requirements 380
Inter-Market Demand and Supply Planning in a Single SAP APO Application....................452
Planning Book...................................................383
Summary 457
Warehouse Capacity Overview.........................................................................385
Master Data 385
Perform the SAP APO-SNP Planning Run................................386 9 Reporting...........................................................................459
Direct Shipment Customers............................................................................387
Product Interchangeability.............................................................................390 SAP Supply Chain Performance Management....................................................460
Scenario 1: Consume Existing Inventory..............................................................392 SAP APO and SAP BW Integration..................................................................463
Scenario 2: Consuming Existing Inventory until a Data Dimensions in SAP APO 463
Specific Date......................................................396 SAP Business Warehouse Layers................................465
Transport Load Builder 399 Integration Scenarios 467
TLB Profile.........................................................399 Extraction Process from SAP liveCache to SAP BW.................................................472
TLB Loading Method 400 Generate DataSource Export 472
Shipping Strategies 401 Create a Query 478
Pull-In Horizon 404 SAP APO-DP Data Model........................................................................480
Shipment Sizing 405 Flow 1: Historical Data Load (Inbound Flow)........................................................480
Stock Balancing 407 Flow 2: Data Extraction (Outbound Flow)....................482
Supply Planning Alerts 410 SAP APO-SNP Data Model......................................................................483
Managing Favorites in the Alert Monitor.........................................................411 SAP BW Business Content...........................................................................484
Using the Alert Monitor 412 Access Standard Business Content....................................................................485
Alert Monitor Hierarchies 414 Install Standard Business Content.....................................................................485
Alerts in the Interactive Planning Screen..................................................................416 Supply Chain SCOR Metrics 487
Supply Chain Cockpit 418 Level 1: High-Level Strategic Metrics.........................489
Planner’s Home Page 419 Level 2: Diagnostic Metrics.....................................491
Summary 424 Level 3: Configuration Metrics.................................492
Summary 493
12 13
Contents Contents
10 SNP Optimizer.............................................................495
SNP Optimization Concept..........................................................................496
11.1.3 Planning Modes ............................................................... 548
SNP Optimization Steps 498
11.1.4 Demand Prioritization ...................................................... 549
Differences between Heuristics and Optimizers.....................................................499
11.1.5 Supply Categorization ...................................................... 550
Constraints 500
11.1.6 Search Strategy ................................................................ 551
Costs 501
11.2 Customization via the CTM Profile ................................................. 551
Unsatisfied Demand or Delay 503
11.2.1 Planning Scope ................................................................. 552
Storage Costs 505
11.2.2 Strategies ......................................................................... 555
Safety Stock Penalty 505
11.2.3 CTM Integration with Global ATP 556
Production 506
.....................................
Transportation 507 11.2.4 CTM Early/Late Demand Fulfilment .................................. 560
Resource Expansion 508 11.2.5 Aggregation ..................................................................... 561
Procurement 509 11.2.6 Demand ........................................................................... 562
Profiles 510 11.2.7 Supplies ........................................................................... 563
Case Study: Network Model.............................................................................513 11.2.8 Settings ............................................................................ 564
Identifying Variables for a Graphical Representation....................................................514 11.2.9 Supply Distribution .......................................................... 566
Running the SNP Optimizer with Constraints........................................................515 11.3 Master Data .................................................................................. 566
utomatic Cost Model 525 11.4 Planning Run ................................................................................. 568
Priorities and Preferences 525 11.5 Case Study ..................................................................................... 569
Business Rules 527 11.6 Summary ....................................................................................... 571
NP Optimization Explanation Log.............................................................................528
ase Study: Supply Allocations 529
Optimization Model Input 530 12 Inventory Planning and Optimization with SAP APO
Optimization Constraints 530 and SAP ERP................................................................573
Optimization Cost Factors 531 Inventory Optimization...........................................................................575
Production Capacity Maintenance.....................................................................532 Dynamics 576
Maintain Storage Inventory Costs......................................................................534 Supply Chain Applications 578
Testing 535 Techniques 580
Planning Run 535 Inventory Analysis Methodology.............................................................581
NP Deployment Optimizer 538 Product Portfolio Classification (ABC Analysis)................................................................582
he APO Performance Monitor.............................................................................540 Inventory Stocking Policies Quadrant.....................................................................585
tegrating External Optimizers................................................................................541 Inventory Historical Analysis 587
ummary 543 Inventory Un-Bundling 591
Inventory Modeling 594
11 Demand and Supply Matching with Capable-To-Match. .545 Inventory Cost-Benefit Analysis 598
Designing an Inventory Control System.........................................................600
Capable-to-Match Concept.............................................................................546 Economic Order Quantity 600
Planning Characteristics 546 Lot Sizing 602
Planning Scenario 546 Target Stock Level 608
Multi-Echelon Inventory Planning...............................................................611
Summary 614
14 15
Contents Contents
13 Characteristics-Based Planning....................................617
Process Overview 618
Technical Steps 620 15 Technical Architecture......................................................675
Case Study 621
Variant Configuration 622 Core Interface 676
Material Master 624 Configuration Steps 677
Characteristics 626 Integration Models 679
Variant Class 628 Incremental Data Transfer 684
Super BOM 629 Administration 688
Super Routing 630 Troubleshooting 700
Configuration Profile 631 Customer Exits 703
Object Dependencies 632 Publication of Planning Results 704
Customizing Sales Orders 633 Regular CIF Monitoring Transactions..............................................................705
Forecasting 635 Technical Upgrade Functional Activities....................................................................710
Activate Characteristics-Based Planning....................................................................636 Plan Phase 713
Master Data 636 Prepare Phase 713
Planning Book Design 639 Upgrade Phase 714
Descriptive Characteristics 642 Post-Upgrade Phase 714
Demand Planning Release 643 SAP APO on SAP HANA716
Supply Planning Integration............................................................................645 Deployment Options 717
Business Scenario and Technical Steps................................................................645 Benefits 718
Block Planning Integration 648 SAP S/4HANA 720
Summary 650 SAP Supply Chain Info Center..........................................................................721
Dashboards 722
Deployment Options 727
14 SAP Industry Solution Example with SAP APO.............651 Data Replication 727
SAP Apparel and Footwear Industry Solution........................................................652 Rapid Deployment Solutions for SAP APO.............................................................737
SAP ERP (AFS Extension): Integrated Solution Overview...........................................654 SAP APO as an Add-on to SAP ERP.................................................................741
Process Steps 655 SAP Fiori Apps for SAP APO.........................................................................744
AFS Planning 658 Hardware Sizing using Quick Sizer.....................................................................746
Master and Transactional Data Integration.................................................................659 Technical Integration with Non-SAP Applications...................................................750
Maintain Master Data 660 SAP APO Business Warehouse 751
Data Transfer from SAP ERP to SAP APO..............................................................660 Enterprise Service Bus 752
Bill of Materials Construct in SAP ERP (AFS Extension)................661 Summary 753
Transactional Data Integration 663
SAP APO Solution for AFS Using Aggregated Functionality.........................................667 16 Technical Enhancements...................................................755
Demand Planning: Seasonal Functionality............................................................668
Supply Network Planning: Aggregated Functionality..................668 Data Conversion Strategy...............................................................................756
SAP Business Function 673 Data Conversion Process 757
Summary 674 Data Mapping and Cleansing 758
Legacy System Migration Workbench..................................................................760
Converting Data Using LSMW.......................................................................761
Loading Master Data........................................................763
16 17
Contents
Converting Transactional Data 768

