sap apo knowledge book

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 retrieval system. 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 – Supply and 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 author’s 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. The author also disclaims any liability in connection with the use of this document, the used data, and the 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 FC BUILDING BLOCK 1 – PREPARATION AND BASIC SETUP ....................................8 1.1.1.1 Step 1: Create Info Objects ...................................................................................8 1.1.1.2 Step 2: Create Info Object Catalog .......................................................................9 1.1.1.3 Step 3: Create InfoCube........................................................................................9 1.1.1.4 Step 4: Load InfoCube ........................................................................................10 1.1.1.5 Step 5: Create Storage Buckets Profile ...............................................................12 1.1.1.6 Step 6: Create Master Planning Object Structure................................................13 1.1.1.7 Step 7: Create DP Planning Area ........................................................................14 1.1.1.8 Step 8: Create Characteristic Value Combinations .............................................16 1.1.1.9 Step 9: Create Planning Buckets Profiles............................................................16 1.1.1.10 Step 10: DP Planning Book Design ..................................................................17 1.1.1.11 Step 11: Create Forecast Profiles ......................................................................19 1.1.2 FC BUILDING BLOCK 2 – BASIC USAGE.................................................................20 1.1.2.1 Step 1: DP Interactive Planning 1 (Univariate – Constant and Trend) ...............20 1.1.2.2 Step 2: Create and Assign Selection ID’s ...........................................................20 1.1.2.3 Step 3: Forecast Errors ........................................................................................21 1.1.2.4 Step 4: Outlier and Workday Correction.............................................................21 1.1.2.5 Step 5: DP Interactive Planning 2 (Adv. Univariate – Constant and Trend) ......22 1.1.2.6 Step 6: DP Interactive Planning 3 (Univariate – Seasonal and Seasonal Trend) 22 1.1.2.7 Step 7: Proportional Factors Management ..........................................................23 1.1.3 FC BUILDING BLOCK 3 – PROMOTION PLANNING .................................................24 1.1.3.1 Step 1: Define Promotion Settings......................................................................24 1.1.3.2 Step 2: Create Promotion ....................................................................................24 1.1.3.3 Step 3: Promotion Valuation...............................................................................25 1.1.3.4 Step 4: DP Interactive Planning 4 (Promotion Planning) ...................................26 1.1.4 FC BUILDING BLOCK 4 – LIFE CYCLE MANAGEMENT...........................................27 1.1.4.1 Step 1: Define Like Profile .................................................................................27 1.1.4.2 Step 2: Define Phase-In Profile...........................................................................27 1.1.4.3 Step 3: DP Interactive Planning 5 (Lifecycle Management)...............................28 1.1.5 FC BUILDING BLOCK 5 – ADVANCED USAGE........................................................29 1.1.5.1 Step 1: Distribution Functions ............................................................................29 1.1.5.2 Step 2: DP Interactive Planning 6 (Header, Distribution, DP Notes) .................29 1.1.5.3 Step 3: Create MLR and Composite Profiles ......................................................30 1.1.5.4 Step 4: DP Interactive Planning 7 (MLR and Composite Forecast) ...................31 1.1.5.5 Step 5: Release to SNP........................................................................................32 1.2 SUPPLY AND DEMAND PLANNING BUILDING BLOCKS ..........................................33 1.2.1 SDP BUILDING BLOCK 1 – PREPARATION AND BASIC SETUP................................35 1.2.1.1 Step 1: Create SNP Planning Area......................................................................35 1.2.1.2 Step 2: SNP Planning Book Design ....................................................................35

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1.2.1.3 Step 3: Create Time Stream................................................................................ 37 1.2.1.4 Step 4: Create Supply Chain Model ................................................................... 37 1.2.1.5 Step 5: Create Planning Version......................................................................... 38 1.2.1.6 Step 6: Initialize Planning Version..................................................................... 38 1.2.2 SDP BUILDING BLOCK 2 – DISTRIBUTION REQUIREMENTS PLANNING ................ 39 1.2.2.1 Step 1: Location Master ..................................................................................... 39 1.2.2.2 Step 2: Create Product Master (Finished Goods) ............................................... 39 1.2.2.3 Step 3: Assign Data to Work Area and Supply Chain Model ............................ 40 1.2.2.4 Step 4: Create Transportation Lanes .................................................................. 41 1.2.2.5 Step 5: Create Quota Arrangement..................................................................... 42 1.2.2.6 Step 6: Create Demand....................................................................................... 43 1.2.2.7 Step 7: Run Heuristics ........................................................................................ 44 1.2.3 SDP BUILDING BLOCK 3 – ROUGH-CUT PRODUCTION PLANNING ....................... 46 1.2.3.1 Step 1: Create Product Master (Components) .................................................... 46 1.2.3.2 Step 2: Create Resource ..................................................................................... 47 1.2.3.3 Step 3: Create Production Process Model (PPM)............................................... 47 1.2.3.4 Step 4: Assign Data to Supply Chain Model...................................................... 49 1.2.3.5 Step 5: Run Heuristics ........................................................................................ 50 1.2.3.6 Step 6: Capacity Leveling .................................................................................. 50 1.2.3.7 Step 7: Release Forecast to DP........................................................................... 51 1.2.4 SDP BUILDING BLOCK 4 – SNP OPTIMIZATION.................................................... 53 1.2.4.1 Step 1: Update Master Data (Cost Fields) .......................................................... 53 1.2.4.2 Step 2: Run SNP Optimization........................................................................... 54 1.2.4.3 Step 3: Release Forecast to DP........................................................................... 55 1.2.5 SDP BUILDING BLOCK 5 – DEPLOYMENT AND TLB............................................. 56 1.2.5.1 Step 1: Deployment ............................................................................................ 56 1.2.5.2 Step 2: TLB ........................................................................................................ 56 1.2.6 SDP BUILDING BLOCK 6 – MAKE IT EASY............................................................ 58 1.2.6.1 Step 1: Basic Safety Stock.................................................................................. 58 1.2.6.2 Step 2: Extended Safety Stock ........................................................................... 59 1.2.6.3 Step 3: Create SNP Demand Profile................................................................... 60 1.2.6.4 Step 4: Create SNP Supply Profile. .................................................................... 61

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1 My 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 like trying 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 how processes 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 develop it. 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 Stream In 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 more experienced users, either those who worked through the User Stream exercises, or from those with previous experience.

The Specialty Stream There 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 stream can 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 a logical 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.

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1.1 Forecasting Building Blocks It is required to set up the Demand Planning environment before any forecasting activities can be carried 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 live environment but going through them provides a very good chance to understand the system much better.

