SCM APO

Supply Network Planning

Overview
 Positioning of SNP within the APO Solution

SNP (Supply Network Planning) is the planning tool for medium

term planning in APO.
Production Process Model

Manufacturer Plant

Manufacturer
DC

Customer DC
Supplier Plant

Supplier WH

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 High-Level Business Process

Planning horizon SCM APO

Demand planning Forecast

Supply Network Planned order Planned stock

transfer
Planning

PP/DS

Confirmed
stock transfer
Deployment

Transport Load TLB-conf.

stock transfer
Builder

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 Business Background

 Supply Network Planning (SNP) plans supply throughout the

entire supply network to meet the forecasted demands.
 It creates a rough production and distribution plan. The smallest
time unit used for scheduling is days.
 The bill of material (BOM) is exploded during creation of planned
orders for inhouse production.
 The capacity of the resources can be taken into consideration.

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Business Process: Supply Network Planning with SCM

R/3 System SCM Non-R/3 System

Demand Planning
Perform Sales and
Operation Planning (SOP) Supplier
Supply Network Planning

SNP Planning Run

Create/Update Interactive Planning

Planned Order/
Purchase Order
Exchange Requirements
with supplier *

Perform Material
Create/Update
Requirements Planning
Planned Order/
(MRP)
Purchase Order

Release Constrained
Demand Plan back to DP

Release to PP/DS *

* Alternative steps

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 SNP Distribution Network

Customer
demands

Distribution
Centers

Plants

Suppliers

Stock transport Planned order Purchase requisition

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 SNP Planning Strategies

Medium to Long-Term Planning Strategies

Infinite planning - Heuristic: Resources and material availability are

not checked.

Finite planning - Optimizer and Capable-to-Match (CTM):

Simultaneous quantity and finite capacity scheduling: SNP
resources and material availability are checked.

Short-Term Replenishment Planning

- Deployment heuristic and deployment optimizer:

Adjust stock transfers according to the current
demand and receipt situation.
- Transport Load Builder (TLB): Builds feasible
stock transfers.

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 SNP master data

 Products
 Locations
Supplier Plant DC Customer
 Location product: combination of a product at a certain location. In SNP, the planning makes only sense if this combination is used.

 Transportation lanes

 Resources
 PPM (Production Process Model): it defines the detailed information that is needed to produce a product.
 Calendars

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 SNP Process Flow

Set up master data and supply

chain model

Release
demand Perform SNP
Build loads for unassigned plan to SNP Heuristics, Optimization
transport orders or CTM run

Run TLB

Run Review plan/resolve

Deployment problems

Release constrained Finalize SNP

SNP plan to DP plan (available to PP/DS)

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  SNP Heuristic

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 What is SNP Heuristic Planning ?

 The SNP heuristic plans demand over the entire supply chain network (cross-
location planning) and creates a medium-term production and distribution plan.
 It does not take into account any constraints or costs, which means that the
plan created will not necessarily be feasible.
 In a second step after the heuristic run, the planner can then adjust the plan
using capacity-leveling in order to create a plan that is feasible.

Advantages:
• Transparent
• Simple Planning Scheme

Disadvantage:
• Infinite Planning Scheme (does NOT consider Resource Capacities)

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 SNP Heuristic: Factors considered


Transportation lanes
 Valid movements in the supply chain

Quota arrangements
 Percentage allocation of requirements to sourcing locations

Lot sizing
 Lot-for-lot, fixed, periodic, rounding values, reorder point, target
day’s supply

Calendars

Safety stock

PPMs
 Search for PPM, Explode PPM

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 SNP Heuristic: Planning scope

 Location Heuristic: Processes selected location products

 Network Heuristic: Processes all locations where the selected

products appear. The SNP run is only performed for finished goods

 Multilevel Heuristic: Processes the entire supply chain for each

product planned

SNP Heuristic can be executed interactively and in the background

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 Interactive Planning Tool
Ta /sapapo/snp94 or /sapapo/sdp94
selection
of data
Direct
Select planning book
and data view
Macros

Planning table
Key figures
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 Short Terminology List for the Interactive Planning Tool

Planning book: most important tool for the SNP planner.

It is the base to configure the planning table.

Data view: It is part of the planning book. The planning book contains
one or more data views. It contains the detailed information how the
planning table should look like.

Key figures: they represent business variables that are necessary for
the planning process, for ex.: Total Demand, Safety Stock, Total
Receipts...
Key figures are drawn out over time.

