Internal

IBP for Supply Optimizer

Demo Cook book
Marcelo Dorta, SAP SCM Presales Specialist
December, 2016

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Overview:
Objective:
• Make it easier to set-up the IBP for Supply Optimizer Demos and
Prototypes

Target:
• Specialists and consultants (SAP and partners)

IBP Version:
• SAP IBP 1608
• Original expectation is that, if necessary, this asset can evolve
continuously or evolve to be a Standard Demo

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Agenda
• Fast Setup

• Overview of Optimizer Variables

• Other tips/lessons learned

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Fast Setup - Overview
1. Copy Planning Area and Planning Profile
This section aims to make it easy set-up IBP for IBP for
Supply Optimizer using as a starting point a Unified 2. Activate the time profile
Planning area from IBP 1608. 3. Load RDS Time Profile
4. Activate PA
5. Add new variables to PA
6. Activate again the planning area
7. Load basic master data and KF data
8. Create new Planning Views from Templates
9. Manually Create Planning Objects if not created
by KF load
10. Create optimizer operator / assign to PA
11. Run the checks and make the PA ready for
optimizer
12. Calibrate the optimizer and include more data

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Fast Setup:
1. Copy Planning Area and create Time Profile

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Fast Setup
2. Activate the time profile

Review and Activate

Time Profile

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Fast Setup
3. Load RDS Time Profile

• In path service.sap.com/rds we can

obtain the accelerators of the IBP
RDS. Download them and get the time
profile accelerator
• Upload the time profile in IBP Data
Integration app

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Fast Setup
4. Activate PA

NOTE: this steps could also be run after the step “5. Add new variables to PA” to save activation time. It´s
included here to segregate any error between the standard copy and the new variables inclusion.

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Fast Setup:
5. Add new variables to PA

Not all Optimizer Variables are pre-delivered in IBP 1608, although they are released and supported by SAP.
This document will show how to include the following variables in the new PA:
1) Storage Capacity
2) Late Delivery
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NOTE: “The attachment “IBP for Supply Optimizer Variables 1608.xls” includes most of the 1608
optimizer variables in a way that you can easily find and use them.

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Fast Setup: m
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1) Create new Attribute RESOURCETYPE

2) Link the new Attribute to the Master

Data Type Location Resource

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 The sa
Fast Setup: m
already ple planning
contain areas i
Add new variables to PA: Late Delivery should s
not nec
t hi s at t ri
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essary o this s
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Add the following Key Figures to the planning area at Base Planning Level Period, Product, Customer:
• CONSDEMLATEDELIVCOSTRATE (Late Delivery Cost Rate)
• CONSDEMLATEDELIVMAX (Late Delivery Maximum Periods)

Tip: use Non Delivery Cost Rate key figure as a copy template.

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Fast Setup
4. Activate PA

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 Fast Setup:
7. Load basic master data and KF data

• In 1608 this step could be performed by Excel spreadsheet using Favorites functionality or by uploading the data using Data Integration App.

• Sample Data can be also found in the IBP RDS Assets. They could be a starting point at least be used as a reference to build your own data.

• In 1611 the MDT were changed and the Master Data Maintenance was improved in Excel. Productivity improvements are expected.

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Fast Setup:
8.1 Create new Planning Views from Templates

In IBP 4.0 it was very hard to find planning views templates applicable to the optimizer.
In 1608, in the private environments, some applicable planning view templates are
already available associated to the Unified Planning area. These templates include
several tabs for each step of the supply chain but not many IBP for optimizer variables.
At the same time, it was difficult to find these variables and build the planning views
mainly to the optimizer input variables.

For this reason this cook book includes 2 important assets:

• Excel sheet with main Optimizer Variables classified for easy understanding and reuse
(they will be further explained later)
• Planning books already customized to include Optimizer Variables

In the following slides we will explain how to reuse the existing content to build the
optimizer planning books templates

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Fast Setup:
8.2 Create new Planning Views from Templates

If you have a private environment in IBP 1608, log in Excel in the provided unified planning area (this planning area name can
change depending on the environment). Open “SOP 050 Supply Planning” template.

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Fast Setup:
8.3 Create new Planning Views from Templates

This template contains separate tabs for each typical Supply Chain segment and also many optimizer input and output key-figures

Log off and log on to your planning area without leaving the template. Optionally save the template as a local file.

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Fast Setup:
8.4 Create new Planning Views from Templates

Log on into your planning area and save as a Template and then create two Favorite Planning views:
• 1 Supply Opt Parameters
• 2 Supply Opt Planning

Customize the planning view “1 Supply Opt Parameters” to include the optimizer input key figures you want to model as
follows:
• For each planning level, select the key-figures you want to model. The IBP for Supply key figures can be found in
help.sap.com/ibp under “Advanced Planning -> Planning with S&OP Algorithms -> Key Figures”. More detailed information
can be found in note “2238075” and also in the EKT documents named SAP IBP Planning Model.

The attachment “IBP for Supply Optimizer Variables 1608.xls” can help finding the variables easily by applying filters.

