Deployment & Deployment & Available-to-promise (ATP)Available-to-promise (ATP)

in SCMin SCM

EIN 5346 Logistics EngineeringEIN 5346 Logistics Engineering(MSEM, Professional)(MSEM, Professional)

Fall, 2013Fall, 2013

Deployment & Deployment & Available-to-promise (ATP)Available-to-promise (ATP)

in SCM in SCM

Theories & ConceptsTheories & Concepts

Deployment & ATP CTP Modules in Deployment & ATP CTP Modules in SCMSCM

1. Review2. Deployment

1) Deployment setting2) Available-to-deploy (ATD)

• Available-to-receipts (ATR)• Available-to-issues (ATI)

3) Deployment strategy4) Transport Load Builder (TLB)

3. Available-to–promise (ATP)1) Capable-to-promise (CTP)2) Multi-level ATP (ML-ATP) check

Deployment and ATP CTP Modules Deployment and ATP CTP Modules in SCM (Review)in SCM (Review)

Planning with SAP ERP & SCMPlanning with SAP ERP & SCM

SAPECCERP

SAP SCM(includes SAP BW)Core Interface (CIF)

• Demand Planning • Supply Network Planning and optimization• Production Planning with capacity considerations• ATP• CTP• Detailed Scheduling• Deployment• Transportation planning• Vehicle routing and scheduling

• Mater data•Materials•Locations•Partner•Plants•Info records

• Transactional data• Customer orders• Production orders• Purchasing orders

• Execution

Basic Components of SAP SCM

Work Flow in SAP SCMWork Flow in SAP SCM

Deployment (review)Deployment (review)1. Deployment determines which distribution requirements

of the distribution centers or VMI customers can be covered by the existing supply

2. Deployment occurs after SNP (mid to long term) planning and after detailed PP/DS planning for production

Deployment SettingDeployment Setting

Deployment SettingDeployment SettingIf the available quantities are not sufficient to meet demand or if they exceed the demand, deployment makes adjustments to the stock transfers created by the SNP run.

The system reduces the stock transfer and decides how much will be deployed to each distribution center.

The deployment heuristic reaches this decision by using defined rules.

Deployment SettingDeployment SettingIf the quantities that are actually produced, procured and the demands match the Supply Network Planning (SNP) planning quantities, deployment merely confirms the stock transfers.

The quantities of different products confirmed by deployment can be combined into stock transport orders by the Transport Load Builder (TLB). Deployment and TLB are used to confirm stock transfers.

Available-to-deployment (ATD)Available-to-deployment (ATD)When procurement and production are finished, the system checks which product quantities are actually available in the source location (location with stock).

The total of these product quantities is referred to as the available to deploy (ATD) quantity.

Available-to-receipts (ATR)Available-to-receipts (ATR)In standard category group ATR (available-to-receipts), you group together all the ATP (available-to-promise) categories that are to be taken into account as receipts for deployment.

Receipts include stock, production orders, and purchase orders.

Available-to-issues (ATI)Available-to-issues (ATI)In standard category group ATI (available-to-issues), you group together all the ATP categories that are to be taken into account as issues for deployment.

Issues include sales orders and reservations.

The ATD (available-to-deploy) quantity is calculated from category groups ATR and ATI.

Available-to-Deploy (ATD)Available-to-Deploy (ATD)

Deployment Strategies Deployment Strategies

Pull deployment Pull horizon

Quota ArrangementQuota Arrangement

Incoming/Outgoing Quota Incoming/Outgoing Quota ArrangementArrangementIncoming quota arrangement:Use an incoming quota arrangement to specify which proportion of a requirement is to be procured from which source location (e.g. vendor).

Outgoing quota arrangement:Use an outgoing quota arrangement to determine which proportion of the receipts is to be delivered onward to which destination location (e.g. one of your distribution centers).

Transport Load Builder (TLB)Transport Load Builder (TLB)

Transport Load Builder (TLB)Transport Load Builder (TLB)

• In the TLB profile, the minimum and maximum values for volume, weight, and pallets are defined per load.