Importing Data with IDocs 772
Technical Modifications in SAP APO...............................................................772
Business Scenario 1: Material Master CIF.............................................................773
Business Scenario 2: Product Master Creation.......................................................775
Business Scenario 3: Transaction Data Mapping.....................................................777
Business Scenario 4: SAP APO-SNP PDS Modification..............................................780
Business Scenario 5: SAP APO-SNP Planning Book
Modifications......................................................781
Business Scenario 6: User Exit Macro.................................................................782
Business Scenario 7: SNP Heuristics Lot Sizing......................................................785
Business Scenario 8: CTM Demand Prioritization....................................................785
Business Scenario 9: Demand Planning with SAP BW...............................................786
Business Scenario 10: Demand Planning to
Supply Planning Release.........................................787
Business Scenario 11: Alert Monitor...................................................................788
Business Scenario 12: TLB Interactive Display.......................................................788
Authorization Concept 788
Master-Derived Role Concept 789
Defining Roles 790
Process Chain 791
Main Components 792
Create the Process Chain 793
Process Chain Monitoring 796
Parallel Processing 797
Summary 798
17 Conclusions and Outlook..............................................799
Appendices........................................................................803
A Resources..........................................................................805
B List of Acronyms.....................................................................807
C The Author...........................................................................811
Index.....................................................................................813
18
Index
A
AFS (Cont.)
ABC transactional data, 663
analysis, 582 transactional order integration, 664
classification, 137, 584 Aggregated and disaggregated, 94
inventory analysis, 584 Aggregated planning, 349, 561
segmentation, 142 Aggregated supply network planning, 104
Active variant, 508 Aggregates, 162, 476
Actual costs, 532 Airline strategy, 560
Additional demand (shelf life), 370 Alert, 296, 330, 373
Administrator Workbench, 158, 180 decision tree, 296
Advanced safety stock planning, threshold values, 410
344 Alert Monitor, 78–79, 105, 293, 330, 372,
setting up, 346 410, 413, 788
Advanced supply planning, 337 /SAPAPO/AMON1, 372
AFS, 652, 654, 658 favorites, 411
allocation run, 656 hierarchies, 414
APO-SNP aggregated planning, Allocation
658 management, 259
batch characteristics, 665 proposals, 537
bill of materials, 661 Alternative resource balancing, 359
business benefits, 652 APO-DP, 94, 191, 304
characteristics, 660 alerts, 330
data transfer, 660 APO-SNP release, 787
data transfer reports, 660 basic customization, 155
execution process, 657 BOM, 318
hierarchies, 663 Book Wizard, 173
hierarchy master data, 669 characteristics, 787
highlights, 653 forecasting, 718
industry solution, 652 interactive planning book, 318
inventory management, 657 planning book, 304, 786
manufacturing process, 656 planning book customization,
master data, 658, 660 172
material, 668, 670 APO-SNP
material grid, 660 aggregated planning, 668
order group, 663 aggregated planning technical flow, 358
orders transfer, 664 aggregates, 477
planning, 658 alert types, 411
procurement process, 656 allocation optimizer, 529
product costing, 657 alternative planning method, 546
production version, 662 basic customization, 208
safety stock, 670 bucket capacity, 233
seasonal demand planning, 658 cost profile, 518
supply chain planning, 655 deployment, 359
technical flow, 655 deployment heuristics, 281
third-party processing, 656 deployment optimizer, 538
813
Index Index
APO-SNP (Cont.)
Auto Model Selection Procedure, 204 Business (Cont.) Characteristics-based forecasting (Cont.)
disaggregation program, 672
Automatic cost performance, 464 descriptive characteristics, 642
heuristics, 271, 718, 785
generation, 527 process owner, 127 flow, 635
interchangeability field attributes, 393
model, 525 readiness, 116 master data, 636
key figure definitions, 217
Automatic forecasting models, 204 rules, 521, 527 planning books, 639
lot size profile, 511
Auxiliary key figures, 173 situation, 46 planning object structure, 636
optimization bound profile, 511
Available-to-deploy (ATD), 282 specific logic, 562 profile, 637
optimization planning, 535
Available-to-promise (ATP), 282 transaction event (BTE), 680 table, 637
optimization result, 516
category, 562 Business Application Programming Characteristics-dependent planning (CDP),
optimization steps, 498
elements, 209 Interface (BAPI), 308, 541, 760, 776 617, 619–621, 645
optimizer, 214–215, 780
Business benefits, 123, 128 Chart
orders, 564
Business Explorer (BEx), 477 designer, 260
penalty cost group profile, 511
planning area, 212–213 B elements, 261
engine, 260
planning book, 214, 569, 594, 781
planning engine, 670
Background jobs, 792 C CIF, 80, 227, 323, 363, 503, 627, 660
Backorder processing (BOP) sort profile, administration, 688
planning profile, 512
562 Backward consumption, 378 C++ mathematical, 499 compare/reconcile function, 691
planning tasks, 271
BAdIs, 236, 308 Calculation type, 167 configuration, 677
priority profile, 511
Balancing transportation lanes, 410 Cannibalization, 304 customer exits, 703
solvers, 270
Baseline system, 122 Capable-to-Match (CTM), 100 delta inconsistency report, 700
subcontracting scenarios, 379
Basic functions toolbar, 254 Capacity delta report, 688, 780
supply chain modeling, 223
Basic interactive planning, 243 KPI, 725 distribution definitions, 687
APO-SNP planning books
Batch leveling, 100, 247, 278, 358–359, 387 enhancement, 703, 773
9ASNP_PS, 392
characteristics, 368 management, 279 incremental data transfer, 684
9ASNP_SHLF, 369
input session, 767 variants, 233, 508 master data, 681
9ASNP_SSP, 343
inventory, 364 Capital investment, 129 model activation, 680
9ASNPAGGR, 353
status, 366 Casual forecasting, 96, 193, 207 model generation, 680
9ASNPSBC, 383
Bill of material (BOM), 318 Categorization profile, 564 monitoring transactions, 688
alert profile, 414
costs, 506 Category post-processing, 690
Apparel and footwear (AFS), 316, 651
explosion, 321 group, 209, 377 queue names, 693
Application
Block management, 426 queue statuses, 695
errors, 688
basis definition, 649 Cause-effect analysis, 115 regular monitoring transactions, 705
log, 693
planning, 648 CBF SAP APO transaction codes, 678
usage and performance, 540
reference cycle, 650 profile, 637 SAP ERP transaction codes, 677
Application link enabling (ALE), 677
stock, 366 table, 637 structure, 774
Architecture, 105
BOM, 98, 546, 553 Change transaction codes, 680
As-is analysis, 115
Bottom-up and top-down, 141 management, 113, 123–124 transaction data, 682
Assembly
Bucket pointer, 686 troubleshooting, 700
component, 621
consistency, 264 recordings, 685 user exits, 703
forecast, 640
consumption, 780 Characteristic value combination (CVC), 190, CIF Cockpit, 688–689
