The SAP APO Knowledge Book - Supply and Demand Planning

5/21/2018 The SAP APO Knowledge Book - Supply and Demand Planning

The SAP APO Knowledge Book

Supply and Demand Planning

My First Plan

Wolfgang Eddigehausen


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 retrievalsystem.

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 16. 69190 Walldorf, Germany. The document The APO Knowledge Book Supplyand 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 authors 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. Theauthor also disclaims any liability in connection with the use of this document, the used data, andthe recommendations contained in there.

The views expressed in this document are solely those of the author.


Contents 3

1 MY FIRST PLAN....................................................................................................... 5

1.1 FORECASTING BUILDING BLOCKS............................................................................6 1.1.1 FCBUILDING BLOCK 1PREPARATION AND BASIC SETUP ....................................8

1.1.1.1 Step 1: Create Info Objects ...................................................................................81.1.1.2 Step 2: Create Info Object Catalog ....................................................................... 91.1.1.3 Step 3: Create InfoCube........................................................................................91.1.1.4 Step 4: Load InfoCube ........................................................................................101.1.1.5 Step 5: Create Storage Buckets Profile ...............................................................121.1.1.6 Step 6: Create Master Planning Object Structure................................................131.1.1.7 Step 7: Create DP Planning Area ........................................................................141.1.1.8 Step 8: Create Characteristic Value Combinations.............................................161.1.1.9 Step 9: Create Planning Buckets Profiles............................................................161.1.1.10 Step 10: DP Planning Book Design .................................................................. 171.1.1.11 Step 11: Create Forecast Profiles ...................................................................... 191.1.2 FCBUILDING BLOCK 2BASIC USAGE.................................................................20

1.1.2.1 Step 1: DP Interactive Planning 1 (Univariate Constant and Trend) ............... 201.1.2.2 Step 2: Create and Assign Selection IDs ...........................................................201.1.2.3 Step 3: Forecast Errors........................................................................................211.1.2.4 Step 4: Outlier and Workday Correction.............................................................211.1.2.5 Step 5: DP Interactive Planning 2 (Adv. Univariate Constant and Trend) ......221.1.2.6 Step 6: DP Interactive Planning 3 (Univariate Seasonal and Seasonal Trend) 221.1.2.7 Step 7: Proportional Factors Management..........................................................231.1.3 FCBUILDING BLOCK 3PROMOTION PLANNING .................................................24 1.1.3.1 Step 1: Define Promotion Settings......................................................................241.1.3.2 Step 2: Create Promotion .................................................................................... 241.1.3.3 Step 3: Promotion Valuation...............................................................................251.1.3.4 Step 4: DP Interactive Planning 4 (Promotion Planning) ................................... 26

1.1.4 FCBUILDING BLOCK 4LIFE CYCLE MANAGEMENT...........................................27 1.1.4.1 Step 1: Define Like Profile .................................................................................271.1.4.2 Step 2: Define Phase-In Profile...........................................................................271.1.4.3 Step 3: DP Interactive Planning 5 (Lifecycle Management)...............................281.1.5 FCBUILDING BLOCK 5ADVANCED USAGE ........................................................29 1.1.5.1 Step 1: Distribution Functions ............................................................................291.1.5.2 Step 2: DP Interactive Planning 6 (Header, Distribution, DP Notes) ................. 291.1.5.3 Step 3: Create MLR and Composite Profiles......................................................301.1.5.4 Step 4: DP Interactive Planning 7 (MLR and Composite Forecast) ...................311.1.5.5 Step 5: Release to SNP........................................................................................321.2 SUPPLY AND DEMAND PLANNING BUILDING BLOCKS ..........................................33 1.2.1 SDPBUILDING BLOCK 1PREPARATION AND BASIC SETUP................................35

1.2.1.1 Step 1: Create SNP Planning Area......................................................................351.2.1.2 Step 2: SNP Planning Book Design.................................................................... 35


Contents 4

1.2.1.3 Step 3: Create Time Stream................................................................................ 371.2.1.4 Step 4: Create Supply Chain Model ................................................................... 371.2.1.5 Step 5: Create Planning Version......................................................................... 381.2.1.6 Step 6: Initialize Planning Version..................................................................... 381.2.2 SDPBUILDING BLOCK 2DISTRIBUTION REQUIREMENTS PLANNING ................ 391.2.2.1 Step 1: Location Master ..................................................................................... 39

1.2.2.2 Step 2: Create Product Master (Finished Goods) ............................................... 391.2.2.3 Step 3: Assign Data to Work Area and Supply Chain Model ............................ 401.2.2.4 Step 4: Create Transportation Lanes .................................................................. 411.2.2.5 Step 5: Create Quota Arrangement..................................................................... 421.2.2.6 Step 6: Create Demand....................................................................................... 431.2.2.7 Step 7: Run Heuristics........................................................................................ 441.2.3 SDPBUILDING BLOCK 3ROUGH-CUT PRODUCTION PLANNING ....................... 461.2.3.1 Step 1: Create Product Master (Components) .................................................... 461.2.3.2 Step 2: Create Resource ..................................................................................... 471.2.3.3 Step 3: Create Production Process Model (PPM)............................................... 471.2.3.4 Step 4: Assign Data to Supply Chain Model...................................................... 491.2.3.5 Step 5: Run Heuristics........................................................................................ 50

1.2.3.6 Step 6: Capacity Leveling .................................................................................. 501.2.3.7 Step 7: Release Forecast to DP........................................................................... 511.2.4 SDPBUILDING BLOCK 4SNPOPTIMIZATION.................................................... 531.2.4.1 Step 1: Update Master Data (Cost Fields).......................................................... 531.2.4.2 Step 2: Run SNP Optimization........................................................................... 541.2.4.3 Step 3: Release Forecast to DP........................................................................... 551.2.5 SDPBUILDING BLOCK 5DEPLOYMENT AND TLB............................................. 561.2.5.1 Step 1: Deployment............................................................................................ 561.2.5.2 Step 2: TLB........................................................................................................ 561.2.6 SDPBUILDING BLOCK 6MAKE IT EASY............................................................ 581.2.6.1 Step 1: Basic Safety Stock.................................................................................. 581.2.6.2 Step 2: Extended Safety Stock ........................................................................... 59

1.2.6.3 Step 3: Create SNP Demand Profile................................................................... 601.2.6.4 Step 4: Create SNP Supply Profile..................................................................... 61


My First Plan 5

1My 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 liketrying 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 howprocesses 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 developit. 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 StreamIn 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 moreexperienced users, either those who worked through the User Stream exercises, or from those

with previous experience.

The Specialty StreamThere 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 streamcan 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 alogical 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.


My First Plan 6

1.1 Forecasting Building Blocks

It is required to set up the Demand Planning environment before any forecasting activities can becarried 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 liveenvironment but going through them provides a very good chance to understand the system much

better.