Macros: Operations based on individual fields, rows, columns, and

areas. A macro can have several steps. One step can have several
arguments. For ex.: the result of the sum of two key figures is writen
into another key figure.

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 SNP Heuristic in the background

Ta /sapapo/snp01

If network heuristic: field for

location is not ready for input

If the setting network heuristic is combined

with the flag ‚Take into account found
componends in planning run‘, the heuristic
run corresponds to a multilevel heuristic

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  SNP Optimizer

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 What is SNP Optimization ?

The SNP optimization prioritizes demands and supplies over the entire supply chain
network and creates a medium-term production and distribution plan. It is a finite
planning process, which takes resource capacity constraints as well as costs into
account and creates feasible production orders, stock transfer orders and purchase
requisitions.

Supplier Plants DCs Customers Products Resources

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 The Principle of optimization

Optimization
Input Output
Min. Cost
Max. Profit

Prioritized Demand Constraints Planning Results

• Sales order • Customer priority • Production Orders
• Corrected Forecast • Product priority • Stock Transfer Orders
• Forecast • Production Capacity • Purchase Requisitions
• Storage Capacity
• Transportation Capacity
What will be • Safety Stock When, Where,
needed in the
• Business process What, How much,
future ???
How !!!

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 Technical process of SNP Optimization Run

GUI

(1) Start

(2) Call opt.

(3) Get data
Application (5) Send data Optimization
(6) Send results
Server Server
(8) Close opt.

(4) Collect (7) Save

date (7) (4) date

DB LC

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 Interactive Planning
Ta /sapapo/snp94 or /sapapo/sdp94

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 After the Optimizer Button...

Optimizer and
cost profiles
required

The processed steps

can be seen here

Results can be checked in the Optimizer

log files: Ta /SAPAPO/SNPOPLOG
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 SNP Optimizer in the background

Ta /sapapo/snpop

Selection of planning book

and data view

Master data selection

Planning horizon

Optimizer and Cost profiles

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  CTM (Capable-to-Match)

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 What is CTM ?

 CTM is a rule-based method that has capabilities of

 extensive prioritization of supply and demand
 global planning of production resources in finite mode.
 The CTM run generates Mid-Term Distribution and Production plan. It is an
alternative to SNP Heuristic and SNP Optimizer.

 CTM Planning is order-based whereas SNP Heuristics and

Optimizer are bucket based. This lets CTM to trace single 1.
2.
3.
orders back to the individual requirement by pegging 4.
5.
methods. 6.
7.
8.
9.
 CTM is the only tool in SNP which can use PPDS master
10.
11.

data and create PPDS orders.

 CTM is based on optimization engines from ILOG (only up to SCM 4.1, as of SCM 5.0
the engine is developed at SAP).
 ILOG’s C++ Solver Library for Constraint Programming
 ILOG’s C++ Scheduler Library Scheduling module for
Scheduling is used.

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 Planning run with CTM Engine

 CTM takes the following constraints into account:

 Production resources
 Lot sizes
 Due dates

 Capable to Match (CTM) considers constraints and priorities

during its search for a feasible solution. CTM prioritizes demand and
categorizes supplies, then takes the first feasible solution it finds,
which is not necessarily the optimum solution.

 If during the search process a capacity or other constraint is

encountered, the system will backtrack to the previous node and
search alternate solutions. This process continues until a feasible
solution is found, or it is determined that no solution exists.

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 Technical process of the CTM Planning Run

1. Order selection
2. Demand prioritisation
3. Supply categorisation
4. Read master data
5. Planning run with CTM 6
APO - DB liveCache
engine
1
6. Writing result to liveCache 4 2 3
read master demand supply
data prioritisation categorisation

5
CTM Engine run

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 Sample CTM Run Scenario on SNPizza

(4) Strategy: Search for

surplus stock
Result: Stock Available !
Vendor

Distribution Center
(5) Stock Transfer order
Plant Created !

(3) Strategy: Search for

surplus stock
Result: No stock !
ATP rule: Substitution product (2) Transportation
Result: No stock ! Lane with High prio.
Production: Search for Selected
available capacity
Result: No resource available !
Plant Distribution Center

(1) Demand with High

Priority
Vendor - No Stock!