planning, 619
Building process chain, 794 255, 318, 637 Class type 300, 628
Asset management, 87
Bullwhip effect, 64, 427 Characteristics, 626, 651 Clear old logs, 565
Assignment mode (forecast
Business Characteristics and class, 367 Client level, 624
consumption), 376
case, 112 Characteristics for optimization run, 540 COGS, 657
Assortment BOM, 661
function, 673, 710 Characteristics-based forecasting, 98, 618, Coherent, 745
Asynchronous communication, 676
goals, 125 635 Collaboration partner user, 438–439
Attach rate, 621, 640
partner, 438 APO-DP release, 643 Collaborative planning, 97, 429, 434
CVC, 638
814 815
Index Index
Collaborative planning, forecasting, and
Critical component, 276 Data (Cont.) Demand and supply planning (Cont.)
replenishment (CPFR), 426, 430
Cross dock, 401, 403 management, 97 overview, 54
Collaborative supply planning, 432–433
Croston model, 204 mapping, 758 reporting, 459
COM routine, 108–109
CTM, 785 model, 77, 155 Demand Waterfall Analysis app, 745
Common component planning, 578
aggregated planning, 567 sources, 473 Deployment
Communication, 124
early/late demand fulfillment, 560 staging, 182, heuristics, 286
errors, 688
engine, 547 465 Data master data, 282
Composite forecasting, 96
global settings, 560 conversions optimizer profile, 538
Concurrent planning, 76
integration with global ATP, 556 automated, 757 strategies, 282–283
Conditional statement, 795
master data, 566 manual, 757 Descriptive characteristics, 642
Configurable
planning characteristics, 546 Data Warehousing Workbench, 158 Deterministic inventory model, 595
finished product, 621
planning method, 548 Database alerts, 293 Diagnosis group, 266
material, 624
planning parameters, 568 DataSource, 184 Differences heuristics and optimizers, 499
profile, 631
planning run, 568 custom, 185 Differentiated planning, 141
Consensus-based forecasting, 429
planning scenario, 546 Days’ supply, 370, 723 Direct
Consistency check, 182, 241
solver run, 568 Dead stock, 591 delivery, 390
Consistent planning model, 168
sort profile, 785 Debugging CIF, 777 shipment, 389–390
Constant model, 95
supply categories, 564 Decision basis for shipment sizing, 405 shipment customers, 387
Constraint, 102, 244, 498
supply distribution, 566 Decision support tool, 116, 123, 243 Disaggregated, 561, 671
management, 77
time stream calendar, 554 Decision variables, 102, 498, 514 Discrete
plan, 273
CTM profile, 551, 670 Decision-making, 113 capacities, 522
supply plan, 281
aggregation, 561 Decomposition, 522 lot sizes, 521
Constraint-based heuristics, 547
demand, 562 Delay mode, 508
Consumption
planning scope, 552 costs, 502 optimization, 521
group, 643
settings, 564 penalty, 503 solver, 510
master data, 377
strategies, 555 Delta replication, 727 Distribution, 49
planning, 608
supplies, 563 Demand plan, 538
strategies, 373
Customer characteristics, 141 planning, 93, 104, 247, 281
Control cost, 502
characteristics, 157 class priority, 527 rules, 538
Conversion rules, 765
hierarchy, 255 data model, 480 Distribution resource planning (DRP), 612
Convex polyhedron, 497
segmentation, 159, 326 forecast error percentage, 346 Domino strategy, 560
Corrective
service levels, 136 forecasting, 92 Dual simplex method, 518
actions, 461
Customer Forecast Management (CFM), 328 management accuracy, 69, 491 Dynamic
decisions, 463
CVC objectives, 55 pegging function, 370
history, 200
maintenance, 324 planner, 83 relationship, 370
Cost
master data, 323 planning, 54, 81, 92, 151
factors, 501–502
Cycle stock, 339, 592 priorities, 503–504, 526–527, 549,
function, 506, 509
maintenance, 501
562 E
process decomposition, 55
modeling, 524
parameters, 503
D profile, 512 Economic order quantity (EOQ), 600
release, 643 curve, 601
penalties, 503 signal, 90
Daily bucket profile, 264 versus safety stock, 609
profile, 511
Data stability, 597 Economics equilibrium, 54
reduction, 128 tasks, 151
cleansing, 758 EDI
savings and reduction, 128 under coverage, 723
consolidation, 465 DESADV, 445
CPFR process flow, 430
conversion, 757 variability, 338, 345 ORDCHG, 445
CPLEX engine, 497 Demand and supply planning
conversion strategy, 756 ORDRSP, 445
dimensions, 463 alerts, 292
cycle, 244
816 817
Index Index
EDI (Cont.)
Fiscal year variant, 164 Global (Cont.) Inbound (Cont.)
PROACT, 444
Fit/gap analysis, 121 template, 112 staging, 183
STPOD, 446
Fixed visibility, 135 Independent forecasting, 621
Empowering for success, 124
cell, 259 Graphical display, 266 Individual demands, 546
Engineer-to-order product, 37
lot size, 604 Groff procedure, 608 Industry benchmark benefits, 128
Enhanced product planning functionality
pegging, 548 InfoArea, 158
(EPP), 718
Forecast, 196 InfoCube
tasks, 719
Enhancement packages, 673, 703, 710
accuracy, 722 H create, 186
assignment of forecast key figures, 200 InfoObject, 155, 251
Enterprise service bus (ESB), 752
bias, 723 Hard constraints, 500 catalog, 158
services, 752
comparison, 268 Hardware sizing, 746 characteristics, 156
Error total (ET), 198
consumption, 373 Heterogeneous data, 462 create, 158
ETL (extract transform load), 481, 759
error, 198 Heuristics, 100, 499 key figures, 156
Exception driven, 141
ex-post forecast, 197 calculation, 273 technical characteristics, 156
Exception Management, 78, 292, 330
extrinsic, 59 engine, 274 time characteristics, 156
Excess
forecast accuracy KPI, 725 location, 271 unit characteristics, 156
inventory push, 407
interactive, 312 multi-level, 272 Information exchange, 427
supplies, 566
intrinsic, 58 network, 272 Initial data transfer, 686
Executive support, 116
method, 193–194 Hierarchical planning, 104, 349– Integer variables, 497
Expiry quantity, 370
model framework, 194 350 Integration models, 676
Explore Days of Supply app, 745 APO-SNP customization, 353
model parameters, 196 Interactive APO-SNP deployment planning,
Explore Projected Service Level app,
netting, 669 location hierarchy, 351 286
745 Explore Projected Stock Value app, location product hierarchy,
profile, 199, 266, 312 Interactive demand planning, 248, 291
745 Explore Stock Deficits app, 745 351 master data, 355
qualitative, 58 Interactive optimizer planning, 516
Explore Stock Overages app, 746 planning product, 351
quantitative, 58 Interactive planning alerts, 416
Explore Supply Network app, 746 technical design, 357
result analysis, 205 Interactive statistical forecasting, 265
Explore Supply Shortages app, 746 testing business scenario, 359
statistical, 193, 738 Interactive supply planning, 269
Explore Uncovered Sales Order app, Hierarchy
Form fit function (FFF) class, 391 Interchangeability, 314
746 Exponential smoothing, 194 master data, 352
Forward consumption, 379 consume inventory, 392
Extension workbench (APX), 541 structure, 352
Freshness date, 362 consume inventory until specific date, 396
External optimizers, 541
Full replication, 727 High costs, 532 master data, 392, 397
Extract
settings, 728 Holt's Method, 202 planning run, 395
APO-DP data, 482
Function module Holt-Winters' Model, 203 Interior point method, 518
APO-SNP data, 484
/SAPAPO/MSDP_MD_SOS_GET, 563 Horizontal aggregated planning, Inter-market demand and supply planning,
structure, 473
EXIT_/SAPAPO/SAPLBOP_SORT_020, 563 523 452
Functional specification, 774 Intermittent, 95
Internet Communication Manager (ICM),
F I 106, 436
Factory distribution network, 513 G Inventory