Preparation and Basic SetupSet up a DP environment with all required entities such as planning area, planning book, andforecast profiles.

Basic UsageIn 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 PlanningPlanning promotions is vital in most industries and part of this block.

Life Cycle ManagementFinally some products will be planned using Life Cycle Management functionality.

Advanced UsageThe 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 isprovided in a spreadsheet, which can be loaded into APO. Please note that the spreadsheet needs tobe 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





My First Plan 7

Product Product

Group

Location Country Customer Customer

Group





Table 1 DP Product Data Overview

The info objects are grouped in catalogues. The planning granularity is weeks and months. Theplanning 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 planningactivities.

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 aredefined 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.


My First Plan 8

1.1.1 FC Building Block 1 Preparation and Basic Setup

1. Create Info Objects2. Create Info Object Catalog3. Create InfoCube4. Load InfoCube5. Create Storage Buckets Profile6. Create Master Planning Object Structure7. Create Planning Area8. Create Characteristic Value Combinations9. Create Planning Buckets Profile10. Planning Book Design11. 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. Theentries 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 andactivate 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:o Characteristic Long Description. Reference Char. Data Type Length

TddCH01 Product 9AMATNR

TddCH02 Product Group Char 7TddCH03 Location 9ALOCNO


My First Plan 9

TddCH04 Country Char 2

TddCH05 Customer Char 7

TddCH06 Customer Group Char 7

Select Type Key Figure and create the following Key Figures:o Key Figure Long Description Type Data Type Fix UoM

TddKF01 Historical Data Quantity QUAN PC

TddKF02 Key Figure 02 Quantity QUAN PCTddKF03 Key Figure 03 Quantity QUAN PC

TddKF04 Key Figure 04 Quantity QUAN PC

TddKF05 Base Forecast Quantity QUAN PC

TddKF06 Promotion Quantity QUAN PC

TddKF07 Corrected History Quantity QUAN PC

TddKF08 Corrected Forecast Quantity QUAN PC

TddKF09 Ex-Post Forecast Quantity QUAN PC

TddKF10 Total Forecast Quantity QUAN PC Leave the Administrator Workbench.

1.1.1.2 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 createdones 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 isTddKFC and Info Object Type is Key Figure).

Leave the Administrator Workbench.

1.1.1.3

Step 3: Create InfoCube


My First Plan 10

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 CreateInfoCube. 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 catalogicon 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 Characteristicsof 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 donot need to create dimensions for time characteristics or units; these are created automatically.

o Select the pushbutton and define a dimension description. Repeat this step for alldimensions.Dimension Characteristic 1 Characteristic 2

Planning Version 9AVERSIONProduct TddCH01 TddCH02

Location TddCH03 TddCH04

Customer TddCH05 TddCH06

o Then click on the Assign tab.o Select the characteristic you want to assign. To do so click on the check box of the

respective characteristic and place the cursor on the dimension to which you wish toassign 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 11

In order to carry out forecasting exercises, test data is required. The loading of this test data from aspreadsheet 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 dataonly into the one column called Info Object; the other fields are populated

automatically. The sequence is:

Name Info Object

1. Product TddCH012. Product Group TddCH023. Location TddCH034. Country TddCH045. Customer TddCH056. Customer Group TddCH067. Week 0CALWEEK8. Month 0CALMONTH9. Planning Version 9AVERSION10. TddKF01 TddKF0111. TddKF02 TddKF02


My First Plan 12

12. TddKF03 TddKF0313. 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 followingparameters have to be defined:

o External Data tab:Load external data from: Client WorkstationFile Name: Define spreadsheet file path.

Control File: NoFile Type: CSV File

Data Separator: Switch the Hex setting off

Use the character comma (,).

Escape Sign: Switch the Hex setting offUse the character inverted comma ().

o External Data Parameters tab:Thousand Separator: Use the character colon (:).Character Decimal Point: Use the character point (.).

Number of Headers 1

o

Data Target tab: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.


My First Plan 13

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 definitions. 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 theprofile.

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.


My First Plan 14

Select all 6 characteristics as listed below in the right (Copy From) pane and press the pushbutton to transfer them to the left (Planning Object Structure) pane.

TddCH01 Product TddCH02 Product Group TddCH03 Location TddCH04 Country TddCH05 Customer TddCH06 Customer Group

Select Extras > Assign Prod/Loc and define the following: Product TddCH01 Location TddCH03

Press the pushbutton. Activate the master planning object structure, save and return to the menu.

In order to carry out Life Cycle Management, some specific settings are required. The first two

settings were the characteristic assignments carried out above. The othet required activities are

listed below.

From the APO tree structure select Tools > Accelerated SAP > Customizing > Edit Project

Press the pushbutton. Select Advanced Planner and Optimizer > Master Data > Product > Specify Output Format of

Product Number

Ensure that: Product Number Length is not greater than 30. Product Number Template is not used. Leading Zeroes is off.

Press the pushbutton, and the pushbutton three times.From the APO tree structure select Tools > Administration > User Maintenance > Users

Specify your User ID and the pushbutton.

Select the Parameters tab. Define parameter /SAPAPO/FCST_LIKE and set it to X. Press , , and twice.

1.1.1.7 Step 7: Create DP Planning Area

The planning area is the central object, linking various elements, such as e.g. the storage buckets

profile and the InfoCube. It is based on a master planning object structure. Aggregation and

disaggregation rules are proposed, but could be changed if required.

From the APO tree structure select Demand Planning > Environment > Current Settings >Administration of Demand Planning and Supply Network Planning


My First Plan 15

Press the pushbutton and select Planning Area. Activate the context sensitive menu on the folder Planning Areas and select Create

Planning Area.

On the upcoming screen provide the planning area name TddPADP and relate the planningarea to your master planning object structure TddMPOS as well as the storage buckets profileTddSBP.

Define the planning area base unit of measure PC and press the pushbutton. The upcoming screen contains various tabs:

1. InfoNo further definitions are required here.

2. AggregationNo further definitions are required here.

3. Key FiguresSelect all key figures as listed below in the right (Copy From) pane and press the

pushbutton to transfer them to the left (Planning Area) pane.

o TddKF01 TddICo TddKF02 TddICo TddKF03 TddICo TddKF04 TddICo

TddKF05o TddKF06o TddKF07o TddKF08o TddKF09o TddKF10After all required key figures are transferred to the left pane press the

pushbutton. Define in the InfoCube field per key figure the InfoCube in which this key

figure is stored (TddIC). The InfoCube must have been defined beforehand. If no

InfoCube is defined here, the key figure is automatically saved in liveCache! Leave all

other fields as they are.

4. Key Figure AggregationOn this tab specify how key figures are aggregated vertically (from one level to the next)

and horizontally (over time). Defaults are created for this definition and should be left asis.