• The system automatically groups transportation recommendations for individual products together until the minimum values for volume, weight, and number of pallets specified in the TLB profile for creating a load have been reached.

• If transportation recommendations cannot be converted, the system generates an alert and the planner can convert the transfers manually.

Available-to-deployment (ATD)Available-to-deployment (ATD)

In Customizing, you defines if you want deployment to create stock transport orders or VMI sales orders.

Alternatively, you can use TLB to group together stock transfer of different products and generate stock transport orders or VMI sales orders with many items for different products.

Transport Load Builder (TLB)Transport Load Builder (TLB)• TLB groups planned stock transfers into practical freight

units. The system can create full pallets with mixed products.

• The user can also define flexible rule relationships for linking the upper and lower limits.

TLB RulesTLB Rules1. Connecting upper limits with “and”, & lower limits with

“or”: The TLB cannot exceed the defined upper limits when the shipments are built. In addition, at least one of the lower limits must be reached or exceeded in line with how you defined the rule.

2. Connecting upper limits with “and”, & lower limits with “and”: The TLB cannot exceed any of the defined upper limits. In addition, all defined lower limits must be reached or exceeded.

3. As well as the standard connections, you can also establish user-defined relationship between the rules. Using the AND and OR operators as well as brackets, you can define which combination of these rules the TLB should use while building the shipments.

Deployment and Transport Deployment and Transport Load Builder (TLB)Load Builder (TLB)SummaryDeployment determines which distribution requirements of the distribution centers (or VMI customers) can be covered by the existing supply. If quantities are sufficient to match demand, Deployment merely confirms the plan. If not it will adjust the stock transfer to take in account the missing quantities.

The TLB, ensure that the means of transport are loaded close to their full capacity or, at least, over their minimum capacity

Available-to-promise (ATP)Available-to-promise (ATP)

ATP check – also known as the availability check – represents an online search that should ensure that a company can provide the requested product at the requested time in the quantity requested by the customer.

The ATP check can use the basic methods below to determine if a requirement can be confirmed.

Basic methods: Capable-to-Promise (CTP)Multilevel ATP Check

Capable-to-promise (CTP)Capable-to-promise (CTP)

CTP allows to check for free capacity, which normally performs at finished goods level.

There are two options to make CTP check:•Bucket-oriented CTP•Time-continuous CTP

Bucket-oriented CTP is to check the capacity based on a finite bucket capacity and doesn’t regard the detailed sequence of orders within the bucket.

CTP triggers the creation of planned orders by ATP check.

Triggering EventsTriggering Events

Procedure of Capable-to- Procedure of Capable-to- promise (CTP) promise (CTP)

Multi-level-ATP (ML-ATP)Multi-level-ATP (ML-ATP)

ML-ATP checks components according to ATP setting. It confirms a customer request if components for the product are available in time, i.e. taking the lead time to produce the finished product into account.

If the components have a late availability, the availability of the finished product is recalculated in ATP using correlations.

Multi-level ATP (ML-ATP)Multi-level ATP (ML-ATP)

Deployment & Deployment & Available-to-promise (ATP)Available-to-promise (ATP)

in SCM in SCM

SAP Implementation SAP Implementation

Define SNP Deployment ProfileDefine SNP Deployment Profile

Define SNP Deployment ProfileDefine SNP Deployment Profile

Define SNP Deployment ProfileDefine SNP Deployment Profile

Define SNP Deployment ProfileDefine SNP Deployment Profile

Transport Load Builder (TLB)Transport Load Builder (TLB)

Create Means of Transport to Create Means of Transport to Transportation LaneTransportation Lane

Assign TLB Profile to Means of Assign TLB Profile to Means of TransportTransport

Transportation Lanes on Transportation Lanes on Planning BookPlanning Book

TLB ShipmentsTLB Shipments

ATP CategoriesATP Categories

SCM Homework SCM Homework (Due date: 12/7/2013)(Due date: 12/7/2013)

1. Network planning with heuristic2. Network plan with multilevel heuristic3. Check results in ERP4. Deployment planning settings5. Available to deploy6. Define SNP deployment profile7. Define transport load builder (TLB) profile