ICF services, 436 analysis, 581
Fair share rule, 284
Generated hierarchy, 352 ICM monitor, 437 build, 593
Field mapping, 765
Geographical dispersion, 428 IDoc, 760 control system, 600
FIFO, 370, 656
Global inbound processing, 768 cost benefit analysis, 582, 598
Financial
asset utilization, 136 ILOG components, 542 historical analysis, 587
costs, 461
available-to-promise, 82, 618 Implementation holding costs, 532
reconciliation, 140 deliverables, 117
composition, 120 level, 505, 573
Finite iterative planning, 546
system, 121 roadmap, 115, 137 management, 87, 93
Inbound
and outbound exchanges, 751
logistics, 26
818 819
Index Index
Inventory (Cont.)
Level loading, 144 Macro Builder, 175 MRP procedures, 608
methodology, 575, 581
Lifecycle Macro Development Area, 177 MRPII/DRP, 79
modeling, 594
management, 98 MAD, 96, 204 Multi-echelon inventory
obsolescence, 136
planning, 310 Maintenance cycle, 710 optimization, 581
overall reduction, 598
Like modeling, 310 Make-to-order product, 37 planning, 611
planning and optimization, 573
Linear Make-to-stock production, 374 Multilevel ATP, 619
policy, 143, 579
optimization, 518 Manual static safety stock planning, 340 Multi-pickup, 401
reduction, 575
programming, 496 SB (quantity-based), 340 Multiple linear regression, 96
reduction carrying cost, 599
programming equation, 514 setting up, 341 Multi-sourcing business scenarios, 238
stock policies, 584
regression, 194, 204 SM (both quantity- and demand-based), 341 Multi-stop, 401
stocking policies quadrant, 585
LO (logistics) cockpit, 480 SZ (demand-based), 340
strategies, 581
Load Manual time-dependent safety stock
turns, 69, 491
un-bundling, 591
balancing, 290, 400 planning, 342 N
consolidation, 389 MB (quantity-based), 343
Inventory optimization, 575
data into planning book, 252 MM (both quantity- and demand-based), 343 Navigational attribute, 159
dynamics, 576
method, 289 MZ (demand-based), 343 Net forecast, 374
supply chain application,
planning, 288 setting up, 343 Network
578 Inventory turnover, 589
Location Manufacturing, 47, 269, 579 aggregation, 670
Item category, 633, 645
aggregation, 670 MAPE, 96, 204 design and optimization, 94
app, 746 Mapping table, 263 disaggregation, 358, 671
disaggregation, 671 Master data, 553, 756 New product introduction (NPI), 141, 310
J hierarchy, 349 Master production schedule (MPS), 247, 278 Nightly planning run, 154
master, 211, 225 Master-derived role concept, 789 Non-delivery penalty, 502
J-curve effect, 124
product, 226, 553 Material Notes management, 258
Judgmental costs, 532
product master, 211 flow, 121
split, 263 grids, 660
K
Location Product app, 746 master, 624 O
Logical system, 677 Material requirements planning (MRP), 608,
Logistics costs, 86 718 Object dependencies, 630, 632
Key figure, 200, 320
Logistics Information System (LIS), 151, 183 Mathematical Objective function, 102, 498, 515, 532
lock, 180
Lot sizing, 290, 602 formulas, 205 Object-oriented database, 107
Kit, 319
optimization, 578 linear programming, 495 Obsolescence, 311
KMAT
optimum prodecures, 606 Maturation time, 364, 373 ODS, 471
material, 626
periodic procedures, 605 Maximum delay, 502 OMS objects, 108
material type, 621
rules, 275 Mean absolute deviation (MAD), 198 One number, 32
KPI, 719
static procedures, 602 Mean absolute percentage error (MAPE), On-time delivery, 136
Lot-for-lot, 603 198, 722 Operational
Low-level coding, 274 Mean percentage error (MPE), 198 improvements, 128
L Mean square error (MSE), 198 weekly meeting, 247
Microsoft Excel, 331, 335 Operational data store (ODS), 471, 751
Labor expenses, 599
Lead time, 597 M add-in, 478 Optimal solution, 515
Minimum Optimization, 495
Legacy System Migration
Macro, 175, 216 remaining shelf life, 363 concept, 496
Workbench (LSMW), 755, 760,
create, 179 Mixed-integer linear programming (MIP), constraints, 530
763
depot, 178 497 Model, 77 cost factors, 531
advantage, 760
elements, 176 initialization, 197 explanation log, 528–529
loading methods, 760
events, 179 parameters, 196 goals, 498, 530
loading process, 761
workbench, 355, 392
Level 1 SCOR metrics, 490
820 821
Index Index
Optimization (Cont.)
PIR segment, 376 Product Pull-in horizon, 289, 404
model input, 530
Planned independent requirements, 374 characteristics, 157, 428, 617 Purchasing
problems, 102
Planner’s Home Page, 718 decomposition, 522 costs, 86
scope, 517
Planning, 75–76 discontinuation, 390 document shelf life, 367
server, 499
book, 170, 214, 733 group hierarchy, 356 info record, 380
Optimizer, 101
hierarchies, 141 hierarchy, 255, 662
Order management, 26, 48
horizon, 28, 245 interchangeability, 390
cycle time, 69, 490
Order selection option, 554
horizon and granularity, 83 segmentation, 327 Q
object structure, 161, 319 split, 264
Organization areas, 369
run, 246, 535 Product forecast notification (PFN), qRFC
Out of the box, 337
sales and operations, 93 451 Production alert, 692
Outbound
strategies, 373 capacity, 532 monitor, 693
logistics, 26
system architecture, 747 costs, 86, 503, 506 Quality
staging, 183
task structure, 83 priority, 525 inspection stock, 366
Outlier correction, 267
weekly activities, 84 version, 380, 630 rate definition, 508
with final assembly, 374 Production data structure (PDS), 235, 322, usage decision, 366
with planning product, 375 631, 645, 662 Query builder, 478
P with shelf life, 363 Production Planning and Detailed Scheduling Queued remote function call (qRFC), 676
without final assembly, 375 (PP/DS), 642 Quick Sizer, 746
Pallet floor, 291
Planning area, 164 orders, 564 questionnaire, 747
Parallel processing, 797
configure, 165 Production process model (PPM), 101, 383, Quick-win
Parameter, 203
new, 320 552 initiatives, 112
/sapapo/clp_drilldown, 441
Planning book Profitability, 128 projects, 136
