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Supply Network Planning

Deployment
Course Overview Diagram

Course Overview
Introductions 1 Deployment 9
SNP Overview 2 Transportation Load Builder 10
Planning Area
Administration 3 SNP Run Using Optimizer 11
SNP Profiles 4 SNP Run Using CTM
12
SNP Run Using Supply &
Master Data 5 Demand Propagation 13
Supply Chain Cockpit /
Supply Chain Engineer 6 Integration
14
Interactive Planning and
Release of the Plan 7 Collaborative Supply
15
Planning
SNP Run Using Heuristics
8
SNP Process Flow

Planning Area Administration

APO Master Data Setup

Model/Version Creation

Supply Chain Model Setup

Release of Demand Plan to SNP

Planning Method Determination


& Profile Settings
Transport Load Supply Network
Building Planning Run
Simulation

Deployment Run Interactive Planning


Management
by Exception

Conversion into Release of SNP


PP/DS orders Plan to DP
PP/DS Planning
Deployment

Contents:
Deployment Concepts
Configuration for Deployment
Fair Share and Push Rules
Deployment: Unit Objectives

At the conclusion of this unit, you will be able to:


Explain Deployment concepts
Define a Deployment profile
Describe fair share and push rules for Deployment
Run Deployment
Deployment: Business Scenario

Powertastic products are produced in the two different manufacturing plants


to meet the demand in its distribution centers. However, due to capacity
constraints, there is insufficient supply to meet the demand. Deployment
determines a fair share replenishment of the distribution centers to address
the problem immediately.
Deployment

Deployment determines which requirements can be covered by the existing


supply
If the produced quantities (supply and demand) match actual plans, then the
result of Deployment is a confirmation of the supply network plan
If the available quantities are insufficient to cover the demand, the system
makes adjustments accordingly
Deployment

Heuristic Deployment
Calculates a replenishment plan for one product at one location
Fair share
Push
Fair Share and Push rules are defined in the deployment profile
Optimized Deployment
Calculates a replenishment plan for one product at all locations in the network
Minimum cost flow optimization
Factors Influencing Deployment

Recommended Deployment
transport orders
ATD quantity
Supply profile
Demand profile Fair Share
(demand > supply)
Demand
On-hand stock
Safety stock
Lot size Push
profiles
Costs (demand < supply)
Product Pull Deployment Horizon

SNP Demand Profile


Demand horizons
Demands within
this horizon are Forecast horizon ATP Categories
are matched to
considered Deployment SNP key figures
during deployment pull horizon

today days

Sales Order Max of Forecast / Sales Order


+ Dependent Demand + Dependent Demand
+ Distr. Demand (planned) + Distr. Demand ( planned )
+ Distr. Demand (firmed) + Distr. Demand ( firmed )
= Total Demand = Total Demand
Product Push Deployment Horizon
SNP Supply Profile
Supply horizons ATP Categories are
matched to SNP
Stock transfer horizon
key figures
Production horizon
Deployment
push horizon
Within this
days
today horizon SNP
Within this creates no stock
Within this horizon horizon SNP is transfer orders
SNP considers not planning the
the supply for production
deployment
Deployment Profile

Fair share
Proportional
Target fulfillment
Quota arrangements Montreal
Transportation Priority*
Push deployment Calgary
Winnipeg
Pull Montreal

Pull/push
Push SAPCO Customer
Philadelphia
Chicago
Q (Push by quota arrangement)*
S (Push considering the safety stock
horizon)*
New Orleans
*New functionality in 3.0
Fair Share Rules

Fair
Fair share
share A:
A: percentage
percentage division
division by
by

requirements
requirements
Fair
Fair share
share B:
B: percentage
percentage of
of target
target
stock
stock
Fair
Fair share
share C:
C: percentage
percentage division
division byby
quota
quota arrangement
arrangement
Fair
Fair share
share D:
D: division
division by
by priority
priority

Push horizon
Pull horizon
Fair share A: percentage division by requirements

Strategy:
Strategy: proportional
proportional distribution
distribution

Quanties

Demand DC1 DC2


Deployed quantity
Deployment Result:
Fair Share Rule A
Fair share B: percentage of target stock

Strategy:
Strategy: percentage
percentage of
of target
target stock
stock

Target stock
(Deploy. qty
+ Proj. Stk
on hand )

% target
stock
50 71.4 50

DC1 DC2 DC3

Target stock
Deployed quantity
Projected stock on-hand
Deployment Result:
Fair Share Rule B