5. Key Figure AssignmentOn this tab all key figures that are part of the planning area are listed in the right panel. No

activity is required or possible here. Save the planning area and press the pushbutton. Right mouse click the planning area you created above. Choose Forecast Settings and define the following. Forecast Key Figure TddKF05 Corrected History TddKF07 Corrected Forecast TddKF08

Press the top pushbutton. Press the bottom pushbutton. Right mouse click again the planning area you created above. Choose Create Time Series Objects.


My First Plan 16

Enter the planning version Tdd to be used. The planning version must exist already! Forinstructions how to create planning versions and supply chain models see steps four through to

six of the SDP Building Block 1.

Enter the start (01.01.1999) and end (31.12.2003) date. Press the pushbutton. Exit the transaction.

1.1.1.8 Step 8: Create Characteristic Value Combinations

The characteristics value combinations are the key to access the data in the planning area (InfoCubeor liveCache) and must be created prior to planning.

From the APO tree structure select Master Data > Demand Planning Master Data > Maintain

Characteristics Values

Specify your Master Planning Object Structure (TddMPOS) and the InfoCube (TddIC). Select Generate Characteristic Combination and the planning version. The planning version

is the same as the one used when loading the data (Tdd). Set the time interval (01.01.1999 to 31.12.2001). Select Create Time Series Objects. Press the pushbutton.

1.1.1.9 Step 9: Create Planning Buckets Profiles

The first created planning buckets profile determines how the data (history and future) is viewed. It

is not determining the forecast horizon. The second planning buckets profile is used to determine

the number of forecast value periods released from DP to SNP.

From the APO tree structure select Demand Planning > Environment > Current Settings > Maintain

Time Bucket Profiles for Demand Planning and Supply Network Planning

Name the planning buckets profile (TddPBP), its description, and press . Set the field Number to 24. Set the Display Periodicity to M. Pressing automatically opens the second line and populates some fields with data. Set the field Number to 12. Set the Display Periodicity to W. Press the pushbutton.From the APO tree structure select Demand Planning > Environment > Current Settings > Maintain

Time Bucket Profiles for Demand Planning and Supply Network Planning

Name the planning buckets profile (TddPBPREL), its description, and press . Set the field Number to 365.


My First Plan 17

Set the Display Periodicity to T. Press the pushbutton.

1.1.1.10 Step 10: DP Planning Book Design

The planning book is the interface to the user. It is based on one specific planning area. In this step

we also create a very basic macro, which will add up the base forecast and the promotions to give

us the total forecast.

From the APO tree structure select Demand Planning > Environment > Current Settings > Design

Planning Books

Set the Planning Book flag, define the planning book name (TddPBDP), and press . A pop-up screen appears with various tabs. Go through the tabs as described: Tab Planning Book

o Define the planning book description.o Link the planning book to the planning area TddPADP.o

In the Include Standard Functions section leave all flags off except ManualProportion Maintenance, which must be on.

o Switch all flags in Navigate to Views on.o Press the pushbutton.

Tab Key Figureso Drag and drop all key figures from the right Planning Area panel to the left

Planning Book panel or press the pushbutton.

o Press the pushbutton. Tab Characteristics

o Drag and drop all characteristics from the right Planning Area panel to the leftPlanning Book panel or press the pushbutton.

o Press the pushbutton. Tab Key Figure Attributes

oThis tab is skipped when creating planning books based on DP planning areas.

Tab Data Viewo Specify the data view name (TddPBDPDV) and a description.o Set the Planning Start to 01.01.2002.o Select the planning (time) buckets profile for future and historical data. Use

TddPBP for botho Set the Visible flag and specify the From to be M01.2000 using the F4 function.o Press the pushbutton.

Tab Key Figureso Drag and drop all key figures from the right Planning Book panel to the left Data

View panel or press the pushbutton.

o Press the pushbutton. Confirm to save the planning book. Press the pushbutton and go again through the planning book design tabs by pressing

the and pushbuttons. Change, if desired, the sequence of the key


My First Plan 18

figures using the drag and drop functionality on the secondKey Figure tab. Also, drag theProportional Factor key figure from the right to the left side.

Exit the transaction.

From the APO tree structure select Demand Planning > Environment > Current Settings > Macro

Builder

Define the Planning Book View TddPBDPDV, and press the pushbutton. Drag the Macro symbol from the Elements area onto the Macro tree structure in the

middle of the screen.

A pop-up window appears. Define the macro name Total Forecast. Set the flag No Direct Execution. Press the pushbutton.

Drag the Step symbol from the Elements area onto your new macro Total Forecast. A pop-up window appears. Define the step name Step 1. Set the Processing Area to Future.

Press the pushbutton. Drag the Row symbol from the Elements Planning Table area onto the first step of yournew macro Total Forecast.

A pop-up window appears. Select the row Total Forecast. Press the pushbutton.

Drag the Row symbol from the Elements Planning Table area onto the new row of thefirst step of your new macro Total Forecast.

Select Create in Next Level. A pop-up window appears. Select the row Base Forecast. Press the pushbutton.

Drag the Operator/Function symbol from the Elements Planning Table area onto thesecond new row of the first step of your new macro Total Forecast. Select Append.

A pop-up window appears. Select the function +. Press the pushbutton.

Drag the Row symbol from the Elements Planning Table area onto the operator/functionsymbol of your new macro Total Forecast.

Select Append. A pop-up window appears. Select the row Promotion. Press the pushbutton.

Select your new macro, which has a red light.

Press the pushbutton above it, which changes its color to green. Drag your new macro onto the Default symbol in the Events area. Press the and pushbuttons.


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1.1.1.11 Step 11: Create Forecast Profiles

The master forecast profile with its subordinate profiles determines the way the forecast is carried

out and its horizons. Various of such profiles can exist for one planning area.

From the APO tree structure select Demand Planning > Environment > Maintain Forecast Profiles

The main screen appears with various tabs. Go through the tabs as described: Master Profile Tab

o Specify the Planning Area (TddPADP), Master Profile (TddMFP), and description.o Define the following:

Forecast Key Figure TddKF05 Must be a liveCache Key FigurePeriod Indicator W Determines the forecast calculation

granularityMaterial Forecast On Enables Life Cycle ManagementForecast Horizon From 31.12.2001

Forecast Horizon To 29.12.2002History Horizon From 04.01.1999

History Horizon To 30.12.2001

Univariate Profile Tabo Specify the Univariate Profile Name (TddUFP) and description.o Define the following:

Key Figure TddKF01 Usually an InfoCube Key FigureVersion Tdd

Forecast Strategy 50Seasonal Periods 12

o Press the and pushbuttons. Master Profile Tab

o Press the pushbutton. Once these activities are finished the master forecast profile needs to be assigned. Select the pushbutton. Specify the following parameters and press . Planning Area TddPADP Forecast Key Figure TddKF05 Planning Version Tdd Forecast Profile TddMFP Forecast Type Univariate

Press the , , and pushbuttons.