/sapapo/clp_rephead, 440
authorization, 791 Project phase activities, 117 Quota arrangement, 100, 238, 409
/sapapo/clp_row_wi, 441
creation, 309 Projected
/sapapo/clp_webbhead, 440
graphs, 260 financial benefits, 129
/sapapo/clp_webdown, 440
/sapapo/clp_webgraph, 439
header, 253 service level, 723 R
layout, 248 wastage quantity, 370
/sapapo/clp_webnote, 439
new, 321 Promotion Range of coverage, 587
/sapapo/clp_webpivot, 440
toolbar, 251 attribute types, 303 Rapid deployment solutions (RDS), 737
value, 201
Planning organization, 144 characteristics level, 304 Recording function, 763
Pareto Principle, 326 Reference
options, 146 key figures, 303
Pegging, 371, 555, 647
structures, 145 reports, 308 model, 123
Penalty
POS forecasting, 426 status, 306 system, 121
costs, 502
Post-implementation, 119 Promotion planning, 97, 302 Regional systems, 121
for non-delivery, 503
Postponement, 578 interactive book, 306 Remote function call (RFC), 676
Percentage remaining shelf life,
PP/DS views, 307 Reorder
364 Perfect order fulfillment, 68, cycle policy, 347
block planning, 648 Proportional factor, 168, 639
489
Preferences, 525 Protocol HTTP, HTTPS, and SMTP, 436 lot size, 596
Performance measures, 125
Primal simplex method, 518 Prototypes, 117 point policy, 347
Period
Priorities, 501, 525, 566 Pull distribution, 284 Re-plan, 79
lot sizing, 605
Pro rata, 169 Pull scenario, 282 Replenishment
review policy, 597
Process chain, Pull/push lead time, 346
split factor, 264
796 Procurement by demands, 284 planning, 275
Persistent staging area (PSA), 471
costs, 509 deployment horizon, 538 procurement, 276
Petrochemical supply chain, 569
planning, 275 distribution, 283 Reports
Phase-in profile, 314
type, 275 scenario, 282–283 /SAPAPO/CIF_DELTAREPORT3, 691
Phase-in/phase-out modeling, 311
Pull-driven concept, 617 /SAPAPO/CTMDISAGGR, 567
Pipeline stock, 339, 592
822 823
Index Index
Reports (Cont.)
Routing, 76, 380 SAP APO (Cont.) SAP BW, 151, 182
/SAPAPO/DP_BOM_LIST, 324
Rule condition table, 558 prerequisite, 116 business content, 484
/SAPAPO/OM_REORG_DAILY, 565
Rule-based planning, 558 profit optimization, 131 component, 152
/SAPAPO/RDMCPPROCESS, 705
promotions, 303 data mart, 164
/SAPAPO/RMSNPOPT, 501
quota arrangement, 409 data staging, 184
/SAPAPO/RSDP_CALC_SAFETY_STOCK, 347
/SAPAPO/RSNP_SHLF_PROP, 372
S rapid deployment solutions (RDS), 737 extraction process, 472
raw material inventory reduction, 133 extractor, 475
/SAPAPO/RTSINPUT_CUBE, 481
Safety stock, 339, 342, 550, 591 requirement strategy customization, 375 layers, 465
/SAPAPO/TS_LCM_CONS_CHECK, 257, 324
advanced, 580 resource master, 387 metrics, 464
/SAPAPO/TS_LCM_PLOB_DELTA_SYNC, 257
basic, 580, 595 roles, 790 objects collection, 486
/SAPAPO/TS_NOTES_DOWNLOAD, 259
calculation methods, 340 same-box model, 453 open hub service,
/SAPAPO/TS_PAREA_INITIALIZE, 321
penalty, 505 SAP ERP add-on, 741–742 751 presentation,
/SAPDMC/SAP_LSMW_INTERFACE, 772
planning, 338 SAP Fiori apps, 744 465
RAPOKZFX, 682
violation cost, 526 SAP SCM server, 742 reporting, 465
RCPTRAN4, 685
Sales and operations planning, 93, 244 solution for AFS, 667 SAP APO, 751
RIMODAC2, 684
capability matrix, 31 technical architecture, 105 staging, 465
RIMODDEL, 684
case study, 30 technical concepts, 675 transactional data, 464
RIMODGEN, 683
characteristics, 139 technical landscape architecture, 106 transformation, 465
RIMODOUT, 684
definition, 28 TLB, 788 upload logic, 481
RIMODSRH, 684
framework, 32 transaction data, 687 SAP BW integration scenarios, 467
RLOADVMI, 447
goal, 29 user exits, 776–777 operational data store (ODS),
SAPAPO/RCIFQUEUECHECK, 692
meeting, 140 SAP APO Collaborative Planning, 425, 428– 471 planned and actual data, 470
Required maximum shelf life,
Sales order 429 planned and actual data SAP APO, 469
364 Required minimum shelf life,
customization, 634 configuration, 435 SAP APO ad hoc reporting, 467
364 Requirement
history, 191 SAP APO on SAP HANA, 716, 727 SAP BW ad hoc reporting, 468
class, 624
type, 633 APO-DP, 718 SAP Duet Demand Planning, 335
types, 374, 624
SAP APO, 452, 454 APO-SNP, 718 SAP ERP, 719, 738
Resource
aggregated planning, 667 benefits, 717 AFS integrated solution, 654
allocation, 501
application layer, 106 core planning processes, 718 batch integration, 367
capacity, 387, 508
authorization, 788 decision support, 720 plug-in, 676
disaggregation, 671
benefits, 85 deployment, 717 SAP APO add-on, 741
expansion, 508
Core Interface (CIF), 153 SAP Supply Chain Info Center, 721 user exits, 778
hierarchy, 356
core planning modules, 81 system operations, 720 SAP Fiori, 744
master, 649
create process chain, 793 UI and interaction, 718 SAP HANA Studio, 729
master data, 532
data conversion using LSMW, 761 SAP APO Performance Monitor, 540 SAP industry solution, 651
mix balance, 116
data extraction process, 474 SAP APO process chain, 791 SAP Integrated Business Planning (IBP), 612,
utilization, 359
database, 106 process type, 792 802
Responsiveness, 462
database model, 156 process variants, 792 SAP liveCache, 97, 152, 161, 235, 447, 499,
Restricted stock, 366 finished goods inventory reduction, 132 SAP APO technical upgrade 569, 728
Return on working capital, 70, 491 increased sales, 130 plan phase, 711, 713 anchor inconsistency, 324
RFC communication user (CPIC), macros, 371, 773 post, 712 consistency, 182
678 RICEFW, 756
material cost reduction, 133 post-upgrade phase, 714 database consistency, 688
Risk pooling, 579
methodology, 117 prepare phase, 711, 713 inspector program, 748
RLT forecast error percentage, 346
model, 223 upgrade phase, 712, 714 object memory system, 109
Rollout preparation, 121
phases, 117 SAP Basis, 106 object-oriented database, 107
Rough-cut production planning characteris-