Preparation and Basic Setup Set up a DP environment with all required entities such as planning area, planning book, and forecast profiles.

Basic Usage

In 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 Planning

Planning promotions is vital in most industries and part of this block.

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

Advanced Usage

The 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 is provided in a spreadsheet, which can be loaded into APO. Please note that the spreadsheet needs to be 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




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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. The planning 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 planning activities. 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 are defined 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.

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1.1.1 FC Building Block 1 – Preparation and Basic Setup 1. Create Info Objects 2. Create Info Object Catalog 3. Create InfoCube 4. Load InfoCube 5. Create Storage Buckets Profile 6. Create Master Planning Object Structure 7. Create Planning Area 8. Create Characteristic Value Combinations 9. Create Planning Buckets Profile 10. Planning Book Design 11. 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. The entries 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 and

activate the context sensitive menu. ⇒ Select “Create Info Area”. ⇒ Define the Info Area name (APOTRAINING) and a long description. ⇒ Press the <Enter> pushbutton.

Press the <Maintain Info Objects> pushbutton (Shift F8) on the button bar. Specify the Info Objects listed below, select their type and press the <Create> pushbutton.

Select “APO” (and not “BW”) on the next pop-up window. Press <Activate> and <Return> 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 7 TddCH03 Location 9ALOCNO

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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 PC TddKF03 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 <Edit Info Objects> pushbutton (Shift F5) on the button bar. Press the <Info Object Catalog> pushbutton (Ctrl F6) on the button bar. Specify the name of the new catalog (TddCHC for the Characteristics) and press the <Edit>

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 <Transfer Fields> pushbutton, copy the desired characteristics (the newly created

ones in the previous step) from the template to the structure. Once all Characteristics are added to the Info Object Catalog select <Activate> and <Back>.

Repeat the previous steps for all Key Figures accordingly (name for the Key Figures Catalog is TddKFC and Info Object Type is “Key Figure”).


1.1.1.3 Step 3: Create InfoCube

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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 “Create InfoCube”. Enter a name (TddIC) and a description for the InfoCube and select <Create>.

Select “BW” as your choice of BW application (do not use APO!) and select <Continue>. 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 <Transfer Fields> pushbutton in the middle of the screen.

Select the characteristics from your Info Object catalog by clicking on the Info Object catalog icon 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 Characteristics of your catalog into your InfoCube automatically.

Click on the <Dimensions> pushbutton. Create four dimensions; one for the version, and the others for the other characteristics. You do

not need to create dimensions for time characteristics or units; these are created automatically. o Select the <Create> pushbutton and define a dimension description. Repeat this step for all

dimensions. Dimension Characteristic 1 Characteristic 2 Planning Version 9AVERSION Product 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 to assign it and click on the <Assign> pushbutton. After all characteristics are assigned to dimensions, select <Continue>.

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 <Transfer Fields>

pushbutton (do not transfer all your previously created key figures!) Choose <Activate>, <Back> and confirm the “Save” query (if any). Leave the Administrator Workbench.

1.1.1.4 Step 4: Load InfoCube

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In order to carry out forecasting exercises, test data is required. The loading of this test data from a spreadsheet 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

<Enter>. 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 <Transfer Enter>. ⇒ Specify the name (TddSS) and description for the Source System and select <Continue

Enter>. 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 <Enter> 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 data only into the one column called “Info Object”; the other fields are populated automatically. The sequence is:

Name Info Object 1. Product TddCH01 2. Product Group TddCH02 3. Location TddCH03 4. Country TddCH04 5. Customer TddCH05 6. Customer Group TddCH06 7. Week 0CALWEEK 8. Month 0CALMONTH 9. Planning Version 9AVERSION 10. TddKF01 TddKF01 11. TddKF02 TddKF02

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12. TddKF03 TddKF03 13. 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 <Transfer in Transfer Rules> pushbutton, or use the <Propose Transfer Rules> pushbutton.

⇒ Then <Activate> and <Back>. 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 <Next Screen> pushbutton. ⇒ Select <Activate> and <Back>.

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 <Enter>. The following

parameters have to be defined: o External Data tab:

Load external data from: Client Workstation File Name: Define spreadsheet file path. Control File: No File Type: CSV File Data Separator: Switch the Hex setting off Use the character comma (,). Escape Sign: Switch the Hex setting off Use 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 <Start> pushbutton. ⇒ Select <Goto – Monitor> and ensure that the load was successful.


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.

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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 <Create> 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 <Change Calculation Rule> 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 <Generate Periods> pushbutton. ⇒ Select <Save> and <Exit>.

From the APO tree structure select Demand Planning > Environment > Current Settings > Periodicities for Planning Area

Name the storage buckets profile TddSBP and press <Enter>. This automatically creates the profile.

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 <Save> and <Exit> 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 <Selection> 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 <Enter>. On the upcoming screen provide a long description. The “SNP Planning”, “Characteristics

Based Forecasting”, and “DP BOMs Relevant” flags must all be off.

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Select all 6 characteristics as listed below in the right (Copy From) pane and press the <Add Characteristic> 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 <Continue> 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 <SAP Reference IMG> 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 <Save> pushbutton, and the <Exit> pushbutton three times. From the APO tree structure select Tools > Administration > User Maintenance > Users

Specify your “User ID” and the <Change> pushbutton. Select the “Parameters” tab. Define parameter “/SAPAPO/FCST_LIKE” and set it to “X”. Press <Enter>, <Save>, and <Exit> 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

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Press the <Selection> 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 planning

area to your master planning object structure TddMPOS as well as the storage buckets profile TddSBP.

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

1. Info No further definitions are required here.

2. Aggregation No further definitions are required here.

3. Key Figures Select all key figures as listed below in the right (Copy From) pane and press the <Column Left, Previous> pushbutton to transfer them to the left (Planning Area) pane. o TddKF01 TddIC o TddKF02 TddIC o TddKF03 TddIC o TddKF04 TddIC o TddKF05 o TddKF06 o TddKF07 o TddKF08 o TddKF09 o TddKF10 After all required key figures are transferred to the left pane press the <Details> 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 Aggregation On 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 as is.

5. Key Figure Assignment On 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 <Back> 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 <Adopt> pushbutton. Press the bottom <Adopt> pushbutton. Right mouse click again the planning area you created above. Choose “Create Time Series Objects”.

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Enter the planning version “Tdd” to be used. The planning version must exist already! For instructions 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 <Execute> 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 (InfoCube or 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 <Execute> 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 <Enter>. Set the field “Number” to “24”. Set the “Display Periodicity” to “M”. Pressing <Enter> 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 <Save> 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 <Enter>. Set the field “Number” to “365”.