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1.1.2 FC Building Block 2 Basic Usage

1. DP Interactive Planning 1 (Univariate Constant and Trend)2. Create and Assign Selection IDs3. Forecast Errors4. Outlier and Workday Correction5. DP Interactive Planning 2 (Advanced Univariate Constant and Trend)6. DP Interactive Planning 3 (Univariate Seasonal and Seasonal Trend)7. Proportional Factors Management

1.1.2.1 Step 1: DP Interactive Planning 1 (Univariate Constant and Trend)

The first interactive DP planning exercise is using historical data that resembles constant and trend

behavior.

From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning

Select your planning book (TddPBDP) and data view (TddPBDPDV) in the Data View (leftside of the screen).

Activate the pushbutton in the Info Objects Area and select Show allProducts that belong to Planning Version Tdd.

Press . Select (double-click) the product TddPR01 Make yourself familiar with the Demand Planning Interactive screen Run several Univariate Forecasts (one per product) and apply the following models per

product

Model ProductConstant TddPR01

Trend TddPR02

View the information on the various tabs. Save each of the forecasts.

Leave the transaction

1.1.2.2 Step 2: Create and Assign Selection IDs

The usage of selection IDs supports an easy re-selection of data based on user-specific definitions.




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Activate the pushbutton in the Info Objects Area and select Show allProducts that belong to Planning Version Tdd.

Press the pushbutton and provide a unique selection description (TddProducts).

Press the and pushbuttons. Double-click on the Selection Profile bar in the Info Objects Area. Drag and drop your selection ID from the right to the left and press followed by

. Select (double-click) the product TddPR01.

1.1.2.3 Step 3: Forecast Errors

The system can calculate various forecast errors that make it possible to compare the quality of

forecasts.


Specify the Master Profile (TddMFP), and press . Go to the Univariate Profile Tab Switch on all forecast error calculations Press the pushbutton and specify the name DGdd followed

by the following parameters:

o Upper Limit MAD 20o Upper Limit Error Total 1.000o Upper Limit MPE 5o Upper Limit MAPE 10o Upper Limit MSE 1.000o Upper Limit RMSE 40

Press and pushbuttons. Press . Leave the Maintain Forecast Profile transaction.

1.1.2.4 Step 4: Outlier and Workday Correction

Outlier and Workday correction is used to minimize the impact of months with non-constant

workdays and randomly occurring peaks and troughs.


Specify the Master Profile (TddMFP), and press . Go to the Univariate Profile Tab. Switch on Outlier Correction. Define the Days in Period to be 5.

Press .


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Leave the Maintain Forecast Profile transaction.

1.1.2.5 Step 5: DP Interactive Planning 2 (Adv. Univariate Constant and Trend)

The first interactive DP planning exercise is using historical data that resembles constant and trendbehavior.



Select (double-click) the selection ID for your products. Select (double-click) the product TddPR01. Run several Univariate Forecasts (one per product) and apply the following models per

product

Model ProductConstant TddPR01

Trend TddPR02 View the impact of outlier and workday correction Save each of the forecasts.


1.1.2.6 Step 6: DP Interactive Planning 3 (Univariate Seasonal and Seasonal

Trend)

The second interactive DP planning exercise is using historical data that resembles seasonal andseasonal trend behavior.



Select (double-click) the selection ID for your products Select (double-click) the product TddPR01 Activate the pushbutton in the Info Objects Area and select Show all

Products that belong to Planning Version Tdd and where the location is TddDC02. Double-click on product TddPR03. Run several Univariate Forecasts (one per product) and apply the following models per

product

Model Product LocationSeasonal TddPR03 TddDC02

View the information on the various tabs.

Save each of the forecasts.


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Activate the pushbutton in the Info Objects Area and select Show allProducts that belong to Planning Version Tdd and where the location is TddDC03.

Double-click on product TddPR03. Run several Univariate Forecasts (one per product) and apply the following models per

product

Model Product LocationSeasonal Trend TddPR03 TddDC03



1.1.2.7 Step 7: Proportional Factors Management

Proportional factors are usually working in the background, but can be viewed and changed ifdesired.

From the APO tree structure select Demand Planning > Environment > Calculate Proportional

Factors

Specify your planning area (TddPADP) and your InfoCube (TddIC). Press the pushbutton. Specify the following: Planning Versions (both) Tdd Key Figure TddKF01 Basis From Date 01.01.1999 Basis To Date 31.12.2001 Target From Date 01.01.2002 Target To Date 31.12.2003

Press the pushbutton. View the created proportional factors Select and leave the transaction.From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


Double-click on one of your selection IDs. Double-click on product TddPR01. View the Proportional Factors


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1.1.3 FC Building Block 3 Promotion Planning

1. Define Promotion Settings2. Create Promotion3. Promotion Valuation4. DP Interactive Planning 4 (Promotion Planning)

1.1.3.1 Step 1: Define Promotion Settings

These settings have to be carried out initially before any promotion planning can be carried out.

From the APO tree structure select Demand Planning > Planning > Promotion > MaintainPromotion Key Figures

Type the following information into the first available line: Planning Area TddPADP Promotion Key Figure TddKF06 Characteristic for Promotion Level TddCH01

Press the and pushbuttons.

1.1.3.2 Step 2: Create Promotion

A promotion with two products attached to it is created in this step. The promotion can

subsequently be viewed in the DP Interactive Planning screen.



Select the pushbutton. Select the pushbutton. Define the following: Short Text TddPROM01 Description Promotion 01 Type + (Absolute) Periodicity W Number of Periods 4 Period From 01.10.2002 Planning Version Tdd Planning Key Figure TddKF05

Press and the pushbuttons. Select (double-click) the selection ID for your products


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Select (do not double-click) the product TddPR01 Press the pushbutton. Select (do not double-click) the product TddPR02 Press the pushbutton. Define the weekly promotion values for the product TddPR01 Week 1 10

Week 2 20 Week 3 30 Week 4 -20

Define the weekly promotion values for the product TddPR02 Week 1 5 Week 2 15 Week 3 40 Week 4 -15

Press the pushbutton and select Planned, in the Future. Press the and pushbuttons.

1.1.3.3 Step 3: Promotion Valuation

Promotion valuations are carried out to gain a rough view on the financial impact a promotion has.It compares fixed and variable costs and profits.



Select the pushbutton. Activate the pushbutton in the Info Objects Area and select Show all

Promotion that belongs to Planning Version Tdd.

Press the pushbutton and provide a unique selection description (TddPromotions).

