Copyright Notes All rights reserved. With the exception of quoting brief passages for the purpose of review, no part of this publication may be reproduced or distributed in any form or by any means without the prior written permission from the author. This includes the storage in any form of database or retrieval system. It is recognized that certain words and abbreviations used in this document are the property of the respective trademark holder. They are used for clarification and information purposes only. This document is not an official publication of any company mentioned in it. SAP™, R/2™, R/3® , AcceleratedSAP™, and ABAP/4® are registered trademarks of SAP Aktiengesellschaft, Neurottstrasse Neurottstrasse 16. 69190 Walldorf, Germany. The document “The APO Knowledge Book – Supply and Demand Planning” is an independent publication. Neither SAP, nor any other company mentioned in this publication is responsible for the contents of this document under any aspect of press law. The information in this document is correct and complete to the best of the author’s knowledge. It is based on APO release 3.0 and patch level 20 as well as the published information of APO release 3.1. All recommendations made in this document are made without any guarantee whatsoever. The author also disclaims any liability in connection with the use of this document, the used data, and the recommendations contained in there. The views expressed in this document are solely those of the author.
Contents
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1 MY FIRST PLAN .................................... .................. .................................... .................................... .................................... ............................... ............. 5 1.1 FORECASTING BUILDING BLOCKS............................................................................6 1.1.1 FC BUILDING BLOCK 1 – P – PREPARATION AND BASIC SETUP .................. ........................... ..................8 .........8 1.1.1.1 Step 1: Create Info Objects ................ .................. ................... .................. ............ 8 1.1.1.2 Step 2: Create Info Object Catalog .......................................................................9 1.1.1.3 Step 3: Create InfoCube........................................................................................9 1.1.1.4 Step 4: Load InfoCube ................. .................. ................. .................. ................. . 10 1.1.1.5 Step 5: Create Storage Buckets Profile .................. ................... ................... ....... 12 1.1.1.6 Step 6: Create Master Planning Object Structure................................................13 1.1.1.7 Step 7: Create DP Planning Area ................ .................. ................... .................. . 14 1.1.1.8 Step 8: Create Characteristic Value Combinations.............................................16 1.1.1.9 Step 9: Create Planning Buckets Profiles............................................................16 1.1.1.10 Step 10: DP Planning Book Design ................ .................. .................. .............. 17 1.1.1.11 Step 11: Create Forecast Profiles .................. ................... .................. ............... 19 1.1.2 FC BUILDING BLOCK 2 – B – BASIC USAGE.................................................................20 1.1.2.1 Step 1: DP Interactive Interactive Planning 1 (Univariate – Constant Constant and Trend) ............... 20 1.1.2.2 Step 2: 2: Create and Assign Assign Selection ID’s ................. .................. ................... .....20 ..... 20 1.1.2.3 Step 3: Forecast Errors........................................................................................21 1.1.2.4 Step 4: Outlier and Workday Correction.............................................................21 1.1.2.5 Step 5: DP Interactive Planning 2 (Adv. Univariate – Constant and Trend) ......22 1.1.2.6 Step 6: DP Interactive Planning 3 (Univariate – Seasonal and Seasonal Trend) 22 1.1.2.7 Step 7: Proportional Factors Management..........................................................23 1.1.3 FC BUILDING BLOCK 3 – P – PROMOTION PLANNING .................................................24 1.1.3.1 Step 1: Define Promotion Settings......................................................................24 1.1.3.2 Step 2: Create Promotion ................. .................. .................. .................. ............. 24 1.1.3.3 Step 3: Promotion Valuation...............................................................................25 1.1.3.4 Step 4: DP Interactive Planning 4 (Promotion Planning) ...................................26 1.1.4 FC BUILDING BLOCK 4 – L – LIFE CYCLE MANAGEMENT...........................................27 1.1.4.1 Step 1: Define Like Profile .................................................................................27 1.1.4.2 Step 2: Define Phase-In Profile...........................................................................27 1.1.4.3 Step 3: DP Interactive Planning 5 (Lifecycle Management)...............................28 1.1.5 FC BUILDING BLOCK 5 – A – ADVANCED USAGE ........................................................29 1.1.5.1 Step 1: Distribution Functions ............................................................................29 1.1.5.2 Step 2: DP Interactive Planning 6 (Header, Distribution, DP Notes) ................. 29 1.1.5.3 Step 3: Create MLR and Composite Profiles......................................................30 1.1.5.4 Step 4: DP Interactive Planning 7 (MLR and Composite Forecast) ................... 31 1.1.5.5 Step 5: Release to SNP........................................................................................32 1.2 SUPPLY AND DEMAND PLANNING BUILDING BLOCKS ..........................................33 1.2.1 SDP BUILDING BLOCK 1 – P – PREPARATION AND BASIC SETUP................................35 1.2.1.1 Step 1: Create SNP Planning Area......................................................................35 1.2.1.2 Step 2: SNP Planning Book Design ................. .................. .................. ............... 35
