Introduction

From SCM 4.0 APO is part of the SCM solution

SCM is containing besides APO also Event Manager and Inventory
Collaboration Hub
APO has integration with R/3 using the CIF (short for Core Interface),
instead of the R/3 adapter and middleware in CRM
Both in SEM and APO you have Planning Area’s only the architecture
is different

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 Process overview
SAP CRM SAP SEM (incl. BW) SAP APO (incl. BW)

Sales Planning Forecast of Basic Demand

APO/CRM 4.0 Promotion

Marketing Planning BAPI
Planning

Demand Planning

Supply Planning

Review Alerts & KPI Reports

Simulate Demand &

Replan Marketing Activities Consolidate Sales Plan
Supply Plan

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The release of BW in SCM 4.0 is 3.0B

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 Process overview
SAP CRM SAP SEM (incl. BW) SAP APO (incl. BW)

Sales Planning Forecast of Basic Demand

APO/CRM 4.0 Promotion

Marketing Planning BAPI
Planning

Demand Planning

Supply Planning

Review Alerts & KPI Reports

Simulate Demand &

Replan Marketing Activities Consolidate Sales Plan
Supply Plan

© SAP AG 2003, Title of Presentation, Speaker Name 3

The release of BW in SCM 4.0 is

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 Process overview
SAP CRM SAP SEM (incl. BW) SAP APO (incl. BW)

Sales Planning Forecast of Basic Demand

APO/CRM 4.0 Promotion

Marketing Planning BAPI
Planning

Demand Planning

Supply Planning

Review Alerts & KPI Reports

Simulate Demand &

Replan Marketing Activities Consolidate Sales Plan
Supply Plan

© SAP AG 2003, Title of Presentation, Speaker Name 4

The release of BW in SCM 4.0 is

© SAP AG 4
 Process overview
SAP CRM SAP SEM (incl. BW) SAP APO (incl. BW)

Sales Planning Forecast of Basic Demand

APO/CRM 4.0 Promotion

Marketing Planning BAPI
Planning

Demand Planning

Supply Planning

Review Alerts & KPI Reports

Simulate Demand &

Replan Marketing Activities Consolidate Sales Plan
Supply Plan

© SAP AG 2003, Title of Presentation, Speaker Name 5

The release of BW in SCM 4.0 is

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 Demand Planning and Supply Network Planning in APO
Demand Planning in APO
Integration & architecture (within SCM)
Demand planning & configuration
Interactive Planning
Functions possible in Promotion Planning in APO
Information on functions in Demand Planning

Supply Network Planning in APO

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 APO Supply Planning Process (module view)

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The tasks of the individual APO modules can be summarized as follows:

- DP is used for long-term unconstrained planning of the future demand plan
- SNP is used for mid-term planning of feasible cross-plant procurement and production
- PP/DS optimizes production in the plant in the next few weeks according to sequences and setup times
- Deployment and the TLB (Transport Load Builder) are functions of the SNP module for short-term
replenishment planning.
Deployment and the TLB adjust stock transfers according to short-term changes on the demand or supply
side.
- In Transportation Planning, routes and vehicle utilization are optimized.

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 APO Supply Planning Process (module view)

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The tasks of the individual APO modules can be summarized as follows:

- DP is used for long-term unconstrained planning of the future demand plan
- SNP is used for mid-term planning of feasible cross-plant procurement and production
- PP/DS optimizes production in the plant in the next few weeks according to sequences and setup times
- Deployment and the TLB (Transport Load Builder) are functions of the SNP module for short-term
replenishment planning.
Deployment and the TLB adjust stock transfers according to short-term changes on the demand or supply
side.
- In Transportation Planning, routes and vehicle utilization are optimized.