Press the and pushbuttons. Double-click on the Selection Profile bar in the Info Objects Area. Drag and drop your selection ID from the right to the left and press followed by

.

Press . Select (double click) your promotion TddPROM01. Select the pushbutton and then Pre-Evaluation. Define the following costs per period (the same for both products): (Promotion) Costs 100 100 100 100 Planned (Selling) Price (each) 5 5 5 5 Promotion (Selling) Price (each) 4 4 4 4



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1.1.3.4 Step 4: DP Interactive Planning 4 (Promotion Planning)

The third interactive DP planning exercise evolves around the impact that promotions have on the

previously created forecasts.



Double-click on your selection ID. Double-click on product TddPR01. View the forecast values in the periods starting 01.10.2002. Double-click on product TddPR02. View the forecast values in the periods starting 01.10.2002. Leave the transaction.


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1.1.4 FC Building Block 4 Life Cycle Management

1. Define Like Profile2. Define Phase-In Profile3. DP Interactive Planning 5 (Lifecycle Management)

1.1.4.1 Step 1: Define Like Profile

The Like Profile is used to ensure that a newly introduced product uses the historical data of

another product (or group of products) during the forecasting task. The historical data as such is not

copied across.


Specify the Master Profile (TddMFP), and press . Press the pushbutton. On the upcoming screen, select TddCH01 as characteristics 1. Press the pushbutton. Select Goto > Like Profiles > Define. Define the profile name TddLP and description. Then define the reference product (TddPR01) and the action (A). Press the pushbutton. Press the pushbutton. Select product number TddPR05 and the like profile TddLP. Press the pushbutton. Press the and pushbuttons.

1.1.4.2 Step 2: Define Phase-In Profile

The phase-in and phase-out profiles ensure that historical as well as forecast data is adjusted in

accordance with the specified profiles.


Specify the Master Profile (TddMFP), and press . Select Goto > Phase-In/Out Profiles > Define. Define the time series name TddPI and description. Then define the start (01.01.2002) and end (31.03.2002) dates as well as the number of periods

(13). Set the flag Before Start Date, Apply Constant Factor. Define the respective percentages for the 13 periods. Period 1 5


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Period 2 10 Period 3 15 Period 4 20 Period 5 25 Period 6 30 Period 7 35 Period 8 40 Period 9 50 Period 10 60 Period 11 70 Period 12 80 Period 13 90

Press the pushbutton. Press the pushbutton. Update the line with the product number TddPR05 by adding the phase-in profile TddPI. Press the pushbutton. Press the and pushbuttons.

1.1.4.3 Step 3: DP Interactive Planning 5 (Lifecycle Management)

The forth interactive DP planning exercise is using historical data that reveals the impact of life

cycle management profiles on the forecast.



Double-click on your selection ID. Double-click on product TddPR05. Run several Univariate Forecasts. Leave the transaction


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1.1.5 FC Building Block 5 Advanced Usage

1. Distribution Functions2. DP Interactive Planning 6 (Header, Distribution, DP Notes)3. Create MLR and Composite Profile4. DP Interactive Planning 7 (MLR and Composite Forecast)5. Release to SNP

1.1.5.1 Step 1: Distribution Functions

The usage of distribution functions is an easy way to carry out interactive bulk updates of any data

that is open for update (i.e. not for historical data or data that is in display-only cells).


Distribution Function

Define a Distribution Function (TddDF) and press Create. Apply a description and specify the Distribution Function length to be 5. Press Distribution Function Values. Define the values for the periods 1 through to 5. 1 10 2 15 3 10 4 30 5 40

Select the and pushbuttons. Leave the transaction.

1.1.5.2 Step 2: DP Interactive Planning 6 (Header, Distribution, DP Notes)

The sixth interactive DP planning exercise elaborates on some tools provided to the planner.


1. Header Usage: Select your planning book (TddPBDP) and data view (TddPBDPDV) in the Data View (left

side of the screen). Press the pushbutton. Press the pushbutton. Define Number 1 and Characteristic Product, then Number 2 and Characteristic

Location Press .


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Double-click on your selection ID. Select all products and then press the pushbutton. This loads all selected

products in their respective locations.

Click the pushbutton close to the pushbutton to select a specificproduct, all products, or the total of all products.

Click the pushbutton close to the pushbutton to select the total of allproducts.

Click the pushbutton close to the pushbutton to select a specificlocation, all locations, or the total of all locations.

Click the pushbutton close to the pushbutton to select the total of alllocations.

2. Distribution Function Select your planning book (TddPBDP) and data view (TddPBDPDV) in the Data View (left

side of the screen).

Select (double-click) the product TddPR01 Press the pushbutton. On the upcoming Distribution Functions window define

the following:

Key Figure 05 (Distribute values by means of discrete data)o Value 2o Operand *

Key Figure 06 (Distribute values by means of predefined distribution function)o Operand DEo Distribution Function TddDF

3. Notes: Select your planning book (TddPBDP) and data view (TddPBDPDV) in the Data View (left


Select (double-click) the product TddPR01. Add a note to a cell in the planning table. Select a cell and activate the context sensitive menu, choose Display Note. Type in any text and press the pushbutton. Press the pushbutton. Press the pushbutton.

Leave the transaction.

1.1.5.3 Step 3: Create MLR and Composite Profiles

In this step, the previously created master forecast profile is updated through the addition of new

sub-profiles.


Forecast Profiles

The main screen appears with various tabs. Go through the tabs as described: Master Profile Tab


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o Specify the Master Profile (TddMFP)o Press o Do not change any settings

MLR Profile Tabo Specify the MLR Profile Name (TddMLRP) and description.o Define the following:

Key Figure TddKF01 Usually an InfoCube Key FigureVersion Tdd

o Specify the independent variables by means of key figures or time series.o Press the and pushbuttons.

Composite Profile Tabo Specify the Composite Profile Name (TddCP) and description.o Press the and pushbuttons.

Master Profile Tabo Press the and pushbutton.

1.1.5.4 Step 4: DP Interactive Planning 7 (MLR and Composite Forecast)

The fifth interactive DP planning exercise is using historical data to create MLR based and

composite forecasts.



Double-click on your selection ID. Select (double-click) the product TddPR01. Make yourself familiar with the Demand Planning Interactive screen. Run several MLR based Forecasts (one per product) and apply the following models per

product

Model ProductMLR TddPR01

MLR TddPR02


Run several Composite Forecasts (one per product) and apply the following models perproduct

Model ProductComposite TddPR03

Composite TddPR04


Leave the transaction.


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1.1.5.5 Step 5: Release to SNP

Finally, after all forecasting tasks have been finished, the unconstrained forecast needs to be

released to the SNP environment. Note that this step can only be carried out after all of the products

and locations that are used in DP are defined and linked to the appropriate supply chain model.