Step 3: Create Time Stream................................................................................ 37 Step 4: Create Supply Chain Model ................................................................... 37 Step 5: Create Planning Version......................................................................... 38 Step 6: Initialize Planning Version..................................................................... 38 SDP BUILDING BLOCK 2 – DISTRIBUTION R EQUIREMENTS PLANNING ................ 39 Step 1: Location Master ..................................................................................... 39 Step 2: Create Product Master (Finished Goods) ............................................... 39 Step 3: Assign Data to Work Area and Supply Chain Model ............................ 40 Step 4: Create Transportation Lanes .................................................................. 41 Step 5: Create Quota Arrangement..................................................................... 42 Step 6: Create Demand....................................................................................... 43 Step 7: Run Heuristics........................................................................................ 44 SDP BUILDING BLOCK 3 – R OUGH-CUT PRODUCTION PLANNING ....................... 46 Step 1: Create Product Master (Components) .................................................... 46 Step 2: Create Resource ..................................................................................... 47 Step 3: Create Production Process Model (PPM)............................................... 47 Step 4: Assign Data to Supply Chain Model...................................................... 49 Step 5: Run Heuristics........................................................................................ 50 Step 6: Capacity Leveling .................................................................................. 50 Step 7: Release Forecast to DP........................................................................... 51 SDP BUILDING BLOCK 4 – SNP OPTIMIZATION.................................................... 53 Step 1: Update Master Data (Cost Fields).......................................................... 53 Step 2: Run SNP Optimization........................................................................... 54 Step 3: Release Forecast to DP........................................................................... 55 SDP BUILDING BLOCK 5 – DEPLOYMENT AND TLB............................................. 56 Step 1: Deployment ............................................................................................ 56 Step 2: TLB ........................................................................................................ 56 SDP BUILDING BLOCK 6 – MAKE IT EASY............................................................ 58 Step 1: Basic Safety Stock.................................................................................. 58 Step 2: Extended Safety Stock ........................................................................... 59 Step 3: Create SNP Demand Profile................................................................... 60 Step 4: Create SNP Supply Profile..................................................................... 61
My First Plan
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1 My First Plan The first steps are the most difficult ones. This applies to many things in life and using APO is not one of the easiest tasks either. This section of the Knowledge Bank is dedicated to those who want to get going on the system. Learning about APO without actively working on the system is like trying to learn driving a car through reading a book. There are several ways to really learn to drive a car, and the route taken depends on personal preferences. The same applies to APO. This section is subdivided into three streams, each containing several blocks aimed at supporting an efficient learning process. The User Stream In this stream, which should be used by any novice to the system, some basic activities are shown in a step-by-step easy to follow manner. The aim is to get a first impression on how processes are carried out in the system. During this process a complete own “environment” is set up providing an ideal platform for further investigation and knowledge enhancement. All exercises introduced in this stream should be working on the standard SAP delivered APO system. I would like to encourage any beginner using this model as a base and then to further develop it. This is much easier than expected, as the main difficulty is to get started – and that is where the APO Knowledge Bank helps. The Developer Stream In this stream, which should be looked at by users with considerable experience, some interesting exercises are carried out. They are very handy for anybody who is part of an implementation team, as they not only teach how to do a certain task but also serve as a reminder and help in consequent repetitions. These tasks should only be carried out by more experienced users, either those who worked through the User Stream exercises, or from those with previous experience. The Specialty Stream There is also a special section dealing with some common module independent processes. Setup and usage of safety stock or VMI planning are two examples. Exercises in this stream can be carried out after the User Stream and independent of the Developer Stream. The User Stream is subdivided into several building blocks. The blocks follow each other in a logical sequence and it is advised to go through them in the described sequence. The learning blocks are lined up to a large degree with the APO modules. The Developer Stream is more aligned with system requirements, as is to a large degree the Specialty Stream.