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 Interaction between APO components

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 Architecture (1)

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Data Storage in Demand Planning and Supply Network Planning

Use
In Demand Planning and Supply Network Planning, you can store data in three ways:
In liveCache time series objects
In liveCache orders
In an InfoCube
Each key figure in a planning area has its own storage method.
Integration
Since planning areas for Supply Network Planning can contain only the standard SNP characteristics, you can only use a joint planning area for
Demand Planning and Supply Network Planning, if demand planning in your company is done at product level or at product and location level. If you
want to do demand planning at other levels, such as brand or regional level, you must have separate planning areas.
Features
LiveCache Time Series Objects
The data is stored in buckets, with no reference to orders. This storage method is suitable for tactical, aggregated planning. It is the usual method for
saving current Demand Planning data. It also supports the Sales & Operations Planning process. If you save a key figure to liveCache time series
objects, you can use the following functions:
Constraint propagation up and down stream (material constraints, capacity constraints, stock level contraints)
Aggregation and disaggregation
Freely definable macros
Product allocation checks
Characteristics-Based Forecasting (CBF)
Single- and multilevel infinite heuristics
Capacity leveling
MILP Optimizer
Capable-to-Match
Deployment
Vendor-Managed Inventory (VMI)

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 Architecture (2)

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There are a number of standard key figures that are saved to liveCache time series objects which you can include in an SNP planning area by choosing
Edit → SNP time series objects.
The prerequisites for saving a key figure to liveCache time series objects are that:
You have created time series objects for the planning area.
When creating the planning area, you made no entries for the key figure in the fields InfoCube, Category or Category Group.
When creating the planning area, any entry you made in the field Key figure semantics is prefixed with TS (an entry in this field is optional).

For an example of Sales & Operations Planning using the time series storage method, see planning book 9ASOP, planning area 9ASNP01 (transaction
/SAPAPO/SNPSOP) in the standard APO system.
LiveCache Orders
The data is stored with reference to orders. This storage method is suitable for operative planning, such as in a classical SNP setup. If you save a key
figure to liveCache orders, you can use the following functions:
Real-time integration with R/3
Full pegging
Freely definable macros
Single- and multilevel infinite heuristics
Capacity leveling
MILP Optimizer
Capable-to-Match (CTM)
Deployment
One-step deployment
Transport Load Builder (TLB)
Vendor-Managed Inventory (VMI)

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 Architecture (3)

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There are a number of standard key figures that are saved to liveCache orders which you can include in an SNP planning area by
choosing Edit → SNP standard.
The prerequisites for saving a key figure to liveCache orders are that:
You have created time series objects for the planning area (even though you are saving to orders).
When creating the planning area, you either specified a Category or Category Group or entered a Key figure semantic prefixed
with LC.
When creating the planning area, you made no entry for the key figure in the field InfoCube.
For an example of Supply Network Planning using the orders storage method, see planning book 9ASNP94, planning area
9ASNP02 (transaction /SAPAPO/SNP94) in the standard APO system.
InfoCubes
The data is stored in an InfoCube in the Administrator Workbench. This storage method is suitable for data backups, old planning
data, and actual sales history. In Demand Planning, actual sales history is used to generate master data and as the basis for
forecasting.
In APO Demand Planning you can only read from InfoCubes if you have specified the InfoCube in planning area configuration.
For details of how to save data to InfoCubes see Exchange of Data Between InfoCubes and Planning Areas.
To specify an InfoCube from which the key figure is read in all versions:
- Select the planning area in S&DP Administration.
- Choose Change in the context menu.
- On the Key figs tab page choose Details.
- Select the relevant key figure and enter the InfoCube in the relevant field.
It is possible to use different InfoCube for different versions. Continue as above up to step 3. In Step 4 do not enter an InfoCube.
Choose . A dialog box appears, in which you enter the InfoCube for each version. After you entered the necessary information,
choose to save the data and return to the previous screen. You can see that such data has been entered by the icon.

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 Demand planning concept

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 Influencing factors in Demand Planning

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 Assignment of Key Figures to the Planning Area

Planning table

Planning book

Planning area
Characteristics Key figures

Master planning
Order
object structure objects
SNP characteristics live
Time series
DP characteristics objects
Aggregates liveCache

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In Demand Planning and Supply Network Planning there are two options for storing data:
In liveCache time series objects: the data is stored in time buckets without reference to orders. This
method supports tactical, aggregated planning, and S&OP process.
In liveCache order series objects: The data is stored with reference to orders. This method supports
operative planning.

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 Basic Parameters of the Planning Area

Planning area

General parameters Storage buckets profile

Base unit of measure Day

Base currency Week
Exchange rate type Month
Quarter
Year
Posting period

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A master planning object structure contains planable characteristics for one or more planning areas.