This is explained in the SDP Building Block 1 steps two, three, and seven. Since the data is

released into a new planning version, it has to be created together with its supply chain modelbeforehand and activated. These steps are explained in the SDP Building Block 1 steps four

through to six. Please refer to the explanations there and carry out before releasing data to SNP.

From the APO tree structure select Demand Planning > Planning > Release to Supply Network

Planning

Define the following: Planning Area TddPADP Planning Version Tdd Key Figure TddKF10 Planning Version Tdd Category FA From Date date of next Monday To Date 3 months after next Monday Daily Period Split TddPBPREL Product From TddPR01 Product To TddPR02 Location From TddDC01 Location To TddDC02

Select . Leave the transaction.


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1.2 Supply and Demand Planning Building

Blocks

The Supply and Demand Building Blocks comprise those tasks that can primarily be found in the

SNP module of APO. It is recommended to finish the Forecasting Blocks before starting. This isnot a hard prerequisite, as all required data for the Supply and Demand Building Blocks are created

within the exercises. As it was the case with Demand Planning, the planning environment for

Supply Network Planning should be set up first. This task is only a must for some exercises,

which depend on settings and definitions that cannot be found within the delivered system.

Preparation and Basic SetupSet up an initial planning environment for all subsequent planning tasks.

Distribution Requirements PlanningCreate some required master data such as locations, products, and transportation lanes. The

data is then used to carry out heuristics network planning (excluding production).

Rough-Cut Production PlanningAdapt the previously used master data and complement it by resources and production process

models. Then and use it to carry out heuristics production planning.

SNP OptimizationThis building block solely deals with optimization and introduces to the cost data maintenance

and the usage of the SNP and the deployment Optimizer.

Deployment and TLBIn this smaller block, the data from the previous SDP building blocks is used to carry out

deployment heuristics and TLB planning. This task can be based on a Heuristics or

Optimization based planning.

Planning SupportLast but not least are a few exercises covering the area of safety stock levels. In addition to this

we have a look at the usage of profiles and other helpful utilities that make the everydayworking life a bit easier.

The Supply and Demand Planning Exercise Environment

Supply and Demand Planning requires a substantial amount of master data to be created before any

planning can be carried out. Also, some demand elements (e.g. forecasts or sales orders) arerequired. 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. In addition to this, some sales orders

are created.

The location and product masters created in the Supply and Demand Planning exercises are those

also used by the Forecasting exercises. For the finished products, forecasted in the previous


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exercises, production process models are created, which also use specifically created resources.There are also some components that are used as input products in the PPMs. The extended safety

stock exercises require that the Forecasting exercises were carried out beforehand.


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1.2.1 SDP Building Block 1 Preparation and Basic Setup

1. Create SNP Planning Area2. SNP Planning Book Design3. Time Stream4. Create Supply Chain Model5. Create Planning Version6. Initialize Planning Version

1.2.1.1 Step 1: Create SNP Planning Area

This step creates a new planning area based on the existing delivered planning area 9ASNP02.

By default, only the author can change the newly created planning area.

1. Create Planning AreaFrom the APO tree structure select Supply Network Planning > Environment > Current Settings >Administration of Demand Planning and Supply Network Planning

Activate the context sensitive menu on the planning area 9ASNP02. Select Copy on the pop up window. Then specify 9ASNP02 in the From Planning Area and the name of your new own planning

area TddPASNP in the To Planning Area. Select the . Exit the transaction.2. Create Time Buckets ProfileFrom the APO tree structure select Supply Network Planning > Environment > Current Settings >

Maintain Time Bucket Profiles for Demand Planning and Supply Network Planning

Name the planning buckets profile (TddPBPSNP), its description, and press . Set the field Number to 52. Set the Display Periodicity to W. Pressing automatically opens the second line and populates some fields with data. Set the field Number to 13. Set the Display Periodicity to T. Press the pushbutton.

1.2.1.2 Step 2: SNP Planning Book Design


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Planning books are based on exactly one planning area. In this step we shall copy the standarddelivered planning book S19ASNP94 with its views SNP94(1) and SNP94(2). Initially the

new planning book will refer to the standard delivered planning area 9ASNP02 and thus we have

to change this assignment consequently.

It is mandatory that the planning area created in the previous step has not been changed, asotherwise inconsistencies might occur. Changes the planning area and the planning book should

only be carried out after the panning book assignment was changed (see last step).

After these parameter changes it is possible to change planning areas, planning books, planning

book data views, and macros without restrictions.

1. Create Planning BookFrom the APO tree structure select Demand Planning > Environment > Current Settings > Design

Planning Books

Create planning book TddPBSNP, data view TddPBSNP(1) BY COPYING WITHREFERENCE to the standard book 9ASNP94, data view SNP94(1). This also copies all

macros but leaves them inactive.

Create planning book TddPBSNP, data view S1SNP94(2) BY COPYING WITHREFERENCE to the standard book 9ASNP94, data view SNP94(2). This also copies allmacros but leaves them inactive.

Specify the newly created planning book TddPBSNP and press the pushbutton. Select the Planning Book tab and rename the planning book text. Change the TB Profile ID to TddPBPSNP. Select the Data View tab and rename the data view 1. Proceed to the last tab and press the pushbutton. Confirm the Save query. Specify the newly created planning book TddPBSNP and press the pushbutton. Select the Data View tab and rename the data views 2. Proceed to the last tab and press the pushbutton. Confirm the Save query. Exit the transaction.2. Activate MacrosFrom the APO tree structure select Demand Planning > Environment > Current Settings > Macro

Builder

Select the planning book view TddPBSNP(1) and press the pushbutton. Press the pushbutton and then the pushbutton. Select the planning book view TddPBSNP(2) and press the pushbutton. Press the pushbutton and then the pushbutton. Exit the transaction.3. Link Planning Area to Planning Book Type into the command field the transaction name SE11.


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Specify the database table /SAPAPO/PBMVW and then the pushbutton. Then choose Utilities > Table contents > Display. On the upcoming screen define in the field MVIEW your newly created planning book

TddPBSNP and press the pushbutton. Select (do not double-click) the entry and press the pushbutton on the top of the

screen.

Change the PAREANAME from 9ASNP02 to the name of your own planning areaTddPASNP.

Do not change anything else! Press the pushbutton. Exit the transaction.

1.2.1.3 Step 3: Create Time Stream

Create the time stream TddTS01 (with dd being your initials). This time stream will be linked in a

subsequent step to all of your locations as production, storage location, and production calendars.

From the APO tree structure select Supply Network Planning > Environment > Current Settings >Maintain Planning Calendar (Time Stream)

Type in the time stream ID (TddTS01) and click on the pushbutton. 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 1 Years In Future 4 Time Zone UTC Calendar AU Factory Calendar with Gaps on

Calculation Rule Press 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 7 periods.