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Set the “Display Periodicity” to “T”. Press the <Save> 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 <Create>. 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 “Manual

Proportion Maintenance”, which must be on. o Switch all flags in “Navigate to Views” on. o Press the <Continue> pushbutton.

⇒ Tab Key Figures o Drag and drop all key figures from the right “Planning Area” panel to the left

“Planning Book” panel or press the <Add All Key Figures> pushbutton. o Press the <Continue> pushbutton.

⇒ Tab Characteristics o Drag and drop all characteristics from the right “Planning Area” panel to the left

“Planning Book” panel or press the <Add All Characteristics> pushbutton. o Press the <Continue> pushbutton.

⇒ Tab Key Figure Attributes o This tab is skipped when creating planning books based on DP planning areas.

⇒ Tab Data View o 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 both o Set the “Visible” flag and specify the “From” to be M01.2000 using the F4 function. o Press the <Continue> pushbutton.

⇒ Tab Key Figures o Drag and drop all key figures from the right “Planning Book” panel to the left “Data

View” panel or press the <Add All Key Figures> pushbutton. o Press the <Complete> pushbutton.

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

the <Continue> and <Complete> pushbuttons. Change, if desired, the sequence of the key

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figures using the drag and drop functionality on the second “Key Figure” tab. Also, drag the “Proportional 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 <Execute> 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 <Continue> 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 <Continue> pushbutton.

Drag the “Row” symbol from the “Elements – Planning Table” area onto the first step of your new macro “Total Forecast”.

A pop-up window appears. ⇒ Select the row “Total Forecast”. ⇒ Press the <Continue> pushbutton.

Drag the “Row” symbol from the “Elements – Planning Table” area onto the new row of the first step of your new macro “Total Forecast”.

Select “Create in Next Level”. A pop-up window appears. ⇒ Select the row “Base Forecast”. ⇒ Press the <Continue> pushbutton.

Drag the “Operator/Function” symbol from the “Elements – Planning Table” area onto the second new row of the first step of your new macro “Total Forecast”.

Select “Append”. A pop-up window appears. ⇒ Select the function “+”. ⇒ Press the <Continue> pushbutton.

Drag the “Row” symbol from the “Elements – Planning Table” area onto the operator/function

symbol of your new macro “Total Forecast”. Select “Append”. A pop-up window appears. ⇒ Select the row “Promotion”. ⇒ Press the <Continue> pushbutton.

Select your new macro, which has a red light. Press the <Generate> pushbutton above it, which changes its color to green. Drag your new macro onto the “Default” symbol in the “Events” area. Press the <Save> and <Exit> 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 Figure Period Indicator W Determines the forecast calculation

granularity Material Forecast “On” Enables Life Cycle Management Forecast Horizon From 31.12.2001 Forecast Horizon To 29.12.2002 History Horizon From 04.01.1999 History Horizon To 30.12.2001

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

Key Figure TddKF01 Usually an InfoCube Key Figure Version Tdd Forecast Strategy 50 Seasonal Periods 12

o Press the <Save Single Profile> and <Copy> pushbuttons. ⇒ Master Profile Tab

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

Press the <Copy>, <Save>, and <Back> 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 ID’s 3. Forecast Errors 4. Outlier and Workday Correction 5. 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 (left side of the screen).

Activate the <Selection Window> pushbutton in the Info Objects Area and select “Show” all “Products” that belong to “Planning Version” Tdd.

Press <Adopt>. 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 Product

Constant 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 ID’s The usage of selection ID’s supports an easy re-selection of data based on user-specific definitions. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


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Activate the <Selection Window> pushbutton in the Info Objects Area and select “Show” all “Products” that belong to “Planning Version” Tdd.

Press the <Save Selection> pushbutton and provide a unique selection description (Tdd Products).

Press the <Save> and <Adopt>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 <Save> followed by

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

Specify the Master Profile (TddMFP), and press <Enter>. Go to the Univariate Profile Tab ⇒ Switch on all forecast error calculations ⇒ Press the <Maintain Diagnosis Group> pushbutton and specify the name DGdd followed

by the following parameters: o Upper Limit MAD 20 o Upper Limit Error Total 1.000 o Upper Limit MPE 5 o Upper Limit MAPE 10 o Upper Limit MSE 1.000 o Upper Limit RMSE 40

⇒ Press <Save Group> and <Copy> pushbuttons. Press <Save Single Profile>. 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. From the APO tree structure select Demand Planning > Environment > Maintain Forecast Profiles

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

Press <Save Single Profile>.

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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 trend behavior. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


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


Constant 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 and seasonal trend behavior. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


Select (double-click) the selection ID for your products Select (double-click) the product TddPR01 Activate the <Selection Window> 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 Location

Seasonal TddPR03 TddDC02 ⇒ View the information on the various tabs. ⇒ Save each of the forecasts.

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Activate the <Selection Window> pushbutton in the Info Objects Area and select “Show” all “Products” 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 Location

Seasonal Trend TddPR03 TddDC03 ⇒ View the information on the various tabs. ⇒ Save each of the forecasts.


1.1.2.7 Step 7: Proportional Factors Management Proportional factors are usually working in the “background”, but can be viewed and changed if desired. From the APO tree structure select Demand Planning > Environment > Calculate Proportional Factors

Specify your planning area (TddPADP) and your InfoCube (TddIC). Press the <Execute> 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 <Execute> pushbutton. View the created proportional factors Select <Back> and leave the transaction.

