Shelf Life Planning in APO

Shelf Life Planning in APO

Eric Simonso Simonson n - Soluti Solutions ons Manageme Management nt April, 2010

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Shelf Life Enhancements in SCM 7.0

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Shelf Life Data Shelf Life Propagation Shelf Life Display and Alert

General Information

The following information relates to the release combination combination ERP 2007 (ECC 6.0 component) / SCM 5.1. Part of the described described shelf life functionality functionality is not not contained in core release ERP 2007 but is provided in enhancement package EhP3. Customers are required to use this enhancement package, along with activating the business function SCM_GEN_02, SCM_GEN_02, to switch this functionality on explicitly.

© SAP 2007 / Page 4

Shelf Life in SNP 5.1 – Developments

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Display of shelf life data  

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Display shelf life data of demands, receipts and stocks Display of data on expiring/wasted goods and shelf life based stock balance

Propagate shelf life data 

Propagate shelf life data of demands (for example: customer orders) across the supply chain

Alert on shelf life data

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Generate alerts for goods that will expire or for shelf life mismatches between demands and stocks

Integrate shelf life data to ERP  

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Integrate shelf life data of purchase requisition to ERP Use shelf life data for further processes in ERP (purchase order, batch determination for delivery creation)

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ERP Master Data

The following shelf life fields exist in the material master of ERP (transaction MM03, tab Plant Data / Stor. 1):

© SAP 2007 / Page 7

ERP Master Data

The following shelf life fields exist in the material master of ERP (transaction MM03, tab Plant Data / Stor. 1): 

Minimum Remaining Shelf Life Minimum amount of time for which the material must keep upon goods receipt for the goods receipt to be accepted by the system.

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Total Shelf Life Period for which the material will kee in total that is from the date of roduction to the shelf life expiration date.

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Period Indicator for Shelf Life Determines the time unit of the above fields.

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Rounding Rule for Shelf Life Expires material at the start or end of the period.

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Storage Percentage How much of the minimum remaining shelf life must be left if the material is to be sent from one plant to an other.

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SCM Master Data

The following shelf life fields exist in the product master of SCM (transaction /SAPAPO/MAT1, tab Properties ):

© SAP 2007 / Page 9

SCM Master Data

The following shelf life fields exist in the product master of SCM (transaction /SAPAPO/MAT1, tab Properties ): 

Planning with Shelf Life This flag determines whether shelf life functionality is considered for this product. Set by CIF if a value is maintained in field “Total Shelf Life“ of ERP.

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Shelf Life Filled via CIF from field “Total Shelf Life“ of ERP. Value is always in days.

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Maturation Time Required period between production of the material and its use. Currently not filled via CIF. Value is always in days.

© SAP 2007 / Page 10

SCM Master Data (continued)

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Required Minimum Shelf Life Minimum shelf life a stock/receipt element must have to cover a demand. Filled via CIF from field “Minimum Remaining Shelf Life“ of ERP. Value is always in days.

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Required Maximum Shelf Life Maximum shelf life a stock/receipt element must have to cover a demand. .

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Rounding Rule Filled via CIF from fields “Rounding Rule for Shelf Life“ and “Period Indicator for Shelf Life“ of ERP.

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Percentage Remaining Shelf Life Filled via CIF from field “Storage Percentage“ of ERP.

© SAP 2007 / Page 11

Stocks

Stocks in ERP can carry shelf life data by assigning batches. (This is only possible if flag “Batch Management“ is set in the material master.)

A batch is a quantity of the material with certain properties that is held in stock separated from the other quantities of the material. The batch contains the date of manufacture the shelf life ex iration date and the ‘available from’ date (day after end of maturation time). These attributes can be entered manually. If the shelf life expiration date is missing it is calculated from the date of manufacture and the total shelf life from master data.

© SAP 2007 / Page 12

Stocks

To transfer shelf life data of stocks to SCM the relevant classes, characteristics and batches have to be included in the integration model. (See consulting note 751392) In SCM, shelf life of stocks can be displayed in /SAPAPO/RRP3.

© SAP 2007 / Page 13

Demand Elements

Sales Orders in ERP can carry shelf life data by assigning batch search strategies. 