planning book, 248, 304, 312 SAP Business Suite on SAP HANA, 744 order, 210, 263
tics, 143
planning functions, 90 order data, 107
SAP APO on SAP HANA, 717
824 825
Index Index
SAP Notes
Service Statistical forecasting, 95 Supply (Cont.)
1057389 - interchangeability, 392
factor, 346 Stochastic inventory model, 595 signal, 90
1358057—TLB, 292
level percentage, 346 Stock variability, 338, 345
373756 - BW data implementation, 475
parts planning, 600 balance macro, 274 workflow, 269
391018 - Batch integration, 366
Setup duration, 648 balancing, 247, 407 Supply allocations,
514947—TLB, 292
Shelf life, 362–363 build, 593 529 Supply chain
526835 - ITS installation, 436
alerts, 372 coverage, 723 agility, 488
710198—TLB, 292
business scenario, 371 KPI, 725 assessment, 114
720121- Collaborative Planning, 436
class, 368 on hand (shelf life), 370 asset management, 488
751392 - Batch integration, 366
expiration date (SLED), 365 product, 37 configuration, 428
816973 - Internet Services, 437
key figures, 369 requirement list, 665 constraints, 90, 538
932917 - Collaborative Planning, 438
master data, 363 type, 366 context, 90
SAP Process Integration (PI), 451, 752
Planning, 362 Stockout, 578 costs, 488, 538
SAP Quality Management (QM), 365
propagation, 372 situations, 407 definition, 26, 99
SAP SCM Queue Manager, 688, 702
transaction data, 364 Storage end-to-end business processes, 26
SAP Supply Chain Info Center, 717, 720–721
Shipment sizing, 405 bucket profile, 164–165 Engineer, 239
dashboards, 722
Shipping strategies, 401 costs, 502, 505 execution, 27
data replication, 727
Short-term wins, 125 inventory costs, 534 flexibility, 462
deployment, 727
Simulation Straight loading, 290, 400 maturity model, 65
general settings, 733
mode, 297 Strategic metrics, 68, 114
views, 726
plan, 128, 297 group, 624 modeling, 77, 153, 223
SAP Supply Chain Management (SCM), 799
run, 559 metrics, 489 monitoring, 93, 105
SAP Supply Chain Performance Management
Single exponential smoothing, 201 planning, 28 network, 79–80
(SCPM), 67, 460
Sizing framework, 746 Strong user involvement, 116 objectives, 26
capabilities, 462
SKU level, 567 Subcontracting, 103, 379 Operation Reference (SCOR), 460, 487
SAP Supply Network Collaboration (APO-
Slack, 593 master data, 380 pull, 64
SNC), 449
SLT, 727 planning book, 383 push, 64
Scheduling, 75–76, 104
SNP optimizer, 495, 499, 515–516, 520 SAP APO master data, 381 reliability, 488
Scope activities, 738
constraints, 500 transactions, 384 responsiveness, 488
SCOR
costs, 501–502, 532 Substitution key figures, 392 scope, 113
Level 1 to Level 2, 492
input log, 509, 524 Success metrics, 113 transformation, 244
Level 2 to Level 3, 493
output logs, 524 Super bill of materials (BOM), transformation approach, 136
performance attributes, 488
profiles, 510 629 Super routing, 623, 630 transformation planning, 135
scorecard metrics, 489
screen, 517 Supersession chain, 390 transformation program, 135
Search strategy, 551
solution log, 520 Supply types, 44
Seasonal
solution method, 523 alerts, 154, 410 viewer, 569
linear regression, 204
Soft constraints, 498, 500 allocations, 529 vision, 116
model, 95
Solution method, 518 categorization, 550 Supply Chain Cockpit (SCC), 82, 105, 294,
No Trend Model, 203
Solvers, 78, 100 characteristics, 142 418–419, 421–424
pattern, 317, 668
Capable-to-Match, 103 limits, 550 Supply Chain Operations Reference (SCOR)
planning, 75, 315, 667
optimization, 101 network planning, 82, 93, 99 balancing supply chain, 42
trend, 95
Source system, 184 objectives, 61 business models, 37
trend basic formulas, 206
Sourcing, 47 plan feasibility, 232 communication, 43
Segregation of duties (SOD), 789
policies, 579 process decomposition, 62 gathering requirements, 40
Selection profile, 249
Square root of mean square error (RMSE), profile, 512 gathering resources, 41
Serialization, 676
198 Stacking factor, 290 projection, 723 modeling, 49
Standard business content, 485 shortage (shelf life), 370 overview, 33
performance metrics, 36
826 827
Index Index
Supply Chain Operations Reference (SCOR)
Total Transaction (Cont.) Transaction (Cont.)
(Cont.)
cost curve, 601 /SAPAPO/MP31, 303 /SAPAPO/SNPTLB, 290, 403
process categories, 36
shelf life, 363 /SAPAPO/MP32, 304 /SAPAPO/SUPCAT, 564
process elements, 38
supply chain management cost, 491 /SAPAPO/MP33, 303 /SAPAPO/TL1, 566
process levels, 34
Traditional supply chain, 427 /SAPAPO/MP39, 308 /SAPAPO/TLBPARAM, 238
process types, 35
Transaction /SAPAPO/MP40, 303 /SAPAPO/TLBPRF, 238, 288, 388, 399
scorecard metrics, 68
/INCMD/UI, 314, 392, 397 /SAPAPO/MP41A, 308 /SAPAPO/TR30, 264
supply chain, 38
/SAPAPO/ADVM, 175, 216, 355, 392, 608, /SAPAPO/MP41B, 308 /SAPAPO/TR32, 212
Supply chain types
782 /SAPAPO/MSDP_ADMIN, 181, 200, 208, /SAPAPO/TSCUBE, 192
converging structure, 45
/SAPAPO/AMON_SETTING, 294 210, 213, 317, 319–320, 451, 477, 636 /SAPAPO/VERCOP, 298
diverging structure, 45
/SAPAPO/AMON1, 294, 331, 410 /SAPAPO/MSDP_FCST1, 311 /SAPAPO/VERMER, 298
late customization structure, 45
/SAPAPO/ATYPES_SDP, 293 /SAPAPO/MVM, 224 /SAPCND/AO11, 558
pipeline structure, 45
/SAPAPO/C2, 691 /SAPAPO/OM_LC_UPGRADE_70, 712 /SCA/FCST_OUT, 451
Switch Framework, 673
/SAPAPO/C5, 292, 705 /SAPAPO/OM_LVC_OBJECTS, 748 1435310, 262
Synchronized supply, 428
/SAPAPO/CC, 689 /SAPAPO/OPTEXPLAIN, 523, 528 388260, 268
Synchronous communication, 676
/SAPAPO/CCR, 780 /SAPAPO/PBSTDOBJ, 503 BAPI, 752
System architecture, 138
/SAPAPO/CFM_ANALYSIS, 330 /SAPAPO/PERMON, 540 BD50, 686
System Landscape Transformation (SLT), 727
/SAPAPO/CFM_FC_REL, 330 /SAPAPO/PPM_CONV, 323 BD52, 686
/SAPAPO/CFM_POWL, 330 /SAPAPO/QUAN, 532 BDCP, 686
/SAPAPO/CFM_WFALL, 330 /SAPAPO/RBA04, 558 BMBC, 365
T /SAPAPO/CLPISDP, 441 /SAPAPO/REL_TO_OLTP, 687 C223, 380, 630, 662