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


Double-click on one of your selection ID’s. 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 Settings 2. Create Promotion 3. Promotion Valuation 4. 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 > Maintain Promotion 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 <Save> and <Back> 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. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


Select the <Promotion Planning> pushbutton. Select the <Create Promotion> 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 <Enter> and the <Save> pushbuttons. Select (double-click) the selection ID for your products

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Select (do not double-click) the product TddPR01 Press the <Assign Objects> pushbutton. Select (do not double-click) the product TddPR02 Press the <Assign Objects> 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 <Change Status> pushbutton and select “Planned, in the Future”. Press the <Save> and <Back> 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. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


Select the <Promotion Planning> pushbutton. Activate the <Selection Window> pushbutton in the Info Objects Area and select “Show” all

“Promotion” that belongs to “Planning Version” Tdd. Press the <Save Selection> pushbutton and provide a unique selection description (Tdd

Promotions). Press the <Save> and <Adopt>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 <Save> followed by

<Copy>. Press <Adopt>. Select (double click) your promotion TddPROM01. Select the <Object View> 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. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


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 Profile 2. Define Phase-In Profile 3. 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. From the APO tree structure select Demand Planning > Environment > Maintain Forecast Profiles

Specify the Master Profile (TddMFP), and press <Enter>. Press the <Basic Life Cycle> pushbutton. On the upcoming screen, select “TddCH01” as characteristics 1. Press the <Copy> 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 <Copy Values> pushbutton. Press the <Assign Life Cycle> pushbutton. Select product number “TddPR05” and the like profile “TddLP”. Press the <Copy> pushbutton. Press the <Save> and <Back> 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. From the APO tree structure select Demand Planning > Environment > Maintain Forecast Profiles

Specify the Master Profile (TddMFP), and press <Enter>. 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 <Copy> pushbutton. Press the <Assign Life Cycle> pushbutton. Update the line with the product number “TddPR05” by adding the phase-in profile “TddPI”. Press the <Copy> pushbutton. Press the <Save> and <Back> 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. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


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 Functions 2. DP Interactive Planning 6 (Header, Distribution, DP Notes) 3. Create MLR and Composite Profile 4. 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). From the APO tree structure select Demand Planning > Environment > Current Settings > Maintain 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 <Adopt> and <Back> 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. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning 1. Header Usage:


Press the <Header On/Off> pushbutton. Press the <Header Information Settings> pushbutton. Define Number “1” and Characteristic “Product”, then Number “2” and Characteristic

“Location” Press <Adopt>.

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

products in their respective locations. ⇒ Click the <Total> pushbutton close to the <Product> pushbutton to select a specific

product, all products, or the total of all products. ⇒ Click the <Total> pushbutton close to the <Product> pushbutton to select the total of all

products. ⇒ Click the <Total> pushbutton close to the <Location> pushbutton to select a specific

location, all locations, or the total of all locations. ⇒ Click the <Total> pushbutton close to the <Location> pushbutton to select the total of all

locations. 2. Distribution Function


Select (double-click) the product TddPR01 Press the <Distribute> pushbutton. On the upcoming “Distribution Functions” window define

the following: ⇒ Key Figure 05 (Distribute values by means of discrete data)

o Value 2 o Operand *

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

3. Notes:


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 <Save Note> pushbutton. ⇒ Press the <Close Notes Editor> pushbutton. ⇒ Press the <Save> 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. From the APO tree structure select Demand Planning > Environment > Current Settings > Maintain 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 <Enter> o Do not change any settings

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

Key Figure TddKF01 Usually an InfoCube Key Figure Version Tdd

o Specify the independent variables by means of key figures or time series. o Press the <Save Single Profile> and <Copy> pushbuttons.

⇒ Composite Profile Tab o Specify the Composite Profile Name (TddCP) and description. o Press the <Save Single Profile> and <Copy> pushbuttons.

⇒ Master Profile Tab o Press the <Save> and <Back> 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. From the APO tree structure select Demand Planning > Planning > Interactive Demand Planning


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


MLR TddPR01 MLR TddPR02


Run several Composite Forecasts (one per product) and apply the following models per product ⇒ Model Product

Composite TddPR03 Composite TddPR04



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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 model beforehand 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 <Execute>. 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 is not 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 Setup Set up an initial planning environment for all subsequent planning tasks.

Distribution Requirements Planning

Create 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 Planning

Adapt 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 Optimization

This 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 TLB

In 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 Support

Last 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 everyday working 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) are required. 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 PPM’s. 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 Area 2. SNP Planning Book Design 3. Time Stream 4. Create Supply Chain Model 5. Create Planning Version 6. 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 Area From 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 <Copy Planning Area (Enter)>. Exit the transaction.

2. Create Time Buckets Profile From 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 <Enter>. Set the field “Number” to “52”. Set the “Display Periodicity” to “W”. Pressing <Enter> 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 <Save> 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 standard delivered 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, as otherwise 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 Book From the APO tree structure select Demand Planning > Environment > Current Settings > Design Planning Books

Create planning book TddPBSNP, data view TddPBSNP(1) BY COPYING WITH REFERENCE 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 WITH REFERENCE to the standard book 9ASNP94, data view SNP94(2). This also copies all macros but leaves them inactive.

Specify the newly created planning book “TddPBSNP “ and press the <Edit> 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 <Complete> pushbutton. Confirm the Save query. Specify the newly created planning book “TddPBSNP “ and press the <Edit> pushbutton. Select the “Data View” tab and rename the data views 2. Proceed to the last tab and press the <Complete> pushbutton. Confirm the Save query. Exit the transaction.

2. Activate Macros From the APO tree structure select Demand Planning > Environment > Current Settings > Macro Builder

Select the planning book view “TddPBSNP(1)” and press the <Execute> pushbutton. Press the <Generate Macros (Shift + F2)> pushbutton and then the <Back> pushbutton. Select the planning book view “TddPBSNP(2)” and press the <Execute> pushbutton. Press the <Generate Macros (Shift + F2)> pushbutton and then the <Back> 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 <Display> 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 <Execute> pushbutton. Select (do not double-click) the entry and press the <Change> pushbutton on the top of the

screen. Change the “PAREANAME” from 9ASNP02 to the name of your own planning area

TddPASNP. Do not change anything else! Press the <Save> 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 <Create> 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 <Change Calculation Rule> 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 <Enter> to see all day definitions. ⇒ Press the <Generate Periods> pushbutton. ⇒ Press the <Save> and <Exit> 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 part of 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 <Create Model/Planning Version> pushbutton and select “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 <Create and Save> pushbuttons. Press the <Exit> 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 “Create Model/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 it a 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 <Create and Save> pushbutton. Press the <Exit> 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 choose “Initialize Planning Version”. Define your planning version Tdd (with dd being your initials).

Press the <Execute> and <Exit> pushbuttons.

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1.2.2 SDP Building Block 2 – Distribution Requirements Planning 1. Location Master 2. Product Master (F/G only) 3. Assign Data to Work Area and Supply Chain Model 4. Create Transportation Lanes 5. Create Quota Arrangement 6. Create Demand 7. 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 <Create> pushbutton.