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 Maintain Planning Area

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 Maintain the Planning Object Structure

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 Planning book and View

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 Interactive planning

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 Interactive planning

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 Interactive planning

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 Function possible in Promotion Planning in APO

Cannibalizations

Promotion base
Several promotion bases (with different promotion key figures) so
the promotions can be created on and separated between different
levels.

Corrected Forecast
+ Promotion

History
(Including a Promotion)

Corrected History Forecast

Past Future

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 Promotion Base

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This example shows the definition of a promotion base

Transaction: /SAPAPO/MP40 - Maintain Promotion Base

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 Create a Promotion in SCM

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This example shows how a promotion base is assigned to a promotion and also shows that the corresponding
key figure is selected automatically
Transaction: /SAPAPO/MP34 - Promotion Planning

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 Information on functions in Demand Planning

Forecasting techniques
Macros
Lifecycle modeling
Replacement
Phase out & phase out of products
Launching of new products

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 Forecasting techniques

Univariate models
Causal Analysis
Composite Forecasting
Unlimited Causal Factors (Price,
Temperature, ...)

Multiple Linear Regression (Lags,

Dummy Variables, ...)

What-If Analysis / Marketing Mix

Planning

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 Macros

MACROS
Operations on single fields,
rows, columns and areas
Several steps possible in a macro
One step can contain multiple
arguments
Control statements such
as if, else if Planning view
InfoCube
Operators such as (), <>, sin, sqrt,
exp, trunc Invoiced sales
Actual sales
Functions such as SUM, AVG, Forecast
MAX, MAD, VAR Corr. forecast
Revenue
Alerts

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 Lifecycle modelling

Replacement
Launching of a New Product

Old New
Product Product
? New
Product

Phase In - Phase Out x , ∑, ∑αixi

Old New
Product Product

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 Supply Network Planning in APO

Supply Network Planning in APO

Planning Horizon

Demand Planning Forecast

Recommended
Supply Network stock transport
Planned orders
Planning requisitions

Production Planning /
Detailed Scheduling
Firmed
stock transport
Deployment requisitions

Transport Load Stock transport

Builder order

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 Supply Chain Plan

Customer
Demands

Distribution
Centers

Plants

Suppliers

Transport Order Production Order Purchase Order

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Starting from a sales plan, SNP determines a permissible short- to medium-term plan for fulfilling the
estimated sales volumes. This plan covers both the quantities that must be transported between two locations
(for example, distribution center to customer or production plant to distribution center), and the quantities to
be produced and procured. When making a recommendation, SNP compares all logistical activities to the
available capacity.

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 SNP Planning Sequence

Set up master data and

supply chain model

Build loads for

non-assigned Release demand
transport orders plan
Perform SNP Heuristic,
Optimization, or CTM run
TLB run

Deployment
run
Check plan/
Release constraint- solve problems
based SNP plan
to DP
Finalize SNP plan
(available to PP / DS)

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The release of the final forecast (demand plan) from Demand Planning (DP) to SNP makes the unconstrained
forecast in SNP available. This step can either be carried out using the demand planner or the SNP planner.
Performing the SNP run using the SNP Heuristic, SNP optimization, or Capable-to-Match results in a mid-
term production and distribution plan.
After the SNP run, you review the plan and resolve problems using Interactive Planning in SNP.
The final SNP plan is saved automatically in liveCache and is then available for Production Planning and
Detailed Scheduling (PP/DS). In PP/DS you synchronize production planning with execution in order to
remove all constraints and bottlenecks and to create a feasible production plan.
The final SNP plan can be released back to DP for comparison of the unconstrained demand plan to the
constrained SNP plan. Major discrepancies between these two plans could trigger re-planning. For example, if
you found that the cost of producing a product to meet the demand resulting from a planned promotion
exceeded the profit you would make, you may decide to cancel the promotion.
After production planning is complete and the system knows what will actually be produced, the deployment
run generates confirmed stock transport orders.
The TLB run groups the confirmed stock transport orders resulting from the deployment run into transport
load plans.
You can build load plans manually for stock transport orders that could not be satisfied during the TLB run
due to specified constraints.

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