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My First Plan
1.1
Forecasting Building Blocks
It is required to set up the Demand Planning environment before any forecasting activities can be carried out. Unlike SNP, where one can start straight away using the delivered system, we need to go through quite a lot of steps beforehand. These prep rational steps are not required in a live environment but going through them provides a very good chance to understand the system much better.
Preparation and Basic Setup Set up a DP environment with all required entities such as planning area, planning book, and forecast profiles.
Basic Usage In this block univariate forecasts are carried out and several parameters of the forecast profiles will be investigated. It also provides an introduction to the maintenance of proportional factors.
Promotion Planning Planning promotions is vital in most industries and part of this block.
Life Cycle Management Finally some products will be planned using Life Cycle Management functionality.
Advanced Usage The main emphasis is the usage of multiple linear regression as well as the integration with other APO modules.
The Forecast Exercise Environment
The DP planning area and the corresponding InfoCube have 6 characteristics (Product, Product Group, Location, Country, Customer, and Customer Group). A total of 10 key figures are defined, of which 4 are stored in the InfoCube. For these InfoCube based key figures, sample data is provided in a spreadsheet, which can be loaded into APO. Please note that the spreadsheet needs to be saved as a comma delimited file before it can be used for uploading. The spreadsheet contains data for various products, locations and planning versions. The table below lists the first section of the spreadsheet with the data for “Tdd” equal to “T00”. The consequent sections contain the same data with “dd” changing running from “00” through to “25”.
Product
Product Group
Location
Country
Customer
Customer Group
T00PR01
T00PG01
T00DC01
AU
T00CU01
T00CG01
T00PR01
T00PG01
T00DC02
AU
T00CU02
T00CG01
T00PR01
T00PG01
T00DC03
AU
T00CU05
T00CG01
T00PR02
T00PG01
T00DC02
AU
T00CU02
T00CG01
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My First Plan
Product
Product Group
Location
Country
Customer
Customer Group
T00PR01
T00PG01
T00DC01
AU
T00CU01
T00CG01
T00PR03
T00PG02
T00DC02
AU
T00CU02
T00CG01
T00PR03
T00PG02
T00DC03
AU
T00CU02
T00CG01
T00PR05
T00PG02
T00DC01
AU
T00CU01
T00CG01
Table 1 – DP Product Data Overview
The info objects are grouped in catalogues. The planning granularity is weeks and months. The planning area supports standard (i.e. no characteristics dependent) planning. Data is displayed in the planning book using a telescoping planning buckets profile for historical and future data. The planning book, which is created for the exercises is basic, but supports all normal planning activities. The master forecast profile supports all types of forecasts. It uses a 36-months history (01/1999 through to 12/2001) and 24-months forecast (01/2002 through to 12/2003) horizon. Both are defined with fixed dates that are aligned with the provided test data. The forecast created in the “Forecasting” exercises can be used as an input to the “Supply and Demand Planning” exercises. All master data is aligned.