ATD in Plant = 300

Distribution Projected Target Percent Deploy Percent


Center Net Stock of Tar. of Tar

DC1 50 500 10 200 50%


DC2 500 700 71.4 0 71.4%
DC3 0 200 0 100 50%

Projected Net = On Hand + Intransit - Cust Orders


Fair share C: percentage division by quota arrangement

Strategy:
Strategy: by
by Quota
Quota Arrangement
Arrangement

30% 70%

Quantities

DC1 DC2

Demand DC1 DC2


Deployed quantity
Deployment Result:
Fair Share Rule C

Date: ATD - Quantity: Requirements:

Today 01.07.1998 400 800

Demand
Supply
Outgoing Quota per DC:

DC 1 30%
DC 2 70%

Deployment result

01.07.1998 Plant to DC 1 120


01.07.1998 Plant to DC 2 280
Fair share D: Division by Priorities

Production location
Sales
orders

Priority 1

Priority 1
Priority 2
Priority 3

Distribution centers
Deployment Result:
Fair Share Rule D

Date: ATD - Quantity: Requirements:

Today 01.07.1998
01.07.1998

Supply

Demand
01.07.1998 400 300
(100/DC)

Priority of Transportation Lanes:

DC 1 1
DC 2 2
DC 3 3

Deployment result

01.07.1998 Plant to DC 1 100


01.07.1998 Plant to DC 2 50
01.07.1998 Plant to DC 3 0
Push Rules

Pull Distribution
All demand within the pull deployment horizon is met through deployment
Distribution occurs according to the due date specified at the demand
locations
No supply is distributed to the demand source in advance of the demand
date
Push Distribution
All supply is distributed immediately to the demand locations for the entire
planning horion
Push Rules

Pull/Push Distribution
All supply is distributed immediately to the demand locations to meet
all demand within the pull deployment horizon
Push by Quota Arrangement
System uses the demand dependant quota arrangements assigned to
the transportation lanes to distribute supply
Push Considering the Safety Stock Horizon
Safety stock at the source location is used to fulfill only the demands
within the corresponding safety stock horizon, and not other demand
beyond this horizon
Push Rule
Supply exceeds demand

Target days supply (in days)

Surplus stock pushed DC1 DC2 DC3


Demand satisfied
Push Rule

Push P: demand within pull horizon


Push X: demand in the system

oday
T

To
da
y

Push horizon
Pull horizon
Push Strategies - A Comparison
Push Horizon Pull Horizon
Deployment Horizon
Situation (Supply Profile (Demand Profile
(Mass Processing)
- - DeloyHor)
Supply at Plant 200 PushDeployHoriz)
1000 500 600

Demand at DC 200 200 200 200 200 200 200

Pull
Qty to DC 200 200 200 200 0 0 0
Stock in plant 0 800 1100 900 900 900

Pull/Push
Qty to DC 200 600
Stock in plant 0 400 900 900 900 900

Push
Qty to DC 200 1000
Stock in plant 0 0 500 500 500 500
Input Parameters for Deployment Run

Optimization
Heuristic
Planning version
Version
Level ID
Planning Book
Product
Data View Location
Location Planning Book
Product Data View

Deployment horizon in days


Cost Profile
Target Location*
Optimizer Profile
Orders
Optimizer Bound Profile
Do not change
Push Distribution
Reduce Fair Share Rule
Real Time Deployment* Pull DeplHor
Deployment Target Location* DeplPushHor

Log ATP Checking Horizon


Deployment:
Heuristic versus Optimization

Heuristic Heuristic
Focus on two locations
Based on Outbound Quotas
Optimization
Focus on network Optimization
Product by Product
Coverage Maximization
Cost based optimisation
Deployment Results

Header information Detailed requirements


Product Location
Deployment Strategy
Demand
Location
Confirmed
Transportation type
Delivery time Product information
Safety time From and To location
Safety Stock
From date
Supply horizon
Quantity
Date
ATD quantity
Demand
Roll forward
Exercise 12 : Deployment Scenario

Powertastic powertools is in need of a distribution package to help


them determine order replenishment, using best practice distribution
planning processes.
Top management has hired you to demonstrate the capabilities of the
APO SNP Deployment system. Make sure to mention during your
meeting with the Powertastic staff, that APO Deployment determines
which requirements can be covered by the existing supply. If the
planned quantities (supply and demand) match actual plans, then the
result of deployment is a confirmation of the SNP plan.
Deployment: Unit Summary

You are now able to:


Generate a transport plan by running the deployment run
Explain deployment functionality
Define the master and configuration data to support deployment
Identify share and push rules used in deployment
Define the necessary settings for deployment

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