On the next screen, define a description and then select the appropriate tab to define the following: ⇒ General

o Time Zone UTC ⇒ Address

o Country AU ⇒ Calendar Tab

o Production Calendar TddTS01 o Storage Location Calendar TddTS01 o Shipping Calendar TddTS01

Press the <Save> and <Exit> 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, the coordinates 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 represent finished 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 “Location” radio pushbutton and then select the <Create> 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 product o Base unit PC (Piece)

⇒ SNP2 o Forecast Horizon 7 o Pull Deployment Horizon 28 o Production Horizon 14 o Stock Transfer Horizon 2 o Push Deployment Horizon 28

⇒ Procurement o Procurement Type X o Planned Delivery Time 5

Press the <Save> 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 <Exit> 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 <Change Model> pushbutton. Then perform the following tasks:

Assign Objects to your Work Area ⇒ Select the <Redefine Work Area> 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”) as “Tdd*”. This ensures that all locations starting with “Tdd” will be added to your work area.

⇒ 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 <Copy> pushbutton. Assign Locations to your Supply Chain Model ⇒ Select the “Locations” tab. ⇒ Select all locations by clicking on them while the <Ctrl> key is depressed. ⇒ Activate the context sensitive menu and select “Add to Model” and “Location”. ⇒ Press the <Continue> pushbutton.

Move Locations If locations should be moved on the map, press the <Move> 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 <Ctrl> key is depressed. ⇒ Activate the context sensitive menu and select “Add to Model” and “Location Product”. ⇒ On the upcoming screen press the <Multiple Selection Change> pushbutton. ⇒ Define “Tdd*” as the product number. ⇒ Press the <Execute> pushbutton. ⇒ Press the <Continue> pushbutton. ⇒ Press the <Execute Query> pushbutton. ⇒ Press the <Continue> pushbutton.

Press the <Save> and <Exit> pushbuttons.

1.2.2.4 Step 4: Create Transportation Lanes Create various transportation lanes linking your locations and allowing goods movements within them. 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 <Change Model> pushbutton. Select the “Transportation Lanes” tab and press the <Connect> pushbutton on top of the map. Then perform the following tasks:

Create a transportation lane from location TddPP11 to TddDC01 (beware of the direction!). To do 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 of the transportation lane. Note that transportation lanes are direction dependent.

Press the <Creation of a new Entry> pushbutton in the ”Product Procurement” block. Define the following data while leaving all fields that are not mentioned blank.

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⇒ Product Selection o Product TddPR01 o All Products this flag must be off

⇒ Validity o Start Date 01.01.2001 o End Date 01.01.2011

⇒ Form of Procurement o Standard set this flag

Press the <Copy> pushbutton. Change the product number to TddPR02. Press the <Copy and Close> pushbuttons. Click on the <Creation of a new Entry> 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). ⇒ Validity

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

⇒ Parameters o Transportation Calendar TddTS01 o Transportation Duration 24:00 o Trip Distance 100 o Transportation Cost and UoM 0.1 PC (Piece)

Press the <Copy and Close> pushbuttons. Press the <Header Data> pushbutton. ⇒ Transportation Planner APO ⇒ Description “as required”

Press the <Copy and Close> pushbuttons. Press the <Back> 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. 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 <Change Model> pushbutton. Select the

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

Create inbound quota arrangement for location TddDC01. To do so select the location, open the context sensitive menu and choose “Quota Arrangements – Change Incoming Quota Arrangements”. A new screen will come up allowing the maintenance of the quota arrangement.

Press the <Creation of a new Entry> pushbutton in the ”Quota Arrangements” block. This creates 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 flag o Requirements Grouping <blank> o Min Split Quantity and UoM 100 PC (Piece)

Press the <Copy and Close> pushbuttons. Select your newly created line in the “Quota Arrangements” block and press the <Display

Quota Arrangement Position> pushbutton. Then press the <Creation of a new Entry> pushbutton in the ”Quota Arrangement Items” block. This creates the first line item of the quota arrangement.

Press the <Quota Arrangement for Location> pushbutton. Select Location TddPP11 using the <Selection> 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 <Copy> pushbutton. Select Location TddPP12 using the <Selection> 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 <Copy and Close> pushbuttons. Press the <Back> pushbutton. Press the <Save> and <Exit> 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, to name 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). The field “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 “program” field and select the <Execute> 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 <Execute> pushbutton and confirm possible upcoming messages. Press the <Back> pushbutton. Repeat the steps above with the same data but for location TddDC02. Press the <Back> 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 the heuristic 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 side of the screen).

Press the <Selection Window> pushbutton. Set the “Show” field to “APO – Location Product”. Set the condition “APO – Planning Version” field to “Tdd”. Press the <Save Selection> pushbutton and provide a unique selection description (Tdd

Products). Press the <Save> and <Adopt> 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 the right to the left.

Press the <Save> and <Copy> 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 <Change> pushbutton. Press the <Heuristic (Network)> 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 <Total Demand> key figure to open the key figure line. This will display

all elements that make out the total requirement. Double click on the <Total Supply> key figure to open the key figure line. This will display all

elements 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 <Close> pushbutton. Press the <Save> pushbutton.

Repeat all relevant steps for the second product.


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1.2.3 SDP Building Block 3 – Rough-Cut Production Planning 1. Product Master (Component only) 2. Resource Master 3. PPM 4. Assign to SCM 5. Run Heuristics 6. Capacity Leveling 7. 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” radio pushbutton and then select the <Create> 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 product o Base unit kg (kilogram)

⇒ SNP2 o Forecast Horizon 7 o Pull Deployment Horizon 28 o Production Horizon 14 o Stock Transfer Horizon 2 o Push Deployment Horizon 28

⇒ Procurement o Procurement Type F o Planned Delivery Time 5

Press the <Save> 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 <Create> 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 switch over to single mixed resource creation, and to define the resource name, resource category, and the factory calendar in the grid. Once the type of resource is defined it cannot be changed anymore.

Select the “Single Mixed” tab and type in the following values: ⇒ General Data

o Resource Tdd-PP11-SMR01 o Resource Category P o Location TddPP11 o Factory Calendar AU o Press <Enter>

⇒ Standard Capacity o Start 06:00:00 o End 22:00:00 o Press <Enter>

⇒ Short Texts o Language EN o Description “as required”

Press the <Save> pushbutton. Select the newly created resource Tdd-PP11-SMR01 and then press the <Copy Resources>

pushbutton. On the upcoming window specify the new resource name (Tdd-PP11-SMR02) and description. Press the <Copy Object> pushbutton. Repeat the last three tasks in this step for the next resource Tdd-PP12-SMR01 in location

TddPP12 and then again for the last resource Tdd-PP12-SMR02 in location TddPP12. Press the <Save> and <Exit> pushbuttons.