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My First Plan
1.1.1 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
FC Building Block 1 – Preparation and Basic Setup Create Info Objects Create Info Object Catalog Create InfoCube Load InfoCube Create Storage Buckets Profile Create Master Planning Object Structure Create Planning Area Create Characteristic Value Combinations Create Planning Buckets Profile Planning Book Design Create Forecast Profiles
1.1.1.1
Step 1: Create Info Objects
Info Objects are the main elements of any planning area. They are used to define characteristics and key figures of planning areas, irrespective of the way the data is stored (i.e. in liveCache or in an InfoCube). The first step is to create these Info Objects. Before starting with the creation of the Info Objects, check whether the Info Area “APOTRAINING” is set up. If this is not the case, it needs to be created. Create the following Info Objects as described with dd being your initials. From the APO tree structure, select Demand Planning > Environment > Current Settings > Administrator Workbench
Check whether the Info Area “APOTRAINING” is listed on the right side of the screen. The entries might not be in alphabetical order. If the Info Area does not exist, follow these tasks else proceed to the next step. ⇒ Select the “Data Targets” node (not the header line) on the right side of the screen and activate the context sensitive menu. ⇒ Select “Create Info Area”. Define the Info Area name (APOTRAINING) and a long description. ⇒ Press the pushbutton. ⇒
Press the pushbutton (Shift F8) on the button bar. Specify the Info Objects listed below, select their type and press the pushbutton. Select “APO” (and not “BW”) on the next pop-up window. Press and after the creation of each characteristic. Select Type “Characteristic” and create the following Characteristics: ⇒ Characteristic Long Description. Reference Char. Data Type Length o TddCH01 Product 9AMATNR TddCH02 Product Group Char 7 TddCH03 Location 9ALOCNO
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My First Plan
TddCH04 Country Char TddCH05 Customer Char TddCH06 Customer Group Char Select Type “Key Figure” and create the following Key Figures: ⇒ Key Figure Long Description Type Data Type o TddKF01 Historical Data Quantity QUAN TddKF02 Key Figure 02 Quantity QUAN TddKF03 Key Figure 03 Quantity QUAN TddKF04 Key Figure 04 Quantity QUAN TddKF05 Base Forecast Quantity QUAN TddKF06 Promotion Quantity QUAN TddKF07 Corrected History Quantity QUAN TddKF08 Corrected Forecast Quantity QUAN TddKF09 Ex-Post Forecast Quantity QUAN TddKF10 Total Forecast Quantity QUAN Leave the Administrator Workbench.
1.1.1.2
2 7 7 Fix UoM PC PC PC PC PC PC PC PC PC PC
Step 2: Create Info Object Catalog
In this subsequent step the previously created Info Objects are grouped in Info Object Catalogs. This is an optional step. Using an Info Object Catalog helps easily identify “own” Info Objects and speeds up subsequent tasks. From the APO tree structure, select Supply Chain Planning > Demand Planning > Environment > Current Settings > Administrator Workbench
Press the pushbutton (Shift F5) on the button bar. Press the pushbutton (Ctrl F6) on the button bar. Specify the name of the new catalog (TddCHC for the Characteristics) and press the pushbutton. Enter the name (TddCHC) and a description for the catalog of the characteristics. Specify the Info Object Type “Characteristics”, the Info Area “APOTRAINING”, and select “Create”. Do not use a template. Using the pushbutton, copy the desired characteristics (the newly created ones in the previous step) from the template to the structure. Once all Characteristics are added to the Info Object Catalog select and . Repeat the previous steps for all Key Figures accordingly (name for the Key Figures Catalog is TddKFC and Info Object Type is “Key Figure”). Leave the Administrator Workbench.