The attachment “PV 1 Supply Opt Parameters” include more variables than the original Unified PA Template and can be used
as an accelerator. To be able to use it open the spreadsheet and save it as your planning view favorite. This will save time by

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Fast Setup:
8.5 Create new Planning Views from Templates
Here we can find examples of the planning view after including the optimizer key-figures:

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Fast Setup:
8.6 Create new Planning Views from Templates

Customize the planning view “2 Supply Opt Planning” to include the optimizer input and output key figures.
Note: keep the number of key-figures as minimum as possible to make it easy to understand the results.
Here we can find examples of the planning view after customizing the key-figures:

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Fast Setup – Overview
9. Manually Create Planning Objects if not created by KF load

Some key-figures, to be able to be planned, requires that planning objects (similar to characteristics combinations in APO-DP) are created
previously. One example is the Capacity Supply (CAPASUPPLY) key figure. If the values for this key-figure are loaded by files, the planning
objects need to be created and then the values can be maintained in Excel.

To be able to create planning objects in the Excel planning view, make sure the planning view contains only the planning levels associated to
the key-figure base planning levels. E.g.: for Capacity Supply it will be Resource ID and Location ID.

In IBP 1611 there are new functionalities that help to create the planning objects (see EKT).

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Fast Setup – Overview
10.1 Create optimizer operator / assign to PA

Create a new operator for the optimizer and assign it to the planning area. This will provide flexibility to change the optimizer
settings specific to each planning area, avoiding conflicts between parallel POCs, Demos and tests

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Fast Setup – Overview
10.2 Create optimizer operator / assign to PA

Revise the optimizer parameter and assign the new operator to the PA

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Fast Setup – Overview
11. Run the checks and make the PA ready for optimizer

Run SCM Heuristics, Optmizer and Check Mode and the Check Mode and SCM Check operator to verify and correct the data

Evaluate using the functionality Normalize_ratio_policy to simply building the quotas, which is usually the main Check error
one finds when checking the data consistency.

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Fast Setup – Overview
12. Calibrate the optimizer and include more data

Run the optimizer and make sure the results are under control before the demo, POC and Prototypes.

For instance, if you need to calibrate costs, constraints, size of the planning run, etc., to be able to easily explain every result
in the demonstration and proof of concepts.

After that, you can add more data to IBP and create Dashboards, KPIs, Alerts (Excel and Control Tower), etc. to make the
presentation a wow demo.

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Agenda
• Fast Setup

• Overview of Optimizer Variables

• Other tips/lessons learned

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Overview of IBP for Supply Optimizer Variables in 1608

• The objective of the Optimizer is to minimize the total 1. Output is Times Series based
costs of the supply plan. 2. Objective Function
1. Maximize Delivery (tries to fulfill from any option, regardless of ND)
• Optimization is performed via a transformation of the 2. Profit Maximization (takes ND penalty into account, no delivery if not profitable)
S&OP-model into a mathematical model (Mixed Integer 3. Non and late (customer only) delivery penalties
Linear Programming (MILP)-model). 1. Location dependent
2. Time dependent
• The output is an optimal and feasible production, 4. Material constraints
• Storage Cost
distribution and procurement plan for the entire
• Procurement Costs
supply chain network • Production Costs
• Transportation
• Safety Stock
5. Resource Constraints
• Production
• Storage (multiple per location)
6. Transportation Lanes
7. Cost Profile – global factor for the run
8. Optimization Bounds Profile – Via KF for min & max
9. Discrete Mode (lot sizes)
• Horizon specific
10. Quota Arrangement – Inbound only
• Can be considered, after heuristic run values are put into additional KF
11. Aggregate constraints through KF’s
12. Can model effectivity dates via TS Key Figures

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Overview of IBP for Supply Optimizer Variables in 1608

During the preparation of some proof of concepts in IBP came out the idea of making it simple to find:
• Which are all input variables the optimizer can deliver
• How to set-up this variables, whether it´s a key-figure or a master-data type, which level, etc.
• Find more information about this variable

For this reason the attachment “IBP for Supply Optimizer Variables 1608.xls” was created. It includes most of the 1608
optimizer variables in a way that you can easily find and use them.

Notes:
• This document is not delivered by SAP development and was build mixing documentation in help.sap.com and in SAP note
“2238075” (Additional information about the supply planning function for IBP for Sales and Operations).

* A SAP reserva o direito de adiar, modificar ou cancelar o lançamento de funcionalidade planejadas, ou seja, ainda não liberadas para o mercado.

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Agenda
• Fast Setup

• Overview of Optimizer Variables

• Other tips/lessons learned

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Other tips/lessons learned

• When reusing the Planning Templates, explicitly remove all filters to be able to visualize your own data. Sometimes some internal filter
information is hidden in the templates and lead to wrong understanding and delays in the modeling process.
• Review carefully Currency and Unit of Measure Conversion in the key-figures tab of the planning view configuration to be able to complete
visualize your data.
• Review carefully the Planning Units (Subnetworks) in the planning views to guarantee you are running the optimizer with the correct dataset.
• As the storage capacity is a Pseudo-hard constraint, if you set the optimizer profile to Minimize Non-Delivery, it sometimes does not work
properly.
• Create your own optimizer operator to be able to setup optimizer parameters independently of other users.
• Although only SAP development can include new input variables for the optimizer, in IBP is possible to make the current input key-figures
considered by the optimizer be the result of a calculation of other variables defined specifically for one customer. As an example, we can
make the key figure Transportation Cost Rate be the sum of 2 new key figures such as Government Tax Rate and Logistical Transportation
Cost Rate. To make it possible, create the other 2 key figures as stored and Indirect Input to Supply Planning. Change the original one to
calculated and include a formula that is the sum of the other 2 key figures.

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