Shelf life data of sales orders can be transfered to SCM. For details, see Note 391018 (configurable materials) and Note 483576 (non-configurable materials).

from product master data are attached. This logic can be changed by implementing: BAdI= /SAPAPO/SDP_RELDATA with Method= CHANGE_RELDATA. In this method, arbitrary shelf life requirements can be set (e.g., customer-dependent values).

© SAP 2007 / Page 14

Purchase Requisitions

From ERP 2007 (EhP3) on, purchase requisitions carry a minimum remaining shelf life field that describes the minimum amount of time for which the material must keep at time of goods receipt (delivery date).

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Purchase Orders

Purchase orders carry a minimum remaining shelf life field that describes the minimum amount of time for which the material must keep at time of goods receipt. When a new purchase order is created in ERP, the minimum remaining shelf life is filled from the corresponding field of the purchase requisition. The minimum remaining shelf life can be changed manually (in PO change ransac on .

Shelf life data of purchase orders can be transfered to SCM (but not changed there).

© SAP 2007 / Page 16

Purchase Orders

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Conversion SNP → PP/DS

When converting orders (planned orders,stock transfers, purchase requisitions) created in SNP to PPDS the shelf life data is kept. This was done by enhancing heuristic SAP_SNP_SNGL.

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© SAP 2007 / Page 18

Transaction /SAPAPO/RRP_SNP2PPDS

Shelf Life Integration SCM -> ERP (EhP3)

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Shelf life attributes added to the purchase requisition in ERP.

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Display and change shelf life attributes in the purchase requisition.

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Transfer the shelf life requisition into the purchase order.

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Use the shelf life attributes at batch determination if an outbound delivery is created for a stock transport order.

© SAP 2007 / Page 19

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Shelf Life Propagation General Idea: 

Use of dynamic pegging to find stocks/receipts satisfying given demands

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Starting from sales order / forecast level: Propagation of shelf life requirements of demands to corresponding receipts (and their dependent demands), taking into account transportation and production durations

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Use propagation report as a tool that propagates shelf life data of demands (for example, customer orders) along the supply chain after the planning run

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Shelf Life Propagation - Function

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Transaction= /SAPAPO/SNP10

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Report= /SAPAPO/RSNP_SHLF_PROP

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BAdI= /SAPAPO/SNP_SHLF_PROP Method= PROD_PROPAGATE can modify shelf life data propagated

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BAdI= /SAPAPO/SNP_SHLF Method= IO_MATCHING can define your own logic for finding corresponding demands and receipts (other then dynamic pegging)

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Shelf Life Propagation - Shelf Life Data in the Demand (Forecast) Element

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Shelf Life Example: Situation After Planning, Before Propagation

CPF3

CPF2

T-CPF00 Stock

Forecast

Stock Transfer 13 days

600 -100 ≥

18 days

5 days

20 days

150

600 -200

-600 ≥

10 days

32 days 300

≥

10 days

≥

15 days

2 days (+ 3 days weekend) -300

© SAP 2007 / Page 24

Shelf Life Example: Situation After Propagation (Without Split)

CPF3

CPF2

T-CPF00 Stock

Forecast

Stock Transfer 13 days

600 -100 ≥

18 days

5 days

15 days

150

600 -600 ≥

20 days

32 days

300

300

-200 ≥

10 days

≥

15 days

2 days (+ 3 days weekend) -300

300 missing

© SAP 2007 / Page 25

Shelf Life Propagation – Results without Split during Propagation (batches)

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Shelf Life Propagation – Results without Split during Propagation (shortage)

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Shelf Life Example: Situation After Propagation (With Split) CPF3

CPF2

T-CPF00 Stock

Forecast

Stock Transfer ays

600

100 ≥

100 -100

-100

10 days

≥

18 days 150

10 days

150 ≥

300

≥

10 days

15 days 300 -300

-300

20 days

50 missing

© SAP 2007 / Page 28

-200

-200

50

250 ≥

200

15 days

32 days

5 days

≥

2 days (+ 3 days weekend)

15 days

Shelf Life Propagation – Results with Split during Propagation (batches)

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Shelf Life Propagation – Results with Split during Propagation (shortage)

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Display of Shelf Life Data I

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Use planning book in SNP Interactive Planning to display shelf life data

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Macro-based display & alerting solution 

Display of shelf life based stock balance

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Display of projected wastage quantities, “How much of the product has to be disposed based on the current plan?“

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Raise alerts if the receipts and demands do not match with regard to their shelf e a a.