1.1.1.3
Step 3: Create InfoCube
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My First Plan
The InfoCube is used to store historical data. It can only be read, and consequently, the forecast is not written into the InfoCube based key figures, but into liveCache based key figures. Subsequently, the InfoCube will be linked to the planning area. From the APO tree structure, select Supply Chain Planning > Demand Planning > Environment > Current Settings > Administrator Workbench
Activate the context sensitive menu on Info Area “APOTRAINING” and select “Create InfoCube”. Enter a name (TddIC) and a description for the InfoCube and select . Select “BW” as your choice of BW application (do not use APO!) and select . Select the Characteristics tab. Choose the characteristic “9AVERSION” to be included in the structure. Transfer the characteristic from the template to the structure using the pushbutton in the middle of the screen. Select the characteristics from your Info Object catalog by clicking on the Info Object catalog icon in the upper right corner and double clicking on the name of the Info Object catalog TddCHC. Confirm the “Transfer Fields Automatically” query with “Yes”. This copies all Characteristics of your catalog into your InfoCube automatically. Click on the pushbutton. Create four dimensions; one for the version, and the others for the other characteristics. You do not need to create dimensions for time characteristics or units; these are created automatically. Select the pushbutton and define a dimension description. Repeat this step for all o dimensions. Dimension Characteristic 1 Characteristic 2 Planning Version 9AVERSION Product TddCH01 TddCH02 Location TddCH03 TddCH04 Customer TddCH05 TddCH06 Then click on the Assign tab. o Select the characteristic you want to assign. To do so click on the check box of the o respective characteristic and place the cursor on the dimension to which you wish to assign it and click on the pushbutton. After all characteristics are assigned to dimensions, select . Click on the Time Characteristics tab. Transfer the Time Characteristics “0CALMONTH” and 0CALWEEK” from the template to the structure. Click on the Key figure tab. Select the key figures “TddKF01” through to “TddKF04” and press the pushbutton (do not transfer all your previously created key figures!) Choose , and confirm the “Save” query (if any). Leave the Administrator Workbench.
1.1.1.4
Step 4: Load InfoCube
My First Plan
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In order to carry out forecasting exercises, test data is required. The loading of this test data from a spreadsheet into the InfoCube is carried out in this step. The loading of data is a multi-step process. It is easy to make mistakes during this process, which will lead to an incorrect, if any, data load. In this case, it is best to start right from the beginning of the activities listed here. From the APO tree structure select Supply Chain Planning > Demand Planning > Environment > Current Settings > Administrator Workbench
Create Application Component ⇒ Select the “Modeling” shutter and the “Info Sources” section in the left tree structure. ⇒ Activate the context sensitive menu on the folder “Info Sources” in the right tree structure and select “Create Application Component”. Specify name (TddAC) and description for the Application Component and select ⇒ . Create Info Source Activate the context sensitive menu on the Application Component TddAC and select ⇒ “Create Info Source”. Choose “Transaction Data”. ⇒ Enter the name (TddIS) and a long description for the Info Source and select Enter. Create Source System ⇒ Select the “Modeling” shutter and the “Source Systems” section in the left tree structure. ⇒ Activate the context sensitive menu on the folder “Source Systems” in the right tree structure and select “Create”. Select “File System, manual meta data, data using file interface” and . ⇒ Specify the name (TddSS) and description for the Source System and select . Assign Data Source Select the “Modeling” shutter and the “Info Sources” section in the left tree structure. ⇒ ⇒ Activate the context sensitive menu on the Info Source TddIS and select “Assign Data Source”. ⇒ Select the Source System TddSS, press and confirm saving query. ⇒ Enter all Info Objects of the InfoCube (Characteristics, Time Characteristics, and Key Figures) into the column “Info Object”. The Info Objects must be entered in exactly the same sequence as they appear in the data columns of the Excel spreadsheet. Input the data only into the one column called “Info Object”; the other fields are populated automatically. The sequence is: Name Info Object 1. Product TddCH01 2. Product Group TddCH02 3. Location TddCH03 4. Country TddCH04 5. Customer TddCH05 6. Customer Group TddCH06 7. Week 0CALWEEK 8. Month 0CALMONTH 9. Planning Version 9AVERSION 10. TddKF01 TddKF01 11. TddKF02 TddKF02