1.2.3.3 Step 3: Create Production Process Model (PPM) In this step two production process models will be created, each using one finished product and two components. The plan will be called Tdd-PLANyy (with dd being your initials, and yy a counter). The embedded PPM will be called Tdd-PPMyy (with dd being your initials, and yy a counter). From the APO tree structure select Master Data > Production Process Model

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Name the plan to be created (Tdd-PLAN01) and the usage type (S). Ensure that all other fields on the initial screen are left as they are and then press the <Create Plan> pushbutton.

When the next screen appears, type in a description of the plan. Next, type in an operation description (e.g. Op. 10) for operation “0010”. Double click on the operation you just defined to open the “activities” sub-screen. In the sub-screen, maintain the following values: ⇒ Activity no. 100 ⇒ Description Activity 100 ⇒ Activity type P (Produce)

Double click on the activity you just defined to go to the next screen. Under the “Components” tab, type in the component numbers you have created previously

while using the following values: ⇒ Product TddPR11 and TddPR12 ⇒ Location TddPP11 ⇒ I/O I (Input) for both ⇒ Consumption type S (Start) for both ⇒ Variable Consumption 1 for both

Click on the “Mode” tab to create a new mode while using the following values: ⇒ Mode 10 ⇒ Primary resource Tdd-PP11-SMR01 ⇒ Unit of measure D (Days) ⇒ Duration (fix) 1

Double click on the Mode line you just defined to open the Resources sub-screen and maintain the following fields: ⇒ Unit MIN ⇒ Var. Bucket Consumption 10

Press the <Return to Activity> pushbutton. Press the <Return to Operation> pushbutton. Press the <Return to Plan> pushbutton.

Next, type in the operation description (e.g. Op. 20) for operation “0020”. Double click on the operation you just defined to open the “activities” sub-screen. In the sub-screen, maintain the following values: ⇒ Activity no. 200 ⇒ Description Activity 100 ⇒ Activity cat. P (Produce)

Double click on the activity you just defined to go to the next screen. Under the “Components” tab, type in the finished product number you have created previously

(TddPR01) while using the following values: ⇒ Product TddPR01 ⇒ Location TddPP11 ⇒ I/O O (Output) ⇒ Consumption type E (End) ⇒ Variable Consumption 1

Click on the “Mode” tab to create a new mode while using the following values: ⇒ Mode 10

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⇒ Primary resource Tdd-PP11-SMR02 ⇒ Unit of measure D (Days) ⇒ Duration (fix) 1

Double click on the Mode line you just defined to open the Resources sub-screen and maintain the following fields: ⇒ Unit MIN ⇒ Var. Bucket Consumption 10

Click on the pushbutton <Activity Relationships>, which has got two arrows, one going up,

and one down. Define the relationship on the predecessor tab using the following values: ⇒ Operation 0010 ⇒ Activity 100

Press the <Return to Operation> pushbutton. Press the <Return to Plan> pushbutton.

Press the pushbutton <Product Plan Assignment> and define the following values: ⇒ Production Process Model Tdd-PPM01 ⇒ Description (as required) ⇒ Location TddPP11 ⇒ Minimum Lot Size 1 ⇒ Maximum Lot Size 9999999999

Click on the pushbutton <Check Plan>. Confirm the upcoming warning. A message should

come up confirming that the PPM is error free. Only proceed if this is the case. Click on the pushbutton <Activate>. Confirm the upcoming warning. A message should come

up confirming that the plan has been activated. Press the <Save> pushbutton, confirm the upcoming message and select the <Back>

pushbutton twice.

Repeat all of the above steps for the plan Tdd-PLAN02, using the resources in location TddPP12. The PPM will be called Tdd-PPM02 and created for the location TddPP12.

1.2.3.4 Step 4: Assign Data to Supply Chain Model In order to use the created master data objects, they must be linked to your work area and supply chain model. 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 <Change Model> pushbutton. Perform the following tasks:

Assign Resources to your Work Area

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Select the “Resources” tab and then activate the context sensitive menu on it. Select “Add Objects to Work Area”. On the upcoming “Select Work Area” screen define “Tdd*” (with dd being your initials) as the “Internal Characteristics (from) Value”. This ensures that all resources starting with “Tdd” will be added to your work area. Press the <Copy> pushbutton. All resources can be seen in the tree structure on the left hand side of the screen. They are displayed with an icon that looks like an inverse one-way-street sign, symbolizing that the products are in the work area, but not in the model.

Assign Resources to your Supply Chain Model Select (highlight) all of your resource icons in the tree structure and activate the context sensitive menu on it. Select “Add to Model”. Confirm the upcoming message.

Assign PPM’s to your Work Area Repeat the same tasks accordingly for the newly created Production Process Models.

Assign PPM’s to your Supply Chain Model Repeat the same tasks accordingly for the newly created Products.

Press the <Save> and <Exit> pushbutton.

1.2.3.5 Step 5: Run Heuristics Run SNP heuristics-based network planning. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning


Refer to the previous “Heuristics Planning Step” and perform tasks accordingly. Press the <Heuristics (Multi-Level)> pushbutton instead of the <Heuristic (Network)>

pushbutton.

1.2.3.6 Step 6: Capacity Leveling View the capacity load of your resources and level them as required. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning On the upcoming Interactive Planning Screen perform the following tasks:


Press the <View Selection> pushbutton Set the “Show” field to “APO – Resource”. Set the condition “APO – Planning Version” field to “Tdd”. Press the <Save Selection> pushbutton and provide a unique selection description (Tdd

Resources).

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Press the <Save> and <Adopt> pushbuttons. Your resources should appear in the top left section of the screen. Double click on the “Selection Profile” bar and drag your newly created selection ID from the

right to the left. Press the <Save> and <Copy> pushbuttons. Double click on the first resource line at location “TddPP11” and the resource load should

appear in the grid on the right hand side of the screen. All data for the first resource is loaded now and capacity leveling can be started. We will perform the leveling for the first of our resources.

Press the <Change> pushbutton. Press the <Capacity Leveling> pushbutton and navigate through the upcoming screens. Select “Capacity Leveling by Backward and Forward Scheduling” and <Continue Enter>. Select “Time Based Capacity Leveling without Priority Rule” and <Continue Enter>. Clear the field “Firm Result Quantity” and <Continue Enter>. Confirm possible upcoming messages. Investigate the results and “play” around to make yourself familiar with this screen. Press the <Save> and <Back> pushbuttons.