Data on expiring/wasted goods and the shelf life based stock balance per location product are displayed in new key figures of the planning table 

Data for individual orders (maturation date, expiration date, minimum / maximum required shelf life date) can be displayed in the detail view. 

© SAP 2007 / Page 32

Display of Shelf Life Data II (Key figures)

© SAP 2007 / Page 33

Display of Shelf Life Data II (Key Figures)

The system uses macros to calculate the following key figures that contain shelf life information: Expiring Quantity- Displays the total quantity of stock or receipt elements in a bucket that are no longer usable from this bucket on. 

Projected Wastage Quantity- Displays the portion in key figure “Expiration Quantity” that needs to be discarded in the current demand situation (un-pegged supply). 

Stock on Hand (Shelf Life)- Displays the total quantity of stock or receipt elements in a bucket that have not been consumed by demand up to, and including this bucket. Consumption follows the shelf life logic that stock or receipt elements must meet the shelf life requirements of demand. 

Supply Shortage (Shelf Life)- Displays the total quantity of demand elements in a bucket that have not consumed stock or receipt elements up to, and including this bucket. Consumption follows the shelf life logic that stock or receipt elements must meet the shelf life requirements of demand. 

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Display of Shelf Life Data III (Shelf Life View)

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Alert on Shelf Life Data I Generate alerts after carrying out shelf life propagation. Check for goods that will expire soon and for mismatches between shelf life requirements and actual shelf life. 

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Both Dynamic & Database Alerts are available.

© SAP 2007 / Page 36

Other Helpful OSS Notes

Note 579556- Taking shelf life into account with SNP optimizer (prior to SCM 5.1)

Note 751392- Shelf life R/3 -> APO, settings in R/3 system

Note 1072022- Shelf life in SNP

Note 1109941- Switches in business function SCM_GEN_02

Note 759599- LEFO pegging strategy

© SAP 2007 / Page 37

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CTM Profile – Strategies tab

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Shelf Life Planning with CTM – – – SNP or PPDS Mode 

CTM respects all Shelf Life Restrictions Min. Shelf Life

Max. Shelf Life

Demand 1.

2.

3.

Receipt Maturation Time  

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Max. Shelf Life

Maturation Time: Required period between production of the material and its use Required Minimum Shelf Life: minimum shelf life a stock/receipt element must have to cover a demand Required Maximum Shelf Life: maximum shelf life a stock/receipt element must have to cover a demand

Shelf Life restrictions: 1. Maturation Time of Supply before Due Date of Demand 2. Expiration of Supply after minimum required Shelf Life of Demand 3. Expiration of Supply before maximum required Shelf Life of Demand

Shelf Life Propagation in PPDS for 7.0

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Motivation 

Previously the shelf lives of the receipts and demands are determined according to the values at the product or the batches

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In case of multiple locations, the shelf life of the stock transfers at the source location should respect the shelf life of the sales order at the destination location.

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If the component is active in the finished product and it shouldn’t violate the shelf life restriction of the finished product

FP in DC1 Sales Order FP

Req. Min. Shelf Life

Shelf Life STR FP

FP in PL1

Planned Order FP

C1 in PL1

C2 in PL1

Planned Order C1

Stock C2

In SCM 5.1


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Objective 

The shelf lives are propagated – Takes

the actual date into consideration, not just the days

– Across

location

– Across

production

FP in DC1

Sales Order FP

levels

Req. Min. Shelf Life

Shelf Life STR FP FP in PL1

Propagate Req. Shelf Life along Network

Planned Order FP

C1 in PL1

Propagate Req. Shelf Life along Production

Planned Order C1 C2 in PL1

Stock C2

In SCM 7.0


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Features 

A new heuristic SAP_PP_025 to propagate the required shelf life from the pegged requirement to the dependent demand

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Can reset the required shelf life of non pegged orders to their original value

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Propagation of the required shelf life from the finished product to the subsequent production levels

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Transfer of the required shelf life to the ERP stock transfer order

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In case of multiple pegging the smallest of maximum required shelf life and the largest of minimum required shelf is propagated (Most conservative).

Limitations 

No shelf life planning is done during the propagation.

SAP Supply Chain Management

Eric Simonson [email protected] www.sap.com/scm

Q&A Thank you for your interest!

“This presentation is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document.”

© SAP 2007 / PP/DS Overview 44

Shelf Life Planning in APO

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