/SAPAPO/CONSCHK, 241 /SAPAPO/RELHSHOW, 403, 670, 672 CA01, 380, 630
Tactical planning, 28
/SAPAPO/CP1, 687 /SAPAPO/REPL, 730 CFC9, 226, 232
Target stock level, 342, 608
/SAPAPO/CP2, 687 /SAPAPO/REPL_DELTA, 730 CFM1, 366
Task structure, 83
/SAPAPO/CQ, 702 /SAPAPO/REPL_MODEL, 728 CFM2, 366
Technical enhancements, 755, 772
/SAPAPO/CSNP, 509 /SAPAPO/RES01, 233, 280, 382, 508, 532 CL02, 369
Alert Monitor, 788
/SAPAPO/CTM, 552, 670 /SAPAPO/RLGCOPY, 257 CMOD, 778
APO-DP to APO-SNP release, 787
/SAPAPO/CTM10, 566 /SAPAPO/RRP3, 365, 644, 646 CR02, 232
APO-SNP PDS, 780
/SAPAPO/CTMAPLOG, 569 /SAPAPO/SCC_TL1, 237, 382, 389, 404, CRC1, 380
APO-SNP planning book, 781 516
/SAPAPO/CTMCUST, 555 CS01, 629, 661
APO-SNP TLB interactive, 788
/SAPAPO/CTMMSEL, 553 /SAPAPO/SCC02, 294, 419 CT04, 369, 626, 660
CIF enhancement, 773
/SAPAPO/CTMORDSEL, 554 /SAPAPO/SCC03, 323, 383 CU50, 629
CTM demand prioritization, 785
/SAPAPO/CTMSCPR, 564 /SAPAPO/SCC07, 240 data, 756
product master, 775
/SAPAPO/CTMTSTR, 554, 567 /SAPAPO/SDP_ADMIN, 473 data CIF enhancement, 779
SAP APO user exits,
/SAPAPO/CURTO_EDIT, 237, 506 /SAPAPO/SDP_EXTR, 476, 478 J3AH, 660
782 SAP BW, 786
/SAPAPO/CURTO_SIMU, 645 /SAPAPO/SDP_PAR, 797 LSMW, 761, 768
SNP heuristics, 785
/SAPAPO/IPM01, 637 /SAPAPO/SDP_SEASON, 316–317, 668 MASSD, 227
transactional data, 777
/SAPAPO/LLC, 274 /SAPAPO/SDP110, 292 MC40, 583
Technical integration with non-SAP
/SAPAPO/LOC3, 381, 566 /SAPAPO/SDP8B, 172, 215, 309, 321–322, MC41, 583
applications, 750
/SAPAPO/MAT1, 226, 363, 382, 505, 566, 355, 384, 641, 782 MC44, 590
Technology strategy, 114
643 /SAPAPO/SDP94, 192, 248, 306, 314 ME11, 380
Template rollout, 120
/SAPAPO/MC01_BBD, 649 /SAPAPO/SNP04, 290 ME2O, 384
Time bucket, 32
/SAPAPO/MC62, 191, 323–324, 638 /SAPAPO/SNP05, 279 ME52N, 665
profile, 171
/SAPAPO/MC7A, 264 /SAPAPO/SNP06, 672 MIGO, 365
Time decomposition, 522
/SAPAPO/MC7B, 264 /SAPAPO/SNP08, 669 MM02, 363, 627
Time series data management (TSDM), 451
/SAPAPO/MC8S, 263 /SAPAPO/SNP09, 671 MMBE, 665
Time-based disaggregation, 169
/SAPAPO/MC90, 210, 263, 644 /SAPAPO/SNP10, 372 O1CL, 369
type, 167
/SAPAPO/MC96B, 199, 312 /SAPAPO/SNPCOSF, 507 PDS_MAINT, 506, 780
/SAPAPO/SNPOPLOG, 499, 523
828 829
Index Index
Transaction (Cont.)
RSA1, 180, 184, 485, 787 Unrestricted stock, 366 Weighted average cost of capital (WACC), X
RSD1, 159 Upgrade process, 711 130 Work area, 240
RSPC, 189, 794 Upside supply chain flexibility, 69, 491 Work center master, 380 XML PROACT message mapping, 448
RSPCM, 796 Upsizing and downsizing, 399 Workflow
SBIW, 185 Urgency for change, 124 builder, 434
SE11, 563 User exits, 773 CLP_ALERTS, 434
SE38, 208 macro, 178, 782 CLP_PLANNING, 434
SE80, 437 User settings, 254 customizing, 769
SFW5, 710, 743
SICF, 330, 436
SM35, 767 V
SMICM, 437
ST14, 540 Value stream mapping,
SWDD, 434 52 Variant class, 628
VA01, 631 Variant configuration, 620, 622
Transformation characteristics, 626
framework, 114 configuration profile, 631
goals, 126 CU43, 631
process, 113 customizing sales orders, 633
Transport Load Builder (TLB), 155, 214, 288, object dependencies, 632
290, 399 super BOM, 629
constraint parameters, 238 super routing, 630
load optimization, 400 variant class, 628
loading method, 400 Variant selection, 249
objectives, 399 Vendor capacities, 379
planning book, 403 Vendor management replenishment, 428
profile, 388, 399 Version management, 297
selection profile, 290 Vertical aggregated planning, 522
shipment sizing configuration, 406 Virtual
shipments, 291, 404 cubes, 469
Transportation, 507–508, 516 location, 349
lane block indicator, 409 Visibility, 462
lane priority, 525 Vision, 126
lanes, 237 Visualizing alerts, 293
matrix, 514 VMI, 214
network, 578 benefits, 443
network model, 501 concepts, 443
relevant hierarchy, 403 process flow, 444
zone, 401 scenario, 445–446
Transportation Lane app, 746
Tree diagram shareholder ROA, 128
Trend model, 95
W
Warehouse capacity, 385
U Weekly
cycle, 246
Univariate forecasting, 193–194, 200
planning activities, 246
Un-pegged supplies, 566
Weighing factor, 519
830 831
First-hand
knowledge.
www.sap-press.com/4011
Sandeep Pradhan
Demand and Supply Planning with SAP
APO
813 Pages, 2016, $79.95
ISBN 978-1-4932-1333-7
Sandeep Pradhan is an SAP solution architect in the supply
chain management field and has more than 17 years of professional
experience. He specializes in supply chain application advisory
services and has achieved results by helping clients understand,
architect, select, and implement the SAP supply chain solutions
required to run their businesses. In his various roles
(project manager, solution architect, functional consultant, supply chain
manager), he has been responsible for providing thought leadership in supply chain
strategy, business processes transformation, technology architecture, and business
integration. He has worked on numerous
full lifecycle SAP APO-Demand Planning and Supply Network Planning
implementations from the discovery phase through the implementation phase.
He specializes in SAP supply chain execution (SAP TM, EWM, EM) as well as SAP
supply chain planning modules (SAP IBP, SAP APO) in SAP HANA enviroments.
Sandeep holds an MBA from Monash University, Australia, and is also author of the
book Implementing and Configuring SAP Event Management (SAP PRESS, 2010) and
co-author of Global Available-to-Promise with SAP: Functionality and Configuration
(SAP PRESS, 2011). You can contact Sandeep Pradhan at spradhan@scmnavi-
gators.com.
We hope you have enjoyed this reading sample. You may recommend or pass it
on to others, but only in its entirety, including all pages. This
reading sample and all its parts are protected by copyright law. All usage and
exploitation rights are reserved by the author and the publisher.