1.2.3.7 Step 7: Release Forecast to DP This optional exercise can only be carried out if the Demand Planning exercises were completed beforehand! From the APO tree structure select Supply Network Planning > Environment > Release to Demand Planning

On the upcoming entry screen enter the following data: ⇒ Planning Version Tdd ⇒ Target Planning Area TddPADP ⇒ Target Planning Version Tdd ⇒ Horizon From Date 01.01.2002 ⇒ Horizon To Date 31.12.2002 ⇒ Product TddPR01 ⇒ Location TddDC01

Press the <Extended> pushbutton and enter the following data on the upcoming entry screen: ⇒ Characteristic Product TddCH01 ⇒ Characteristic Location TddCH03

Press the <Key Figure Assignment> pushbutton and enter the following data on the upcoming entry screen: ⇒ Data Transfer Type Key Figure Copy ⇒ Category Group DF1 ⇒ Semantik LC: Original Quantity ⇒ Destination Key Figure TddKF09

Press the <Save> and <Back> pushbuttons. Press the <Execute> pushbutton.

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Press the <Back> pushbutton.

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1.2.4 SDP Building Block 4 – SNP Optimization 1. Update Master Data (Cost Fields) 2. Run SNP Optimization 3. Release Forecast to DP

1.2.4.1 Step 1: Update Master Data (Cost Fields) SNP Optimization requires extensive cost data maintenance before the planning can be carried out. This is done in this step. From the APO main menu select Master Data > Supply Network Planning Master Data > Maintain Costs (Directory)

Specify the planning version (Tdd) and select <Enter>.

Select the “Production” tab. Open the “Production Cost” tree. Open the “PPM” tree. Select the PPM “Tdd-PPM01” and press the <Change> pushbutton. Set the “Single Level Cost” to “10” and press the <Save> pushbutton. Repeat the above steps for the other PPM’s.

Select the “Storage” tab. Open the “Stock Keeping Cost” tree. Open the “Products” tree. Open the “TddPR01” tree. Select the location “TddPP11 and press the <Change> pushbutton. Set the “Product Storage Cost” to “0.01” at production plants and to “0.02” at distribution

centers. Set the “Safety Stock Penalty” to “1” and press the <Save> pushbutton. Repeat the above steps for the other locations of the product. Repeat the above steps for the other products in all locations.

Select the “Transport” tab. Open the “Transport Cost” tree. Open the “Transportation Lanes” tree. Open the Transportation Lane “TddPP11 – TddDC01” tree. Select the Transportation Method “Truck” and press the <Change> pushbutton. Set the “Transportation Costs” to “0.1” per “PC”. Set the “Transportation Method Variable Cost” to “0.1” and press the <Save> pushbutton. Repeat the above steps for the other transportation lanes and methods.

Select the “Others” tab. Open the “Procurement Cost” tree.

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Open the “TddPR01” tree. Select the location “TddPP11’ and press the <Change> pushbutton. Set the variable cost as follows: ⇒ Products TddPR01 and TddPR02 1000 ⇒ Products TddPR11 and TddPR12 2

Press the <Save> pushbutton after each update. Repeat the above steps at the other locations for the products accordingly.

Select the “Others” tab. Open the “Delay/No Delivery” tree. Open the “TddPR01” tree and press the <Change> pushbutton. Set the penalties as follows: ⇒ For Customer Demand

o Penalty for ND 110 o Delay Penalty 10 o Maximum Delay 10

⇒ For Forecast Demand o Penalty for ND 110 o Delay Penalty 10 o Maximum Delay 10

⇒ For Corrected Forecast Demand o Penalty for ND 110 o Delay Penalty 10 o Maximum Delay 10

Press the <Save> pushbutton. Repeat the above steps for the other products.


1.2.4.2 Step 2: Run SNP Optimization Since the cost data has been defined, the SNP Optimization planning can be carried out. Note that any change of the cost data setting potentially has the affect that the planning result changes. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning On the upcoming Interactive Planning Screen perform the following tasks:


Double-click on the previously created selection profile for products. Select all products and then press the <Load Data> pushbutton. This loads all selected products

in their respective locations. Press the <Change> pushbutton. Press the <Optimization Run> pushbutton. On the upcoming screen select the following data:

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⇒ Optimization Profile MAX001 ⇒ Cost Profile DEFAULT

Press the <Products> pushbutton to confirm that all relevant products are included. Press the <Continue> pushbutton. Press the <Execution Optimization> pushbutton and confirm a possibly upcoming “Save”

message. Press the <Back> pushbutton. Press the <Save> pushbutton.

1.2.4.3 Step 3: Release Forecast to DP In order to release an optimization based SNP plan, a special transaction exists. From the APO tree structure select Demand Planning > Environment > Release SNP confirmed Forecast to Demand Planning

On the upcoming entry screen enter the following data: ⇒ SNP Optimization Run ⇒ SNP Key Figure ⇒ Product TddPR01 ⇒ Location TddDC01 ⇒ DP Planning Version Tdd ⇒ DP Planning Area TddPADP ⇒ DP Planning Object Structure TddMPOS ⇒ DP Key Figure TddKF10

Press the <Execute> pushbutton. Press the <Back> pushbutton.

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1.2.5 SDP Building Block 5 – Deployment and TLB 1. Deployment 2. TLB

1.2.5.1 Step 1: Deployment Deployment is orientated towards the distribution of products that are (stock), or will be (procurement orders) available. In this step the previously created production orders at the manufacturing locations will be used to satisfy the distribution center demand. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning On the upcoming Interactive Planning Screen perform the following tasks:


Press the <Deployment Settings> pushbutton and verify the following settings: ⇒ Deployment Horizon in Days 21 ⇒ Procedure Refer to last SNP run ⇒ SNP Orders Reduce (Collapse)

Double-click on the previously created selection profile for products.

Double click on the first product line at location “TddPP11”, and the previously created supply and demand elements should appear in the grid on the right hand side of the screen.

Press the <Change> pushbutton. Press the <Deployment> pushbutton. Press the <Save> pushbutton. View the impact for the product in location “TddDC01”

Repeat all relevant steps for the next product at location “TddPP12”. View the impact for the product in location “TddDC01”

1.2.5.2 Step 2: TLB The TLB run converts single product deployment orders into multi product TLB orders. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning On the upcoming Interactive Planning Screen perform the following tasks:

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Press the <Transport Load Builder View> pushbutton. Press the <Selection Window> pushbutton. Set the “Show” field to “APO – Transportation Lane”. Set the condition “APO – Planning Version” field to “Tdd”. Press the <Save Selection> pushbutton and provide a unique selection description (Tdd T/Ls). Press the <Save> and <Adopt> pushbuttons. Your transportation lanes should appear in the top left section of the screen. Double click on the “Selection Profile” bar and drag your newly created selection ID from the

right to the left. Press the <Save> and <Copy> pushbuttons. Double click on the transportation lane from “TddPP11” to “TddDC01”. The previously

created deployment orders should appear in the grid on the right hand side of the screen (Deployment Stock Transfers).