Press to see all day definitions. Press the pushbutton. Press the and pushbuttons.

1.2.1.4 Step 4: Create Supply Chain Model

Create a supply chain model to establish your own data environment by linking the various master

data objects (e.g. locations) to it. The supply chain model might have been already created as partof the Forecasting exercises.


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From the APO tree structure select Master Data > Planning Version Management > Model and

Version Management

Once you are in this transaction, select the pushbutton andselect Model. Define your supply chain model name (TddMODEL01, with dd being your

initials) on the right hand side of the screen, and give it a description.

Press the pushbuttons. Press the pushbutton.

1.2.1.5 Step 5: Create Planning Version

Create a planning version to establish your own data environment by linking the various master

data objects (e.g. locations) to it. The planning version might have been already created as part of

the Forecasting exercises.

From the APO tree structure select Master Data > Planning Version Management > Model and

Version Management

Select (highlight) your newly created supply chain model. Then select the CreateModel/Planning Version pushbutton and select Planning Version. Define your planning

version name (Tdd, with dd being your initials) on the right hand side of the screen and give ita description.

Activate the following radio buttons: SNP Change active. PP/DS Change active. PP/DS Automatic Planning active.

Set the PP/DS: Take Safety Stock into Account to 2. Press the pushbutton. Press the pushbutton.

1.2.1.6 Step 6: Initialize Planning Version

The newly created planning version needs to be linked to a planning area before it can be used.

This activity is referred to as initializing the planning version.

From the APO tree structure select Supply Network Planning > Environment > Current Settings >

Administration of Demand Planning and Supply Network Planning

Highlight the planning area TddPASNP, activate the context sensitive menu, and chooseInitialize Planning Version. Define your planning version Tdd (with dd being your initials).



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1.2.2 SDP Building Block 2 Distribution Requirements

Planning

1. Location Master2.

Product Master (F/G only)

3. Assign Data to Work Area and Supply Chain Model4. Create Transportation Lanes5. Create Quota Arrangement6. Create Demand7. Run Heuristics

1.2.2.1 Step 1: Location Master

Create the locations TddDC01, TddDC02, TddPP11, and TddPP12 (with dd being your initials).

Locations TddPP11 and TddPP12 are of type 1001 (production plant) and locations TddDC01 and

TddDC02 are of type 1002 (distribution center).

From the APO tree structure select Master Data > Location > Location

Type in the location number and location type to be created, then click on the pushbutton.

On the next screen, define a description and then select the appropriate tab to define thefollowing:

Generalo Time Zone UTC

Addresso Country AU

Calendar Tabo Production Calendar TddTS01o Storage Location Calendar TddTS01o Shipping Calendar TddTS01

Press the and pushbuttons.Note that the longitude and latitude information is not required at this stage, and a specific value

will automatically be inserted by the system in accordance with the specified country. When the

location is placed on the map during the allocation of the location to the Supply Chain Model, thecoordinates can be changed. This task is performed in the Supply Chain Engineer.

1.2.2.2 Step 2: Create Product Master (Finished Goods)


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You will create 2 product masters named TddPR01 and TddPR02. These products representfinished goods and will be updated in subsequent exercises.

Please note that any Product Master will consist of Global and Location Data. Once you have

created the Global and Location Data for a product, you only have to create Location specific data

if you want to extend the Product Master to be available in another location. The initial creation of

Global and Location Data for a product can be done in one step.

From the APO tree structure select Master Data > Product

Specify your first product number (TddPR01) and location (TddDC01), click the Locationradio pushbutton and then select the pushbutton.

On the next screen select the appropriate tab and define the following: Top Section, not on any tab

o Product Description Short description of the producto Base unit PC (Piece)

SNP2o Forecast Horizon 7o Pull Deployment Horizon 28o Production Horizon 14o Stock Transfer Horizon 2o Push Deployment Horizon 28

Procuremento Procurement Type Xo Planned Delivery Time 5

Press the pushbutton. Repeat all of the above tasks except those under top section for the same product in the next

locations (TddDC02, TddPP11, and TddDPP12) and then for the next product (TddPR02)

again in all four locations. Make sure you create a total of six location products.

Press the pushbutton.

1.2.2.3 Step 3: Assign Data to Work Area and Supply Chain Model

Assign your master data objects to your work area and supply chain model. There is no explicit

create function for the work area. Whenever a new work area is used the first time, the system

informs the user about this fact and creates it immediately.

From the APO tree structure select Master Data > Supply Chain Engineer > Maintain Model

Type in your Supply Chain Model number (TddMODEL01) and your Work Area number

(TddWORK01) with dd being your initials. Press the pushbutton. Then perform

the following tasks: Assign Objects to your Work Area Select the pushbutton in the upper part of the screen. On the upcoming Select Work Area slide the left sliding bar op to the top.


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Define the location number (in the field Internal Characteristics (from) Value) asTdd*. This ensures that all locations starting with Tdd will be added to your workarea.

Double-click on Product Number in the lef side of the screen. Define the product number (in the field Internal Characteristics (from) Value) as

Tdd*. This ensures that all locations starting with Tdd will be added to your work

area. Press the pushbutton.

Assign Locations to your Supply Chain Model Select the Locations tab. Select all locations by clicking on them while the key is depressed. Activate the context sensitive menu and select Add to Model and Location. Press the pushbutton.

Move LocationsIf locations should be moved on the map, press the pushbutton on the right side of the

screen, then drag and drop the locations in the map as required. Assign Products to your Supply Chain Model Select the Products tab. Select all products by clicking on them while the key is depressed. Activate the context sensitive menu and select Add to Model and Location Product. On the upcoming screen press the pushbutton. Define Tdd* as the product number. Press the pushbutton. Press the pushbutton. Press the pushbutton. Press the pushbutton.


1.2.2.4 Step 4: Create Transportation Lanes

Create various transportation lanes linking your locations and allowing goods movements within

them.



(TddWORK01) with dd being your initials. Press the pushbutton. Select theTransportation Lanes tab and press the pushbutton on top of the map. Then perform

the following tasks:

Create a transportation lane from location TddPP11 to TddDC01 (beware of the direction!). Todo so click on the source location icon and drag the pointer over to the destination location.

Then release the mouse pushbutton. A new screen will come up allowing the maintenance ofthe transportation lane. Note that transportation lanes are direction dependent.

Press the pushbutton in the Product Procurement block. Define the following data while leaving all fields that are not mentioned blank.


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Product Selectiono Product TddPR01o All Products this flag must be off

Validityo Start Date 01.01.2001o End Date 01.01.2011

Form of Procuremento Standard set this flag

Press the pushbutton. Change the product number to TddPR02. Press the pushbuttons. Click on the pushbutton in the Means of Transport block. Define the following data while leaving all fields that are not mentioned as is (i.e. do not

change proposed values).