Sap Apo DP Cycle

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sap Apo DP Cycle

Uploaded by

Copyright:

Available Formats

First-hand

“Preparing for Basic

4 Preparing for Basic

Basic Customization in SAP APO-DP

relevant to the data model.

Tips & Tricks

Once you’ve created the InfoArea, right-click on the INFOAREA node to

via Transaction RSD1 or in the BW Administrator Workbench (Transaction

Input the attribute

Figure 4.7 Navigational Master Data Maintenance with Valid Combinations

Planning Object Structure

an internally generated InfoCube in which the characteristic combinations for

Figure 4.8 Setting up Planning Object Structure for Demand Planning

Define the Fiscal Year Variant

Figure 4.12 Aggregation and Disaggregation Logic for Key Figures

Tips & Tricks

It is recommended that the automatic generation of proportional factors be done Proportional

In a production environment, it might be necessary to change the key figure settings

Planning Book Figure 4.14 SAP APO Planning Book View

An example of a planning time bucket profile is shown in Figure 4.15, in which

Figure 4.16 Demand Planning Book Wizard (1/2)

Figure 4.15 Planning Time Bucket Profile

Figure 4.17 Demand Planning Book Wizard (2/2)

Figure 4.18 Macro Builder Screen

€ MACRO € ACTION box

€ Level 1 is the macro description. € DEFAULT

Process Steps for Creating a Simple SAP APO Macro

Locking Key Figures

Another business scenario when the locking function can be used is in

1. Access the BW Administrator Workbench in SAP APO using Transaction

ata Staging for SAP APO-DP

1. Create a source system.

€ An automatic proposal of the field mapping between the DataSource and

Figure 4.26 Steps for Creating the DTP

Creating New Characteristic Value Combinations

Figure 4.27 InfoCube Content and Data Model

Figure 4.28 CVC Creation (Transaction

Forecast Method Profile Interactive Perform automatic

Seasonal Linear Regression M35 Seasonal and Linear Regression

Forecast Method System Statistical

Forecast Error Forecast Profile

Assignment of Forecast Key Figures Single Exponential Smoothing (Method 11)

A parameter value of  closer to 0 will result in a slower decline, while one

Figure 4.34 Forecast Key Assignment in Planning Area

Univariate Forecasting Methods Figure 4.35 Single Exponential Smoothing Model

Holt’s Method (Method 21) Seasonal, No Trend Model (Method 31)

Figure 4.37 Seasonal Model

Holt-Winters’ Model (Method 41)

Figure 4.36 Holt’s Trend Model

Seasonal Linear Regression (Method 35) Model Model Parameters

For the constant model Example

Table 4.6 Seasonal and Trend Model Formulas

Category Group SNP Planning Area

Figure 4.38 Categories Assignment to Category Group

9ADRP This planning book is similar to the 9ASNP94, with the

Figure 4.42 Standard Planning Book Key Figures

Figure 4.41 Steps for Creating a Custom APO-SNP Planning Book

Table 4.9 Standard APO-SNP Key Figure and Macro Definitions

€ CHANGE PLANNING AcTIVE

Master Data Tabs Master Data Field Definition

explained in detail in Chapter 15.

Resource in SAP liveCache

Run report /SAPAPO/CRES_CREATE_LC_RES periodically to correct any