Press the <TLB Parameter> pushbutton and the following settings: ⇒ Start Date “Today” ⇒ End Date “Today plus 1 year” ⇒ From “Today” ⇒ To “Today plus 1 year”

Press the <Start TLB> pushbutton to convert deployment orders into TLB orders. They are visible in the “TLB Shipments” section.

Double-click any order in the “TLB Shipments” section to view its details in the “Order Items” section.


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1.2.6 SDP Building Block 6 – Make It Easy 1. Basic Safety Stock 2. Extended Safety Stock 3. SNP Demand Profile 4. SNP Supply Profile

1.2.6.1 Step 1: Basic Safety Stock You will update the two product masters TddPR11 and TddPR12 in both production plants with the appropriate safety stock settings to enable safety stock quantity and demand related definitions. From the APO tree structure select Master Data > Product

Specify your product number TddPR11 and location TddPP11, click the “Location” radio pushbutton and then select the <Change> pushbutton.

On the next screen select the appropriate tab and define the following: ⇒ Lot Size

o Safety Stock Method SB o Safety Stock 500

Press the <Save> pushbutton. Repeat all of the above tasks for the same product in the next location (TddPP12).

Specify your product number TddPR12 and location TddPP11, click the “Location” radio pushbutton and then select the <Change> pushbutton.


o Safety Stock Method SZ o Safety Days’ Supply 10

Press the <Save> pushbutton. Repeat all of the above tasks for the same product in the next location (TddPP12).

Press the <Exit> pushbuttons. Run SNP heuristics-based network planning. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning


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Refer to the previous “Heuristics Planning Step” and perform tasks accordingly. Carry out the planning for both products TddPR01 and TddPR02. Use the <Heuristics (Multi-Level)> pushbutton.

1.2.6.2 Step 2: Extended Safety Stock You will update the two product masters TddPR11 and TddPR12 in both distribution centers with the appropriate safety stock settings to enable safety stock quantity and demand related definitions. After that, the extended safety stock calculation takes place. From the APO tree structure select Master Data > Product

Specify your product number TddPR11 and location TddDC01, click the “Location” radio pushbutton and then select the <Change> pushbutton.


o Safety Stock Method AS o Service Level 95 o Target Days’ Supply 1

Press the <Save> pushbutton. Repeat all of the above tasks for the same product in the next location (TddDC02).

Specify your product number TddPR12 and location TddDC01, click the “Location” radio pushbutton and then select the <Change> pushbutton.


o Safety Stock Method BS o Service Level 95 o Target Days’ Supply 1

Press the <Save> pushbutton. Repeat all of the above tasks for the same product in the next location (TddDC02).

Press the <Exit> pushbuttons. From the APO tree structure select Supply Network Planning > Planning > Safety Stock Planning

On the upcoming screen define the following parameters. ⇒ Planning Area T00PASNP ⇒ Planning Object Structure 9AMALO ⇒ Planning Version Tdd ⇒ Product From TddPR01 ⇒ Product To TddPR02

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⇒ Location From TddDC01 ⇒ Location To TddDC02 ⇒ Planning Buckets Profile T00SBPSNP ⇒ Safety Stock SAFETY ⇒ Demand Forecast 9ADFCST ⇒ Demand Forecast Level 100 ⇒ Procurement Forecast Level 100 ⇒ Planning Area T00PADP ⇒ Planning Object Structure T00MPOS ⇒ Planning Version Tdd ⇒ Realized Demand T00KF01 ⇒ Planned Demand T00KF09 ⇒ Start Date 01.01.2001 ⇒ End Date 31.12.2001 ⇒ Forecast Error Level 100 ⇒ Realized Delivery Time “blank” ⇒ Planned Delivery Time “blank” ⇒ Start and End Date “blank” ⇒ Forecast Error Level “blank” ⇒ Flag for Results Log “on”

Press the <Save as Variant> pushbutton. Specify a variant name and description on the upcoming screen and press the <Save>

pushbutton. Press the <Execute> pushbutton. View the result. Press the <Exit> pushbutton twice.

Run SNP heuristics-based network planning. From the APO tree structure select Supply Network Planning > Planning > Interactive Supply Network Planning


Refer to the previous “Heuristics Planning Step” and perform tasks accordingly. Carry out the planning for both products TddPR01 and TddPR02. Use the <Heuristics (Multi-Level)> pushbutton.

1.2.6.3 Step 3: Create SNP Demand Profile Create a demand profile, which can be linked to the product master record. From the APO main menu select Master Data > Product

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From the Product Master initial screen, select “SNP: Demand Profile”. Type in the name of the profile to be created (TddSNPDP). Press the <Create> pushbutton. Enter the following values for the profile: ⇒ Profile Description Tdd D Profile ⇒ Forecast Horizon 7 ⇒ Pull Deployment Horizon 21 ⇒ Period Split <blank> ⇒ Promotion Lead Time <blank>

Press the <Save> pushbutton.

Specify your first product number (TddPR01) and location (TddDC01), click the “Location” radio pushbutton and then select the <Change> pushbutton.

On the next screen select the appropriate tab and define the following: ⇒ SNP2

o SNP Demand Profile TddSNPDP Press <Enter> to see that the profiles are now used instead of the directly defined data. Press the <Save> and <Exit> pushbuttons.

1.2.6.4 Step 4: Create SNP Supply Profile. Create a supply profile, which can be linked to the product master record. From the APO main menu select Master Data > Product

From the Product Master initial screen, select “SNP: Supply Profile”. Type in the name of the profile to be created (TddSNPSP). Press the <Create> pushbutton. Enter the following values for the profile: ⇒ Profile Description Tdd S Profile ⇒ Production Horizon 14 ⇒ Stock Transfer Horizon 2 ⇒ Push Deployment Horizon 21 ⇒ Deployment SS Push Horizon <blank> ⇒ Firm Production off ⇒ Fix Transports off

Press the <Save> pushbutton.

Specify your first product number (TddPR01) and location (TddDC01), click the “Location” radio pushbutton and then select the <Change> pushbutton.

On the next screen select the appropriate tab and define the following: ⇒ SNP2

o SNP Supply Profile TddSNPSP Press <Enter> to see that the profiles are now used instead of the directly defined data. Press the <Save> and <Exit> pushbuttons.

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