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 Running CTM: CTM profile

Ta /sapapo/ctm

Settings for
the CTM
planning run
are done in the
CTM profile

Planning run is
started here

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 SNP Strategies: Comparison

Heuristic Optimizer CTM

Speed + - 

Quality - + 

Prod. resources 2. Step, local global + global +

Other resources 2. Step, local global + -

Multi-level + + +

Costs - + -

Priority - product/location location / prod.+

Quota arrangements + creates +

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  Deployment

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 What is Deployment?

- Deployment determines which requirements can be fulfilled by the existing

supply and distributes this available-to-deploy quantity according to rules.
- Deployment is able to push stock in case there is an excess of stock or the
location has not enough capacity to store this stock.

 Deployment Heuristic DC1

 Deployment Optimizer Plant DC2

 Transportation capacities and costs
are taken into account

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 Distribution methods in Deployment Heuristic

Deployment Heuristic: Push- and Fair-Share-Mode

For example: All supply is distributed

Push rules immediately to the demand locations to
(Demand < or = Supply) meet all demands within the planning
horizon. The requirement dates specified
by the demand locations are not taken into
account.

Fair Share For example: according to quota

arrangements or distribution priorities
(Demand > Supply)
100

30% 70%

Demand: 80 Demand: 80
Confirmed: 30 Confirmed: 70
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 Running Deployment: Interactive planning
Ta /sapapo/snp94 or /sapapo/sdp94

Deployment is
started in the source
location

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 Deployment in the background

Ta /sapapo/snp02

Selection of planning book and data view

Setting for deployment horizon

Master Data selection

Options for the SNP stock

transfer processing

Indicator ‚Realtime Deployment‘: a SNP heuristic run

is executed before the deployment run

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 TLB (Transport-Load-Builder)

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 Transport Load Builder

The transport load builder uses the result of the deployment

run to create multi-product transport orders while ensuring that:

Transportation vehicles are filled to maximum capacity

Transportation vehicles that are not filled to minimum capacity

are not dispatched

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 TLB Parameters

Settings TLB Profile

A B
10 A
C
D
Pull
Min. / Max. Pallets Min. / Max. Volume Min. / Max. Weight
in horizon

Settings Lot Size Profile

+
Min. / Max. Lot Size Rounding value

Transport order for

= transport unit (e.g., truck, train)
for all materials
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 Running TLB: Interactive Planning

Ta /sapapo/snp94 or /sapapo/sdp94

Go to the
TLB View to
run TLB

Details for the order confirmed

by deployment

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 TLB view

Selection of a
transportation
lane

Deployment order

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 Result of the TLB run

Because of the settings in the TLB

Profile, several TLB orders are
created for one deployment order

TLB Profile: max number of pallets = 4 Details to one TLB order. The order
Product master data: 1 pallet = 1000 pieces contains 4.000 pieces (4 pallets).

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 SNP Data Model

Legacy R/3
OLTP Master Data

APO Master Data (model independent)

Active model

Master data assigned to the model Simulation models

Planning version 000 Planning version 1 Planning version n

(active version)
Version dependent master data Version dependent master data
Version dependent master data and transactional data and transactional data
and transactional data

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 Important Database Tables

/SAPAPO/LOC : locations

/SAPAPO/MATKEY: products

/SAPAPO/MATLOC: location products

/SAPAPO/MATLANE: product / transportation lane

/SAPAPO/TRM: means of transport for transportation lane

/SAPAPO/RES_HEAD: resource

/SAPAPO/MATRES: product / resource

/SAPAPO/TSPAPLO: relationship between PLOBID (object ID for the

application) and NODEID (object ID for the liveCache)

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 Important Programs

/SAPAPO/RSNPDRP1: SNP Heuristic (Ta /sapapo/snp01)

/SAPAPO/RMSNPOPT: SNP Optimizer (Ta /sapapo/snpop)

/SAPAPO/CTMPLRUN: Capable-to-Match (CTM) (Ta /sapapo/ctm)

/SAPAPO/RMSDPDEP: Deployment heuristic (Ta /sapapo/snp02)

/SAPAPO/RMDPLOPT: Deployment optimizer (Ta /sapapo/snp03)

/SAPAPO/RMSNPTLB: Transport Load Builder (TLB) (Ta /sapapo/snp04)

/SAPAPO/TS_PAREA_INITIALIZE: Initialization planning area

/SAPAPO/RLCDELETE: Deletion of transactional data

Consistency check reports:

/SAPAPO/TS_LCM_CONS_CHECK: Consistency check for existing LC time series network

/SAPAPO/TS_LCM_REORG: Consistency check for liveCache time series master data

/SAPAPO/TS_LCM_REORG_SNP: Consistency check for liveCache time series
master data for SNP