Validityo Transportation Method 0001o Start Date 01.01.2001o End Date 01.01.2011

Parameterso Transportation Calendar TddTS01o Transportation Duration 24:00o Trip Distance 100o Transportation Cost and UoM 0.1 PC (Piece)

Press the pushbuttons. Press the pushbutton. Transportation Planner APO Description as required

Press the pushbuttons. Press the pushbutton. Repeat these steps using the same parameters for the other transportation lanes. From location TddPP12 to TddDC01. From location TddPP11 to TddDC02. From location TddPP12 to TddDC02.


1.2.2.5 Step 5: Create Quota Arrangement

Create various quota arrangements for one of your locations. This allows quota-based procurement

and deployment when using heuristic planning methods.



(TddWORK01) with dd being your initials. Press the pushbutton. Select the


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Locations tab and open the locations tree structure to an extent that the individual locations canbe seen. Then perform the following tasks:

Create inbound quota arrangement for location TddDC01. To do so select the location, openthe context sensitive menu and choose Quota Arrangements Change Incoming Quota

Arrangements. A new screen will come up allowing the maintenance of the quotaarrangement.

Press the pushbutton in the Quota Arrangements block. Thiscreates the header data of the quota arrangement.

Define the following data while leaving all fields that are not mentioned blank. Product Selection

o Product TddPR01 Validity Period

o End Date 01.01.2011 Parameters

o Allow Requirement Splitting set this flago Requirements Grouping o Min Split Quantity and UoM 100 PC (Piece)

Press the pushbuttons. Select your newly created line in the Quota Arrangements block and press the pushbutton. Then press the pushbutton in the Quota Arrangement Items block. This creates the first line item of the

quota arrangement. Press the pushbutton. Select Location TddPP11 using the pushbutton in the Quota Arrangement for

Location block. Define the following data while leaving all fields that are not mentioned blank. Parameters

o Quota Arrangement 100 Press the pushbutton. Select Location TddPP12 using the pushbutton in the Quota Arrangement for

Location block.

Define the following data while leaving all fields that are not mentioned blank. Parameters

o Quota Arrangement 100 Press the pushbuttons. Press the pushbutton. Press the and pushbuttons. Repeat all relevant steps for location TddDC02 and product TddPR01.

1.2.2.6 Step 6: Create Demand

In order to have system planning supplies, we need to create some demand. In a live environment

this would usually be the demand forecast from DP and/or sales orders from the R/3 system, toname two of the possibilities. There is a utility transaction in APO that allows the creation of

demand elements for test purposes. We will use this function. Note that the creation of demand


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elements with this transaction is possible for all planning versions, except the active one (000). Thefield Horizon specifies how many times the creation of the sales order will be repeated. The

value of 100 means thus the creation of 100 sales orders!

From the APO tree structure type in the transaction name SE38 into the command field.

On the upcoming screen, type the program name /SAPAPO/SJKTST01 into the programfield and select the pushbutton. Please be careful to precisely type in the following

data while leaving all fields that are not mentioned with their contents as suggested.

Type of Order CUST Planning Area TddPASNP Planning Version Tdd Location TddDC02 Category BM Product TddPR01 Date date of next Monday Horizon 100 Quantity 100

Press the pushbutton and confirm possible upcoming messages. Press the pushbutton. Repeat the steps above with the same data but for location TddDC02. Press the pushbutton twice.We now have five sales orders in the system for your product and location. Another way of

creating demand is via the forecast release from DP to SNP. This is explained in the Forecasting

Building Block 5 step five. Refer to the instructions of this step. In the next step you will use theheuristic supply network planning to establish sources of supply for the demand created above.

1.2.2.7 Step 7: Run Heuristics

Finally run SNP heuristics-based network planning.

From the APO tree structure select Supply Network Planning > Planning > Interactive Supply

Network Planning

On the upcoming Interactive Planning Screen perform the following tasks: Select your planning book (TddPBSNP) and data view (TddPBSNP(1)) in the Data View (left


Press the pushbutton. Set the Show field to APO Location Product. Set the condition APO Planning Version field to Tdd. Press the pushbutton and provide a unique selection description (Tdd

Products).

Press the and pushbuttons. Your products should appear on the top left section of the screen.


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Double click on the Selection Profile bar and drag your newly created selection ID from theright to the left.

Press the and pushbuttons. Double click on the first product line at location TddDC01 and the previously created

demands should appear in the grid on the right hand side of the screen.

All data for the first product is loaded now and a planning run can be started.

Press the pushbutton. Press the pushbutton. A message on the bottom of the screen informs about how many location products were

planned. If this figure is Zero, something went wrong.

Double click on the key figure to open the key figure line. This will displayall elements that make out the total requirement.

Double click on the key figure to open the key figure line. This will display allelements that make out the total supply.

Investigate the results and play around to make yourself familiar with this screen. Activate the context sensitive menu on any Distribution Receipt (planned) cell that contains

a value. Then select Display Details

Press the pushbutton. Press the pushbutton. Repeat all relevant steps for the second product. Press the and pushbuttons.


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1.2.3 SDP Building Block 3 Rough-Cut Production

Planning

1. Product Master (Component only)2.

Resource Master

3. PPM4. Assign to SCM5. Run Heuristics6. Capacity Leveling7. Release Forecast to DP

1.2.3.1 Step 1: Create Product Master (Components)

You will create two product masters named TddPR11 and TddPR12 in both production locations.

These products represent components.

From the APO tree structure select Master Data > Product

Specify your product number TddPR11 and location TddPP11, click the Location radiopushbutton and then select the pushbutton.

On the next screen select the appropriate tab and define the following: Top Section, not on any tab

o Product Description Short description of the producto Base unit kg (kilogram)

SNP2o Forecast Horizon 7o Pull Deployment Horizon 28o Production Horizon 14o Stock Transfer Horizon 2o Push Deployment Horizon 28

Procuremento Procurement Type Fo Planned Delivery Time 5

Press the pushbutton.Repeat all of the above tasks except those under top section for the same product in the next

location (TddPP12), then for the next product again in both production locations.



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1.2.3.2 Step 2: Create Resource

In this step, four resources (named Tdd-PP11-SMR01, TddPP11-SMR02, TddPP12-SMR01, and

TddPP12-SMR02 (with dd being your initials)) will be created as single mixed resources.

From the APO tree structure select Master Data > Resource

Ensure that all fields are left blank on the initial screen and press the pushbutton There are two possibilities to capture all required information on the next screen. Either you

use the grid on top, or select the appropriate tab and define the data. In either case it is required

to first select the Single Mixed tab in the top grid to

The SAP APO Knowledge Book - Supply and Demand Planning

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Transcript of The SAP APO Knowledge Book - Supply and Demand Planning