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My First Plan
12. TddKF03 TddKF03 13. TddKF04 TddKF04 Select the “Transfer Rules” tab. ⇒ ⇒ Transfer all Info Objects to the Communication Structure/Transfer Rules. To do so either select one info object after the other and click on the pushbutton, or use the pushbutton. Then and . ⇒ Create Update Rules Select the “Modeling” shutter and the “Data Targets” section in the left tree structure ⇒ Activate the context sensitive menu on the InfoCube TddIC in the right tree structure and ⇒ select “Create Update Rules”. ⇒ Select the Info Source TddIS on the first screen and press the pushbutton. ⇒ Select and . Create Info Package and Load Data ⇒ Select the “Modeling” shutter and the “Info Sources” section in the left tree structure Activate the context sensitive menu on the Source System TddSS in the right tree structure ⇒ and select “Create Info Package”. Enter the description for the Info Package TddIP and select . The following ⇒ parameters have to be defined: External Data tab: o Load external data from: Client Workstation File Name: Define spreadsheet file path. Control File: No File Type: CSV File Data Separator: Switch the Hex setting off Use the character comma (,). Escape Sign: Switch the Hex setting off Use the character inverted comma (”). External Data Parameters tab: o Thousand Separator: Use the character colon (:). Character Decimal Point: Use the character point (.). Number of Headers 1 Data Target tab: o Ensure your own InfoCube TddIC is listed there. ⇒ Select Save. Choose the Schedule tab and press the pushbutton. ⇒ ⇒ Select and ensure that the load was successful. Leave the Administrator Workbench.
1.1.1.5
Step 5: Create Storage Buckets Profile
In this step the storage buckets profile, which determines the way the data is stored, is defined. Since we also need a time stream, this time stream (also called periodicity) is created at the same time.
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My First Plan
From the APO tree structure select Supply Network Planning > Environment > Current Settings > Maintain Planning Calendar (Time Stream)
Type in the time stream ID (TddTSDP), and then click on the button. Define a name for the time stream on the upcoming screen and select the appropriate tabs to define the following: Header Data Years In Past 4 ⇒ ⇒ Years In Future 4 Time Zone UTC ⇒ Calendar AU ⇒ Factory Calendar with Gaps “on” ⇒ Calculation Rule ⇒ Select the pushbutton and select “Week (weekdays)”. Define the “From” and “To” times for periods Monday through to Friday. To do so type a ⇒ “1” into the first period field and specify the start and end times (00:00:00 to 24:00:00). Continue for all 5 workday periods. ⇒ Press Enter to see all day d efinitions. ⇒ Select the pushbutton. Select and . ⇒
From the APO tree structure select Demand Planning > Environment > Current Settings > Periodicities for Planning Area
Name the storage buckets profile TddSBP and press . This automatically creates the profile. Select the required periodicities “week” and “month” Define the horizon 01.01.1999 through to 01.01.2010 Select the Time Steam ID “TddTSDP”. Select the and pushbuttons.
1.1.1.6
Step 6: Create Master Planning Object Structure
The master planning object structure determines the functionality of the planning area that is created in the next step. From the APO tree structure select Demand Planning > Environment > Current Settings > Administration of Demand Planning and Supply Network Planning
Press the pushbutton and select “Planning Object Structures”. Activate the context sensitive menu on the folder “Planning Object Structures” and select “Create Master Planning Object Structure”. Name the structure TddMPOS and press . On the upcoming screen provide a long description. The “SNP Planning”, “Characteristics Based Forecasting”, and “DP BOMs Relevant” flags must all be off.