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 Important Customizing Settings

In general:
- Maintain factory calendar
- Maintain ATP category groups

For the SNP Optimizer:

- Number of log entries (Maintain global settings for the optimizer in SNP)
- Define SNP Optimizer profile

For CTM:
-Define global values and default values (for ex. liveCache update, relevant
ATP categories)

For TLB:
-Define SNP Transport Load Builder profile

For data transfer to OLTP systems

- Configure transfer to OLTP systems

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 Data Volume (I)

Data volume for an

APO installation S: small M: medium L: large XL: very large
location products 500 20000 100000 500000
forecast orders 1000 20000 100000 500000
sales orders 2000 40000 200000 1000000
procurement orders 1000 20000 100000 1000000
production/planned orders 2000 10000 100000 500000

WE DO NOT USE T-SHIRT

sizing anymore…
USE QUICKSIZER instead !!!
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 Data Volume (II)

Data volume for an

APO installation S: small M: medium L: large XL: very large
location products 500 20000 100000 500000
forecast orders 1000 20000 100000 500000
sales orders 2000 40000 200000 1000000
procurement orders 1000 20000 100000 1000000
production/planned orders 2000 10000 100000 500000

4 CPU 6 CPU 16 CPU

3 GB RAM 4 GB RAM 8 GB RAM
DB 2 CPU 50GB Hard disk 50GB Hard disk 200GB Hard disk
1GB RAM 4 CPU 6 CPU 16 CPU
20GB Hard disk 4 GB RAM 16 GB RAM 64 GB RAM
liveCache 50GB Hard disk 50GB Hard disk 150GB Hard disk
2 CPU 2 CPU 4 CPU
Optimizer 1 GB RAM 1 GB RAM 2 GB RAM

Only as orientation. Use QUICKSIZER instead !!!

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 Performance-Critical Steps

 Interactive planning
 Loading of a selection into the shuffler
 Loading of objects into the planning table
 Drill-down

 Background planning jobs

 Heuristic
 Optimizer
 CTM

 Configuration of macros (macros realize operations based on

individual fields, rows, columns and areas)
 Performance problems might appear on customer-defined macros

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 Some important SAP Notes

577038 Data inconsistencies in SNP (possible causes for

inconsistencies and how to remove them)

660194 RLCDELETE does not delete the selected orders

(explanation of which orders can be deleted with report
/SAPAPO/RLCDELETE)

587407 Optimization-Based Planning in SNP: The System Steps

812709 Composite note: Performance of SNP

807320 Composite note: Performance of CTM

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 Tips and Tricks

 Useful Breakpoints
- Heuristic: Function group /SAPAPO/MSDP_SNPHEU
Subroutines DRP_QUOTA, DRP_REPLENISH_CALC

- Deployment: Function group /SAPAPO/MSDP_DEP

Function module /SAPAPO/MSDP_CALL_DEPLOYMENT

- TLB:
 3.0, 3.1, 4.0 Function group /SAPAPO/MSNP_TLB, Function module /SAPAPO/MSNP_TLB_CALL
 4.1 Class: interactive planning -> /SAPAPO/CL_TLBINT, Method TLB_CALL

background -> FM /SAPAPO/MSDP_CALL_TLB_LANES

FM /SAPAPO/MSDP_CALL_TLB_ENGINE

- Macros: Function module /SAPAPO/ADV_MACRO_CALCULATION

- Read transactional data from LC: Function module /SAPAPO/TS_DM_GET

- Write transactional data into LC: Function module /SAPAPO/TS_DM_SET

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 User Exits / BAdIs

 Some BAdIs for SNP:

 /SAPAPO/SNP_INTERAKT: Can be used to manipulate attributes of orders in SNP
which are created manually
 /SAPAPO/SDP_ORD_TIME: In SNP the receipt time for stock transfer orders is set
to 12:00 per default. A specific time can be assigned to the order
 /SAPAPO/SDP_DISTR: User defined distribution methods for deployment
 /SAPAPO/SDP_CIFOUT: The SNP orders can be modified when sending them to
the OLTP system

 Specific BAdIs for CTM can be found in the customizing under:

Advanced Planning and Optimization  Multilevel Supply and Demand

Matching (SDM)  Capable-to-Match (CTM)  Business Add-Ins (BAdI) for
CTM

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